BSB119 Study Guide - Vertical Integration, William Rappard, Barter
Document Summary
This chapter is mainly concerned with the history and definition of globalisation. It outlines the concept of global production and markets, and the standardization of global products. It also outlines the advantages, disadvantages, and possible risks of engaging in international trade. Globalisation is the shift towards a more integrated and independent world economy. Globalisation of markets is the merging of historically distinct and separate national markets into one global market. Falling barriers to trade have made this process easier. Without wto, formerly gatt, globalisation of markets and production is unlikely to proceeded as far as it has today. Globalisation of production is the process of sourcing goods and services from locations with advantageous factors of production. Facts of production are the components of producing a product, such as energy labour, land, and capital. Advances in technology, namely logistics and telecommunications, have made this a viable possibility.
