The global economy flashcards
What does the global economy do ?
The global economy connects countries through trade, making the world a single market place.
What is globalisation ?
Globalisation allows the free movement of goods, services, labour and capital, impacting prices and culture.
How has the world become a big marketplace?
Countries trade goods and services with each other, making the world function as one large economic system.
What is globalisation, and how does it impact production and consumption?
Globalisation is the integration of production and consumption in markets worldwide. It allows businesses to sell products globally and for consumers to access goods from different countries.
How have transport and communication influenced global trade?
Improved transport and communication have made international trade easier and faster, allowing businesses to connect with global markets.
Why are labour and capital more mobile in the global economy?
People and money move across countries based on demand and supply, making it easier for businesses to invest and hire workers globally.
How has globalisation affected product prices worldwide?
Prices of goods have become more equal due to increased competition and easier access to global products.
Why do some people criticize globalisation?
They believe it leads to economic inequality, job losses in certain countries, and cultural homogenization.
How is globalisation linked to capitalism?
It strengthens capitalism by encouraging free markets, private businesses, and international competition.
How has globalisation affected cultural diversity?
It has led to cultural homogenization, where people around the world wear the same clothes, eat the same food, and buy the same products, reducing cultural uniqueness.
How does globalisation benefit domestic consumers?
It gives consumers access to a wider range of imported goods, offering more choices and sometimes lower prices.
What is an advantage of the free movement of capital in a global economy?
It allows investment in poorer countries, creating jobs and economic growth.
what are the advantages and disadvantges of the global economy
greater variety
more jobs
increased investment
increased economic growth
struggle to compete
workers can be exploited
what are the characteristics of the global economy
free movement of labour, trade, and capital
