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

2244 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain why there may be a conflict between unemployment and inflation


Explain the market failures associated with increasing transport use.


With the help of a diagram, explain how collusion between energy suppliers could affect the retail prices paid by consumers. (9)


What is the difference between deflation and falling inflation?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning