Economics Globalisation Essay

3737 Words Aug 27th, 2013 15 Pages
August
14
August
14
Economics 2013 grade 11
Economics 2013 grade 11
Globalisation Research Essay
Sarah Morritt-Smith and Bilqees Baker
“THE WORLD HAS BECOME OUR GLOBAL VILLAGE Globalisation is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Put in simple terms, globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications infrastructure, including the rise of the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.” (Source: http://en.wikipedia.org/wiki/Globalization)
Globalisation Research Essay
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This is also an example of outward-bound globalisation. Inward-bound globalisation is when an international brand comes to South Africa. An example of this is the UK clothing brand Topshop opening up in SA. This means that clothes are imported into the country from the international market.

Networking is the functional integration of economical activities connecting businesses enabling forward and backward linkages across the globe as well as improving access to foreign investors and global outsourcing for local businesses.

Regionalisation is the process of amalgamating countries to create hypothetical regions, for example the EU (European Union) that is an economic and political union of 27 independent member states located in and around Europe. They all share the same currency and have a direct effect of each other’s economic strength. Free trade agreements are also signed between countries improving globalisation. A recent example is the NAFTA agreement signed in 1994 between Canada, Mexico and the USA. These countries in the agreements are all producing the opportunity for businesses to pursue multiregional strategies. It is argued whether regional integration is a building block improving globalisation or whether it is a stumbling block hindering globalisation. It is still a young process that requires examination over a few more years which can determine its success.

Causes of globalisation:
Many developments stemmed from the Industrial
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