4.1.3 Factors contributing to increased globalisation Flashcards
What is Globalisation?
Globalisation is the process of greater integration and inter-connectedness between countries
Globalisation usually includes what features and characteristics?
Free movement of goods and services
Free movement of labour
Free movement of capital
Increased cultural exchange
What does 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 are 5 of the Factors contributing to increased globalisation?
- Reduction of international trade barriers/trade
- liberalisation
- Political change
- Reduced cost of transportation and communication
- Increased significance of global (transnational) companies
- Increased investment flows
- Migration
- Growth of the global labour force
- Structural change
What is the Reduction of international trade barriers/Liberalisation?
removal of trade barriers and there has been a greater proliferation of trade agreements across the world. This has led to reduced tariffs and protectionism.
How does Political changr effect Globalisation?
Large and rapidly developing countries such as Russia and China, which were previously largely closed to trade have become increasingly integrated into the global economy
These play a vital role in the creation of new markets and the provision of low cost labour
How does Reduced cost of transportation and communication?
This has made the movement of goods and services across the globe faster and cheaper
Improved transportation services such as shipping and airlines
Improved infrastructure has also made globalisation easier
How does Increased investment flows help Globalisation?
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 quickly across the globe.
How does MIgration help Globalisation?
Workers are more willing to move across national borders in search of employment. Free movement of labour has made this much easier.
