globalisation Flashcards
what is globalisation
the process by which countries become more interconnected with eachother, through the increased movement of trade, people and money between them
how is globalisation caused
by improvements in technology, such as communication and transport
a lessening of protectionist measures supports globalisation
benefits of globalisation
more jobs in export industries
more international sources of investment for firms
increased economies of scale leading to cheaper goods and services
access to new technologies and ideas from parts of the world
drawbacks of globalisation
countries are more vulnerable to external shocks arising in other countries
structural unemployment in uncompetitive industries
more need to match international wage rates
what is the world trade organisations role
based in Switzerland
its role is to:
set the rules for trade between countries
intervien in trade disputes between countries
promote the removal of protectionism between countries
