Globalisation

Question 1

Globalisation

Answer 1

A process in which national economies have become increasingly integrated, interconnected and interdependent

Question 2

Key drivers of globalisation (6)

Answer 2

• Technological change
• Pursuit of EOS
• Reduction in protectionism
• Growth of multinational companies
• Transport and containerisation
• Tax systems to increase FDI

Question 3

Advantages of globalisation (5)

Answer 3

• Comparative advantage
• Increase in EG and living standards
• Increase in output and falling UE
• Increase in competition, increase In efficiency
• FDI = increase in EG

Question 4

Disadvantages of globalisation (4)

Answer 4

• Risk of rapid shocks (credit crunch)
• Inequality
• Exploitation of workers
• Structural UE

Question 5

Elephant curve

Answer 5

• Measured change in living standards from 1988 to 2008)
• BIC countries and richest 1% = 70% increase in living standards
• West middle and working class = no growth in living standards