CIVICS.................GLOBALIZATION

Globalization

  written by shamily

o656 848274

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Globalisation is not a new phenomena. The worinterdependent for a long time. However, in recent decades the process of globalisld economy has become increasingly ation has accelerated, this is due to a variety of factors, but important ones include improved trade, increased labour and capital mobility and improved technology.

Main Reasons that have caused Globalisation

1. Improved transport, making global travel easier. For example, there has been a rapid growth in airtravel, enabling greater movement of people and goods across the globe.
2. Containerisation. From 1970, there was a rapid adoption of the steel transport container. This reduced  the costs of inter-modal transport making trade cheaper and more efficient.
3. Improved technology which makes it easier to communicate and share information around the world. E.g. internet
4. Growth of multinational companies with a global presence in many different economies.
5. Growth global trading blocks which have reduced national barriers. (e.g. European Union, NAFTA, ASEAN)
6. Reduced tariff barriers encouraging global trade. Often this has occurred through the support of the WTO.
7. Firms exploiting gains from economies of scale to gain increased specialisation. This is an important feature of new trade theory.
8. Growth of global media.
9. Global Trade Cycle. Economic growth is global in nature. This means countries are increasingly interconnected. (e.g. recession in one country affects global trade and invariably causes an economic downturn in major trading partners.)
10. Financial system increasingly global in nature. When US banks suffered losses due to sub-prime mortgage crisis, it affected all major banks in other countries who had bought financial derivatives from US banks and mortgage companies.
11. Improved mobility of capital.  In past few decades there has been a general reduction in capital barriers, making it easier for capital to flow between different economies. This has increased the ability for firms to receive finance. It has also increased the global interconnectedness of global financial markets.
12. Increased mobility of labour. People are more willing to move between different countries in search for work. Global trade remittances now play a large role in transfers from developed countries to developing countries.

EFFECT OF GLOBALIZATION DIAGRAM

·           ASPECT OF GLOBALIZATION   

 Democratization

Privatization

Free market

Multipartism

Freedom of massmedia

Freedom of using internate

Culture interaction

Population growth

Forgners investmen

FACTOR INFLUENCE DEMOCRATIZATION

1..education

2..civil society e.g  NGOS

3..freedom of mass media

4.. freedom of cellular network

nots zaidi zipo njiani.................by shamily
0656 848274

Prepared by shamily

Email…shamilysaidi@gmail.com

0656 848274

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