Globalisation Flashcards
1
Q
Globalization
A
Growing interconnection of the worlds economies
2
Q
Interdependence
A
Where the actions of one country or large firm will have a direct effect on others
3
Q
MNCs
A
Multinational corporations - operate in many different countries
4
Q
Saturated
A
Market in which there is a more of a product for sale than people want to buy
5
Q
Features of globalization
A
- Good and services are traded freely across international borders
- People are free to live and work,on any country the choose
- Interdependence
- Capital can flow between different countries
- Free exchange of techniques and intellectual property across borders
6
Q
Reasons for globalization
A
- Fewer tariffs and quotas
- Reduced costs of transportation
- Reduced costs of communication
- Increased significance of MNCs
7
Q
Globalization on individual countries
A
- Benefits: higher GDP, extra output, extra employment, economic growth, improved living standards
- Drawbacks: interdependence between countries
8
Q
Globalization on governments
A
- Benefits: gain revenue, supports macroeconomic objectives of lowering unemployment
- Drawbacks: countries cannot trade if international borders are closed
9
Q
Globalization on producers
A
Access to huge markets, lower costs, reduced taxation
