The winners and losers from globalisation

Overview

Recall questions on the effects on countries, producers, consumers, workers, the environment and inequality.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   State three potential benefits of globalisation for individual countries.

   Model answer

   Increased economic growth, access to larger markets, and inward investment.

2. 2

   How can globalisation harm individual countries?

   Model answer

   Through increased vulnerability to external economic shocks and potential loss of domestic industries to foreign competition.

3. 3

   Why might globalisation reduce government policy autonomy?

   Model answer

   Countries compete to attract mobile capital and may face pressure to lower taxes and regulations to remain competitive.

4. 4

   How does globalisation make it harder for governments to tax multinational corporations?

   Model answer

   Multinationals can shift profits to low-tax jurisdictions, reducing the tax revenue collected by governments in countries where economic activity actually takes place.

5. 5

   What benefits can producers gain from globalisation?

   Model answer

   Access to larger markets, cheaper inputs, and the ability to achieve economies of scale.

6. 6

   How can globalisation harm domestic producers?

   Model answer

   Through increased competition from lower-cost foreign producers who may be able to undercut their prices.

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