20 terms

Factors in globalisation

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KOF index
Measures social, economic and political measures of globalisation, on a scale of 0 to 100 with 100 being most globalised.
New technologies, communications and information systems
Mean that information can now be shared easily and cheaply with an audience of billions.
Mobile phone technology
Is particularly important in Low Income Countries as they connect people, markets and trade in ways that were not previously possible because of high infrastructure costs
Banks and financial systems
Operate across the globe and are linked together by transmission lines and communications that allow the flow of money across the globe.
Deregulation of financial markets
Allowed arrangements for the removal or relaxing by governments of barriers to movements of finance.
The Internet
Allows for speedy and 24/7 communication with limited regulation or barriers to the movement of that communication
Collapse of communism
Allowed for more countries to develop liberal free market economies increasing globalization
High speed electronic trading systems
Means that financial transactions between importers and exporters can be completed quickly and securely
The rise of computer technology
Makes information storage more efficient while also making it transferable to other areas almost instantly.
Transport, Products and commodities
Can be shipped more quickly and in larger quantities as a result of integrating several new technologies, easing international trade.
Security issues
Include supply chain security, crime, anti-terrorism, food and bio-security, fiscal and anti-smuggling.
Border security
Has been relaxed in some areas of the world allowing for easier trade but increasing security concerns. E.g. Shengen area in European Union allows for the free movement of people and goods.
Schengen Area
An area comprising 26 European states that have officially abolished passport and all other types of border control at their mutual borders.
TNCs
Have accelerated globalisation through mergers, expansion and shifting production areas.
Online security breaches
Serious consequence of globalisation of information and personal data
Management and information systems
Improved transport and communication systems have led to a production revolution, this has transformed how companies manufacture products and distribute them globally.
Capital & Investment
There has been an increase in the movement of capital allow an increase in globalisation
Improvements in transport include
Containerisation, increase in aircraft size, computerized logistics networks and high-speed rail networks. All increase globalisation.
Global value chains
When international production, trade and investments are increasingly organised where the different stages of the production process are located across different countries. Globalisation motivates companies to restructure their operations internationally through outsourcing and offshoring
Just in Time
A manufacturing system in which materials or components are delivered immediately before they are required in order to minimize storage costs.
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