4.1.1 Globalisation Flashcards
Globalisation
Globalisation refers to the increasing international interdependence amongst economies over a period of time.
Factors contributing to globalisation: improvements in infrastructure
-Improvements in transport infrastructure and operations have meant there are
quick, reliable and cheap methods to allow production to be separated around the
world.
-Improvements in IT and communication allow companies to operate across the
globe
-Trade liberalisation and reduced protectionism has made it cheaper and more
feasible to trade; this has been occurring since 1945. The breakdown of the soviet
bloc and the opening of China has shown a whole area of the world for business to
expand into.
-International financial markets have provided the ability to raise money and move
money around the world, necessary for international trade.
- TNCs (large companies operating around the world) have led to globalisation by
acting to increase their own profit as they want to take advantage of low labour costs.
They sell and produce their goods all around the world and have the power to lobby
governments
Factors contributing to globalisation: Improvements in IT and communication
-Improvements in IT and communication allow companies to operate across the
globe
Impacts of globalisation: workers
-Increased migration - lowers
Impacts of globalisation: consumer
-Greater choice - wider range of goods and services available from all around the world, not just those produced in the UK.
-Lower price - firms take advantage of comparative advantage and produce in countries, with lower costs of production.
-(Or) higher prices - as incomes are rising there is a higher demand for goods and services.
Impacts of globalisation: producers
Impacts of globalisation: government
-Higher tax revenue -
Impacts of globalisation: environment
Impacts of globalisation: economic growth
