Globalisation

Globalisation

1. post 1945 world economy

   • fundementals that distinguished post war economy
     • Embedded Liberalism
       • a comprimise Gov's made to safegaurd their own economic objectives (maintaining full employment) and opening up of domestic economy to restore International trade
     • A commitment to Multi-lateralism
       • the gap between rich and poor
       • no discrimination to other trade countries - all nations are equal
         • 1) Bretton Woods multi-lateral financila institions 2) IMF 3) world Bank all rose out of multi-lateralism
       • World trade grew
       • Global GDP grew

2. Globalisation takes place in many areas

   • International politics
     • financial crisis, terrorism and climate cannot be solved by a single state
       • desisions made in broader groups ie: EU, G20 and the UNO
     • NGO's try to influence politics ie: Greenpeace and Amnesty International
   • Economy
     • Growth in MNC's & FDI
     • major catalyst for globalisation
     • the most affected area, internatinal exports have incread substantially in the last 60yrs
   • Culture
     • Global distribution of western music, news and products promotes globalisation
     • people are returning to local and regional customs

3. Declining costs of transport and communication fuel this trend

4. Liberalisation of markets have also fueled this trend

5. Pros

   • 1-there is a worldwide market for companies to access products from different countries
   • 2-decisions that are being made benefit people all over the world
   • 3-Knowledge of different cultures
   • 4-info is spread fast through the internet
   • 5-People are more open and tolerant to each other and are being able to live in different countries

6. Cons

   • 1-rich get richer, non-rich become poor
   • 2-Countries individaul cultures are becoming "Americanised"
   • 3-social injustice which affects the envoirnment
     • Income inequality
       • measured by the GINI Coefficient where 0 = everyone gets the same wage and 1 = the rich gets all the wage
       • governments can do something about it according to the OECD report "Divided we stand"
         • 1-reforming tax and benefit policies
         • 2-getting more people into the labour force and making sure they stay in jobs that pay good wages
   • 4-poor living and working conditions
   • 5-Rich countries can act with less accountability
   • 6-Deadly diseases are spreading due to remote foreign travel
   • 7-Human trafficking and child labour

7. changes how people consume work and live almost everywhere in the world

   • world has become so interdependant
     • technology and communication is global standard - info can now be distributed at real time at affordable prices
       • trade is more accessible due to price drops in transport and other advances such as open markets
         • richer countries work towards removing trade barriers

8. Thus new technologies, decreasing transportation costs and Liberalisation of international has made it possible and profitable for major companies to produce and sell worldwide