Globalisation Flashcards
What is globalisation?
Globalisation is the economic integration of different countries through increasing freedom in the cross- border movement of people, goods/services, technology & finance
What are the characteristics of globalisation?
Increasing foreign ownership of companies
Increasing movement of labour and technology
Free trade in goods and services
Easy flow of capital through borders
What are the factors contributing to globalisation?
Containerisation
Lower trade barriers
Business demand
Technological advances
What are the key points for containerisation?
Faster
Safer
Cheaper
Not labour intensive
More efficient
What are the advantages of globalisation for consumers?
Cheaper goods
More choice
Quicker
Cultural expense
Work/live abroad
Travel
What are the advantages of globalisation for firms?
Access to more markets
Cheaper factors of production (cell)
Can outsource jobs
International investors
Increase labour market
Better skilled workers
What are the advantages of globalisation for the government?
More exports
Increased GDP
Unemployment falls
More tax revenue from tariff
Foreign relations
Tourism
What are some advantages of globalisation?
Economies of scale
More competitive markets
Reduced the extent of extreme poverty
Freer movement of labour between countries
What are disadvantages of globalisation for consumers?
Loss of jobs
Collapse of specific industries
-shipping
- mining
- manufacturing
Inequality
What are the disadvantages of globalisation for firms?
More competition
Lower prices = lower profits
What are the disadvantages of globalisation for the government?
Increased unemployment
Less income tax
More welfare spending
Over reliance on exports
What are the disadvantages of globalisation?
Rising inequality / relative poverty
Threats to global command
Greater exploitation of the environment
Structural unemployment
Dominant global brand
