Costs and Benefits of Globalisation

Question	Answer
Define Globalisation	The process of increased integration and co-operation of different national economies.
What has globalisation created?	1. Greater free trade 2. greater movement of labour 3. increased capital flows 4. growth of multi-national companies 5. increased integration of global trade cycle
Is free trade a cost or benefit of globalisation? what does it mean?	Free trade is a benefit. It is a way for countries to exchange goods and resources.
What are the benefits when countries specialise in producing goods (free trade)?	1. Lower prices for consumers 2. Greater choice of goods. 3. Bigger export markets for domestic manufacturers 4. economies of scale through being able to specialise in certain goods 5. greater competition
What are the benefits of Globalisation?	1. Free Trade 2. Free movement of labour 3. Increased economies of scale 4. Greater competition 5. Increased investment
What are the costs of globalisation?	1. Free trade can harm developing economies 2. environmental costs 3. Labour drain 4. less cultural diversity Tax competition and tax avoidance
Why is 'increased economies of scale' a benefit to globalisation?	1. Production is increasingly specialised. 2. It enables goods to be produced in different parts of the world. 3. it enables lower average costs and lower prices for consumers

Resource summary

	Created by Jene Jackman-Skele over 6 years ago