E15 - Globalisation

• What is globalisation?

  Process of countries becoming interdependent
• How is globalisation achieved?

  Through increased trade and international collaboration
• Name one organisation that promotes globalisation.

  The World Trade Organisation (WTO)
• What has caused an increase in globalisation?

  Factors like rising living standards and MNCs
• What is one effect of rising real living standards?

  Consumers want to try new goods and services
• How do multinational corporations (MNCs) contribute to globalisation?

  By expanding outside their original market
• What is a benefit of reduced transport costs for globalisation?

  It makes transportation financially viable for firms
• How has new technology impacted globalisation?

  It has made communication easier across the globe
• What are the inter-linked factors of globalisation?

  • MNCs need consumers who can afford goods
  • Cheap transport is necessary for cost-effectiveness
  • No protectionism is needed for affordability
  • New technology aids in product awareness and payment systems
• What are the three stages of globalisation according to some arguments?

  Empires, corporate expansion, post-WW2 globalisation
• What is economic development?

  Process of increasing welfare over time
• What is GDP per capita used for?

  To measure development related to population
• Why is GDP per capita considered a narrow measure of development?

  It does not account for other important factors
• What does an increase in life expectancy indicate?

  Improved health care and living conditions
• How does access to health care relate to development?

  Better access leads to a healthier workforce
• What is the significance of education in development?

  It increases literacy rates and overall development
• What is the Human Development Index (HDI)?

  A composite indicator of development factors
• What is the relationship between GDP per capita and HDI?

  There is a strong link between the two
• What does a high HDI score indicate?

  More developed country
• What is the Genuine Progress Indicator (GPI)?

  A measure developed to investigate development
• What is a major conceptual difference between GPI and HDI?

  GPI includes factors beyond economic output
• What is a developed country characterized by?

  High GDP per capita and tertiary sector dominance
• What defines a less developed country?

  Low GDP per capita and primary sector dependence
• What are the costs and benefits of globalisation for developed countries?

  Benefits:

  • Increased range of goods for consumers
  • Access to international markets

  
  

  Costs:

  • Potential job losses in local industries
  • Increased competition for local businesses
• What has technology been used as an indicator of in the developing world?

  Enhancing financial institutions, commerce, and democracy
• Why is research and development (R&D) important for development?

  It indicates potential future growth of a country
• What defines a developed country?

  High GDP per capita and tertiary sector dominance
• What characterizes a less developed country?

  Low GDP per capita and primary sector dependence
• What are the costs and benefits of globalization for developed countries?

  Benefits:

  • Increased range of goods and services
  • Higher consumer incomes
  • Cultural experiences and immigration benefits

  
  

  Costs:

  • Competition harms smaller firms
  • Rising prices for scarce resources
  • Increased demand for local goods raises prices
• How has globalization benefited consumers in developed countries?

  By increasing the range of goods and services
• What negative impact has globalization had on smaller firms?

  They struggle to compete with big brands
• How has globalization affected consumer incomes?

  Incomes have risen due to increased demand
• What is a consequence of rising demand for scarce resources?

  It leads to increased prices for consumers
• How has globalization allowed consumers to experience new cultures?

  By increasing travel opportunities worldwide
• What is a benefit of increased immigration for developed countries?

  Filling skills gaps in the labor market
• What is a downside of increased immigration for local consumers?

  It raises demand for local goods and services
• How can producers benefit from globalization?

  By accessing lower wages and taxes globally
• What advantage do producers gain from expanding into global markets?

  Economies of scale reduce average costs
• What is a challenge faced by UK manufacturing firms due to globalization?

  Difficulty competing with Asian producers
• How can producers' access to global resources affect productivity?

  It can lead to lower costs and higher productivity