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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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