The international economy Flashcards
What are the 5 main causes of globalisation?
-Advances in technology: Faster communication and transportation connect global markets
-Trade liberalisation: Reduction of tariffs and quotas makes international trade easier
-Growth of multinational corporations (MNCs): MNCs expand operations across borders, spreading investment and jobs
-Financial deregulation: Freer capital flows allow more investment between countries
-Consumer demand: Increasing global demand for diverse goods and services.
What are the 5 main characteristics of globalisation?
-Increased international trade: Higher volume of goods and services exchanged worldwide
-Cross-border investment: More foreign direct investment (FDI) by multinational corporations
-Cultural exchange: Ideas, information, and cultural products moving across countries
-Global supply chains: Production spread across countries for efficiency
-Labour mobility: Greater movement of workers between countries
What are the pros of globalisation for less-developed countries?
Pros: Job creation, technology transfer, access to new markets.
Cons: Potential exploitation, environmental degradation, dependence on MNCs.
What are the benefits of globalisation for more-developed countries?
Access to cheaper imports, larger markets for exports, investment opportunities
What role do multinational corporations play in globalisation?
-Investing in multiple countries: Expanding global markets and creating jobs
-Establishing global supply chains: Sourcing materials and production globally
-Transferring technology: Bringing new technologies and management practices to host countries
-Influencing local economies: Impacting employment, wages, and local businesses through their presence
What are the cons of globalisation for less-developed countries?
Job losses in some industries, increased competition, potential wage pressure
