Globalisation Flashcards
1
Q
What factors have caused globalisation?
A
Growing businesses
Removal of barriers
Advances in technology
Advances in transport
2
Q
What are the advantages for UK businesses?
A
- greater potential for more revenue
- greater access to raw materials
- increased trade and trade links
- benefit from economies of scale: cost of production falls the more we produce
- location flexibility: can move to where it’s cheaper
3
Q
What are the disadvantages for UK businesses?
A
- increased competition
- need to invest in high quality products
- uk manufacturing sector has declined: cheaper to buy abroad
- foreign firms locating in the UK: higher competition on the doorstep
4
Q
What factors both promote and prevent globalisation?
A
- Saturation of demand
- Must be a time where rate of technology will slow: rate of advancement will be both the opportunity and threat to globalisation
5
Q
What factors lead to economies slowing down?
A
- prices falling because of drop in demand
- ageing population: rate of education and skill improvement slows down
- political standards and conflict ie. Countries not racing
6
Q
What have been the BENEFITS for emerging economies?
A
- they have economic growth, meaning more people benefit from higher income
- education and trading opportunities increase the development of new skills
- firms choosing to relocate causes foreign direct investment (FDI) creating more jobs and contributing to economy
7
Q
What have been the PROBLEMS for emerging economies?
A
- inflation: people want to be paid more so unemployment rates go up
- exploitation ie. Employing young children
- benefits not always spread throughout large area
8
Q
What is globalisation?
A
The creation of one world market with the ability for companies to trade anywhere in the world
