The world economy is experiencing international convergence, which means that economies are becoming more similar in their economic systems, adopting market capitalism. This is a result of the globalisation process, such as the internationalisation of the labour force, the dominance of TNCs on production process, the spread of telecommunications and the internet and the growth of international trade and investment. Barriers between nations have been eroded through the liberalisation of trade and the deregulation of financial markets.
Answers could include:
International business cycle
Political and legal changes
Reduction of protectionism
In better responses, candidates demonstrated a sound understanding of the term international convergence. These candidates provided a clear and concise explanation of how a factor or several factors have resulted in the world economy experiencing international convergence. Examples of these factors included reduced trade barriers, financial deregulation, the need for increased international competitiveness and the increasing role of international organisations such as the WTO (World Trade Organization).
In weaker responses, candidates did not understand the term international convergence. A large number of candidates thought that integration and globalisation were the same as international convergence.