Globalisation Flashcards
1
Q
Characteristics of globalisation
A
- trade to GDP ratios increase
- capital flows between countries
- FDI access
- rising no. of global brands
- deeper specialisation of labour
- global supply chains
- new trade and investment routes
- migration increases
- increased connectivity
2
Q
Causes of globalisation
A
- containerisation (decrease shipping costs)
- technological change
- economies of scale (decrease in MES)
- differences in tax systems
- less protectionism
3
Q
Advantages of globalisation
A
- reduce scale of monopolies
- higher per capita incomes from enhanced growth
- freer movement
- sharing of skills and ideas
- developing countries can borrow money from capital markets opening
- awareness of global issues
- competitiveness - improved governance and labour protection
4
Q
Disadvantages of globalisation
A
- rising inequality/relative poverty
- threats to global commons e.g. Sea
- macroeconomic fragility (shocks affect more people)
- trade imbalances
- structural unemployment (shifting of manufacturing)
- dominant global brands and MNCs
- poor behaviour of some MNCs
5
Q
Rapid growth of MNCs
A
- global brands want revue
- search for economies of scale
- need to operate in many countries to avoid protectionism
6
Q
Benefits of MNCs
A
- jobs
- skills
- spending
- competition
- tax revenues
- choice
7
Q
Disadvantages of MNCs
A
- competition
- may not act ethically or morally correct
- imposing culture
- profits are returned
- exploit working conditions
- use of transfer pricing and tax avoidance
8
Q
Brands caught using child labour or sweatshops
A
Calvin Klein
Nike
