Free Trade-globalization - Globalization An Overview of...

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Globalization An Overview of Globalization - Free Trade
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What is economic globalization? The term economic globalization refers to the integration of economies around the world, particularly through trade and through trade and financial flows. The term can also refer to the movement of people and knowledge across international borders.
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Why globalization? Global markets offer greater opportunity to tap into more and larger markets around the world. These markets promote efficiency through competition and the division of labor, thus allowing people and economies to focus on what they do best.
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Why not globalization? Some regard it negatively, saying that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress.
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Four aspects of globalization - trade Through globalization developing countries have, as a whole, increased their share of world trade from 19% in 1971 to 29% in 1999. There is, however, great variation among the major regions. Asian economies have done well, while Africa as a whole fared poorly. Manufactured goods have shown the greatest rise in export.
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Four aspects of globalization – capital movements Globalization is associated with sharp increases in private capital flows TO developing countries.
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Four aspects of globalization – movements of people Workers move from one country to another to find better employment opportunities. From 1965 to 1990 the proportion of foreign born labor forces around the world increased by about one-half. This flow of migrants is likely to provide a convergence of global wages and the transfer of skills back to the developing countries.
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Four aspects of globalization – spread of knowledge An often overlooked aspect. Ex. Direct foreign investment brings not only physical capital growth, but also technical innovation. Knowledge about production best practices, management philosophies, export markets, and economic policies is available at virtually no cost and is a valuable resource for a developing country.
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Does Globalization increase poverty and inequality? Global average per capita income rose strongly during the 20th century. As stated before, however, there was
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Free Trade-globalization - Globalization An Overview of...

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