GLOBALIZATION

1. Economic

1.1. the way countries doing trade with each other

1.2. affected by:

1.2.1. freedom of trade

1.2.2. improvements in transportation

1.2.3. labour availabillity and skills

1.2.3.1. positive effects

1.2.3.1.1. higher quality of goods and more developed

1.2.3.2. negative effects

1.2.3.2.1. many local unemployment

1.2.3.2.2. worker exploitations

1.3. improvement of communications

1.4. impact:

1.4.1. greater choice of goods with lower price

1.4.2. more efficient production

1.4.3. increased capital and labor mobillity

1.4.4. monopoly power of multinationals

1.4.5. easier tax avoidance

1.5. MNC (multinational companies)

1.5.1. a corporation that manages production in several host countries beside its home country

1.5.2. features:

1.5.2.1. location

1.5.2.2. assets

1.5.2.3. board of directors

1.5.2.4. size

1.5.3. impact:

1.5.3.1. increase in jobs

1.5.3.2. cheaper goods

1.5.3.3. payments of dividents and royalty

1.5.3.4. political interference

1.5.4. positive side:

1.5.4.1. reduce an inflow of foreign capital

1.5.4.1.1. Globalization

1.5.4.2. provide needed resources

1.5.4.3. bring the most advanced technological knowledge

1.5.5. negative side:

1.5.5.1. drive out local business

1.5.5.2. result of liberal tax concessions

1.5.5.3. less job security

1.5.5.4. big TNC companies took resources from a poor country. ex: Indonesia and Freeport

2. Social

2.1. how easily the information and ideas pass between people accross countries

3. Political

3.1. the amount of political co-operation between countries

4. Advantages:

4.1. increased international trade

4.2. more recognition between companies

4.3. better communication between countries

4.4. cheaper goods

4.5. easier transportation

4.6. more advanced education

5. disadvantages:

5.1. money problems can easily spread

5.2. monoculture

5.3. culture impact

5.4. more gap between rich and poor countries

5.5. more sweat shops

5.6. make a poor countries becoming more poor since they have nothing to offer to compete with other developed countries. ex: Africa

6. causes of globalization:

6.1. improvement of transportation

6.2. improvement of technology

6.3. growth of MNC's

6.4. labour mobility