IBUS-300 Lecture Notes - Lecture 1: Uruguay Round, General Agreement On Tariffs And Trade, Treaty
11 Dec 2018
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Document Summary
Globalization: trend away from distinct national economic units and toward one huge global market. Creating a more integrated and interdependent world economy. Globalization of markets: refers to the merging of historically distinct and separate national markets into one huge global market. Falling barriers to cross-border trade and investment made it easier to sell internationally. Offering the same basic products worldwide helps create a global market. The most global of markets are typically not for consumer products, but for industrial needs (i. e- aluminum, wheat, coal, etc) Globalization of products: the sourcing of goods and services from around the globe to take advantage of national cost & quality of factors of production. Factors of production: labor, land, energy, capital. Companies do this in hope of lowering overall cost structure or to improve the quality of their product offering. Boeing example- most of the plane parts (65%) comes from foreign countries.
