soc final - Globalization is the worldwide economic...

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Globalization is the worldwide economic integration of many formerly separate national economies into one global economy. The term “global economy” refers to international economic activity which includes the world-wide integration of markets for goods, services, labor, and capital. There are several key factors that shape the global economy: technology, multinational corporations, transnational organizations, and governments. Technology is one of these defining factors. Specifically, innovative information and communications technologies (ICTs) have helped to create a more integrated world, revolutionizing the way business is conducted. ICTs allow people to store, process, and transmit huge amounts of information to a global audience. Transportation technologies such as supersonic airlines, supertankers, automobiles, and high-speed rail transport have created connections between people and places that never existed before. Thanks to new ICTs, individuals and businesses now have access to markets both across town and across the world. Another essential feature of today’s global economy is multinational corporations (MNCs). MNCs are corporations that own and operate production facilities in more than one country, and are an important factor in connecting the world’s economies. An important feature of MNCs is their heavy investing in foreign countries (called foreign direct investment). These
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This note was uploaded on 03/18/2009 for the course SO 101 taught by Professor Toussaint during the Spring '07 term at University of the Sciences in Philadelphia.

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soc final - Globalization is the worldwide economic...

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