Flashcards
Extract 1 -What you need to know
Cards in this deck (11)
- 1GlobalisaationThe process through which the worlds economies have become increasingly integrated and interdependant
- 2Causes of GlobalisationTrade liberalisation
Trading blocs
Growth of MNC's
Tech Advancements
Mobility of labour and capital - 3Pros of GlobalisationLower Prices
Trade benefits
greater employment
Benefits from economies of scale
Free movement of labour/capital
Tech transfer and innovation - 4Cons of GlobalisationGrowing inequality
Higher structural unemployment
Environmental costs (pollution/sustainable)
Trade imbalances
Greater risk of external shocks
Loss of culture - 5Indicators of GlobalisationGlobal brands
Global Sourcing
Transfer of Tech
Rise of MNC's - 6Absolute Advantagewhere one country can produce using fewer factors of production than others, leading to lower unit cost.
- 7Comparative Advantagestates a country should specialise where it can produce more efficiently and where the opportunity cost is lowest. Then trade with another county.
- 8Benefits from tradeInc efficiency and inc allocation of resources (comparative advantage)
Access to goods not produced domestically
Lower prices
greater consumer choice
economic growth - 9Types of ProtectionismTariffs
Quotas
Domestic subsidies
Red tape
Safety/Environment standards
Embargos - 10Why protectionism?Infant industries
Against Dumping
Protect Domestic employment
unfair low cost labour
Maintain Product standards
Raise Gov revenue
Improve Current account deficit
Avoid Over specialisation - 11TariffA tax or duty to raise the price of imports
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- A-Level A level Economics (F585) Flashcards on Extract 1 -What you need to know, created by . . on 16/06/2016.
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