6. globalization and the economy

what is globalization?

the movement towards the expansion of economic, social, and cultural ties between countries

what are some things that globalization involves?

culture

free trade

monopoly power

growth

exploitation

what is economic integration?

increasing reliance of economies on one another

opportunity to buy and sell in any country

opportunity for labour and capital to locate anywhere in the world

which ways can integration happen?

technology and internet access

communication networks

movement to free trade

what are the benefits of growth through trade?

increased choice

greater growth potential

greater employment opportunities

what are the downsides of trade?

increased gap between poor and rich

dominance of global trade by the rich north

exploitation of workers

what are multi-national / trans-national corporations?

businesses with headquarters in only one country, but has operations in many countries

what are the characteristics of international corporations?

revenue expansion

cost lowering

sourcing raw materials

lower wages and benefits

what is corporate citizenship

a company's role as a responsible member of society and accountability of global businesses