Lesson Objectives

All students will understand
 The

concept of globalisation
Most students will
 be
able to describe characteristics of developed,
emerging and developing economies

Some students will
 Understand
the complexities of trade-offs faced by
governments when considering benefits of globalisation
What is Globalisation?
The process by which the world is becoming
increasingly interconnected as a result of increased
international trade.
Countries are becoming more inter-dependent and
economies more closely connected.
Features of globalisation


increased international trade
businesses operating in more than one country



Foreign Direct Investment
greater dependence upon the global economy
freer movement of goods, services, people and capital
Trade liberalisation – limiting and reducing barriers to trade
such as tariffs and quotas
 Capital flow liberilasation – making flow of money easier
between countries


emergence of global brands such as McDonaldsand
Starbucks.
Benefits of globalisation





Inward investment by foreign businesses helping to
provide new jobs, skills, infrastructure and money for
education and healthcare
Increased market size, more potential customers,
revenue & profit
increased market size, leading to economies of scale
access to a greater, and potentially cheaper source of
raw materials and labour for businesses
a greater range of goods and services for consumers,
at potentially cheaper prices.
Task
Questions pg 62
Disadvantage of globalisation




no guarantee that the wealth from inward investment will
benefit the local community, since profits may be sent back
to where the business is based
multinational companies, with huge economies of scale,
may drive local companies out of business
industry may thrive in developing countries at the expense
of developed countries
if it becomes cheaper to operate elsewhere, multinational
companies may close their operations in host countries,
making people redundant
Ethical issues
There are many ethical issues relating to globalisation eg



that while globalisation is helping to create more wealth in
developing countries, it is not helping to close the gap
between the world’s richest and poorest countries
globalisation may threaten global cultural diversity and
damage local economies, traditions and languages
an absence of strictly enforced laws may mean that
multinational companies pollute the environment or exploit
the workforce in developing countries or avoid paying
taxation.
China and Russia

Pg 64 – summarise key points
Task

Exam style questions pg 65
Developed, emerging or developing?
 Developed
economies have high per capita incomes,
literacy levels and life expectancy. Typically have
large service sectors and good access to health and
welfare provision.
 Developing economies have generally low incomes per
capita, weak education and welfare systems, abundant
cheap labour and little capital investment.
 Emerging economies have rising levels of growth and
capital investment, increasingly productive secondary
and tertiary sector and international trade is growing
rapidly.
Indicators of growth




GDP per capita
Literacy
Health
Human Development Index
 Ranking
based on NI per capita (and its purchasing
power), life expectancy and years of schooling.
Consider table 14.3 pg 68
Mean and Median Incomes

Consider and summarise example pg 69
BRIC’s

Brazil, Russia, India and China

Consider and summarise since year 2000 - pg 67

Investigation task – Is this growth pattern set to
continue in the BRIC’s?
Task

Exam style questions pg 70