http www bized co uk Globalization Copyright 2007
http: //www. bized. co. uk Globalization Copyright 2007 – Biz/ed
http: //www. bized. co. uk Globalization • Links countries together • Connects business and culture around the world • Less boundaries & restrictions between nations Definition: ● The movement towards increasing economic and social ties between countries (supported by the spread of corporations and capitalism). Copyright 2007 – Biz/ed
Globalization - Transportation on land, sea and air have been revolutionized during the last century or two. In the 19 th century the railway transformed British North America and helped to create a new country. Traveling overland across Canada went from being a virtual impossibility to a relatively comfortable trip of less than a week.
Globalization - Communications Time and space are also compressed by modern means of communications. Telephones, fax machines and the internet bring people together instantly.
http: //www. bized. co. uk Globalisation could involve all these things! Copyright 2007 – Biz/ed
http: //www. bized. co. uk Integration of Economies ● The increasing reliance of economies on each other ● The opportunities to be able to buy and sell in any country in the world ● The opportunities for labour and capital to locate anywhere in the world ● The growth of global markets in finance Stock Markets are now accessible from anywhere in the world! Copyright: edrod, stock. xchng Copyright 2007 – Biz/ed
http: //www. bized. co. uk Integration of Economies ●Made possible by: o. Technology o. Communication networks o. Internet access o. Growth of economic cooperation – trading blocs (EU, NAFTA, etc. ) o. Collapse of ‘communism’ o. Movement to free trade Copyright 2007 – Biz/ed
http: //www. bized. co. uk Trade versus Aid? ●Benefits of Trade: o Increased choice o Greater potential for growth o Increase international economies of scale o Greater employment opportunities Trade has led to massive increases in wealth for many countries. Copyright: budgetstock, stock. xchng Copyright 2007 – Biz/ed
http: //www. bized. co. uk Trade versus Aid? ● Disadvantages of trade: o Increase in gap between the rich and the poor o Dominance of global trade by the rich, northern hemisphere countries o Lack of opportunities for the poor to be able to have access to markets o Exploitation of workers and growers How far does trade help children like these? Copyright: clesio, stock. xchng Copyright 2007 – Biz/ed
http: //www. bized. co. uk Corporate Expansion No matter where you go in the world, certain businesses will always have a presence. Copyright: mkeky, stock. xchng ●Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others. Copyright 2007 – Biz/ed
http: //www. bized. co. uk Corporate Expansion ● Characteristics: o Expanding revenue o Lowering costs o Sourcing raw materials o Controlling key supplies o Control of processing o Global economies of scale Controlling supplies may be one reason for global expansion. Copyright: rsvstks, stock. xchng Copyright 2007 – Biz/ed
http: //www. bized. co. uk Corporate Domination ● Key Issues: o Damage to the environment? o Exploitation of labour? o Monopoly power o Economic degradation o Non-renewable resources o Damage to cultures Shell and Nike’s activities have come under severe criticism in some quarters. Copyright: Homsel, stock. xchng Copyright 2007 – Biz/ed
http: //www. bized. co. uk Other Issues: ● Accountability of Global businesses? ● Increased gap between rich and poor fuels potential terrorist reaction There are plenty of people who believe that globalisation is a negative development, protests at the G 8 summits, pollution, poverty and concern over GM crops are just some of the issues. Copyright: stock. xchng ● Ethical responsibility of business? ● Efforts to remove trade barriers Copyright 2007 – Biz/ed
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