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

Explanation

Globalization is a process of interacting and sharing technology, knowledge, skills with other nations through different modes like:

• Trade
• Political co-operation
• Science
• Media
• Culture Exchange

It is the ongoing social, economic, political process that broadens and deepens the relationship and interdependencies amongst different countries, their people, government, and firms. International business is responsible for facilitating the process of globalization. The power remains in the hands of stock bonds and currency traders moving fund. It is beneficial for the multinational corporations looking for more efficient, low cost producers.

Explanation

The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period. It is one of the key indicators of economy. It deals with the exports and imports of visible items only and considers only merchandise exports and imports only.

Importance of Balance of Trade Are

• It shows how a country competes in a global market place
• It determines the health of economy and its relationship with the rest of the world.
• It includes physical goods and intangible services.
• Important piece of understanding the global puzzle of international trade.