Globalization Study Notes

LO 1-1 What is globalization？

• Globalization: trend towards a more integrated and interdependent global economic system. Integration through trade, capital flows, migration, and technology spread.

LO 1-2 The impact of Globalization.

Key Facets of Globalization

• Globalization of Markets: convergence of consumer preferences leading to a global marketplace.

• Globalization of Production: sourcing goods/services globally to utilize cost advantages.

Drivers of Globalization

• Decline in trade barriers (tariffs, quotas).

• Technological advancements reducing communication and transportation costs.

• Emergence of global institutions (WTO, IMF, World Bank).

Evidence of Globalization

• $5 trillion in daily foreign exchange transactions.

• Significant growth in world trade and FDI flows, particularly from developing nations.

• 50% of global exports from MNCs.

Globalization Debate

• Supporters: promotes prosperity, creates jobs, lowers prices.

• Critics: increases income inequality, harms labor and environment.

• Joseph Stiglitz advocates for reforming global practices for fairer trade, intellectual property rights, and responsible corporate behavior.