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Benefits of Globalisation - Coggle Diagram
Benefits of Globalisation
Economic of scale
specialised market
increacse output reduce cost
benefit consumers though lower cost
Increase competition
improvement in efficiency
more choice
lower price
better products(R&D)
Reduce exploitation (local monopolies)
More choice & Lower prices
More competitions, economies of scale, specialisations
Eva: Overseas fraud
Improved mobility of labours
Reduce the cyclical & structural unemployment
Due to the economic growth along with and the increased mobility
Eva: Trade union's monopoly power may increase and strikes may occur
FDI increase economic growth
Definition: When a firm sets up expands or buys a business in a different country
FDI invest in LEDCs
investment lead to multiplier effects, AD increase
short-run economic growth
Accelerator process lead to increase in investment and productive capacity
long-tun economic growth (LRAS)
Increased specialisation
Comparative adv
Lower Op cost
Eva: no longer economically viable(资源匮乏）
Firms can locate where production costs are minimised
Productive efficiency
Eva: Some LEDC has weak legal system/poor legal framework
TNCs create employments and improve people's skills
Open branch create job opportunities
Invest in human capitals and increase productivity : knowledge , skills (transferable) , abilities and experience