7.1: Globalisation Flashcards
In the 60s, Marshall McLuhan predicted a ‘global village’. What is this?
A flat works where free reign if given to economic and info flows. This would be reflected by the increasingly international manner in which organisations would operate:
- by thinking globally
- by acting globally (being present in many countries)
- by making planet wide decisions
International trade gives trade to a world economy. What is this?
An economy in which prices, supple and demand are affected by global events.
Eg trade has grown hugely since WW2 (grown from $100bn in 1956 to $19tn in 2013).
Define globalisation.
A process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration.
The focus of globalisation has mainly primarily been on economic relationships such as international trade.
What is international trade?
The exchange of capital, goods and services across international boarders.
Imports = inbound trade Exports = outbound trade
The focus of globalisation has been primarily on international capital flows.
What are capital flows?
The movement of money for the purpose of investment, trade, or to produce goods / services.
Usually regarded as investment into a production operation.
What does factors of production mean?
A number of productive resources that are combined in order to provide goods and services.
What are the factors of production?
- land (natural resources provided by Earth eg minerals, water)
- labour
- capital (any physical resource that can be regarded as a man made aid for production such as factories, machinery).
- enterprise (people who take the risk of establishing businesses and organising the production of goods / provision of services).
What are the 5 dimensions of globalisation?
- flows of capital
- flows of labour
- flows of info
- flows of products
- flows of services
