GS1Lecture3 - GLOBAL STUDIES 1 LECTURE 3:...

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GLOBAL STUDIES 1 LECTURE 3: MULTI- NATIONALIZATION OF PRODUCTION David Rigby Dept. of Geography
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INTRODUCTION • MAPPING THE WORLD ECONOMY – INTERNATIONALIZATION vs. GLOBALIZATION – CAPITALISM AS THE DRIVER OF GLOBALIZATION • MEASURING GLOBALIZATION – FOREIGN DIRECT INVESTMENT • COSTS AND BENEFITS OF MNCs • WHY TRADE? • UNEVEN IMPACTS OF GLOBALIZATION/TRADE • CONCLUSION
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INTERNATIONALIZATION vs GLOBALIZATION INTERNATIONALIZATION OF THE ECONOMY – INCREASING TRADE BETWEEN FIRMS THAT PRODUCE LARGELY WITHIN NATIONAL ECONOMIES (ARMS LENGTH TRADE AND RELATIONS) GLOBALIZATION OF THE ECONOMY – GROWTH OF FIRMS THAT ENGAGE IN PRODUCTION IN MORE THAN ONE COUNTRY. INCREASE IN FRAGMENTATION OF PRODUCTION AND THE INTEGRATION OF DIFFERENT PRODUCTION TASKS ACROSS NATIONS.
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CAPITALISM AS THE DRIVER OF GLOBALIZATION • ESSENTIAL CHARACTER OF CAPITALISM – PRODUCTION FOR EXCHANGE – PROFIT = REVENUE - COST – COMPETITION – INNOVATION = f (COMPETITION, UNCERTAINTY)
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GS1Lecture3 - GLOBAL STUDIES 1 LECTURE 3:...

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