Features of
Globalisation

Features of globalisation
• The key indicators of integration
between economies include:
• International trade flows
• International financial flows
• International investment flows and
transfers of technology

International trade flows
• Trade in goods and services
throughout the world has grown very
rapidly in recent years
• Annual growth in the value of trade
has been consistently around twice
the level of world economic growth

Growth of World Trade and World Output
Global Trade World Output
14
12
10
% increase
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year

International trade flows
• Much of this rapid increase in international
trade flows can be attributed to the
influence of TNCs (Transnational Corporations)
• TNCs are global companies which dominate
global product and factor markets
• TNCs often structure production so that
different stages of the production process
occur in different parts of the world
depending upon costs

International trade flows
• The increase in world trade has also resulted
from trade agreements such as:
• The General Agreement on Tarrifs and
Trade (GATT) 1993
• The World Trade Organisation (WTO)
• The North American Free Trade Agreement
(NAFTA)
• Asia-Pacific Economic Cooperation (APEC)
• The European Union (EU)