Globalisation Flashcards
What is globalisation?
The economic integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology, and finance
How has globalisation impacted national cultures?
Spread ideas, accelerated industrialisation in developing nations, and led to de-industrialisation in developed nations
Is globalisation a new phenomenon?
No, it has been increasing for thousands of years
What has exponentially increased the level of interdependence between nations in the past 50 years?
Improvements in technology and the speed of global connections
What do consumers now do in relation to global products?
Source products globally and recognize global brands wherever they travel
List the four main characteristics of globalisation
- Increasing foreign ownership of companies
- Increasing movement of labour and technology across borders
- Free trade in goods/services
- Easy flows of capital (finance) across borders
What was the value of global trade in 2000?
$6.45 trillion
What was the value of global trade in 2020?
$19 trillion
What are two significant causes of the rapid increase in globalisation?
- Improvements in containerised shipping
- Innovation in communication technology
What is one benefit of containerisation in the shipping industry?
Economies of scale generated by containerisation
What has improved the ability for firms to connect internationally?
The internet and improvements to communications technology
What role has the World Trade Organisation (WTO) played in globalisation?
Increased effectiveness in negotiating new trade agreements and helping countries open up to free trade
Name three examples of transnational corporations.
- Apple
- Microsoft
- Amazon
What major geopolitical event in 1990 influenced globalisation?
The end of the cold war between Russia and the West
What was one effect of the deregulation of financial markets in the 1990s?
Expansion of global financial services and more access to capital
