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Economics Unit 4 > Globalisation > Flashcards

Flashcards in Globalisation Deck (7)
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What is globalisation?

It refers to the increased flow of labour, capital and trade between different countries and a breakdown of barriers.


Characteristics of globalisation (5)

1. Growth in free trade between countries
2. Growth in movement of labour and capital across national borders.
3. Increased importance of global financial system
4. Growth in trading blocs
5. Growth in multinational firms that operate around the world.


Causes of Globalisation (6)

1.Growth of free trade- countries closely integrated
2. Multinational companies
3. Technology- improve communications
4. WTO (world trade organisation) - reduce barriers
5. Trading blocs
6. Opening up of China and Eastern bloc- open


Impact of globalisation on countries/ government (3)

1. Global trade cycles- economy likely to be the same in similar countries
2. International co-operation- importance of reaching global agreement increased
3. Interdependence- e.g China and Africa


Impact of globalisation on workers (4)

1.New opportunities- working abroad
2. Wages- helped equalise wages
3. Foreign direct investment- help gain manufacturing jobs in developing countries
4. Skilled labour- Higher the skill= more benefit


Impact of globalisation on firms (4)

1.Domestic firms uncompetitive- small pushed out
2. Lower costs for multinationals- labour cost low
3. Economies of scale- global scale production
4. Impact on firms in developing world- benefitted less


Impact of globalisation on the environment (1)

Environmental costs- carbon pollution increased