Flashcards
Globalisation
Cards in this deck (5)
- 1GlobalizationThe ever increasing integration between worlds national, regional and local economies into a single international market.
- 2Characteristics of globalization1. Free trade across national boundaries
2. Free movement of labor
3. Free movement of capital between countries
4. Free interchange of technology and intellectual capital - 3Causes of globalization1. Trade in goods. Developed countries manufacturing abroad. Developing countries acquiring capital equipment and the know-how to produce manufactured goods
2. Trade in services. India has become a wold leader in software writing and selling these skills to companies in developed economies
3. Trade liberalization. Lower protectionist barriers have encouraged growth in world trade
4. Multinational companies. MNC's have the economies of scale and technological knowledge to make products that are both cheap and technologically advanced.
4. International financial flows. Countries like Malaysia and China have financed part of their fast economics growth from inward flows of international capital.
5. Communication and IT. Developments in communications and IT have shrunk the time needed for economic agents to communicate with each other. - 4Impact on consumers1. Consumer choice. The availability of goods and services has considerably increased with globalization leading to greater choice
2. Prices. A fall in prices for some goods and services. This is because production is being switched from high cost locations to low cost locations and access to better technology. However, globalization is raising average world incomes. Higher income means higher demand for individual products. Where supply is not perfectly elastic in the long run, this puts upward pressure on prices.
3. Incomes. Globalization has raised incomes around the world, hence, consumers are able to buy more goods. - 5Impact on workers
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- Flashcards on Globalisation, created by Ishra Haq on 19/04/2019.
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- Ishra Haq
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