Globalisation Flashcards Preview

Economics Yr12 > Globalisation > Flashcards

Flashcards in Globalisation Deck (12):


The removal of barriers to all the movement of goods, services, people and ideas across national borders


Linkages between economies

Foreign investment- multilateral (TPP), regional (APEC), bilateral (Aus w. China)

Tourism- an export leisure (Olympics immediate positive associations, stimulation from building, business events (tax revenue through deals), school groups.

Immigration- managed migration, protecting refugees, security through border management, migrant and refugee status

Trade- stimulus to increase wealth and living standards


Why trade has increased

Success of WTO, IMF, World Bank

Improvements in transport and communication


Globalisation has

Minimised labour costs
Increased access to natural resources
Helps firms gain large economies of scale
Takes advantage of govt policies
Minimises transport costs
Increased flexibility in decision making


Aus globally significant industries

Agricultural products top 15
International tourism 11th
Fuels and mining in top 4
Foreign students 4th
Investment funds assets 3rd


Changes to ways products are produced

Global value chains= part-produced in many countries= exploitation of competitive advantage

Change in location of a product production eg. Aus clothing in Bangladesh

Structure of companies and development of MNC's and joint venture operations


Examples of global value chains

Boeing 787- assembled in Seattle, parts around the world inc. Melbourne

Nutella- produced in Aus from local and imported goods


What happened to consumption

G. Created higher living standards
In China, India, Indonesia= growth in demand for consumer goods

Eg. Estimated trade between China and India alone will account for almost 1/5 of global trade by 2020


Example of new export market to China

Fresh milk
Takes less than 7 days from farm


Changes in Pattern of world trade and foreign investment

Rise in change intermediate goods


Globalisation is facilitated by

Govt policy changes towards freer markets with open trade and investment flows

Advances on transport technologies products transported reliably, efficiently, much reduced cost

Increased communication ideas, design, knowledge and info shared with great speed

Increased communication


Barriers to trade are reduced by

Barriers of trade reduced through-
unilateral action (Aus reducing tariffs on cars)
Regional trade agreements (free trade agreements Aus&jpn&korea&china)
Treaties promoted by global institutions (WTO)
Political reform and growth of market based economies (Eastern Europe following USSR outward orientation of China and India)