MN1178 B&M in GC 1. Perspectives on globalisation

Globalisation is (2 answers)

• the shift towards a more interdependent and integrated world economy

• the process leading to greater interdependence and mutual awareness among economic, political and social in the world and among the people in the world

• decline in trade and investment barriers since the Second World War

Drivers of globalisation (2 factors)

• the decline in trade and investment barriers since the Second World War

• technological change, specifically dramatic improvements in communication, information processing and transportation technologies

• global economic crisis with global output, trade and investment plummeting and unemployment rising

Four trends towards globalisation

• Changes in world output and world trade

• Foreign direct investment

• Types of companies

• Change in world order

• Cross-border trade and per capita GDP all grew to new, unprecedented levels

Waves of globalisation

• 1880 - 1929

• 1930 - 1980

• 1950 - 1979

• 1979 - our time

• 1930 - 1950

The goal of the International Monetary Fund

• is to maintain order in the international finance system

• is to promote economic development by making loans to cashstrapped nations wishing to make significant infrastructure

• is to make the decisions affecting the world and have power over nations akin to a political body or national government

The goal of World Bank

• is to maintain order in the international finance system

• is to make the decisions affecting the world and have power over nations akin to a political body or national government

• is to promote economic development by making loans to cashstrapped nations wishing to make significant infrastructurei

Choose the 2 statements of the proponents of globalisation

• jobs are being lost to high-wage nations

• free trade will prompt countries to specialise in what they can produce most efficiently

• free trade encourages companies from advanced nations, where there are costly environmental standards, to move manufacturing facilities offshore to less developed countries with lax environmental and labour regulations

• foreign direct investment actually encourages countries to raise their standards

• economic power is shifting away from national governments and towards supranational organisations like the WTO

Critics of globalisation worry that (2 answers)

• the gap between rich and poor is growing

• the benefits of globalisation have not been shared equally

• environmental regulation and stricter labour standards go hand in hand with economic progress

Does distance still matter? Choose the 4 right statements

• globalisation cannot be said to be flattening the world

• globalisation is a supercomplex series of multi-centric, multi-scalar, multi-temporal, multi-form and multi-causal processes

• companies often overestimate the ease with which their business can move abroad

• the cultural, administrative and geographical distance between nations presents a fundamental challenge to companies facing the globalisation of the world economy today

• globalisation is accelerating and is flattening the world so that every nation will eventually be part of the global marketplace and production process.

multinational corporation

• is an enterprise producing goods or delivering services in more than one country

• is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased

• situated or operating in a foreign country