GGRB28H3 Lecture : lecture 3
Document Summary
L03 globalization: increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, services, technology, and capital. * leads to the emergence of a global marketplace or a single world market international trade: exchange of goods, capital, and services on an international scale. * butterfly effect - what happens in one country has a huge effect in others foreign direct investment (fdi): investment in other parts of the world. * progressively growing around the world internationalization of commercial exchanges: measured with export of goods/services. * geographical specialization of different countries (manufacturing production, technology goods based on research, raw materials) -- comparative advantage. Made possible by: technology communication networks internet access growth of economic cooperation trade blocs (nafta, eu, etc) international treaties of free trade (gatt) Companies or transnational enterprises with headquarters in one country but business operations in many countries.
