Globalization

Globalization

1. is the increasing interaction of people through the growth of the international flow of money, ideas and culture

   • Globalization is primarily an economic process of integration which has social and cultural aspects as we

2. To poorer countries globalization brings the chance to sell their relatively low cost labour onto world markets.

3. To people in richer countries globalization brings lower cost goods from abroad, which leaves them with spending power to spare and a higher standard of living.

   • Those adversely affected by the global exchanges are the people in rich countries whose output is now undercut by the cheaper alternatives from abroad.

4. Competition from abroad forces firms to become more efficient and to use resources more efficiently.

5. The integration of the world economy has brought with it an interdependence.

6. The 19th Century French economist Frederic Bastiat expressed this pithily: "Where goods do not cross frontiers, armies will."