Flow of products, services and infomation Flashcards
Why has Globalisation lead to an increase in flow of product?
more products need to be transferred from their place of manufacturing to their chosen market
What has helped flow of products? (3)
- Containerisation. Millions of shipments being moved cheaply and quickly around the world each year
- Removal of tax and tariffs
- Encouragement of global trade from WTO.
What hinders the flow of products?
Protectionism. This is where governments want to protect home-base industries. This results in additional tariffs on imports.
Why are services easily traded in a globalised world?
They have no localised ground. Can be located anywhere in the world, like call centres, and serve the same purpose.
What is a high-level service?
Services to businesses such as finance, investment and advertising
What is a low-level service?
Services for consumers such as banking, tourism, call centres, communication services and travel. Can be outsourced to developed nations.
What is service defined as?
An economic activity, which is traded without the production of material goods.
What has allowed the flow of information around the world?
Mitigation and technology (communication)
What as the flow of information lead to?
multiculturalism and information sharing about different cultures. Widespread sharing of ideas assisting research and development in all fields.
