Globalisation

Globalisation

1. Increased economic integration between countries

2. Causes

   • Decrease in transport costs
   • Decrease in communication costs
   • Reduction in world trade barriers
   • Collapse of communism
   • Trading blocs
   • Importance of TNCs
   • Increased FDI
   • Increase movement of labour

3. Benefits

   • Higher living standards
   • Economies of Scale
   • Lower prices
   • Increased consumer choice
   • Reduction in absolute poverty
   • Increase tax revenue
   • Technology transfer

4. Costs

   • Negative externalities
   • Over=dependence on imports
   • Increase in global economic shocks
   • Increased inequality
   • Exploitation of Labour
   • Exploitation of resources
   • Tax Avoidance