4.1.1 Globalisation

The process by which the countries of the world are becoming more integrated

Causes:

Containerisation/ Improvements in communication technology/ Reductions in protectionism/ Opening up of global financial markets by reducing capital controls/ Favourable tax systems abroad/ Growth of MNCs

(capital controls = limits on the amount of money that can enter/exit a country. Removed in 1980s)

Characteristics

Increased trade in goods&services/ Increase in labour migration/ Increase in transfer of capital (e.g. FDI)/ Development of global brands/ Spatial division of labour (outsourcing and offshoring of production)/ New nations joining the WTO/ Shift of econ. power from developed to emerging economies/ Interdependece