- Students should be able to give a suitable economic definition of globalisation, eg the process by which the world is becoming increasingly interconnected as a result of increased trade.
FEATURES OF GLOBALISATION
- You should be aware of the main features of globalisation, eg (i) increased international trade, (ii) businesses operating in more than one country, (iii) greater dependence upon the global economy, (iv) freer movement of goods, services, people and
capital and (v) emergence of global brands such as McDonalds and Starbucks.
BENEFITS OF GLOBALISATION
- You should be aware of the possible benefits of globalisation to both developed and developing countries eg (i) inward investment by foreign businesses helping to provide new jobs, skills, infrastructure and money for education and healthcare, (ii) increased market size, leading to economies of scale, (iii) access to a greater, and potentially cheaper source of raw materials and labour for businesses and (iv) a greater range of goods and services for consumers.
DRAWBACKS OF GLOBALISATION
- You should be aware of the possible drawbacks of globalisation to both developed and developing countries eg (i) no guarantee that the wealth from inward investment will benefit the local community, since profits may be sent back to where the business is based, (ii) multinational companies, with huge economies of scale, may drive local companies out of
business, (iii) industry may thrive in developing countries at the expense of developed countries and (iv) if it becomes cheaper to operate elsewhere, multinational companies may close their operations in developing countries, making people redundant.
ETHICAL ISSUES RELATING TO GLOBALISATION
- You should be aware of the ethical issues relating to globalisation eg (i) that while globalisation is helping to create more wealth in developing countries, it is not helping to close the gap between the world’s richest and poorest countries, (ii) globalisation may threaten global cultural diversity and damage local economies, traditions and languages and (iii) an absence
of strictly enforced laws may mean that multinational companies pollute the environment or exploit the workforce in developing countries or avoid paying taxation..
AQA Web Resources
- The Guardian Newspaper collected resources: ‘Globalisation’
- Globalisation and tax havens: ‘Globalisation isn’t just about profits. It’s about taxes too’
General Web Resources
- CIA World Factbook
- Bized virtual developing country
- Institute of Development Studies
- George Monbiot
- Tutor2u revision presentations and notes, blogs, quizzes etc