Globalisation, advantages & disadvantages!

Globalisation, advantages & disadvantages!

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  Globalisation
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  GlobalisationDefinition:An economic phenomenon?Asocial phenomenon?A cultural phenomenon?The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.
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  GlobalisationGlobalisation could involveall these things!
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  Integration of EconomiesTheincreasing reliance of economies on each otherThe opportunities to be able to buy and sell in any country in the worldThe opportunities for labour and capital to locate anywhere in the worldThe growth of global markets in finance                                                                                                                                                 Stock Markets are now accessible from anywhere in the world!Copyright: edrod, stock.xchng
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  Integration of EconomiesMadepossible by:TechnologyCommunication networksInternet accessGrowth of economic cooperation – trading blocs (EU, NAFTA, etc.)Collapse of ‘communism’Movement to free trade
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  Trade versus Aid?Benefitsof Trade:Increased choiceGreater potential for growthIncrease international economies of scaleGreater employment opportunitiesTrade has led to massive increases in wealth for many countries.Copyright: budgetstock, stock.xchng
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  Trade versus Aid?Disadvantagesof trade:Increase in gap between the rich and the poorDominance of global trade by the rich, northern hemisphere countriesLack of opportunities for the poor to be able to have access to marketsExploitation of workers and growersHow far does trade help children like these?Copyright: clesio, stock.xchng
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  Corporate ExpansionMulti-national ortrans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others.No matter where you go in the world, certain businesses will always have a presence.Copyright: mkeky, stock.xchng
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  Corporate Expansion                                                                                                                                                  Characteristics:Expanding revenueLoweringcostsSourcing raw materialsControlling key suppliesControl of processingGlobal economies of scaleControlling supplies may be one reason for global expansion.Copyright: rsvstks, stock.xchng
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  Corporate DominationKey Issues:Damageto the environment?Exploitation of labour?Monopoly powerEconomic degradationNon-renewable resourcesDamage to culturesShell and Nike’s activities have come under severe criticism in some quarters.Copyright: Homsel, stock.xchng
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  Other Issues:Accountability ofGlobal businesses?Increased gap between rich and poor fuels potential terrorist reactionEthical responsibility of business?Efforts to remove trade barriersThere are plenty of people who believe that globalisation is a negative development, protests at the G8 summits, pollution, poverty and concern over GM crops are just some of the issues.Copyright: stock.xchng