Globalisation Flashcards
Define Globalisation
the growing interconnectivity between nations and cultures
Indicators/ drivers of globalisation
Trade (liberalisation), FDI flows, Growth of MNC, technological change, homogenisation of cultures
Benefits of globalisation for devlopING nations
LOWER PRICES, BETTER PRODUCTS, HIGHER CHOICE
higher competition, greater scope for economies of scale, increased specialisation- increased International trade
good for consumers
ECONOMIC GROWTH, higher export potential, more FDI- more employment, more investment, development of industries internationally competitive LR
DEVELOPMENT, growth, higher household incomes, tax revenues used to provide merit goods and improve key infrastructure, transfer of technologies, reduction in absolute poverty
Costs of globalisation
ENVIRONMENTAL DAMAGE- unsustainable use of natural resources, destruction of habitats, large scale pollution, intensifying issues surrounding climate change
GROWING INEQUALITY- economic growth and gains for trade have not been distributed evenly
LOSS OF CULTURAL IDENTITY- cultural diversity has reduced, same brands and types of products found everywhere, cultural identity fundamental to fulfilment of lives
GREATER RISK OF SHOCKS- now reliant on the performance of other economies to contribute to domestic macroeconomic performance, as illustrated in the financial crisis of 2008