INTB 1209 Study Guide - Midterm Guide: Effective Competition, Environmental Degradation, International Trade
18 Feb 2020
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Globalization: more integrated economies with fewer barriers to investment and trade. Market globalization: from national markets to international marketplace. Consumer tastes are merging into a global customer profile. Sourcing of production to benefit from more advantageous cost/ quality of factors of production. Global institutions: to regulate the international market place. Create international treaties to run business system globally. The successor of gatt (general agreement tariffs and trade) 98% of world trade is made by 164 nations alone. Made up of: finance ministers and central bank directors of world"s 19 largest economies + european union. Helped to respond unitedly to the 2008 financial crisis. Drivers of globalization: abolition of trade barriers. International trade: export of goods/ services to other countries. Foreign direct investment: firm investments outside the home country. Trade barriers used to protect local industries (popular in 1920s and 30s) Overall the world is wealthier: technological change. Communications: high-power and low-cost computers after ww2.
