6.1 International Trade & Specialisation

Globalisation

process where the world is increasingly interconnected bc of increased trade & cultural exchange

Benefits of globalisation for CONSUMERS
> ↑c__ = ↑c__ from ↑r__ of goods; ↓p__ of goods

comp, choice, range, price

Benefits of globalisation for PRODUCERS
> access to l__ markets = may ↑p__; can operate in countries w/ c__ labour, m__
> S__ knowledge/tech = ↑i__; can search & hire staff g__; business o__

larger, profit, cheap, mats, sharing, innovation, globally, opport

Benefits of globalisation for GOVTS
> ↑p__ = ↑G__ & l__ standards; ↑c__ exch. = d__ (food, music etc)
> ↑trade = maintain p__ intl relations

production, gdp, living, cultural, diversity, peaceful

Drawbacks of globalisation for CONSUMERS
> job r__ by f__ labour/operation shifted overseas; firms e__ cheap labour

replaced, foreign, exploit

Drawbacks of globalisation for PRODUCERS
> ↑c__ from o__ comps = lose s__ OR ↓prices

comp, overseas, sales

Drawbacks of globalisation for GOVTS
> hard to r__ & t__ activities of firms operating in d__ countries
> i__ problems; e__ impacts of ↑movement of ppl & goods

regulate, tax, diff, immigration, environmental

No intl trade = countries forced to be s__-s__
= resources a__ to extreme v__ of goods/services instead of the most e__ use
= ↓o__ & ↑c__

self sufficient, allocated, variety, efficient, output, costs

International Specialisation
Ø  Country s__ = ↑/↓other r__ goods/services
= r__ on a__ country to make it
= e__ of goods/services = intl trade

specialisation, required, reliance, another, exchangeS

Specialisation
> nation c__ on making a l__ v__ of goods/services where it’s e__

concentrates, limited variety, efficient

Absolute advantage
> when 1 c__ makes a p__ using less r__ than another

country, product, resources

Comparative advantage
> when 1 c__ makes a g__ w/ less r__ o__ c__

country, good, relative opp cost