Older MCQs might not have the typical A, B, C,
D
choices. They
have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such
combinations to the answer.
A
1, 2 and 3 are correct
B
1 and 2 only are correct
C
2 and 3 only are correct
D
1 only is correct
Definition of globalisation. Role of multinational companies (MNCs) and the costs and benefits to their host and home countries. The benefits of free trade for consumers, producers and the economy in a variety of countries. Methods of protection: Tariffs, import quotas, subsidies and embargoes. Reasons for protection including infant industry, declining industry, strategic industry and avoidance of dumping. Consequences of protection: Effectiveness of protection and its impact on the home country and its trading partners.
The basis for specialisation at national level in broad terms of: superior resource allocation and/or cheaper production methods. Advantages and disadvantages of specialisation at a national level for consumers, firms and the economy.
