Chap 1 What is globalisation Flashcards
globalisation
process of increasing integration in markets fir goods and productive factors
economic globalisation
trade, k+ movements and migration
global value chains
where a product is made is hard to tell
European Middle Class VS 20% richest China
Average income of 20% richest in China exceeds average income of european middle class in 2010
economic nationalism in politics of advanced countries
central element of radical right platforms
move towards greater eco integration according to O Rourke
not unidirectional, globalisation process has suffered periodic reversals
most impressive integration gains according to O Rourke
19th century more than 20th century
first wave of globalisation
1870-1914 decrease in transportation and communication costs and political preconditions
second globalisation
post cold war, word «globalisation» introduced, china starting to adopt market model + export orientation, WTO
basic economic model about commodity market integration
- prices should be the same across places (accounting for transportation + other trade costs)
- cost of trading across frontiers reflected in price differentials for homogenous goods in different markets
- decline in price differentials = indication of international integration
examples of commodity market integration
Spice and coffee Amsterdam / SEA
Wheat price GB/US
capital became integrated in ___ desintegrated during ____
late 19th century
interwar period
comparison in importance of FDI in developing countries
FDI less imp today in dev countries than on eve of World War I
18% of GDP today
40% of GDP in 1913
migration in 1930s vs 1840s
lower in 1930s
most important information technology breakthrough
telegraph
