The Rise of Globalisation

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Explaining the Growth in Globalisation

Globalisation refers to the increased integration and interdependence of the world economy’s. These are some reasons to explain the growth of globalisation

1. Increase in Free Trade.

Since the second world war, tariffs have generally been reduced. This has been encouraged through organisations such as the WTO. This has increased trade between different countries; this is an important factor in the process of globalisation.

2. Technology

Technology has improved communication between different countries. Therefore, it has become easier to split up production on a global level. It is also easier to discover what is happening in other countries. For example, through the internet you can find the cheapest raw materials.

3. Improved Transport and Infrastructure.

Global airline travel has increased exponentially. It is now easier and cheaper to transport goods by air and water.

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Has Opec Misused its power?

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OPEC is the organisation for Oil Producing and Exporting Countries. OPEC tries to control the price of oil within a certain target price. Because demand is inelastic OPEC can increase the profits of its member countries by keeping prices high. Therefore, if prices start to fall below the target price, OPEC may set output quota’s …

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Categories oil

Does China Pose a Threat to the World Economy?

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China recently became the second largest economy in the world. According to the IMF, in 2010, the Chinese economy was $5,878,257 million – second only to the US economy. If we use GDP at purchasing power parity, the size of the Chinese economy is estimated to be even larger, at around $10,119,896 million. However, it also has an enviable growth rate of close to 10%; at this rate of economic growth, China is forecast to become the dominant world economy within 10 or 20 years.

 

The rise of the Chinese economy (and also other Asian economies such as India) pose some interesting questions. – Who will benefit? and what should we be concerned about it?

This is a simplified look at the impact China might have on the world economy.

Potential Threats From China

  1. Demand for Commodities. Growth in the Chinese economy will lead to an increased demand placed on raw materials and commodities. This will push up prices and could lead to shortages of basic commodities.China accounted for 33% of the recent increase in demand for oil.

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Industrial Economics Edexcel

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Economics Syllabus for A Level (Edexcel) Unit 4: Industrial Economics 1. Birth and Growth of New Firms 2. Costs 3. Production Decisions 4. Alternative Motives of Firms 5. Efficiency (productive and allocative 6. Perfect Competition 7. Imperfect Competition 8. Oligopoly 9. Monopoly 10. Price Discrimination 11. Pricing and Non Pricing Decisions • Cost Plus Pricing …

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