globalisation 4.1 Flashcards
1
Q
define globalisation
A
Process in which national economies have become increasingly integrated and interdependent
2
Q
causes of globalisation
A
- Trade liberalisation – WTO, less trade barriers
- Trading blocs
- Growth of MNC’s
- Technological advancements
- Mobility of labour and capital
3
Q
pros of globalisation
A
- Lower prices – due to international competition
- Benefits of trade – trade blocs + wto = below
- Greater employment
- Benefits from large EoS
- Free movement of labour and capital (FDI)
- Technological transfers and innovations
4
Q
cons of globalisation
A
- Growing inequality
- Higher structural unemployment
- Environmental costs
- Trade imbalances – deficits which could lead to protectionist policies and trade wars
- Greater risk of external shocks – 2008 financial crisis
- Less cultural diversity – normative – loss of identity
5
Q
Impacts of globalisation on consumers
A
- wider choice
- lower prices
- can lead to rise in prices as incomes rise
- loss of domestic culture
6
Q
On workers
A
- deindustrialisation
- migration = higher comp for labour
- fall in wages
- TNCs provide training for workers
7
Q
On producers
A
- diversify product sources and consumer base = lower risk
- can outsource to cheaper labour countries
8
Q
On government
A
- higher taxes, since TNCs and migrant workers pay tax
- TNCs can gain political influence
9
Q
On environment
A
- increased demand for raw materials - China
- more emissions
- allows for global summits and meetings on CC
10
Q
On economic growth
A
- higher investment
- TNCs bring employment and technology
- trade increases output
