CH 35 Globalisation Flashcards
What is globalisation?
Growing interconnection of the worlds economies
What are the key features of globalisation?
-Goods and services are traded freely across international borders
-People are free to live and work in any country they choose
-There is a high level of interdependence between nations
-Capital can flow between countries
What are the reasons for globalisation?
-Fewer tarrifs and quotas
-Reduced costs of transport
-Reduced costs of communication
-Increased significance of MNCs
What is an MNC?
Corporations that operate in many different countries
What is the impact of globalisation on countries?
-An increase in income and GDP
-Lower unemployment
-Increased living standards
What is the impact of globalisation on governments?
-Increased tax revenue
-More exports
-Governments can ease their protectionist policies to aid globalisation
What is the impact of globalisation on the producers?
-Access to larger markets
-Lowers costs
-Access to more labour
-Lower taxes in certain countries
What is the impact of globalisation on the consumers?
-More choice
-Lower prices
-Better living standards
What is the impact of globalisation on the workers?
-More jobs
-Greater freedom of movement
-Exploitation of workers
-Offshoreing
What is offshoreing?
The practice of getting work done in another country in order to save money
What is the impact of globalisation on the enviornment?
-Increase in greenhouse gas emissions
-Increased waste and production
-Will use up resources
