Summary
Summary Unit 4 - a global perspective
- Institution
- PEARSON (PEARSON)
Full detailed book notes which helped me pass economics alevel with A*. Includes everything you need to know. All other units also published
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A Global PerspectiveWhat are the characteristics of globalisation?
• an increase in trade as a proportion of world GDP.
• Increased movements of financial capital and people between countries
• Increased international specialisation and division of labour. It is increasingly common for parts and
Definition: The process of components of products to be made in different countries and for assembly to occur in another country
increased integration and co- • The growing importance of global or transnational companies
operation of different national • An increase in foreign direct investment
economies. It involves national
economies becoming increasingly
inter-related and integrated.
FAIL IN TRANSPORT COSTS
&
-
In real terms the price ofwansporting
goods has decreased enabling
good
to be imported + exported more
cheaply
FDI- foreign direct investment: COLLAPSE Of COMMUNISM
Cross border investment by a -
opening up of wond trade
M
business in one economy with the (in china) contributed to
globalisation
objective of obtaining a lasting
interest in an enterprise resident in
lowerhansport
another economy. It may involve the costs
acquisition by a business in one a
country of a business in another
country TRANSNATIONAL COMPANIES
taken advantage o reduction in trade bamen
- development of Internet to trade
more organise
regional
S
trac
agreements.
What factors have caused globalisation reduced hade baren
9
WTO , GATT
L
GROWTH IN NO .
+ SIZE Of
TRADING BLOCS
-
hade between
resulted in increased
member counties of these BLOCS ·
~
lower communication costs
~
LOWERING OF TRADE BARRIERS
·
Since WW2 : major growth in wond trade
~
DECLINE IN COST Of PRODUCTION
-cost of using Internet has declined
avanabuty increased
-
,Impact of globalisation
,Impact of globalisation
, Is globalisation good or bad
~ enables more employment opportunes
X attract more less
may migrants leading to
housing avaiable
~
choice of products
more in
industrys
X delays of suppliedI n over counmes It someting happens
~
access to more matenous through other counmes
X commute to Climate change ...
how many year let of using those matenous ?
~ increases
opportunity for development
Evaluation:
The principal is good but it’s the regulations that need to be monitored to prevent exploitation
Can raise poor out of poverty
Benefits of specialisation, global wealth, lower poverty, higher literacy, higher health care
Environmental benefits: making solar panels in other countries
Multi national firms can make more profit, can sell the whole world whilst getting the cheapest prices from suppliers around the world
Governments can gain taxes through globalisation but can lose skilled workers
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