4.1.1 Globalisation Flashcards
What is globalisation?
The ever increasing integration of the worlds local, regional and national economies into a single, international market
What does globalisation involve?
The free trade of goods and services, and he free movement of capital and labour and the free interchange of technology and intellectual capital
Factors contributing to globalisation
- Trade in goods
- Trade in services
- Trade liberalisation
- Multinational Corporations
- International financial flows
- Communications and IT
- Containerisation
What impact does globalisation have on individual countries?
There could be trade imbalances between countries.
There could be income and wealth i equalities if the benefits and costs of globalisation aren’t evenly spread.
Inequality between countries can also increase, as some countries gain more globalisation than others.
Culture could spread across globes
What impact does globalisation have on the governments
Some governments might lose the sovereignty due to the increase in international treaties
What impact does globalisation have on producers and consumers?
Consumers and producers can earn the benefits of specialisation and economies of scale as firms become larger
Firms operate i a more competitive environment, which encourages them to lower their average costs and become more efficient. This makes goods cheaper.
Producers can also make their average costs lower by switching production places with cheap labour.
General increase in world GDP, which i creases consumer living standards and helps lift people out of absolute poverty
What impact does globalisation have on workers
Workers can take advantage of job opportunities across the globe, rather than just in their home country
Could be structural unemployment
What impact does globalisation have on the environment
Deforestation
Water scarcity
Land degradation
Increased trade leads to higher emissions from the movement of goods
