Globalization Flashcards
Globalization of markets
national markets are merging into one huge market.
Globalization of production
productive activities at the most optimal world locations.
Globalization
A process of interaction and integration among the people,
companies, and governments of different nations, a process driven by international trade and
investment and aided by information technology. This process has effects on the environment, on
culture, on political systems, on economic development and prosperity, and on human physical
well-being in societies around the world
Financial globalization
World’s financial systems have become intimately interconnected
Stock market trading in New York stock exchange can affect Tokyo and Hong Kong.
Wave continues in European markets then back to American markets
Important to note: this reflects interconnectivity of network of world cities, not nations
Economic Globalization
In past, most corporations were linked/identified with a country, but
today corporations are now transnational Companies move their production and capital to any
market that will benefit the company (increase profits and share values): Ford has plants in Mexico,
Coca Cola and Nike are all over the world
Supporters: increased global wealth means increase in standard of living
Detractors (opponent)- economic globalization tends to increase difference between the “haves
and have not” and leads to the corporation having more power than countries.
Technological globalization
Technological revolution has meant the “Global Village” has
expanded to everything corner of the globe with growth in travel communication and computer
technology, and mobile (smart) phones communications. I can be around the world live, in 1
second by internet or smart phone or 12 hours by planeThe remotest village can now use hand crank
computers to communicate via internet. Some regions have no phone networks, they have jumped
ahead to cellphone networks only.
