The Global Economy

The Global Economy

Globalisation

Globalisation is the process by which the natural and government-created barriers between national economies are broken down. It can also be thought as the geographical dispersion of industrial and services activities and the cross-border networking of companies.

Globalisation trends include:

1. The increase in the trends of goods and services between national boundaries - global markets.
2. The increase in movement of capital, labour, and technology between nations - global flows of factors of production and resources.
3. The related increase in interdependency between national economies.
4. The growth of the size of the number of TNC which has business operations in many nations. E.g. IBM, GMH.
5. The tendency of consumer trends to become worldwide. E.g. Jeans and Fast food.
6. The need for more intergovernment consultations and agreements to facilitate the increase in economic contacts and to deal with inevitable increase in disputes...