Please enable JavaScript.
Coggle requires JavaScript to display documents.
Globalisation - Coggle Diagram
Globalisation
causes
Trade in goods - for many developed countries goods are increasing being manufactured abroad - in developing countries such as china and india. - cost advantage in the form of very cheap labour.
-
Trade liberalisation - fierce protectionist policies were put into place by individual countries trying to boost domestic demand following the great depression (1930s), these policies have dropped since 1945 - lower protectionist barriers have encouraged growth in world trade.
multinational companies / TNCs - have grown in number and size. For example - oil industry - large multinational countries have the economies of scale and the technological knowledge to make products that are cheap and technically advanced.
-
-
communications and IT - have reduced the time it takes for economic agents to communicate with each other.
impacts
-
-
on producers
-
footloose capitalism - multinational companies - move production from country to country - creating and destoying jobs.
-
-
-
Definition - ability to produce any g/s anywhere in the world sourcing FOP from anywhere to sell the resulting output anywhere and place profits anywhere.
It raises interdependence (e.g - JIT production) and interconnectedness of all economic agents in all countries.
-