The Globalization of Economy Flashcards
(25 cards)
A historical process, the result of human innovation and technological progress.
Economic Globalization
Increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders.
Economic Globalization
Movement of people (labor) and knowledge (technology) across international borders.
Economic Globalization
The interconnected dimensions of the phenomenon (4)
- the globalization of trade of goods and services;
- financial and capital markets;
- technology and communication;
- production
Examples of a global market
- The proliferation of the Internet and the emergence of market places.
Examples of market places in the Internet
E-bay, Amazon, and other global online markets.
Examples of a global market
- Tramp Shipping
- International shipping industry
- A certain market segment in which vessels that operate do not trade regularly between certain fixed ports.
Tramp Shipping
- Shipping service where carriers contract to haul cargo in shipload lots between ports designated by charterer.
Tramp Shipping
Provides convenient, timely & economic transportation for many goods needed in a complex industrial society.
- In established trades (i.e., grain from US, Canada, Argentine & Australia to N. Europe, Med, Africa, Japan & S. Asia
- On new routes to alleviate temporary critical shortages
Tramp ships
Examples of a global market
- The market for foreign exchange
Foreign exchange
The largest market in the world in terms of turnover.
Example of Foreign Exchange
Forex Trading
Has been around since the 15th century when European exploration & colonization created global empires & markets, but most historians and economists agree that today is special by extent of interdependence and the speed by which it has occurred.
Globalization
Two factors that underlie globalization
- “Decline in barriers to the free flow of goods, services, and capital” that has occurred since the end of World War II
Two factors that underlie globalization
- Technological change
Declining Trade and Investment Barriers
During the 1920s and ’30s, many nations erected formidable barriers to international trade and foreign direct investment
Declining Trade and Investment Barriers
Advanced industrial nations of the West committed themselves after World War II to REMOVING BARRIERS to the free flow of goods, services, and capital between nations.
Lowering of trade barriers that made globalization possible
The Role of Technology
Has made it a transforming movement in the global market
Technology
has exploded in last 20 years
World Wide Web
Computers can move money around the world
Finance capital
9th largest economy in the world
Silicon Valley
Why it is called Silicon Valley?
A region on the San Francisco Peninsula in California where the miniaturized electronics industry is centered, so called because most of the devices built there are made of semi-conductors such as silicon.
