globalisation Flashcards
1
Q
assumptions of comp adv
A
avg cop constant
no travel costs
no tariffs or trade barriers
2
Q
globalisation
A
more movement of labour, money, higher fdi
better transport and infrastcutre allows this
trade liberalisation
3
Q
cost and benefits of globalisation
A
increase living standards but overdependance
higher tax revenue via tariffs but transfer pricing and tax avoidance
lower cop via relocation but high b2e for small business and exploits
more choice low price
more international oppertunities
envi coop reduce co2 emissions by 2.5 but global warming
4
Q
TOT
A
relation between price of x and m
if it deteriorates it decreases living standards as you cant buy as many imports
examples of effectors include
raw material price
tariffs
changes in XR
inflation
