Globalisation Flashcards
1
Q
Comparative advantage
A
An economies ability to produce a particular good or service at a lower opportunity cost than trade partners
2
Q
Absolute advantage
A
An economies ability to produce a good more efficiently than other countries, using the same resources
3
Q
Globalisation
A
Process in which economies become increasingly integrated and inter-dependent
4
Q
Causes
A
Trade blocs, growth of mnc’s, mobility of labour
5
Q
Pros
A
Lower prices
Benefits of trade
Greater employment
Benefits from large economies of scale
free movement of labour & capital
tech inovation
6
Q
Cons
A
Inequality
higher structural unemployment
Lack of sustainability
Trade imbalance
Greater risk of external shocks
Less cultural diversity
7
Q
Trans-pacific partnership
A
40% of world trade
