Globalisation Flashcards
1
Q
What is globalisation
A
A dynamic process in which national economies have become increasingly integrated and inter-dependent.
2
Q
Characteristics of globalisation
A
- trade to GDP ratios are increasing for most countries
- expansion of financial capital flows between countries
- FDI
- global brands
- specialisation of labour
3
Q
Key drivers of globalisation
A
- containerisation
- technological change
- economies of scale
- differences in tax systems
- less protectionism
4
Q
Key gains from globalisation
A
- benefits of deeper division of labour and economies of scale
- reduce the scale of monopoly profits
- increased growth & incomes
- freer movement of labour
- dynamic gains
- opening capital markets
5
Q
Main disadvantages / costs from globalisation
A
- rising inequality / poverty
- threats to global commons
- macro fragility
- trade imbalances
- structural unemployment
- dominant global brands
6
Q
Examples of some international / regional external shocks that can affect the demand and supply-side of their economies
A
- global financial crisis
- euro zone economic crisis
- volatile world commodity prices
- china slowdown
- trade and investment deals
- extreme weather events
7
Q
Top ten global economic risks 2016
A
- china experiences a hard landing
- UK votes to leave the EU
- collapse in investment in the oil sector prompts a future oil price shock
8
Q
De-globalisation
A
Since the Great Recession of 2008-2009 there has been a significantly slower growth of world trade
9
Q
Why is world trade growing slowly at the moment
A
- weak economic growth in many of the world’s richest countries
- slowing pace of trade liberalisation
- non-tariff barriers have grown and regional trade blocs have become more common
- rising prosperity
- technological change
