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Title: Globalisation

Essay Details:

Subject: Business
Author: Michael M
Date: August 27, 2015
Level: University
Grade: A
Length: 2 / 342

Essay text:

1. What are the factors driving the globalisation ?? 2. Is globalisation a force for good or bad?? 3. How does globalisation affert different economies?? 4. How does globalisation affect different sectors of an economie ??? 1) • cheaper work capacity • cheaper incidenal labours • lower taxes • cheaper transportation costs because of a nearer market • more subsidy from the country • lower inviromental costs and rules • other aspects: • Internet, telecommunication, travelling, liberalisation, technical aspects • economic union ( WTO, EU, NAFTA, ASEAN, MERCASAR ) 2) -> we have advantages and disadvanteges advantages • cheaper production in generell • cheaper transportation back to Germany insted of higher cost production in Germany • you can choose your loation whereever you want • a higher proximityto the market • bigger markets • export jobs • more resaerch and development • freedom to operate • competition ( stronger, customer ) • greater variety of goods disadvantages • the unemployment rate will rise up in some countries • the taxation revenue will go down • the average income will go down, too, because the employees in the producing country have to be cheaper • transportation costs could be higher • adaption to the hourly wage • small companies suffer • homogonizing of cultures western wag • polution 3) • The globalisation can boosts the ecomomy in cheaper producing countries because the unemployment ratewould fall down • more people will find a job to hourly wage, which they can invest in the economy • In the not producing countries the unemployment rate probably will rise on and the spending power will drop • In the producing countries the economy growth will grow and in the other it will fall down --> deflation and inflation • the western ecomomies must specilise 4) • the globalisation affects the car industrie positively, because they can produce cheaper and sell it for the same price and make a higher profit • the same we will find in the textile industry • The loser will be the customer

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