Globalisation will help to achieve economic growth in high-income economies and this will automatically improve living standards. Evaluate this statement.

Globalisation will help to achieve economic growth in high-income economies and this will automatically improve living standards.

Evaluate this statement.
Use Table A: AO1 Knowledge and understanding and AO2 Analysis and Table B: AO3 Evaluation to mark candidate responses to this question.

AO1 and AO2 out of 14 marks. \(A O 3\) out of 6 marks.
Indicative content
Responses may include:
AO1 Knowledge and understanding and AO2 Analysis
- Globalisation would promote free trade, free movement of capital and labour and the transfer technology. Cultural and political ties would be strengthened.
- Key characteristics of high-income countries would include: high levels o productivity; high GDP per capita; significant dependence on producing and exporting secondary/tertiary goods/services.
- High living standards are generally associated with: low poverty levels; advanced infrastructure; good housing, education and health; and low infant mortality rates.
- Economic growth is usually measured by changes in real GDP per capita in a specific time period.
- An improvement in living standards is very closely linked with an improvement in economic performance. An improvement in economic performance is measured by increases in GDP per capita.
- Globalisation through trade and technology transfer should provide opportunities to create more real wealth.
- \(\quad\) Higher levels of tax revenue are likely to be received by a high-income country's government. This will enable more expenditure on health, housing and education as well as increased access to more consumer goods. These improvements are generally associated with a rise in the standard of living.

AO3 Evaluation
- The links between an increase in economic growth and an increase in living standards are not clear. Economic growth is a quantitative measure not a qualitative measure
- Economic growth which depends upon globalisation would increase long distance transport which would create more negative externalities.
- It is not clear how any benefits of economic growth might be used in a high-income economy
- Globalisation might lead to an increase in cheap imports from low-income economies which might lead to higher levels of unemployment in more advanced economies.
- A conclusion might attempt to form an overall judgement on the short term and long-term benefits of globalisation in relation to the improvement of living standards in high-income countries. Also a judgement should consider whether this will automatically improve living standards.

Accept all valid responses.