4.6.9 The impact of globalisation on the UK economy

• What is the definition of globalization?

  Integration of national economies
• Match the aspect of globalization with its description:

  Increased Trade ↔️ Exchange of goods and services between nations

  Foreign Investment ↔️ Movement of capital and resources across borders

  Migration ↔️ Movement of people between countries

  Cultural Exchange ↔️ Transmission of cultural values and ideas
• What is one major economic benefit of globalization related to specialization and trade?

  Increased efficiency
• What is structural unemployment caused by globalization?

  Job losses and offshoring
• Inequality is a major economic challenge of globalization due to the uneven distribution of gains.


  True
• What are the four primary drivers of globalization according to the study material?

  Trade, investment, migration, culture
• Globalization has a worldwide scope and a significant impact on economic, social, and cultural dimensions.


  True
• Globalization is driven by trade, investment, migration, and the flow of information and culture
• Specialization and trade based on comparative advantage increase overall productivity
• Greater competition from foreign firms drives innovation and improves quality
• Structural unemployment occurs due to offshoring, automation, and skill mismatches
• Increased pollution, resource depletion, and carbon emissions result from expanded global production and consumption
• Cultural homogenization is a challenge of globalization, leading to the loss of local identities and traditions.


  True
• Order the following economic challenges of globalization based on their impact on the UK economy.

  1️⃣ Structural Unemployment

  2️⃣ Inequality

  3️⃣ Environmental Damage

  4️⃣ Cultural Homogenization
• Expanded markets from globalization have led to an increased trade deficit
• Technological diffusion through globalization has boosted productivity but created dependence on foreign innovation
• Arrange the following impacts of globalization on UK workers from most positive to most negative.

  1️⃣ Increased Job Opportunities

  2️⃣ Higher Wages in Some Sectors

  3️⃣ Job Displacement

  4️⃣ Wage Stagnation
• Globalization has caused job losses in industries like manufacturing
• Lower prices for consumers are driven by increased competition and economies of scale
• What is one negative impact of cheaper imports on domestic producers?

  Job losses
• Globalization can lead to concerns over the loss of local cultural identity


  True
• The UK government's industrial strategy aims to target investment and support for high-growth, innovative industries
• What type of infrastructure improvements can enhance the UK's global competitiveness?

  Transportation
• Globalization has a worldwide scope and a significant impact, encompassing economic, social, and cultural dimensions
• What is the effect of economies of scale achieved through globalization on consumer prices?

  Reduced prices
• Globalization leads to higher living standards and greater consumer choice


  True
• Match the major economic challenges of globalization with their descriptions:

  Structural Unemployment ↔️ Job losses due to offshoring and automation

  Inequality ↔️ Uneven distribution of gains from globalization

  Environmental Damage ↔️ Increased pollution and resource depletion

  Cultural Homogenization ↔️ Spread of dominant cultures and loss of local traditions
• What is one example of a UK industry that has benefited from globalization through increased competition?

  Manufacturing
• Which sector in the UK has seen increased job opportunities due to globalization?

  Technology
• Job displacement in industries like manufacturing is a direct result of globalization


  True
• Globalization has led to growth in sectors like technology and financial services, creating new high-skilled jobs
• Match the challenge of globalization with its description:

  Job Displacement ↔️ Loss of jobs due to offshoring

  Wage Stagnation ↔️ Downward pressure on wages

  Competition from Lower-Wage Countries ↔️ Competition impacting job security
• Balancing the benefits and challenges of globalization is crucial for UK policymakers to ensure it benefits all workers
• One key characteristic of globalization is increased trade
• Globalization encompasses economic, social, and cultural dimensions.

  True
• Larger global markets enable firms to achieve greater economies of scale
• Order the following major economic benefits of globalization from highest to lowest productivity impact:

  1️⃣ Increased Efficiency

  2️⃣ Economies of Scale

  3️⃣ Increased Competition

  4️⃣ Access to New Markets

  5️⃣ Technological Diffusion
• Match the impact of globalization on UK industries with its example:

  Increased Competition ↔️ Domestic firms struggle to compete

  Expanded Markets ↔️ Increased trade deficit

  Efficiency Gains ↔️ Offshoring leads to domestic job losses

  Technological Diffusion ↔️ Dependence on foreign innovation
• How does specialization and trade contribute to increased efficiency in globalization?

  Comparative advantage
• Globalization has a worldwide scope and a significant impact on economic, social, and cultural dimensions.


  True