Globalisation B1 Globalisation Draw a spider

Transcript:Globalisation B1 Globalisation Draw a spider:
Globalisation B1 Globalisation Draw a spider diagram to show possible reasons for: Targeting foreign markets Trading in foreign markets Operating in foreign markets Can you list 3 companies that do all 3? Globalisation In this topic you will learn about The main features of globalisation, e.g. trading blocs, international mobility of labour and capital, international currencies, multinational corporations, international business communications, international payment systems Globalisation is the process of greater integration and inter-connectedness between countries The International Monetary Fund (IMF) define globalisation as: “The process through which an increasingly free flow of ideas, people, goods, services and capital leads to the integration of economies and societies.” What is globalisation? Globalisation usually includes the following features and characteristics: Growth of international trade Trade liberalisation Enhanced mobility of labour Enhanced mobility of capital Increased cultural exchange Increased international capitalism Increased outsourcing Falling transport costs / the “death of distance” Growth of size and influence of multinational corporations (MNCs) Characteristics of globalisation Trading blocs Trading blocs are when the governments of a group of countries agree to trade together freely i.e. normally with no trade barriers The countries are normally grouped together geographically e.g. the European Union (EU) The members of a trading bloc make preferential economic, and sometimes political, arrangements to boost trade within the member states Who do you think the LATAM gang of four are? Trade agreements The World Trade Organisation (WTO) has assisted in the reduction or removal of trade barriers and there has been a greater proliferation of trade agreements across the world Reduced tariffs and protectionism Whilst some protectionist measures remain in place, a large number of countries with significant global economic influence have lowered protectionist measures Expansion of global trading blocs The growth of trading blocs such as the EU and NAFTA have reduced national barriers and promoted more trade and integration Improved technology and communication Advances in technology have revolutionised communications, lowered labour costs and enabled businesses to access new foreign markets It is important to have an understanding of the primary causes and on-going drivers of globalisation, especially as this has accelerated over time. Visit the WTO student page for videos, articles and a tour. Factors contributing to globalisation in the last 50 years More globalised financial systems There has been a significant relaxation on the rules and regulations surrounding the movement of capital, which can move either freely, or at very low cost,