14.1 Globalisation Flashcards
What is globalisation
The process of increasing economic integration of the worlds economies
What are causes of recent globalisation(2 asp)
Improvements in informational and communication technology (ICT)
Developments in transport
Who are the world trade organisation(WTO)
An international body whose purpose is to promote free trade by persuading countries to abolish import tariffs and other barriers to trade. As such, it has become closely associated with globalisation
What are multinational corporations(MNC)
Enterprises operating in serval countries but with headquarters in one country
What are the 6 main characteristics of globalisation
-greater international mobility or capital and labour
-growth of international trade and reduction of trade barriers(known as trade liberalisation)-encouraged by the world trade organisation
-significant increase in the power of international capitalism and multinational corporations or transnational companies
-the deindustrialisation of older industrial regions and countries and the movement of manufacturing industries to newly industrialist countries
-decrease in gov power to influence decisions made by MNCs to shift economic activities between countries
-more recently, the movement of internationally mobile service industries, such as call centres and accounts offices, to NICs
What is trade liberalisation?
growth of international trade and reduction of trade barriers
Diagram for characteristics of globalisation
What are less economically developed countries?
Countries considered behind in terms of their economy, human capital, infrastructure and industrial base
What are less economically developed countries characterised by?
High unemployment
High population growth
Poor infrastructure
Ovezrderpendece on commodities
What do the critics of globalisation argue
Low paid workers end up working to quality for IMF
People prefer goods for global cooperations than traditional local produce
What are more economically developed countries?
Countries with a high degree of economic development, high average income per head, high standards of living, usually with service industries denominating manufacturing and investment having taken place over many years in human capital and infrastructure
What does the dependency theory of trade and development disagree with?
The belief less economically developed and more economically developed countries benefit from globalisation
What do dependency theorists argue?
Many economically developing countries possess little capital because the system of world trade and payments has been organised by developing industrial economies to their own advantage
(In terms of trade industrialised countries benefit at the expense of primary producers
How does globalisation allow benefit developing economies?
Country must export more in order to buy the same quantity of capital goods or energy vital for development
Globally the movement of the terms of trade in favour of Economically developed countries has…
Raises levels of income and standards of the living in the richer countries at expense of economically developing countries
(Exceptions such as oil producing non-industrial countries which has benefited from substantial increases of oil over recent decades)
