Globalisation
Causes
Characteristics
Technological change
Reduced transport costs
Contanerisation
Internet connection allows for seamless exports of services
Global capital markets to allow more FDI
Global decrease in protectionism
High levels of labour migration within and between countries
Greater global transfers of capital including the expansion of foreign direct investment
The development of global brands that serve markets in higher and lower Income countries
Growth of global supply chains
Benefits
Productive efficiency rises as division of labour and specialisation occurs
Dynamic efficiency occurs as businesses seek global cost-reducing innovations and improvements in what they sell
Globally Competitive markets reduce monopoly profits and allows these cost cuts to be passed onto consumers
Costs
Poorer nations can be at a disadvantage when negotiating trade agreements
lead to the exploitation of low income foreign workers
if global businesses with dominant brands and superior technologies take charge of key international markets
The removal of global barriers
The share of global GDP accounted for by exports of goods and services has risen from 12% in 1960 to almost 30%
Consumers have a greater access to products
Average world tarrifs have fallen
Some countries have FDI as a growth stratergy
TransNational Corporations are drivers of globalisation, taking advantage of specialisation in countries with different advantages
Globalisation has driven growth in Emerging countries
The gains from Globalisation are unequal
Integration of the world can lead to all being more venerable of global shocks.