Major effects of Globalisation Flashcards
1
Q
What are the major effects?
A
Strong Trade and FDI connected to higher growth and decline in poverty. High value activities that Trade and FDI bring are responsible (e.g. Apple makes most value in USA with design, while low value acitivities like assembly and extra products are made in developing countries.
More integration means a rise in inequality. (Russia example).
This leads to political upsets (Brexit and Trump), however these things can be handled if the institutions are stronger and able to handle them; Scandinavian Countries for example are more egalitarian in handling taxes, spending, education and retraining.
