Economic globalization
- Created by: Buki
- Created on: 09-05-14 23:29
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- Economic globalization
- History
- Came into use in 1980s - describe changing map of world economic organisation
- Only 10 citations in 1990. Some 4,000 citations by 2003
- Causes
- TNCs - dominate the world as a result of their global span. responsible for integrating economic activity between nations
- Technological advancement rise of advanced transport and communication networks
- Increasing integration of markets of different economies
- Characteristics
- Uneven trading between different blocs in the world (North-South)
- Rise of single international system of production and exchange
- National and local fortune no longer explained by what goes on cities, regions and nations, but how they are connected to rest of the world
- Processes
- Internationalizing processes
- Extension of economic activities across national boundaries
- Regionalizing processes
- Forms of co-operation, integration, connectivity and convergence within a particular cross-national territorial area
- Globalizing processes
- The functional integration of internationally dispersed activities
- Scope/spatial spread - spatial extension/ stretching of local and national exonomies
- Intensity - degree of functional integration of economic activity (interdependence)
- Internationalizing processes
- Definitions
- World spread of capitalism and market driven economies
- Intensification of transnational connections between economies
- Spatial stretching/ extension of economic activity. Global integration and interdependence of economic activity
- Effects
- Technological change
- Rapid shrinking of transport and communication times due to cost reduction in road, rail and air travel
- Uneven linkages - not everybody linked up to transport and communication systems of equal terms. Story of North-North connections
- Rise of new global communications world
- Increase potential for geographical fragmentation of work
- Uneven linkages - not everybody linked up to transport and communication systems of equal terms. Story of North-North connections
- Rise of new global communications world
- Rapid shrinking of transport and communication times due to cost reduction in road, rail and air travel
- Network of trade
- Big flows and exchanges in trade are between major producer and consumer blocs
- Globalization of trade - producing and intensifying trade gap between North and South
- Big flows and exchanges in trade are between major producer and consumer blocs
- Global production networks
- Frequently owned and run by TNCs who act like global supply chain contollers
- Depends on nature of industries and nature of regulatory system in host country
- New International Division of Labour
- Retainment of R&D functions in home county. Relocation of low cost functions to countries with lower labour costs
- Increase potential for geographical fragmentation of work
- Rise of world economy run by highly corporatized alliances. Econ. globalization producing new elite world order?
- Rise of international regulatory bodies e.g. IMF, WTO, G8, EU, NAFTA etc.
- Economic systems no longer confined to national boundaries
- Technological change
- History
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