What are the causes of globalisation
Improvements in transport
Improvements in It
Containerisation
Trade liberalisation
What does improvement in IT lead to
Increased international movement of capital
What does improvement of transport lead to
Increased movement of labour
What effect does containerisation have on a supply and demand diagram?
A shift in supply to the right meaning that price decreases and quantity demanded increase
What does containerisation lead to
An increase in international trade
What is trade liberalisation?
The decrease in trade barriers
What impacts does globalisation have on individual countries?
+ Increase in living standards
- Increase in overdependence
What are impacts of globalisation on governments?
+ increase in tax revenues
- Tax avoidance (TNCs have daughter companies in countries with different tax regulations so they are able to pay less tax)
What is the impact of globalisation on producers?
+ decrease production costs
- High barriers to entry for smaller businesses
Impacts of globalisation on consumers?
+ Wider choice and lower price (increase in international trade)
- Decrease in happiness (Consumers are more driven to own things that they cannot own)
Impact of globalisation on workers
+ increase in opportunities
- structural unemployment (when the structure of an economy has changed and people working In a sector may lose their job due to changes)
