Page 91 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Macroeconomics II – The international economy
5.3 Impacts of globalisation
 Industrial relocation
 Emergence of growth markets
 Access to markets and
enhanced competition
 Cross-national business
alliances and mergers
 Widening economic divisions
between countries
Illustrations and further practice
Now try TYU 10 from Chapter 5
E.G. offshoring to access cheaper
production costs, also Nissan investing in
UK to access EU without trade barriers
E.g. China opening up to western firms,
tastes widening leading to local product
being in demand more widely
E.g. selling via the internet. More players
in the market means greater
competitiveness and lower prices.
E.g. Siemens (German), acquisition of US
equipment manufacturer Dresser-Rand for
$7.6bn
E.g. "digital divide" – rich vs poor.
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