REVIEW 11.3 Globalisation and UK

Benefits of Globalisation to UK: 1. Causes lower inflation 2. Helps growth 3. Creates FDI (Foreign Direct Investment) 4. Improved productivity 5. London statues has risen 6. UK companies able to sell abroad 7. English as the world language has given UK a boost 8. Cheaper prices for UK consumers.

Costs of globalisation 1. Loss of jobs 2. FDI may be temporary (Samsung/Nissan) 3. Deficit on B.O.P has increased. 4. UK economy is open to risks outside of UK government. 5. Environmental problems. 6. Hard for small business to compete.

REVIEW 12.1 LDC to reduce poverty

Absolute poverty = less then $2 a day Relative poverty = less than 60% of average income. Policies to reduce poverty: 1. Minimum wage 2. Child benefits 3. State pension 4. National insurance sickness benefits

In developing countries, absolute poverty is reduced but in the UK relative poverty is higher than that of 1980’s. In developing countries problems are 1. Political 2. Economic 3. Social All of which are factors that make it hard to reduce poverty.