Factors in globalisation
Factors influencing globalization ppt
Production is much more flexible than in the past — companies are much more likely to hire people on short term contracts and move around the globe seeking cheaper labour costs, as a response to increased global economic competition. These consist of extensive outsourcing and business partnership arrangements. When US banks suffered losses due to the sub-prime mortgage crisis, it affected all major banks in other countries who had bought financial derivatives from US banks and mortgage companies. For example, it is possible for countries to place tariff barriers and restrict immigration. Early computer networks were designed to link together important research machines in different locations. The regional trade understandings or agreements determine the scope of globalization. The EU has evolved over time from being a simple trade bloc into a multi-governmental organisation with its own currency the Euro and some shared political legislation.
The history of humanity is one of globalisation. This means countries are increasingly interconnected. Global trade remittances now play a large role in transfers from developed countries to developing countries.
The development of overseas markets and manufacturing plants in autos, four wheelers and two wheelers is a classical example. Near distance to end user or consumer also is an important factor in globalisation. Globalisation is not a new phenomenon.
Four factors of globalization
Global trade cycle. Restrictions were therefore lifted on the way companies and banks operated. They believed that government intervention in markets impedes economic development. In recent decades, food and merchandise have been transported efficiently across enormous distances using intermodal containers in developments in containerisation. Near distance to end user or consumer also is an important factor in globalisation. These consist of extensive outsourcing and business partnership arrangements. Globalisation is not a new phenomenon. Growth of multinational companies with a global presence in many different economies. The world economy has become increasingly interdependent for a long time.
Now, five billion Facebook 'likes' are registered globally every day. They believed that government intervention in markets impedes economic development.
Improved technology is undoubtedly very influential in helping globalisation; without technologies such as the internet and global communication, it would not have been possible to witness the increased interdependence of companies and countries.
Growth of multinational companies with a global presence in many different economies. To trade freely with neighbours or more distant allies, trade agreements have been drawn up allowing state boundaries to be crossed freely by flows of goods and money.
Factors accelerating globalisation
The large markets as consumer bases in Asian countries have led many European, Korean to Japanese manufacturing conglomerates and shift their manufacturing and trading bases in Asian countries. Globalisation began in for India, when its democratic government introduced sweeping financial reforms. Less protectionism Old forms of non-tariff protection such as import licensing and foreign exchange controls have gradually been dismantled. You're now subscribed to receive email updates! Information and communications technologies and systems The internet originally began life as part of a scheme funded by the US Defence Department during the Cold War in the s. Also, economies of scale are very important for encouraging increased specialisation of global production. Global trade cycle.
Main reasons that have caused globalisation Improved transport, making global travel easier.
based on 92 review