Globalisation critique Flashcards
Who benefits from globalisation?
- Transnational Corporations
- Newly Emerging/Industrialised Economies
- International Organisations (IMF, World Bank)
- Regional trading blocks
Benefits of trade blocks:
- Lower prices for consumers
- Access to larger, wealthier markets
- Competition leads to greater innovation
Cons of trade blocks:
- Exploitation of workers and poor working conditions
- More developed countries still protected by tariffs on agricultural products
How have newly industrialised countries benefited from globalisation?
Developed rapidly due to inward investment
Emerges to become major economic powers competing with the richer nations
How have TNC’s benefited from globalisation?
Growth in industrial and service sectors
How have international organisations benefited from globalisation?
Consolidated their positions and control in world affairs
How have regional trading blocks benefited from globalisation?
More trade agreements, benefit members involved
Explain the risks of economic interdependence:
A negative economic shock in one country can quickly spread to other countries
Cons of globalisation:
- Standardisations increases cultural homogeny, damaging individual traditions
- Increased awareness of global news can be used for propaganda purposed by terrorist organisations
Benefits of globalisation on developing countries:
- Transfer of skills, technology and capital
- Investments generates jobs and improves living standards
- Investments bring improvements in infrastructure
Cons of globalisation on developing countries:
- Too reliant on TNC investment
- Low wages from TNC’s
- TNC profits taken from the country
Name some impacts of globalisation:
TNCs outsource to LICs or NEEs
Greater sharing of ideas, lifestyles and traditions
Increased awareness of global news and events
Increased transportation of goods and people
Growth in regional trade blocks
What are the positives of TNCs outsourcing to LICs or NEEs?
Cheaper consumer goods
Greater choice for consumers as production has widened
Competition leads to greater innovation
What are the negatives of TNCs outsourcing to LICs or NEEs?
Exploitation of workers
Damage to the environment due to weak restrictions
Repatriation of profits back to HICs, slowing the growth of the economy in NEEs
What are the positives of greater sharing of ideas, lifestyles and traditions?
Greater cultural understanding leads to acceptance and less conflict
Access to foreign culture
