def term globalisation
= growing interdependence of the world’s economies, cultures, population, and individuals
state 6 types of globalisation
- economic
- technological
- political
- cultural
- ecological
- sociological
what creates globalisation? state 4 factors
- trade (of products, services, ideas, currencies, know-how)
- investments (it’s also a trade, but the market is huge, so they are separate)
- human resources
- knowledge (information)
state 4 trends in globalisation.
- global interdependence has dramatically increased
- laws and institutions are implemented on a international level
- failing to protect the global natural envrionment
- industry 4.0 (technology)
what is needed for globalisation in the future? (4 points)
- peaceful interstate relations (importance of policy-makers being peaceful)
- increased investments (long-term thinking)
- equality of wealth (not only the elite)
- more environment protection in the less developed countries
when did globalisation start? (by Thomas L. Friedman)
in 1492, start of first globalisation (discovery of Americas, globalisation of countries)
1800 - 2000 (globalisation of companies, industrial revolution)
2000 - now (globalisation of individuals)
state 5 drivers of modern globalisation
- trade
- market (esp. after berlin wall)
- multilateral trade liberalisation (= removing barriers from relations between 2+ countries)
- regional trade liberalisation
- technological progress
define the term modern globalisation
= globalisation from 2000 till now (globalisation of individuals)
who was the theoretical founder of modern globalisation?
what did they say?
Theodore Levitt, a US economist and professor at Harvard Business School.
he talked about how consumers are becoming more and more similar, which means that the products can be standardised and globalised
which countries (commonality between them) are most satisfied with globalisation? which are the least?
most: underdeveloped (Malaysia, South Africa, Peru)
least: developed (France, Belgium, Russia, Italy)
define the index of globalisation.
= measures the rate of globalisation in a specific country
which country is least and which most globalised?
least: Somalia
most: Switzerland
state 4 negative impacts of globalisation.
- uneven population growth
- uneven wealth growth and wealth distribution
- easier tax avoidance
- multinational companies are monopolistic
state 3 positive impacts of globalisation
- greater competition and economies of scale
- increased mobility of capital and labour
- increased trade (more choices for consumers)
define the modern structure of trade flows (4)
- flow of money
- flow of commercial services (tourism)
- flow of intellectual property rights (licenses)
- flow of financial instruments (FDIs)
what impacts does trade have on globalisation? (5)
- world production is ‘pulled to increase’ by the world trade
- covid caused an increase in services
- less trade causes slower growth
- globalised trade caused fast fashion
- global FDIs started to fall in 2019
