Factors affecting globalisation

Answer 1

1. Technological change, especially in communications technology. For example, UK businesses and data by satellite to India (taking advantage of the difference in time zones) where skilled but cheaper data handlers input the data and return it by satellite for the start of the UK working day. 2. Transport is much cheaper and faster. This is not just aircraft, but also ships. The development of containerization in the 1950s was a major breakthrough in goods handling, and there have been continuing improvements to shipping technology since then. 3. Deregulation. From the 1980s onwards (starting in the UK) many rules and regulations in business were removed, especially rules regarding foreign ownership. Privatisation also took place, and large areas of business were now open to purchase and/or take-over. This allowed businesses in one country to buy those in another. For example, many UK utilities, once government businesses, are owned by French and US businesses. 4. Removal of capital exchange controls. The movement of money from one country to another was also controlled, and these controls were lifted over the same period. This allowed businesses to move money from one country to another in a search for better business returns; if investment in one's own country looked unattractive, a business could buy businesses in Another Country. During the 1990s huge sums of money, mainly from the US, have come into the UK economy. See, for example, this news story: http://news.bbc.co.uk/1/hi/business/2250903.stm 5. Free Trade. Many barriers to trade have been removed. Some of this has been done by regional groupings of countries such as the EU. Most of it has been done by the WTO. This makes trade cheaper and therefore more attractive to business. 6. Consumer tastes have changed, and consumers are more willing to try foreign products. The arrival of global Satellite Television, for example, has exposed consumers to global advertising. Consumers are more aware of what is available in other countries, and are keen to give it a try. 7. Emerging markets in developing countries, especially the 'Tigers' of SE Asia eg Thailand. There has been high growth of incomes in these countries, which makes large consumer markets with money to spend. Indonesia, for example, whilst still not particularly rich, has some 350 myn consumers. Both India and China are very poor countries, but there are small middle classes who are doing very well and have money to spend. Although these groups are small in the context of the country, the overall populations are so huge (over 1 byn) that a small middle class adds up to many millions of consumers.

Answer 2

The development of the internet, as well as improved transportation systems led to the emergence of a global economy in the 1990s. Also, the relative peace in the world in those years made a global economy possible.

Answer 3

what factors contribute to semiglobalization

Answer 4

poverty