causes and costs of globalisation. what is globalisation? w4#t=103
TRANSCRIPT
What is globalisation?
• https://www.youtube.com/watch?v=T9lgZper-W4#t=103
Factors promoting Globalisation
• A reduction in protectionist barriers to trade in the World Economy.
• A reduction in international capital movement restrictions; encouraging Foreign Direct Investment (FDI).
• Developments in IT and falling communication costs.
• A fall in real transport costs.
• Liberalisation of domestic markets; the growth of Multinational Companies (MNC’s).
Effects of Globalisation – Winners & Losers
http://www.youtube.com/watch?v=oh03fuIlQNI&feature=related
Have these workers benefited or been disadvantaged by Globalisation?
A Blue Collar Worker in the USA
The bosses of MNC’s
Factory workers in China
A University Graduate from India
INCOME – increased production means more workers are needed, this means more jobs
ADVANTAGE DISADVANTAGE
VIDEO
GLOBALISATION
Is good or bad for the
Economy?
GROWTH – growing exports mean increasing production, which leads to higher economic growth
ADVANTAGE DISADVANTAGE
GLOBALISATION
Is good or bad for the
Economy?
Competition – increased competition may benefit consumers in terms of having cheaper goods and a greater variety. BUT UK firms may find it difficult to
compete on price
ADVANTAGE DISADVANTAGE
VIDEO
GLOBALISATION
Is good or bad for the
Economy?
Economic Dependency – the UK imports a large variety of foods; interruption of this may might
threaten our survival
ADVANTAGE DISADVANTAGE
GLOBALISATION
Is good or bad for the
Economy?
Unstable commodity prices – the price of raw materials and foodstuffs can change by large
amounts. This could make production costs higher
ADVANTAGE DISADVANTAGE
VIDEO
GLOBALISATION
Is good or bad for the
Economy?
Choice and product differentiation – UK citizens may now choose from goods that may not be otherwise
available
ADVANTAGE DISADVANTAGE
VIDEO
GLOBALISATION
Is good or bad for the
Economy?
Prices – many consumer goods that we import are from countries like China and India. These countries
have much lower labour costs than the UK.
ADVANTAGE DISADVANTAGE
GLOBALISATION
Is good or bad for the
Economy?
Competition and innovation – all companies have to work harder to attract consumers as there are many more potential competitors. They try to lower prices and develop more attractive and better quality products
ADVANTAGE DISADVANTAGE
GLOBALISATION
Is good or bad for the
Economy?
Power of MNCs – are becoming very powerful. All governments are finding it harder to control MNCs
ADVANTAGE DISADVANTAGE
GLOBALISATION
Is good or bad for the
Economy?
Social and environmental impact of trade – direct emissions i.e. CO2
ADVANTAGE DISADVANTAGE
GLOBALISATION
Is good or bad for the
Economy?
Raw materials – the UK is relatively poor in raw materials, so it is essential that we import the
materials.Can you think of any?
ADVANTAGE DISADVANTAGE
GLOBALISATION
Is good or bad for the
Economy?
GLOBALISATION
Is for bad for the ?
GOOD
• Income – increased production means more workers are needed, and this means more jobs.
• Growth – growing exports mean increasing production, which leads to higher economic growth (i.e the GDP will rise each year)
• Competition and innovation – all companies have to work harder to attract consumers as there are many more potential competitors. They try to lower prices and develop more attractive and better quality products.
• Raw materials – the UK is relatively poor in raw materials, so it is essential that we import the materials (metals, gems, energy, and so on) that we need.
• Choice and product differentiation – UK citizens can choose from goods not otherwise available in the UK
• Prices – many of the consumer good we buy in the UK are imported from countries like China and India. These economies have much lower labour costs than the UK, and have relatively good levels of technology.
GLOBALISATION
Is for bad for the ?
BAD
• Competition – increased competition may benefit consumers in terms of having cheaper goods and greater variety, but UK firms may find it difficult to compete. Many countries have much lower labour cost than the UK, yet their workforces are relatively well trained
• Economic dependency – for example, the UK imports a large variety of foods; interruption of this might threaten our survival.
• Unstable commodity prices – the prices of raw materials and food can change by large amounts very quickly. This affects both production costs and the prices to consumers. This can have both good and bad effects.
• Power of MNCs – multinational corporations (MNCs) are becoming very powerful. All governments are finding it harder to control MNCs.
Advantages of Globalisation Disadvantages of Globalisation
It allows developing countries to create jobs in their domesticeconomies.
Consumers across the world have access to more of thegoods and services that they want.
It can help to relieve poverty through economic growth anddevelopment.
It helps to improve education across the world in terms ofliteracy and skills.
Higher living standards for more people.
Enjoyment of global brands. For consumers
Spreading of best practice and technology transfer.
Improved medical supplies that can increase life expectancy.
Manufacturing jobs that used to be located in Europe and USA
are now located in Asia where costs and wages are lower.
Has globalisation offered people too many choices and are we
capable of making the right decisions?
It has made some jobs more insecure and made stable livesmore difficult to achieve.
It has contributed towards global warming and climate change.
Widening gap between rich and poor; increased inequality.
Exploitation of workers in developing countries.
Resource depletion.
MNC’s can exploit and fail to invest in the host nation.
Rank them in order of importance; 1 = Most Important & 8 = Least Important
https://www.youtube.com/watch?NR=1&v=wGULEb3rYeg&feature=endscreen
• http://beta.tutor2u.net/economics/reference/globalisation-evaluating-benefits-and-costs