Globalisation
- Created by: courtroberts
- Created on: 20-03-17 10:36
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- Globalisation
- characteristics
- more global brands
- increased level of trade
- outsourcing
- more inter - dependance
- more MNC's
- 70% trade
- causes
- being de- industrialised
- BRIC countries ^ manufacturing
- increase competition
- trade liberalisation
- low barriers
- transport improvements
- 80% of world trade = sea containership
- Trade blocs
- being de- industrialised
- impacts
- income inequality
- MNC's grow = ^ revenue = more money for high up workers
- worsens environment
- more factories = air pollution/ deforestation
- full employment
- MNC's build factories = more employment opportunities
- brain drain e.g. Indian doctors relocating
- low inflation
- low import tarrifs = low production costs
- economic growth
- more MNC's = more competition
- consumers
- competition = lower prices = ^ Std of living
- producers
- low costs of production = ^ profits
- income inequality
- comparative advantage
- ability to produce a good at a lower opportunity cost than another country
- limitations
- ignores transport costs
- assumes perfect knowledge
- ignores EOS gains
- countries should specialise in the production of goods which they have the advantage in
- absolute advantage
- ability to produce something at a lower cost and using fewer resources to other countries
- characteristics
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