Globalisation

Question 1

Define globalisation

Answer 1

When countries become more integrated in an economic, cultural and political sense

Question 2

Characteristics of globalisation

Answer 2

Increased trade
Increase movement of money and people
Increased international specialisation
Transnational corporations 
More FDI (foreign direct investment)

Question 3

Factors contributing to globalisation

Answer 3

Improved transport infrastructure
Trade liberalisation
Increased no. + influence of global companies
The end of the Cold War
The development of international financial markets

Question 4

Impacts of globalisation on countries

Answer 4

Increased living standards
De-industrialisation in developed countries
Increased inequalities within developed countries

Question 5

Impacts of globalisation on governments

Answer 5

Economic growth:
- Higher incomes so Increased tax revenues
- Less spending on benefits
BUT TNCs may shift their earnings to other countires

Question 6

Impact of globalisation on workers

Answer 6

• Exploitation of workers
• Driven down wages of unskilled
• Health and safety laws less demanding in developing countries

Question 7

Impact of globalisation on environment

Answer 7

Pollution

Global warming

Question 8

Impact of globalisation on producers

Answer 8

Lower production costs due to both offshoring and economies of scale

Question 9

Impact of globalisation on consumers

Answer 9

More choice
Lower prices
- Increased consumer surplus