Globalisation

Question 1

What are the characteristics of globalisation?

Answer 1

• increased international movement of labour
• increased international movement of financial capital
• increased specialisation
• increased international trade
• increased trade-to-GDP ratios

Question 2

What are the causes of globalisation?

Answer 2

• improvements in transport
• improvements in IT
• containerisation
• trade liberalisation

Question 3

Impacts on countries

Answer 3

• advantage = increase in living standards
• disadvantage = overdependence

Question 4

Impacts on the government

Answer 4

• advantage = increase government revenue (tariffs)
• disadvantage = transfer pricing (tax avoidance)

Question 5

Impacts on producers

Answer 5

• advantage = lower production costs (relocate process to countries with cheapest labour e.t.c)
• disadvantage = ^^ relocation of TNCs builds high barriers to entry for small firms, as lower prices

Question 6

Impacts on consumers

Answer 6

• advantage = more choice and lower prices (international trade)
• disadvantage = negative affect on consumer happiness (Diderot effect)

Question 7

Impacts on workers

Answer 7

• advantage = increased international opportunity (international movement of labour)
• disadvantage = structural unemployment (specialisation)

Question 8

Impacts on the environment

Answer 8

• advantage = increased global cooperation to tackle climate change
• disadvantage = increased climate change