Globalisation - developed - chapter 16

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  • Created by: sammilaw
  • Created on: 27-02-16 14:50
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  • Globalisation - Developed country
    • Chapter 16
    • Advantages
      • Increased competitiveness = more efficient
        • Lower prices
          • More real income
            • Higher standard of living
      • Cheap labour overseas i.e. raw materials
        • Reduces inflation
          • Lower interest rates
      • Wider choice for consumers
      • Larger output = EOS
        • More innovation and research
      • Allows domestic firms to export to larger market
      • Movement of manufacturing sector = cleaner environments
        • Structural unemployment due to movement of manufacturing sector
        • E: If another country can produce for cheaper = misallocation of resources if developed country does not move into the services sector
      • Increased profits
      • Cheaper imports
      • Improved relations
    • Disadvantages
      • Local businesses i.e. tailors out of business
      • Structural unemployment due to movement of manufacturing sector

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