Globalisation Flashcards
Definition of developing countries?
A nation with a lower living standard, underdeveloped industrial base and low HDI relative to other countries.
E.g Hong Kong
Definition of a developed country?
A sovereign state that has a highly developed economy and advanced technological infrastructure relative to other less industrialised nations.
E.g US
Definition of a multinational cooperation?
A cooperation that is registered in more than one country or that has operations in more than one country. It is a large cooperation which both produces and sells goods or services in various countries.
E.g Google, Apple, Microsoft
Causes of globalisation?
- improved communication= more info for consumers
- reduced transport costs e.g containers on large ships
- trade liberalisation= fewer barriers e.g reduction in quotas+tariffs
- increased competition of manufactured goods
- increased skills level of world labour
Benefits of globalisation to developED countries?
- consumers have a wider choice
- domestic firms can export to a wider market
- lower costs of production
- increased inward investment e.g call centres in India
How do MNCs develop globalisation?
- FDI (foreign direct investment)= investment by a cooperation based in one country, into a cooperation in another country
- takeover of production in other countries
- ^ increases employment in LEDC’s
Problems of globalisation to developED countries?
- industry may begin to thrive in LEDCs at expense of jobs in UK+other MEDCs e.g textiles
- unemployment
- rise of interdependence in economies e.g credit crunch
- exploitation of workers
Benefits of globalisation to developING countries?
- employment
- better quality of life
- higher rates of growth
- lower number in extreme poverty
Problems of globalisation to developING countries?
- no guarantees that wealth from inward investment will benefit local community
- pollution, poor safety, poor working conditions, low wages
- dilute local traditions+customs
- drive local firms out of business
Opportunities created by globalisation for UK?
- cheaper imports= less inflation+interest rates, boosts consumer welfare)
- potential increasing export sales (AD)
- overseas investment
- migration of labour
- rapid technological change
Threats created by globalisation to UK?
- manufacturing industries bust
- jobs in service sector industries
- structural unemployment
- widening of rich-poor divide
- social+economic tension from migration
- global environment
What are the BRICS?
=developing/newly industrialised countries
Brazil,Russia,India,China,South Africa
Possible graphs to use?
- LRAS right= increased employment
- structural unemployment
- AD right= increased technology
Definition?
The process of increased integration and cooperation of different national economies, sharing industrial and service activities
Characteristics?
- Greater trade in goods and services between nations+within regions
- Increase in transfers of capital e.g FDI
- Development of Global brands
- Spatial division of labour: outsourcing production
