Globalisation Flashcards
Define Globalisation
Refers to the way countries are more connected politically, economically and socially
It is a move towards an intergated world
Change of a business from being associated with one country to multiple countries
What are the two types of globalisation
Market and Production
Explain market globalisation
Decline in barriers to sell in other countries
Easier to sell internationally
Need to take culture into consideration
Explain production globalisation
Sourcing materials and services from other countries to gain a price advantage
Lower prices for consumers
Impacts employment levels in source country
Individual effects of globalisation
Improved roads and transportation
Improved healthcare
Improved education
Negative impact on developed nations as people leave to developing nations
Corporate effects of globalisation
Dicates product life cycles
Developed countries suffer economically as developing nations have cheaper resources
Governmental effects of globalisation
Companies invest in countries with lower interest rates
Trade policies must be mutually beneficial and strike a balance
Advantages of Globalisation
Increased competition
Lower prices
Better variety of goods
Job creation in developing countries
Improved standard of living in developing countries
Disadvantages of globalisation
Multinationals can have a negative impact on developing countries
Skilled labour moves out of developed countries
Wages too low
Poor working conditions in developing countries
Advantaged the rich
Cultural dilution