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Globalisation - Coggle Diagram
Globalisation
Positives of Trade blocs
- Increased spread of technology
- Travelling within bloc countries is easier
- Increased investment from other countries can lead to an improvement in infrastructure
- Creates jobs as people can move freely within the bloc
- Free trade, removal of tariffs and quotas
Negatives of Trade blocs
- One countries problems can also impact other countries that are in the bloc
- Trade blocs discourage trade with non member countries
- Criminal groups can move around easier making it more difficult to control borders
- TNCs may opt to move to cheaper trade bloc countries
- Increased competition between business means the consumer receives better quality products but means smaller businesses struggle to compete
Processes
- Trade, trade between countries helps economies to expand and allow for an increase in GDP. This means that the distribution and number of goods increases helping to grow international relations with other countries through trade.
- Migration, the movement of people from one country to another can allow for further development boost as people move due to push / pull factors. This results in developed countries having a larger scale economy.
- Investment, FDI enables expansion and population growth in developing or emerging countries allowing them to eventually gain Independence and sustain themselves.
- Innovation, innovation helps stimulate growth and innovation in emerging markets due to an increasing population, the larger the population the more demand for a solution for a growing number of gaps in the market.
Positives of FDI
- Provides more jobs in the host country
- Provides a better quality of life
- Boosts development and the economy of the host country
- Improves infrastructure in the host country such as roads, ports and railways
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Switched on / off
- Switched on, how countries are well connected and can communicate with high living standards. (developed)
- Switched off, those against globalisation that are typically less developed such as North Korea.
Negatives of FDI
- High investment inflows can lead to long term outflows that can be problematic for the host country.
- Large investments in large foreign firms may threaten smaller domestic firms as they cant compete with the larger scale businesses,
The global shift
- The movement of manufacturing from countries such as the uk to places where labour rates are cheaper such as China.
- In the 1970s the UK textiles industry was relocated to China leading to de-industrialisation along with ship building and other industries.