4.1.1 Globalisation Flashcards
What does Globalisation refer to?
Globalisation refers to the growing interdependence of countries and the rapid rate of change it brings about.
How does the OECD define Globalisation?
The OECD defines Globalisation as the geographic dispersion of industrial and service activities along with the cross-border networking of companies through joint ventures and asset sharing
How can Globalisation be defined in terms of economic integration?
Globalisation is the increasing integration of the worlds local, regional and national economies into a single international market.
What are some movements associated with globalisation?
Globalisation includes movements towards free trade of goods and services, free movement of labour and capital and free interchange of technology and intellectual capital.
What are the 5 major factors contributing to Globalisation?
Trade liberalisation
Improvement in transport
Improvement in technology
International Financial Markets
Growth of TNC’s
What improvements in transport infrastructure have contributed to globalisation?
Improvements in transport infrastructure and operations have provided quick, reliable, and cost-effective methods for production to be separated around the world.
How have improvements in IT and communication contributed to globalisation?
Improvements in IT and communication have enabled companies to operate across the globe more efficiently.
How has trade liberalisation and reduced protectionism contributed to globalisation?
Trade liberalisation and reduced protectionism since 1945 have made trading cheaper and more feasible, opening up new areas of the world for business expansion.
How have international financial markets contributed to globalisation?
International financial markets have facilitated the raising and movement of money globally, which is necessary for international trade
How have TNCs contributed to globalisation?
TNCs (large companies operating globally) have driven globalisation by seeking to increase their profits, exploiting low labour costs, selling and producing goods worldwide, and influencing governments through lobbying.
What are positive impacts of globalisation on consumers?
Globalisation has led to consumers having a wider range of goods available from around the world, potentially leading to lower prices due to comparative advantage and EOS of businesses being passed onto consumers.
What are negative impacts of globalisation on consumers?
It could lead to higher prices, as incomes increases demand increases leading to demand pull inflation.
Some customers are also concerned with the cultural loss of products
How has globalisation negatively impacted employment?
Globalisation has led to job losses in the Western world’s manufacturing sectors while jobs have been transferred to countries such as China where costs are lower.
How has globalisation positively impacted employment?
There has been an increase in jobs available due to increased migration and international competitiveness
What impact has globalisation had on wages?
Globalisation has led to reduced wages or slower wage growth for low-skilled workers in developed countries, while increasing wages for high-skilled workers, contributing to income inequality.
