4.1 - Globalisation Flashcards
What is globalisation?
Process by which world is becoming increasingly interconnected as result of increased trade, communication + cultural exchange
Why is globalisation important?
Expansion of trade
Increase in capital transfers
Global brand development
Prod + cons shifts
Labour migration
Economic + political shifts
What are the 6 main causes of globalisation?
Improved communication
Improved transport
Free trade agreements
Global banking
Growth of multinationals
Labour costs + skills
How has improved communication increased globalisation?
Technology helps multinationals to operate globally
Access to marketing, advertisement etc
How has improved transport increased globalisation?
Bulk shipments
Lower prices
Which specific examples of transport have accelerated globalisation?
Container shipping
Air transport
+ Transport network expansion
How have free trade agreements increased globalisation?
Removal of tariffs, quotas etc
Introduction of blocs
How has global banking increased globalisation?
Capital flows accelerate
Interconnectivity + interdependence
How has the growth of multinationals increased globalisation?
MNC growth + investment
FDI
Global sale of goods
How have labour costs + skills increased globalisation?
MNCs seek low prod. costs - outsourcing etc.
Labour intensive industrialisation
What are the ethical limits of globalisation?
Exploitation
Kids in work
Tax havens
What are the potential downsides of free trade agreements?
Large capitalist MNCs exploit developing/emerging economies
Rich get richer, perpetual poverty etc.
What are the environmental costs of globalisation?
Mass relocation of goods + capital
Carbon footprint
