globalisation

globalisation

1. The characteristic of globalisation

   • free trade across national boundaries of goods and services.
   • free movement of capital between countries.
   • free movement of labour between countries, in the same that there is currently free movement of labour within the UK or within the EU.
   • free interchange of technology and intellectual capital.

2. The cause of globalisation

   • trade in goods.
   • trade in service.
   • trade liberalisation.
   • multinational companies.
   • international financial flows.
   • foreign ownership of firms.
   • Communication and IT Development.

3. Impact on consumers

   • consumers choice (increasing)
   • Prices are falling (production is being switched from high-cost location to low-cost locations.)
   • Incomes consumers can only buy good if they have incomes. overall, globalisation has raised incomes round the world. consumers therefore able to buy more goods. however, not every consumer has gained.

4. Impact on workers

   • Employment and Unemployment
   • Migration
   • Wages
   • multinationals (create jobs wherever they set up and operations.)

5. Impact on producers

   • specialisation an economies dependancy
   • Costs and Markets (globalisation allows firms to source product from a wider variety of countries and firms.)
   • Footloose Capitalism (firms which operate in several countries have the power to move production from country to country, creating and destroying jobs and prosperity in their wake. they do this to maximise their profit.)
   • Tax avoidance firms which operate in several countries have the possibility to engage in tax avoidance.