4.1.

1 Globalisation
Globalisation is the process of greater integration and inter-connectedness
between countries

Feautures and Characteristics of Globalisation

Free movement of capital and labour across international boundries
Free trade in goods and services between different countries
The availability of technology and intellectual capital
Growth of international trade
Trade liberalisation
Enhanced mobility of labour
Enhanced mobility of capital
Increased cultural exchange
Increased international capitalism
Increased outsourcing
Falling transport costs / the “death of distance”
Growth of size and influence of multinational corporations (MNCs)

Factors contributing to gobalisation in the last 50 years

Trade agreements
¤ The World Trade Organisation (WTO) has assisted in the reduction or removal
of trade barriers and there has been a greater proliferation of trade
agreements across the world
Reduced tariffs and protectionism
¤ Whilst some protectionist measures remain in place, a large number of
countries with significant global economic influence have lowered
protectionist measures
Expansion of global trading blocs
¤ The growth of trading blocs such as the EU and NAFTA have reduced national
barriers and promoted more trade and integration
Improved technology
¤ Advances in technology have revolutionised communications, lowered labour
costs and enabled businesses to access new foreign markets