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CHAPTER 1: INTRODUCTION - Coggle Diagram
CHAPTER 1: INTRODUCTION
GLOBALIZATION
WHAT IS GLOBALIZATION
:star: COMES FROM WORD GLOBE THE WORLDWIDE COMING TOGETHER.
:star: LEAD TO AN INCREASE IN INTERDEPENDENCE OF NATIONAL, REGIONAL, LOCAL ECONOMIES AROUND THE WORLD.
:star: PEOPLE AND COUNTRIES CAN EXCHANGE GOODS, KNOWLEDGE AND LANGUAGES.
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IMPACTS OF GLOBALIZATION
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:star: POLLUTING INDUSTRIES WITHIN THE BORDERS, EXPLOITING THEIR LABOR.
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GRAVITY MODEL
WHAT IS GRAVITY MODEL
:star: PREDICTS THAT THE VOLUME OF TRADE IS DIRECTLY RELATED TO THE GDP OF EACH TRADING PARTNER AND INVERSELY RELATED TO DISTANCE BETWEEN THEM
:star: THE GREATER THE DISTANCE BETWEEN THE TWO COUNTRIES, THE SMALLER IS THEIR BILATERAL TRADE.
:star: THE LARGER AND THE CLOSER TWO COUNTRIES, THE LARGER VOLUME OF TRADE BETWEEN THEM IS EXPECTED.
GRAVITY MODEL REASONS
: :star: DISTANCE BETWEEN MARKET INFLUENCES TRANSPORTATION COSTS AND THEREFORE THE COSTS OF IMPORTS AND EXPORTS.
: :star: DISTANCE MAY ALSO INFLUENCE PERSONAL CONTACT AND COMMUNICATION WHICH MAY INFLUENCE TRADE.
: :star: GEOGRAPHY: OCEAN HARBORS AND A LACK OF MOUNTAIN BARRIERS MAKE TRANSPORTATION AND TRADE EASIER.
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