globalisation

Question 1

characteristics of globalisation

Answer 1

• increased international trade - trade liberalisation
• offshoring and global outsourcing - moving production abroad
• greater international mobility of labour
• greater international mobility of capital
• falling transport costs and ‘death of distance’
• deindustrialising of MEDCs and rise of NICs
• growth of MNCs - declining of national governments

Question 2

positive consequences of MEDCs

Answer 2

• offers large markets for unfinished products
• increased trade brings improved living standards
• improved terms of trade (ratio of export prices to import prices)

Question 3

negative consequences for MEDCs

Answer 3

• firms ability to offshore/outsource makes workers in some industries more vulnerable, reducing work
• the protectionism that prevents primary producers in LEDCs from exporting goods into MEDCs means consumers do not fully recieved gains from trade

Question 4

positive consequences for LEDCs

Answer 4

-increased employment
- increased investment
- increased training and productivity
- increased tax revenue for gov
- increased incomes and standards of living
- possible multiplier effect

Question 5

negative consequences for LEDCs

Answer 5

• jobs are low skilled and low paid
• sweatshops
• loss of cultural identity
• profits remitted to home counties so multiplier reduced
• lack of domestic investment
• deterioration of terms of trade