Globalisation 3.7 Flashcards
Globalisation definition
is a process in which economies have become increasingly integrated and inter-dependent
What is protectionism? (SCDI-FFI)
shielding a country’s domestic industries from foreign competition by taxing (quotas/tariffs) imports
What are soft loans
A government might support a failing business by providing generous terms on a loan
What is global strategy (sp-mnoc- ww)
when a business produces a single product (possibly with sight variants) to meet the needs of consumers across a worldwide market
What are subsidies (GPPPU)
government can provide payments to a domestic producer for each unit they make. This can lead to artificially low prices
Key points about globalisation
globalisation is dynamic rather than an end state
globalisation is not inevitable
How the world economy has changed
the worlds economy is changing rapidly
since 1980 the share of global economic output has shifted towards asian-pacific countries who now dominate
Key features of globalisation
GB, DSOL, IC
-Trade to GDP ratios are increasing for most countries
-expansion of financial capital flows between countries
-foreign direct investment and cross border M&A
-rising number of global brands- including emerging countries
-deeper specialisation of Labour
-global supply chains & new trade and investment routes
-increasing levels of international Labour migration
-increasing connectivity of people and business through mobile networks
Key characteristics of globalisation (T,GB, UOO)
greater trade across boarders in goods and services
an increase in transfers of capital
the development of global brands
greater use of outsourcing
Key characteristics of globalisation (high lol m, ISPCI, NN-JTS)
-high levels of Labour migration
-new nations joining the trading systems
-a shift in the balance of financial power
-Increasing spending on capital investment
Factors contributing to globalisation (T,C,EOS)
containerisation (cost of shipping)
technological change
economies of scale
less protectionism
growth of MNC’s and transnational corps
Benefits from globalisation (CM, HIPC, FM)
1- competitive markets
2-enhanced growth has led to higher per capita incomes
3- free movement
4-gains from the sharing of ideas
5- improved governance
Drawbacks from globalisation (i, env, un)
1- inequality
2- vulnerability to external economic shocks
3- threats to the global environment
4- race to the bottom
5- unemployment
6- standardisation
7- dominant global brands
