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Globalisation
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Globalisation is the growing connection between the world's economies. It brings big benefits and real costs.
What globalisation is
Globalisation is the increasing integration and interdependence of the world's economies.
Goods, services, money, people and ideas move more freely between countries.
Goods, services, money, people and ideas move more freely between countries.
Why it has happened
Reduced tariffs and quotas on trade.
Lower transport costs (such as container shipping).
Lower communication costs (internet, mobile phones).
The growing importance of multinational companies (MNCs).
Lower transport costs (such as container shipping).
Lower communication costs (internet, mobile phones).
The growing importance of multinational companies (MNCs).
Impacts
Benefits: rising living standards, greater choice, lower prices, cheaper communication, access to new markets.
Costs: closure of traditional industries that cannot compete, job losses in some countries, and environmental damage from more production and transport.
The effects differ for countries, governments, producers, consumers and workers.
Costs: closure of traditional industries that cannot compete, job losses in some countries, and environmental damage from more production and transport.
The effects differ for countries, governments, producers, consumers and workers.
Give one reason why globalisation has increased over the last 50 years.
- Container ships and air freight made moving goods cheaper.
Answer: Lower transport costs
Globalisation is increased integration and interdependence of economies. Causes: fewer trade barriers, cheaper transport and communication, and growing MNCs. It brings higher living standards and choice, but also industry closures and environmental harm.
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