Year 10 GCSE Economics

Globalisation / Migration and the UK economy

Key terms

• Globalisation – increased trade between different countries

• Migration – people moving jobs from one country/region to another

• Mobility of labour – how able workers are to change jobs

• Immigration – going to work in another country• Emigration – leaving own country to work in

another

Benefits of globalisation for the UK labour market

• Job creation

• Lower labour costs and consequent unit costs

• Leads to lower selling price

• Increased competitiveness

• Fills gaps in skills-shortage areas

• Can lead to increased exports

Drawbacks of globalisation for the UK labour market

• Low-skilled jobs are lost

• Affects certain regions of the UK; eg manufacturing

• Can lead to lower wages for workers on more widespread scale

• Unemployment

• Social problems; resentment from British workers

MigrationMigration

Increases strain on

social services

New knowledge and skills

Depresses wages

Increases diversity of

country

Helps fill vacancies for

low-skilled jobs

Fills skills gaps in the labour

market

Displaces low-skilled UK workers

Reduces wage inflation

Increases number of consumers

Increases competitive-

ness

Valuable skills are lost

Helps battle UK’s aging population

Possible language barriers

Reduces unemploy-

ment in recessions

Increases number of produces

Possible entrepreneur-ship as young

‘imports’ of labour

Which are the POSITIVES of Immigration or Emigration

1

2

3

4

5

10

6

7

8

9

11

10

20

30

40

50

100

60

70

80

90

110

Values

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