Using either the 4Ps (possibilities, principle, problems and policies) and 1G (goals or objective) or 4Cs (concepts, causes, consequences and cures), provide your comments on the following question:
1. "The trend towards globalisation leaves no room for protectionism".
(a) Account for the trend towards globalisation.
(b) Discuss whether you agree with the above-capitoned view.
References
1) http://www.youtube.com/watch?v=OhuV_rmf5Mg&feature=related
2) Globalisation: http://www.globaleducation.edna.edu.au/globaled/go/cache/offonce/pid/178
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1(a) Globalisation is the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. The world economy is becoming incresingly interconnected and global due to advancements in technology. The internet wa sestablished and has affected the way people obtain information, purchase products , communicate and conduct businesses. The invention of the optical fibres has allowed large amounts of information to be transmitted rapidly across long distances and with little signal loss. These technological advances fuelled globalisation as they ease and speed up communication between people in different countries and even continents.Infrastructural development, especially improvements in transportation also results in a global economy. With state-of-the-art transportation systems in plce, people can travel across the world in a short amount of time. Aeroplanes travelling along global routes have reduced the dependence on ships which take more time to cover the same distance. Furthermore, containerisation with standardised container size enables the efficient movement of goods between countries, hence resulting in an increasingly global world economy.
ReplyDeleteWhen globalisation takes place,it involves increased mobility of resources such as labour and entrepreneurship. There is also the increased mobility of capital. Short term capital flow includes speculative money, for example,equity (shares), bonds and deposits. long term capital flow includes foreign direct investments to build factories and purchase machinery. Globalisation also involves the flow of goods and services between countries. Furthermore, outsourcing may occur, whereby part of a firm's operations (IT, accounting) is being outsourced by another firm. This is to lower cost so as to make higher profits and also to increase efficinecy. Offshoring which is relocating the firm's entire mass production operations overseas to lower cost of production may also be involved in globalisation. This accounts for the trend towards globalisation.