4.1.1 - Globalisation

Cards (5)

  • Factors contributing to globalisation:
    • Trade in goods
    • Trade in services
    • Trade in Liberalisation
    • Containerisation
    • Technology
    • International financial flows
  • Impact on globalisation on producers
    • Producers can benefit from economies of scale
    • Firms can operate in a more competitive environment, which increases efficiency
  • Impact of globalisation on consumer
    • Increase in standards of living due to an increases in GDP
    • Wider range of products; however some services may become homogenised
  • Globalisation refers to the growing interdependence of countries and the rapid rate of change it brings about.
  • Impact of globalisation on Economic growth:
    • Increased investment (an injection) and will have and impact due to the mutilplier effect
    • Increased trade due to exploitation of comparative advantage
    • However, political instability