Flashcards
Globalisation
Cards in this deck (18)
- 1What is globalisation?Economies coming together as one to form a "world economy."
- 2What is an example of this?Some firms and brands can be sold throughout the world, e.g. McDonalds.
- 3What is allowing globalisation?- Technology and improvements in transport.
- Communication, e.g. Skype.
- Internet access.
- Growth of trading blocs, e.g. EU, NAFTA, ASEAN
- Growth of countries like China - 4What are some benefits of this to the business?- Greater choice of raw materials
- Cheaper raw materials
- Firms can expand - reap economies of scale
- More opportunities for labour and capital.
- - 5What are some benefits for countries/consumers?- Cheaper goods
- Greater choice of goods
- Greater potential for growth for developing economies
- Greater employment opportunities
- Transfer of technology to developing economies
- Increased FDI - 6What are some limitations to the country/consumers of globalisation?- Increase gap between rich and poor.
- Dominance of global trade by rich northern hemisphere countries.
- Lack of opportunities for the poor
- Exploitation of workers
- Loss of cultural identity
- Large MNCs putting small traditional firms out of power
- Tax avoidance
- Exploitation of non-renewable resources - 7How does corporate expansion link the globalisation?- MNCs can reap benefits of globalisation to expand.
- This allows them to have lower costs
- Economies of scale
- Control key suppliers - 8What are some evaluation points for globalisation?- Accountability of global businesses
- Tax evasion - Starbucks
- Exploitation of workers and resources
- Ethical responsibility of business
- Political dominance of powerful countries or corporations - 9How has trade liberalisation been a factor in globalisation?The removal of tariffs gives the birth of trade blocs. This allows firms to sell goods and services in new foreign markets without penalties. This allows firms to outsource, etc.
- 10How has political change led to globalisation?Some radical changes in the political regimes have helped to increase globalisation. E.g. the strong communist grip on the nation was loosened, trade gradually opened up and China became a member of the WTO.
- 11How has reduced cost of transport and communication led to globalisation?Goods can be transported cheaper, it is easier for firms to have operations all over the world, the internet has allowed for global markets.
- 12How has increased significance of global transnational companies led to globalisation?Multinationals play a large and growing role in the world economy - they make significant contributions to world GDP, e.g. McDonalds or Coca-Cola.
- 13How has increased FDI led to globalisation?This is where a firm makes an investment in a foreign country. This can help to contribute to the development of emerging nations. FDI spreads business activity, job creation and wealth all over the globe.
- 14How has migration led to globalisation?Migrants often import their cultures into their new environment, they prove low-cost labour to a nation, a significant portion of the money earned by migrants is sent back to their place of birth. Some migrants are highly skilled people so can make big contributions to firms and national income.
- 15What is an example of migration?Workers have been moving from inland regions to coastal cities within China, in search of better jobs and opportunities.
- 16What is a supposed disadvantage of migration?It may lead to social instability, in that sectors of the population may blame immigration for a range of domestic problems, like overcrowding and unemployment. Due to this, governments are under pressure to reduce migrant flows.
- 17How has growth of the global labour force led to globalisation?A bigger global market helps to drive global demand, because people in employment earn money which can be spend on goods and services. The rising supply of labour forces wages down.
- 18How has structural change led to globalisation?The UK is moving away from primary and secondary sectors and moving into tertiary sectors (finance.) China's structural market changes as they move towards manufacturing - primary sector.
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- AS - Level Business Studies (THEME 4) Flashcards on Globalisation, created by Jessica Ridley on 19/03/2017.
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- Jessica Ridley
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