World geo flashcards 4/7

Globalization

The shift toward a more integrates and interdependant world economy.

2 components of globalization

The globalization of markets, and the globalization of production

Vizo flat TV is

Designed in a small office in California, assembled in Mexico from panels made in south Korea, electronic components made in china and microprocessors made in the US

Globalization of production has been historically been about

Manufacturing

Increasingly companies are using

modern communications to outsource activities to low-cost nations

In the past, each country had it’s own

companies in many industries and it’s own products

Prior to globalization Americans saw little

outside new media from other countries.

After globalization media

comes in many formats around the world.

Today, these companies are well known

Apple/Microsoft, Starbucks, Coca-Cola, Ikea, McDonalds, Samsung

Two factors underlie globalization

“Decline in barriers to the free flow of goods, services, and capital” that has occurred since the end of World War II, and technological change

During the 1920s and 1930s, many nations

erected formidable barriers to international trade and foreign direct investment

Advanced industrial nations of the west

committed themselves after World War II to removing barriers to the free flow of goods, services, and capital between nations.

Lowering of … made globalization possible

Trade barriers

… made globalization a transforming movement

Technology

Notable global institutions include:

The World Trade Organization (WTO) which is responsible for policing the world trading system and ensuring that nations adhere to the rules established in WTO treaties. In 2008, 151 nations accounting for 97% of world trade were members of the WTO. And the International Monetary Fund (IMF) which maintains order in the international monetary system