Podcast
Questions and Answers
Explain how globalisation has benefited consumers?
Explain how globalisation has benefited consumers?
Globalisation has benefitted consumers by giving them multiple choices. For example, companies like Ford in America were charging higher prices for cars, leaving less disposable income for consumers. When Toyota was introduced by globalisation, it was producing cars for much cheaper due to cheaper labour costs in Japan. This meant there were more choices for consumers in America and more disposable income due to cheaper car prices, benefiting the American consumer.
The flow of trade and investments across international borders has decreased.
The flow of trade and investments across international borders has decreased.
False (B)
Flashcards
What is Globalization?
What is Globalization?
Growing interdependence between different countries.
How does globalization benefit consumers?
How does globalization benefit consumers?
Consumers have multiple choices because more companies are operating in different countries, increasing competition.
How do labor costs affect globalization's benefits?
How do labor costs affect globalization's benefits?
Lower labor costs in some countries (like Japan) allow companies to produce goods more cheaply, leading to lower prices for consumers.
Study Notes
- Globalization is the growing interdependence between different countries
- It has provided benefits to people in the UK
- Benefits include giving consumers multiple choices
Example
- Ford in America used to charge higher prices for cars
- This left consumers with less disposable income
- Toyota was introduced by globalization and producing cars for much cheaper due to cheaper labor costs in Japan
- Meant more choices for consumers in America
- More disposable income due to cheaper car prices which benefited the American consumer
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