Interdependance Flashcards
How has globalisation improved interdependance on trade?
More nations participating in global trade causes countries to rely on international imports to meet AD but also relying on exports to gain an export revenue and provide jobs for the workforce.
How has globalisation improved interdependance on technology?
Competing or co-operating with international businesses may provide innovations and new approaches which can improve the quality of a product or help to reduce production costs which make the product more attractive and affordable for the consumer.
How has globalisation improved interdependance on employment?
Structural unemployment due to deindustrialisation has shifted manufacturing from traditionally manufacturing countries such as the UK and The USA to China and Malaysia. Common Markets also provide a larger work force for companies / more work oppurtunities for the employee.
How has globalisation improved interdependance on industrialisation?
Globalisation has allowed emerging economies such as the BRIC countries to become industrialised which helps to boost their balance of trade.
How has globalisation improved interdependance on TNCs?
TNCs working multi-nationally often outsource their services and operations to foreign businesses which can oftentimes create large amounts of employment e.g Apple indirectly employs around 2 million people globally, most notably in China.
How has globalisatoin improved interdependance on investment?
More developed countries invest in LICs to exploit their cheap labour force and cheap raw materials by providing imprved infrastructure, ewmployment and technology. E.g Africa is China’s top recipient of aid with 45.7% of all Chinese Aid going to Africa in 2009.
How has globalisation improved interdependance on supply chains?
Manufactured goods are mostly manufactured seperately before reaching an assembly point ready to be shipped globally. For example, Trumps 25% tariffs on all cars and car parts means parts of the car may be taxed multiple times before reaching the consumer. It is estimated car prices will increase $4-10,000 for the average American, considering 45% of cars and light trucks sold in the USA are imported.
