Globalization

Globalization

1. Definition

   • The global circulation of goods, services and capital, but also of information, ideas and people. It has shaped the 20th Century, all be it with large cyclical variations and become an increasingly visible force in recent decades.” (World Bank, 2000)

2. The Global Market

   • Products and services available on a global scale
   • Supported by global branding, advertising and retailling
   • Causes
     • National tastes and preferences have gone global
     • Increased demands for standadised products
     • Development in technology (incl communication)

3. Globally Organised Production

   • Manufacturing and service provision across a number of different countries
   • Development of supply chains globally
   • Offshoring and outsourcing

4. Drivers of Globalisation

   • Rational Knowledge
   • Growth in international trade
   • Changing world politics
   • Changing markets and the need for expansion
   • Technological innovations
   • Global regulations and standards

5. Advantages / Disadvantages

   • Advantages
     • More standardised goods
     • Lower cost
     • More job opportunities
     • Faster growth
     • Familiarity
     • Enhanced communication and better understanding of cultures
     • Increased knowledge
   • Disadvantages
     • Less choice about how economies are run
     • Developing countries are less likely to benefit
     • Decisions often based on trade
     • Scarce resources under pressure