GLOBALISATION
definition
Globalisation relates to where economies and cultures have been drawn deeper together and have become more connected through global networks of trade and the rapid spread of technology and global media
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characteristics of globalisation
Greater trade in goods and services both between nations and within regions
An increase in transfers of capital
The development of global brands that serve markets in higher and lower income countries
division of labour
outsourcing and off shoring of production and support services as production supply chains has become more international.
High levels of labour migration within and between countries
A fast changing shift in the balance of economic and financial power from developed to emerging economies and markets
Increasing spending on investment, innovation and infrastructure across large parts of the world
Globalisation is a process of making the world economy more inter-dependent
factors for increased globalisation
Technological change
the cost of transmitting and receiving communication has decreased
economies of scale
as companies have the ability to use worldwide resources thye have better chances of finding more efficient ways to decrease their unit costs and benefit from economies of scale
Ability to benefit from less tax in some countries
if you operate in some countries it means you may be able to pay less tax as in that country it is lower and so costs will be decreased