| What are the Advantages of Globalisation (There are 10!) | -Trade incentivises Specialisation. This Increases Output
-Globalisation allows Nations to exploit their Comparative Advantage, better Efficiency and Allocation of Resources
-Producers benefit from Econ of Scale and Lower Production Costs. Global Sourcing lowers Raw Materials Costs
-Lower Prices presented to Consumers
-Greater Choice of Goods and Services to Buy
-World GDP rose because pf Globalisation.
-Improved Living Standards and Absolute Poverty have dropped Globally. Employment has Increased
-Increased Growth and Output good for Macroeconomy Objectives
-More Competition leads to Lower Prices for Consumers
-Increased Awareness, and Better Responses to Foreign Disasters and Global Issues and their Consequence's |
| What are the Disadvantages of Globalisation? | -Some Goods and Services getting more Expensive due to Demand Pull Inflation.
-Economic Dependency can occur, leading to Instability.
-More World Trade can lead to More Global Imbalance of Payment Accounts. One Surplus is another's Deficit
-Specialisation leads to Overreliance on few Industries which can be Risky
-Global Competition may be too much for Domestic Industries |
| What Positive Impacts do TNCs bring to the Table? | -FDI by TNCs creates new Jobs and brings New Skills and Wealth to an Economy
-TNCs can buy Local Goods and Services, meaning Inflows of Local Currency. Suppliers to the TNC may be able to Expand to that TNC in different Parts of the World
-TNCs benefit from Econ of Scale, making them more Efficient and help lower Prices
-TNCs can raise Living Standards by providing Employment |
| What Negative Impacts do TNCs bring to the Table? | -TNCs may Exploit Workers in Developing Nations by paying a Low Wage
-TNCs can Force Local Firms out of Business, as the Domestic Industry can not Stand up to their Production and Prices
-TNCs relocating can cause Mass Unemployment
-TNCs can Withdraw Profits from one Place and put them in another with a Low Tax Rate. Tax Revenue is Missing
-TNCs use their Influence onto Foreign Governments, which may be Political Corrupt
-Governments may be Forced to Lower Corporation Tax to Incentives TNCs |
| Why has Globalisation led to Further Concerns about the Environment? | -International Trade leads to International Transport leading to More Fossil Fuels needed. This damages the Climate
-Carbon Emissions also are Increased to match the Global Demand. Deforestation and Depletion of Non-Renewable Resources may also occur |
