Please enable JavaScript.

Coggle requires JavaScript to display documents.

globalisation and trade - Coggle Diagram

- - - - goods can be traded competititvely worldwide
      - improvements in ICT
        
        payments can be sent between countries immediately
        
        can buy and sell quickly
      - faster
    - - increase in consumer demand for a wider variety of worldwide goods
    - - companies mass produce and sell to a larger market due to improvements in technology etc
  - - - some mncs have incomes larger than the gdp of some countries
    - - gaining a strong foothold in international markets
      - cheaper labour cosst wages=high cost of production
      - ability to take advantage of many different strengths of many countries ( eg cheap labour and availability of raw materials
      - transport costs - having plants worldwide means that the transport of goods to countries world wide to be sold is cheaper
      - favourable tax environment - companies with lower taxes more attractive to locate in
      - availability of gov grants - gov may offer grant to set up factories in areas of high unemployment
    - - loss of jobs
        
        when an mncs relocates to another country jobs lost
      - loss of tx rev from mnc and its workers as most profit reurn ti parent country and not return to other countries where mnc is operating
      - dependancy on imports - countries may suffer if company chosoes ot cloe
      - export of technology
        
        when an mnc moves the country also loses technology involved in the production
- - - - allows individs ad firms to obtain goods and services which arent available in their country
      - increases choice for consuemrs
      - goods and services can be obtained cheaper
      - increases comp preventing monopolies
      - allows firm to gain economies of scale, increasing sales and prfits could reduce price for consumer
      - increases world output
      - reduces firms reliance on domestic markets
    - - negative externalities
        
        pollution from dirty industries - some foreign countries have lower environmental standards than otehr countries making them an attractive cheaper alternative for firms
        
        transport of finised good releases pollution