Globalisation Flashcards
1
Q
globalisation definition
A
process in which national economies have become increasingly integrated and interdependent
2
Q
what is an open economy?
A
open to trade in goods, services, labor, capital
3
Q
give examples of large open economies?
A
USA and Germany
4
Q
Characterisitics of globalisation?
A
- growth of international trade
- trade liberalisation
- enhanced mobility of labour, capital
- increased cultural exchange
- increased outsourcing
- growth of MNC’s
5
Q
Causes of globalisation?
A
- trade agreements
- less protectionism
- expansion of global trading blocks
- improved technology
- containerisation
- economies of scale
- differances in tax systems
- greater labour mobility
- Growth of MNCs
6
Q
benefits of globalisation?
A
- improved allocation of resources
- economic growth and poverty reduction
- inward investment
- specialisation
- greater competition, lower prices, greater choice, better quality
7
Q
Costs of globalisation?
A
- inequality (widen gap, developing countries benefit less)
- environmental impacts
- structural unemployment (developing countries )
- movement of labour (best talent leaves devloping)
- trade imbalances
- damages cultures
8
Q
What are MNCs?
A
base their manufacturing, assembly, research and retail operations in several countries
9
Q
What impact did MNCs play in globalisation?
A
- capital inflows and investment into other countries
- economies of scale, lower prices
- generate employment
- develop infrastructure (training, transport)
- diversify businesses
- standards
10
Q
Evaluation for globalisation?
A
- benefits are not evenly spread
- widened relative poverty
- environmental damage
11
Q
Effects of slowbalisation?
A
-weak economic growth
- non tariff barriers
- raising prosperity
- technological change
- trade wars
- brexit
- supply chain shocks
- ethical issues
- environmental issues
