globalisation 4.1

Question 1

define globalisation

Answer 1

Process in which national economies have become increasingly integrated and interdependent

Question 2

causes of globalisation

Answer 2

• Trade liberalisation – WTO, less trade barriers
• Trading blocs
• Growth of MNC’s
• Technological advancements
• Mobility of labour and capital

Question 3

pros of globalisation

Answer 3

• Lower prices – due to international competition
• Benefits of trade – trade blocs + wto = below
• Greater employment
• Benefits from large EoS
• Free movement of labour and capital (FDI)
• Technological transfers and innovations

Question 4

cons of globalisation

Answer 4

• Growing inequality
• Higher structural unemployment
• Environmental costs
• Trade imbalances – deficits which could lead to protectionist policies and trade wars
• Greater risk of external shocks – 2008 financial crisis
• Less cultural diversity – normative – loss of identity

Question 5

Impacts of globalisation on consumers

Answer 5

• wider choice
• lower prices
• can lead to rise in prices as incomes rise
• loss of domestic culture

Question 6

On workers

Answer 6

• deindustrialisation
• migration = higher comp for labour
• fall in wages
• TNCs provide training for workers

Question 7

On producers

Answer 7

• diversify product sources and consumer base = lower risk
• can outsource to cheaper labour countries

Question 8

On government

Answer 8

• higher taxes, since TNCs and migrant workers pay tax
• TNCs can gain political influence

Question 9

On environment

Answer 9

• increased demand for raw materials - China
• more emissions
• allows for global summits and meetings on CC

Question 10

On economic growth

Answer 10

• higher investment
• TNCs bring employment and technology
• trade increases output