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

2146 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How to identify/draw the different types of externalities


Why might the government offer subsidies to the farming industry?


Define price elasticity of demand and explain the factors affecting it


How can the central bank affect economic activity using monetary policy


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences