Aspects of Globalisation

1

Aspects of Globalisation
2
Globalisation

• Increasing economic integration through trade,
  investment and migration
• The shift towards market-driven production and
  distribution systems in many countries, most
  notably in Europe and Asia
• The rapid technological advancement, especially
  evident in ICT (information and communications
  technology).

3
Globalisation in History, 1980-2000
Source Williamson, J. (2003) Back to the
Future. World Economics, pp. 95-138.
4
World Exports as a Percentage of World
GDP(Current prices and exchange rates)
Source Quoted from Glyn, A. (2005), The
Assessment How Far has Globalisation Gone?
Oxford Review of Economic Policy, pp. 1-14.
5
Trade Openness(average of exports and imports,
GDP current prices and PPPs)
Source Quoted from Glyn, A. (2005), The
Assessment How Far has Globalisation Gone?
Oxford Review of Economic Policy, pp. 1-14.
6
Import Penetration of Domestic Market for
Manufactures 1913-1999()
7
Foreign Direct Investment, 1991-2002( of gross
domestic investment)
8
Net Migration, Western Europe and the Western
Offshoots 1870-19981(000)
Country
1870-1913
1914-49
1950-73
1974-98
France
890
-236
3,630
1,026
Germany
-2,598
-3043
7,070
5,911
Italy
-4,459
-1,771
-2,139
1,617
United Kingdom
-6,415
-1,4054
-605
737
2
-13,996
-3,662
9,381
10,898
Total Western Europe
Australia
885
673
2,033
2,151
New Zealand
290
138
247
87
Canada
861
207
2,126
2,680
United States
15,820
6,221
8,257
16,721
17,856
7,239
12,663
21,639
2
Total Western Offshoots
Source Williamson, J. (2003) Back to the
Future.
World Economics
, pp. 95-138.
1
2
Notes
Negative sing indicates net outflow
Includes Belgium, Netherlands, Norway, Sweden and
3
4
Switzerland,
1922-39,
Excludes 1939-45
9
The Future

• Faster growth and a higher degree of
  interrelation between several industries
• Accounting/management consultants
• Chemicals
• Food
• Health care
• Mass media
• Telecoms
• Leisure
• Faster technological progress
• New countries jumping on the globalisation
  bandwagon
• New national and international regulatory
  frameworks

10
Opportunities

• Larger markets
• Scale economies (ability to spread fixed costs
  over larger volumes)
• Uniform standards
• Access to best resources
• Lower risks
• Easier regulatory framework

11
Risks

• Political
• Social
• Tougher regulation
• Multitude of competitors