Explain the Macro-economic benefits of globalisation.

Globalisation is the increase in connectivity of the world through the trade of goods and services. The effects of globalisation can benefit two different parties: one being producers; the other being consumers. The benefits that effect producers are those of economies of scale. For example: the average cost of producing a good or service decreases as more workers become available; decreasing costs of labour. Whereas, consumers can also be benefited from this increase in access to the global economy as firms have higher levels of competition; therefore leading to consumer prices decreasing. Therefore, it could be stated that globalisation allows increased work opportunities for those who inhabit a country with poor working conditions and salaries; resulting in a decrease of poverty assuming the firm does not exploit their workers.

HG
Answered by Harry G. Economics tutor

2033 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the IS-LM model?


Explain the 'Economic Problem' and how this closely links to the principles of demand and supply and how this ultimately determines the price of goods.


In the early 2010s the mobile phone company Orange merged with another mobile Network firm, T Mobile, in order to a form a new company called EE. Explain what type of merger this is and discuss some of the possible costs and benefits of this merger.


Evaluate the case for the introduction of subsidies for agricultural produce. (15 marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences