Globalization

Globalization - Mik Gadomski May 11, 2006 BSN-215...

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Mik Gadomski May 11, 2006 BSN-215 Globalization Globalization refers to the worldwide phenomenon of technological, economic, political and cultural exchanges, brought about by modern communication, transportation and legal infrastructure as well as the political choice to consciously open cross-border and is caused by four fundamental forms of capital movement throughout the global economy. The four fundamental capital flows are:Human Capital (i.e. Immigration, Migration, Emigration, Deportation, etc.), Financial Capital (i.e. Aid, Equity, Debt, Credit & Lending, etc.), Resource Capital (i.e. Energy, Metals, Minerals, Lumber, etc.), and Power Capital (i.e. Security Forces, Alliances, Armed Forces, etc.). Comparitive Advantage allows for specialization in production. Supporters of free trade point out that economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources, with all countries involved in the trade benefiting. In general, this leads to lower prices, more employment and higher output.
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Globalization - Mik Gadomski May 11, 2006 BSN-215...

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