Globalization is used to describe the ways in which places and people are now more connected with one another than they used to be.

Global flows:

goods-trade

migration-people-culture/religion-tourists

information-internet/newsletter/satellite

money-exchange/banks/trade

culture-religions/beliefs/ethnicity

Tncs or transnational corporation is a company with many branches in many countries.Coca Cola’s spread throughout the world is an example of globalization.

Time-space compression:

heightened connectivity changes our conception of time,distance and potential bourners to the migration of people,goods,money and information.

Shrinking world:

As travel times fall due to new inventions different places approach each other in space-time:they begin to feel closer together than in the past.AS a result of advances in travel communications and technology global flows more quickly which has made the world seem like a smaller place.

Free trade-is a trade policy that does not restrict imports or exports;it is the idea of the free market as applied to international trade.In government,free trade is predominately advocated by political parties that had right wing or liberal economic positions,while economically left wing political parties generally support protectionism the opposite of free trade.

Foreign direct investment-is a investment made by an business interests located in another country.Generally;FDI takes place when an investor establishes foreign business operations or acquires foreign business assets including establishing ownership interest in another foreign company.

Offshoring-some TNC’S build their own new production facilities in offshore low wages economies.

Foreign mergers-two firms in different countries join forces to create a single entity.

Foreign acquisitions-when a TNC lances a take over of a country.

Transfer pricing-some TNC’S such as Starbucks had sometimes controlled profits through a subsidiary company in a low tax country such as Ireland.

Free-market Liberalization-the lessoning of government restrictions in a economy in exchange for greater participation by private entities.

Privatization-transfering ownership of a business from the public sector to the private sector.

Trade blocs:

EU-European Union which has free trade agreements and free movement of people,goods and ideas.

ASEAN-promotes peace and stability-it’s members have pledged to not have nucleur weapons.Only encourage movement of goods and skill labour.

Composite measures of globalization:

AT Kearney Index-

Key measures-

Economic intergration-trade and FDI

Personal contact/travel remittances and pesonal transfers,telephone traffic

Technology-internet users,secures servers

Political engagement-treaties/international organisations/in peace keeping/government transfers

Advantages-

It covers 96% of worlds gdp

It covers 84% of worlds population

Allows for comparision between countries and over time.

Disadvantages-

Only 64 countries are included in the index.

limited data collected

heavily weighted towards economic

Critisms-

Smaller countries tend to take the top places in the index due to higher proportion of FDI-therefore suggesting an over importance of the size of the country.

Measured scale 0-1

KOF index-

Key measures-

Flows of goods,long distance,capital,services,information

Tarriffs-restrictions,trade barriers

Personal contact

Measure of globalization on economic and social and political dimensions-spread of ideas,people

Advantages-

Index allows comparing degree and changes in globalization over a large number of countries and more than 30 years.The KOF index of globalization 2009 is available for 158 countries over the period 1970-2006 calculated on 24 variables

Disadvantages-

The KOF index of 2009 shows that globalization is still on the rise,driven by increased economic and political globalization while social globalization stagnates.Political has smallest weighting but economic and social have higher weightings and are more evenly weighted than Kearney index.

TNC-any corporation that is registered and operates in more than one country at a time,also called a multinational corporation.It has its headquarters in one country and operates in another country.

Glocalization-means adapting the goods or services of a business to increase consumer appeal in different local markets.

Global shift-is the movement of economic activity from MEDCs initially to NICs and more recently to LEDCs. Originally this was the movement of manufacturing activity,but more recently service activity has been involved.

Rural to urban migration-Movement of people from a rural area to a urban area.Countryside to city/town.

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