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Global Systems and Global Governance

Benefits and Costs of Globalisation

  • 3 things to know
  • Component 2

Overview

Recall questions on wealth creation, development, integration and stability as benefits of globalisation, and on unequal wealth distribution, widening inequality within countries, injustice, unfair trade practices and unequal power relations as its costs.

What you need to know

Answer each one before you reveal it.

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Key term

State one benefit of globalisation related to wealth creation.

Key term

What is meant by integration as a benefit of globalisation?

Key term

Explain how globalisation can increase stability.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    State one benefit of globalisation related to wealth creation.

    Model answer

    Economic growth — globalisation expands markets, attracts investment, and increases productivity, raising national and global output.

  2. 2

    How does globalisation contribute to development?

    Model answer

    It facilitates technology transfer, infrastructure investment, job creation, and access to global markets, helping countries improve living standards and reduce poverty.

  3. 3

    What is meant by integration as a benefit of globalisation?

    Model answer

    Integration refers to the closer linking of economies and societies through trade, communication, migration, and shared institutions, creating interdependence between nations.

  4. 4

    Explain how globalisation can increase stability.

    Model answer

    Economic interdependence raises the costs of conflict between nations, while shared institutions and diplomatic ties encourage cooperation and peaceful resolution of disputes.

  5. 5

    Identify one cost of globalisation relating to wealth distribution.

    Model answer

    Increased inequalities — both between countries (e.g. core vs periphery) and within countries (e.g. wage gaps between skilled and unskilled workers).

  6. 6

    Why might globalisation widen inequalities within a single country?

    Model answer

    Benefits concentrate among those with capital, education, or skills suited to global industries, while low-skilled workers face wage suppression or job losses from outsourcing and competition.

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