Economic Globalization and Factors That Facilitates It

Economic
Globalization and
Factors that
Facilitates It.
Globalization
What exactly is it?
Globalization
● Globalization is the process of interaction and
integration among people, companies, and
governments worldwide.
● 'a world in which societies, cultures, politics and
economics have, in some sense, come closer
together‘(Ray Kiely 1999)

Economic
Globalization
What is Economic
Globalization?
Economic Globalization
● - Refers to the increasing interdependence of world economies as a
result of the growing scale of cross-border trade of commodities and
services, flow of international capital and wide and rapid spread of
technologies.
Economic Globalization
● Economic globalization refers to the widespread international
movement of goods, capital, services, technology and
information.
Brief History of Economic
Globalization
● Beginning as early as 6500 BCE, people in Syria were trading
livestock, tools, and other items.
● In Sumer, an ancient civilization founded in the Mesopotamia region
, a token system was introduced, one of the first forms of
commodity money.
● Mesopotamia – TOKEN SYSTEM – COMMODITY MONEY

Roles of Economic Globalization
● Economic globalization improves the efficiency of enterprises and plays a

great role in increasing the size of the economy of every country.
● It also lays the material basis for the development of education.
● Globalization promotes the flow of people, capital, commodity, service,
knowledge, technology and information between different nations.
● The economic globalization raised the standards of living around the world.
Factors that
Facilitates
Economic
Globalization.
Factors that facilitates economic
globalization.
Three suggested factors accelerated economic globalization:
● advancement of science and technology,
● market oriented economic reforms,
● and contributions by multinational corporations.
globalization.
● The 1956 invention of containerized shipping, along with increases in ship
sizes, were a major part of the reduction in shipping costs.
globalization.
International commodity markets, labor markets, and

capital markets make up the economy and define economic
globalization
● Commodity Markets
● Labor Markets
● Capital Markets
International commodity markets, labor markets, and capital markets
make up the economy and define economic globalization
● Commodity Markets - A commodity market is a market that trades in the

primary economic sector rather than manufactured products, such as cocoa,
fruit and sugar.
● Labor Markets In the labor market, firms demand labor and people who are
interested to that work supply that labor.
● Capital Markets - A capital market is a financial market in which long-term
debt (over a year) or equity-backed securities are bought and sold
globalization.
● The rate of globalization has also increased under the framework of
the General Agreement on Tariffs and Trade and the
World Trade Organization, in which countries gradually cut down
trade barriers.
Tariff – tax levied by a government on imports and exports.

Import Quotas - limits on the number of products that can be imported
into a country
Bans – forbid products on import goods
globalization.
The General Agreement on Tariffs and Trade (GATT) is a
legal agreement between many countries, whose overall purpose was to
promote international trade by reducing or eliminating trade barriers
such as tariffs or quotas.
GATT refers to an international multilateral treaty, signed by 128

countries to promote international trade and remove cross-country trade
barriers.
World Trade Organization (WTO)
● The World Trade Organization (WTO) is an
intergovernmental organization that regulates and facilitates
international trade between nations.
● The WTO facilitates trade in goods, services and intellectual property among
participating countries by providing a framework for negotiating
trade agreements, which usually aim to reduce or eliminate tariffs, quotas,
and other restrictions
Advantages and
Disadvantages
of Economic
Globalization
Advantages
● Increase job opportunities and possible higher salaries.
● Can lead to economic growth and higher standard of living.
● The reliance of countries to each other has led to better chances of
international peace.
● It has paved the way for cultural awareness and understanding
through the help of technology.
Disadvantages
● Depletion of natural resources because of the increasing demand for

raw materials.
● Violation of human rights as many countries can exploit human
labor outsourced from developing countries.
● Globalization is a method for more powerful countries to colonize
less developed ones.
Hope and
Reality of
Economic
Globalization
Hope and Reality
Hope Reality
The great hope of economic The reality is that until recently

globalization is that it will raise developing countries continue
standards of living around the to suffer from poverty and
world. underdevelopment.
Thanks for listening beautiful people!
Rapid Test!
1

Economic Globalization and Factors That Facilitates It

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Economic Globalization and Factors That Facilitates It

Uploaded by

Copyright:

Available Formats

Economic

● Mesopotamia – TOKEN SYSTEM – COMMODITY MONEY

● Economic globalization improves the efficiency of enterprises and plays a

International commodity markets, labor markets, and

● Commodity Markets - A commodity market is a market that trades in the

Tariff – tax levied by a government on imports and exports.

GATT refers to an international multilateral treaty, signed by 128

● Depletion of natural resources because of the increasing demand for

The great hope of economic The reality is that until recently

You might also like