Economic Globalization - created from Mind Map

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Stakeholders

Definition

TNCs: - Profit- maximization -Expansion of New market --> enrich influence (especially on LDCs policy- making)

National Gov: - focus on attracting foreign investment - make policies that attracts TNCs/ Foreign Direct Investment (FDI)

International/ regional Trade Org.: - promote free- trade & economic growth e.g World Trade Org (WTO), Asia- Pacific Economic Cooperation (APEC)

Labour Market Integration

Commodity Market Integration

Financial Market Integration

Global DoL: TNCs separate prodn into different stages & locate in different countries to enjoy locational benefit --> forming Global prodn network

Free Trade: - unrestricted international trade in goods & services - P decided by market mechanism, free from gov intervention - producer outsource raw materials all around the world at low prodn cost

Money flow: - TNCs obtain funds overseas by selling shares - invite foreign investment --> higher mobility of funds