2.4.1 globalisation Flashcards
What is globalisation?
The ever increasing integration of the world’s local, regional and national economies into a single, international market.
What is involved in globalisation?
The free trade of goods and services, the free movement of capital and labour, and the free interchange of technology and intellectual capital.
What has the spread of globalisation done? [6]
- More trade between nations and more transfers of capital including FDI
- Brands developed globally
- Labour divided between several countries
- More migration
- More countries participating in global trade
- Countries have become more interdependent
What factors have contributed to globalisation in the last 50 years? [8]
- Trade in goods
- Trade in services
- Trade liberalisation
- Multinational Corporations
- International financial flows
- Communications and IT
- Containerisation
- Impact of emerging economies
How has trade liberalisation impacted globalisation?
Growing strength and influence of trade organisations has contributed to the decline in trade barriers.
How have China and Malaysia financed their growth?
With capital flows, which is money sent across international borders.
What does containerisation mean?
That goods are distributed in standard sized containers, so it is easier to load and cheaper to distribute using rail and sea transport. Cargo can be moved 20x as fast as before.
How is international trade more important for developing countries than developed countries?
It contributes towards 20% of developing economies, compared to 8% of the US economy.
How are China and India important for African infrastructure?
They have invested in their infrastructure in exchange for natural resources.
