Th4.1: Impacts of Globalisation on Producers

Question 1

What are the three impacts of globalisation on producers?

Answer 1

reduces risk
exploit comparative advantage
unable to compete

Question 2

Reduces risk

Answer 2

firms are able to source products from more countries and sell them in more countries. this reduces risk since a collapse of the market in one company will have a smaller impact on the business

Question 3

Exploit comparative advantage

Answer 3

they are able to employ lower skilled workers much cheaper in developing countries and can exploit comparative advantage and have larger markets - both of which can increase profits

Question 4

Unable to compete

Answer 4

firms who are unable to compete internationally will lose out