4.1.1 Globalisation Flashcards
5 characteristics of globalisation
1) Increased international movement of labour
2) Increased international movement of financial capital
3) Increased specialisation
4) Increased international trade
5) Increased trade-to-GDP ratios
4 factors contributing to globalisation?
1) Increased improvements in transport - movement of labour
2) Increased improvements in IT - increased FDI
3) Containerisation
4) Trade liberalisation
Impact of globalisation on individual countries?
+ Increased living standards - comparative advantage means specialisation – leads to increase in world real GDP e.g. China 14trn
- Overdependence – more specialisation means more dependence on that industry 80% of Nigerian exports is oil
Impact of globalisation on governments?
+ Increased tax revenues – due to increased international trade
- Transfer pricing - Apple was fined £11bn by the EU for doing this
Impact of globalisation on producers?
+ Lower production costs - trade liberalisation makes imports of raw materials cheaper
- Increased international competition - can force some t close if they can’t compete
Impact of globalisation on consumers?
+ Wider choice & cheaper prices – Containerisation lowers costs and hence prices - increased international trade - wider range of goods available
- Loss of culture - e.g. KFC in Nigeria
Impact of globalisation on workers?
+ Increase in international job opportunities – improvements in transport - easier to find jobs abroad – IT has allowed remittances - incentive to work abroad
- Structural unemployment – Lower costs abroad meant countries gained comparative advantage – increased specialisation – industries are move abroad – people lose jobs e.g. UK Steel industry to China
Impact of globalisation on environment?
+ Global cooperation to fight climate change – increased interdependence - relationships must be good between nations – more likely to cooperate on climate change e.g. Kyoto protocol
- Increase in global warming – increase in international trade & production - more CO2 emissions