Economic Globalization Flashcards
Its about how different countries and regions
have become interdependent across the
globe.
Economic globalization
refers to the international mobility of individuals, capital, technology, goods, and services
Economic Globalization
Economic globalization, tells about how different countries and regions have become _____ acros the globe/
Interdependent
It refers to the ___ ___ _ ___ around the world particularly through the movement of goods, services, and capital across borders.
increasing integration of economies
Characteristics of Global Economy
- International trade
- International finance
- Global investment
How does global economy works?
International Transactions
What are the benefits of global economy?
- Free trade
- Increased Investment
- Increased economies of scale
- Movement of labor
is an excellent method for countries to exchange goods and services
free trade
it has become easier for countries to attract short-term and long-term investment
Increased investment
The scale of specialization of goods production in most countries have lead to advantageous economic factors
Increased economies of scale
Advantageous factors from increased economies of scale
- Lower average costs
- lower prices for customers
Increased migration of the labor foruces is advatageous for the recipient country as well as for the workers
movement of labor
Factors affecting global economy
Population
- Human capital
- Natural resources
Infrastructure
- Technology
- Law
is a term that is used to identify a phenomenon in which markets of goods and services that are somehow related to one another being to experience similar patterns of increase or decrease in terms of the prices of those products
Market integration
Effects of integration on market development
- Expand market coverage by selling local products in the global market
one of the major sources of financing
International non-profit agencies
major sources of financing like
regional development banks or banks globally
To finance productive development projects
or to promote economic development.
International financial institutions
It provides much of the planning and financing for economic development projects involving billions of dollars
World Bank
lends money to members having trouble meeting financial obligations to other members, but only on the condition that they undertake economic reforms
IMF (International Monetary Fund)
IMF only lends money on what condition?
- Undertake economic reforms
was intended to boost economic recovery after World War II through “reconstructing and liberalizing global trade”
General Agreement on Tariffs and Trade (GATT)
is a global membership group that promotes and manages free trade.
World Trade organization
is generally referred to as a multinational corporation (MNC), transnational corporation (TNC), international company
Global Corporation
comprise businesses operating or having business interests in more than one country, mostly headquartered in the parent country.
Multinational Corporations
is “any enterprise that undertakes foreign direct investment,
- owns or controls income-gathering assets in more than one country,
- produces goods or services outside its country of origin,
- engages in international production
transnational corporation (TNC)
Refers to a corporation that has assets and facilities in one or more coutries other than home country
- HAVE a centralized office where global management is coordinated
Multinational
refers to a corporation which operates in other countries other than home country
- have NO centralized management system
Transnational
