Globalisation

• Globalization


  A process in which national economies have become increasingly integrated and interdependent
• Globalization


  • It is a process that doesn't just happen overnight, it takes something to kick-start it for it to continue
• Globalization has been experienced over the last 40-50 years
• Factors that have led to globalization

  • Trade liberalization through the greater role of the World Trade Organization
  • More countries signing up to the World Trade Organization
  • Reduction in trade barriers
  • Growth in free trade areas and free trade pacts
  • Technological advancements in transport and communication
  • Greater mobility of labour and capital
• Examples of major free trade agreements

  • TTIP (Transatlantic Trade and Investment Partnership) between the EU and US
  • TPP (Trans-Pacific Partnership) between Pacific nations
• The growth and deepening of trading blocs like the EU has led to greater integration between nations
• Benefits of globalization

  Lower prices for consumers and businesses<|>Greater consumer choice and quality<|>Firms able to access raw materials from different locations<|>Firms able to benefit from economies of scale
• Employment benefits of globalization


  Firms can grow in size to meet increased demand, leading to more hiring<|>Individuals can access higher incomes and living standards
• Ease of movement benefits of globalization

  Easier for individuals to migrate and work internationally<|>Easier for businesses to move and invest across the world
• Globalization has led to growing inequality, with the top 1% owning 55% of global wealth
• Globalization has led to environmental costs through increased pollution and resource depletion
• Globalization has led to trade imbalances and the risk of protectionist policies and trade wars
• Globalization has increased the risk of economic shocks spreading globally
• Globalization has led to a loss of cultural diversity as countries lose their unique identities
• When analysing the impact of globalization, it is important to consider its effects on development indicators like HDI, per capita income, health, education, employment, inequality, etc.