4.4 Globalisation Flashcards
What is meant by globalisation? Give an example.
The interdependence of countries due to international trade. For example, McDonald’s is a company that sells its products worldwide.
What are the four driving factors behind globalisation?
- Reducing barriers to international trade
- Improvements in transport
- Foreign investment
- Advances in technology
How does reducing the barriers to international trade drive globalisation?
Leads to the easier movement of people, money and goods and services between countries. It has also made trading globally more profitable as their are lower costs. Eg: lower tariffs.
How have improvements in transport led to more globlalisation?
Has cut transport costs and the time it takes to tranport goods, making trade more efficient and allowing firms to gain economies of scale (such as through larger shipping containers).
How is foreign investment a driving factor behind globalisation?
Large TNCs have to invest in several countries in order to produce or sell in another country. This interdependence has created a larger trading network and thus globalisation.
How have advances in technology led to globalisation?
The internet has allowed producers to find suppliers of their resources faster. It has also enabled consumers to find a wider range of products, despite being made in foreign countries.
What is development?
The process of increasing people’s standard of living and wellbeing over time.
What are some measures of developement?
- GDP per capita
- Life expectancy
- Access to healthcare
- Technology
- Education
How does GDP per capita and life expectancy measure development?
An increase in GDP represents economic growth, where more workers are employed. This means they can afford to buy more and improve their standard of living.
Higher life expectancy means people live to a higher average age. This reflects the overall health of a population.
How does access to healthcare and technology measure development?
The availability of hospitals, medical facilities has a significant impact on wellbeing.
Having better technology like mobile phones improves access to education and services that can help individuals prosper.
How is education a measure of development?
The number of people accessing education and a high literacy rates directly correlates to increased future productivity. Having a better education can increase skills and employability of an individual.
What is a developed country classified as?
A country with high GDP per capita and established industry and services sectors.
Developed countries
What are three benefits of globalisation to producers?
- Wider markets to sell into which could increase economies of scale
- Cheaper and wider range of resources available
- Cheaper labour forces elsewhere. Eg: in China
Developed countries
What are three costs of globalisation to producers?
- Vulnerability to problems in a global market
- Possibility of increased production costs due to global regulations
- Can lead to closure if other firms are more competitive and drive others out of the market
Developed countries
What are some benefits of globalisation to workers?
- Increased employment due to more output and foreign investment
- Increased geographical mobility as workers have the ability to move anywhere in the world where their firm’s markets are
Developed countries
What are some costs of globalisation to workers?
- Producers may replace workers with machines to increase efficiency
- Their jobs may be replaced with cheaper labour elsewhere in the world
- Vulnerable to changes in global market which could impact how much firms need their labour
Developed countries
What are four benefits of globalisation to consumers?
- Wider range of good and services
- Lower prices due to competition
- Better quality and more innovative goods
- Greater opportunity to travel
Developed countries
What are three costs of globalisation to consumers?
- Rising prices from more consumers demanding the same goods and services
- Less choice from local shops as they are forced to close from competition with TNCs
- Vulnerable to price changes in global markets
How does globalisation impact economic sustainability in developed countries?
Initially it can have a negative impact on sustainability as being less competitive can have a large knock on effect on industry. Over time, they can adjust to these changes by becoming more efficient.
How does globalisation impact social sustainability in developed countries?
The benefits of lower priced goods and more variety can be good at first, however if there is increaed unemployment, this can lead to low standards of living.
How does globalisation impact environmental sustainability in developed countries?
It can be good as resources can be used most efficiently through specialisation. However, a drawback is that rapid growth can lead to pollution and the using up of non-renewable resources.
What does the term ‘less developed country’ mean?
A country with a developing economy that has a lower GDP per capita and lower levels of industrialisation. It also has weaker indicators of wellbeing.
Less developed countries
What are three benefits of globalisation to producers?
- Wider markets to sell into
- Advances in technology through the sharing of information or joint research
- Increased foreign investment which can have a positive effect in their firms
Less developed countries
What are three costs of globalisation to producers?
- Vulnerability to global problems, especially as they have fewer resources to deal with external shocks
- Increased migration as workers choose to work in developed countries
- Competition can drive out local businesses
Less developed countries
What are three benefits of globalisation to workers?
- Increased employment due to more output and foreign investment
- Increased geographical mobility as workers have the ability to move anywhere in the world where their firm’s markets are located
Less developed countries
What are three costs of globalisation to workers?
- Producers may replace workers with machines to increase efficiency
- Less regulation could lead to poor working conditions and lower pay
- Vulnerable to changes in global market which could impact how much firms need their labour
Less developed countries
What are four benefits of globalisation for consumers?
- Wider range of goods
- Greater opportunity to travel
- Better infrastructure due to foreign investment
- Access to global brands
Less developed countries
What are two costs of globalisation to consumers?
- Poor quality services due to migration of skilled professionals to developed countries
- Rising prices from more consumers demanding the same goods and services
How does globalisation impact economic sustainability in less developed countries?
Due to increase in international trade, there should be less unemployment, economics growth and greater tax revenue. However, this may not last if the TNC leaves.
How does globalisation impact social sustainability in less developed countries?
Increased employment leads to increased incomes which overall means better standards of living. However, these benefits are balanced by inflation and poor working conditions.
How does globalisation impact environmental sustainability in less developed countries?
It can be good as resources can be used most efficiently through specialisation. On the other hand, less developed countries may rely on primary and secondary sector markets which can deplete resources and cause more pollution.
