globalisation

• what is globalisation?


  a process by which economies and cultures have been drawn deeper together and have become more inter-connected through global networks of trade, capital flows, and spread of technology and global media.
• Key benefit of globalisation?

  Allows businesses and countries to specialise in producing goods and services where they have a comparative advantage.
• Foreign direct investment (FDI)


  An investment made by a firm or individual in one country into business interests located in another country
• Globalisation


  process of deeper economic integration between countries and regions of the world.
• Transnational company


  Transnational businesses (TNCs) base their manufacturing, assembly, research and retail operations in a number of countries.
• Open economy


   An economy with low tariff and non-tariff barriers which is deeply integrated into the regional and global economy and where the value of trade measured as a share of GDP is rising
• Closed economy


  An economy operating without imports and exports – i.e. closed to global trade and also with barriers to inflows and outflows of foreign investment
• Main characteristics of globalisation

  Increased interconnectedness

  Rapid technological advancements

  Greater cultural exchange

  Growing environmental awareness
• Factors that have contributed to globalisation

  Containerisation

  Technological change

  Economies of scale

  Differences in tax systems

  Less protectionism

  Growth strategies of transnational and multinational companies