Globalisation Flashcards
What is globalisation?
Growing world marklets and increasing international trade
What five factors allow globalisation to occur?
Open economies.
Infrastructure.
FDI.
Trade liberisation.
Political change.
What is an open economy and how does it help globalisation?
An economy with no barriers and a free-market.
It helps globalisation by allowing other countries to trade with them, exchanging wanted raw materials or goods.
How does infrastructure help globalisation?
Allows trade to come in larger quantities allowing economies of scale to benefit the economy. Better transport links ensures less goods will be lost en route.
How does FDI help globalisation?
Provides access to new markets and customers and can benefit from economies of scale.
How does trade liberisation help gloablisation?
They reduce barriers that may make trading difficult like tarrifs or quotas.
How does political change help globalisation?
What is containerisation?
A system of standardised transport which uses large standard-size steel containers to transport goods, allowing containers to be transferred between ships, trains and lorries.
What are the benefits of containerisation?
Enables more efficient and cheaper transport, which increases competition within the market.
How has improved communications contributed to globalisation?
It has made it easier and cheaper to communicate, improving interconnectivity.
How has improved financial flows contributed to globalisation?
Improves the efficiency and speed of capital flows, allowing faster FDI.
How have MNCs contributed to globalisation?
MNCs are able to exploit economies of scale on a global scale, and exploit labour in other countries.
