Globalization means that the world is becoming interconnected by trade and culture exchange. This study guide looks at the reasons for globalization and its positive and negative influences.
Reasons for globalization:
There are several key factors which have influenced the process of globalisation:
Improvements in transportation - larger cargo ships mean that the cost of transporting goods between countries has decreased. Economies of scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also mean that goods and people can travel more quickly.
Freedom of trade - organisations like the World Trade Organisation (WTO) promote free trade between countries, which help to remove barriers between countries.
Improvements of communications - the internet and mobile technology have allowed greater communication between people in different countries.
Labour availability and skills - countries such as India have lower labour costs (about a third of that of the UK) and also high skill levels. Labour intensive industries such as clothing can take advantage of cheaper labour costs and reduced legal restrictions in LEDCs.
What is the current situation?
This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays.
Knowledge became easily shared and international cooperation among the brightest minds speeded things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth (thas was, nevertheless, unequally distributed – more information ahead).
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What is Globalization?
Globalization means that the world is becoming interconnected by trade and culture exchange. This study guide looks at the reasons for globalization and its positive and negative influences.
Reasons for globalization:
There are several key factors which have influenced the process of globalisation:
What is the current situation?
This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays.
Knowledge became easily shared and international cooperation among the brightest minds speeded things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth (thas was, nevertheless, unequally distributed – more information ahead).
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