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(globalization) - Coggle Diagram
globalization
economic globalization
investment flows
Foreign direct investment
productive assets
movement of labor&
multinational firm
international trade
since the1960s
trade of global GDP 22%->50%
communication and transportation
improvement
late 1800s and early 1900s.
significant increases
globalization 1.0
Thomas Friedman
the process of closer integration and exchange between countries and peoples worldwide
cause of globalization
Reduced
trasporation cost
eg. air transport costs
have fallen by nearly 90%
Falling trade&
investment barriers
negotiations and treaties->tariff
World Trade Organization in 1994
Advanced
telecommunictions
eg.shipping
the cost of sea freight in real terms has fallen by 80% since 1940
Growth of
MNEs&FDI
MNEs
conduct operation in at least two countries
procurement,production ,or sale/distribution
MNEs in USA,employ 19% of all US workers and conduct nearly three-quarters of private R&D
FDI
investment in actual productive assets
build up a production plant in a foreign country , spend money on an R&D center or a sales office , to acquire another company