Th4.1: Impacts of Globalisation on Consumers

Question 1

What are the four impacts on consumers?

Answer 1

choice
lower prices
rise in prices
loss of culutre

Question 2

Choice

Answer 2

consumers have more choice since there are a wider range of goods available from all around the world, not just those produced in the UK

Question 3

Lower prices

Answer 3

it can lead to lower prices as firms take advantage of comparative advantage and produce in countries with lower costs, for example low labour costs

Question 4

Rise in prices

Answer 4

in other cases, it is leading to a rise in prices since incomes are rising and so there is higher demand for goods and services

Question 5

Loss of culture

Answer 5

many consumers worry about the loss of culture