IGCSE Development Studies: Specimen Questions with Answers 50 - 51 of 98

Passage

Understand by Globalization

Question 50 (8 of 8 Based on Passage)

Edit

Write in Short

Short Answer▾

State 2 advantages and disadvantages of Globalization

Explanation

Advantages of Globalization

  • It helps other countries share information about technological developments to developing countries.
  • Globalization makes the economy of one country dependent on the economy of other countries.

Disadvantage of Globalization

  • Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor
  • Corporate influence of nations states far exceeds that of civil society organizations and average individuals.

Passage

Balance of Trade

Question 51 (1 of 7 Based on Passage)

Edit

Write in Short

Short Answer▾

Differentiate between BOP and BOT.

Explanation

Differentiate between BOP and BOT
S. no.BOTBOP
1.Transactions concerning trade of goods only are recorded.All transactions concerning goods, services and capital transfers are recorded.
2.Transactions of capital nature are not included in Balance of TradeTransaction of capital nature is also recorded in balance of payment.
3.Balance of Trade is a part of current account of balance of paymentBOP is much larger as it has current and capital accounts which include BOP too.
4.When exports of goods are higher than the imports of goods, BOT is considered as favorable.When net balance of current account is in plus. BOP is considered as favorable.