|
Economics of Globalisation
Globalisation involves
- Economic Forces are increasingly affecting the World Economy and not just the domestic economy
- National Economies are becoming more closely integrated with each other. For example the Common Market in the EU, harmonization of Monetary Policy. But also closer integration in America and Africa
- Increase in World Trade, Tariffs and other impediments to world trade have gradually been reduced leading to an increase in world trade.
- GATT and later the WTO has been instrumental in bringing about a more integrated and interdependent global economy
- Economies tend to move in trade cycles together. A slow down in US growth has an impact on the whole world economy, because of the importance of trade.
- Monetary Policy is linked between the economies, if US cuts its interest rate, this is likely to lead other countries to cut theirs
- At the Firm level more product markets have become open to international influences due to
- Globalisation of brands e.g. McDonalds
- Growth of Multinationals through Mergers and internal expansion, this is noticeable in Pharmaceuticals, airlines, oil processing leading to the growth of global oligopolies
- At a personal level people can shop on the internet buying books in the UK from the US
Revision Notes and Essays on International Trade
Effects Globalisation on UK Economy
Govt policies to increase competitiveness