Globalisation

Globalisation is the process by which economies, societies, and cultures become increasingly interconnected through trade, investment, technology, and the movement of people. In OCR GCSE Economics, you'll explore how globalisation has accelerated since the late 20th century, driven by factors such as trade liberalisation, advances in transport and communication, and the rise of multinational corporations (MNCs). This topic is crucial because it shapes the world you live in — from the products you buy to the jobs available in your local area.

You will examine the benefits of globalisation, including lower prices for consumers, greater choice, and economic growth for developing countries through foreign direct investment (FDI). However, you must also understand the drawbacks: job losses in developed countries due to deindustrialisation, exploitation of labour in poorer nations, environmental damage from increased production and transport, and the risk of financial contagion during global recessions. Globalisation also raises questions about inequality — both between and within countries — and the role of international organisations like the World Trade Organization (WTO) and the International Monetary Fund (IMF).

This topic connects directly to other areas of the OCR GCSE Economics syllabus, such as trade and protectionism, exchange rates, economic development, and the role of government. Understanding globalisation helps you evaluate real-world issues like Brexit, trade wars, and the impact of pandemics on global supply chains. It also develops your ability to analyse data, weigh up pros and cons, and construct balanced arguments — key skills for your exams and beyond.