Globalisation refers to the integration of markets in the global economy, leading to the increased interconnectedness of national economies. Markets where globalisation is particularly common include financial markets, such as capital markets, money and credit markets, and insurance markets, commodity markets, including markets for oil, coffee, tin, and gold, and product markets, such as markets for motor vehicles and consumer electronics. The globalisation of sport and entertainment is also a feature of the late 20th and early 21st centuries.
- creates employment and investment in developing countries and increased revenues for government
- creates a platform and international relationships that can be used to build global standards for fair trade, environmental protection and human rights
- promotes competition which leads to better choices and prices for consumers and businesses
- improves the quality and growth of education and training as well as
- improves the standard of living.
- free trade creates vulnerable countries that do not have protections for local businesses and workers
- globalisation widens the gap between the rich and the poor where wealthy countries and corporations exploit low pay and conditions
- international companies exploit the lack of environmental protection in some countries
- globalisation promotes a single culture as the basis for marketing a way of life; encouraging values of materalism and individualism and having an impact on cultural diversity.
- Financial opportunities and deregulation
- Patterns of consumption
- Technology and globalisation
- World Trade Organisation (WTO)
Impact of globalisation:
- Employment levels
- Spread of skills and technology
- International cooperation
- Domestic market (Competition)
- Tax minimisation (Tax havens and transfer pricing)