globalisation (4.4) Flashcards
what is globalisation
the expansion of world trade in goods and services, together with capital flows, leading to greater international interdependence
what are the driving factors of globalisation
- increase international trade
- improvements in transportation
- worldwide foreign investment
- advances in tech and communications
what is development
the process of increasing peoples standard of living and wellbeing over time
what are the methods of measuring development
- GDP per capita
- life expectancy
- access to health care
- technology
- education
benefits of globalisation for producers in developed countries
- wider market to sell into
- cheaper and wider range of resources
- advances in tech
- cheaper and more skilled workforce
costs of globalisation for producers in developed countries
- possible decline of industry
- venerability to problems in the worldwide economy
costs of globalisation for workers in developed countries
- unemployment : a whole industry may go in to decline due to global competition and then lead to unemployment
- unemployment due to new technology advances
- increase in immigrations
benefits of globalisation for workers in developed countries
- increased employment due to increased output
- increased employment due to investments
- increased geographical mobility
benefits of globalisation for consumers in developed countries
- wider range range of goods
- lower prices for goods : more competition
- better quality goods
- greater opportunity to travel
- improved services due to more skilled workers
costs of globalisation for consumers in developed countries
- less choice due to global brands : eg. fall in fast food companies due to mac Donald’s
- volatility and rising prices: more consumers competing for good leads to increased prices eg. fuel
benefits of globalisation for producers in less developed countries
- wider markets to sell into
- advances in tech
- increased foreign investment
costs of globalisation for producers in less developed countries
- not able to compete
- loss of skilled workers to immigration
costs of globalisation for workers in less developed countries
- increased use of tech so unemployment
- increased gap between rich and poor
- poor working conditions
benefits of globalisation for workers in less developed countries
- increased employment due to more output
- increased employment due to investments
- increased geographical mobility
benefits of globalisation for consumers in less developed countries
- wider range range of goods
- lower prices for goods : more competition
- better quality goods
- greater opportunity to travel
