WACE ATAR Economics Year 12 - Scope of Globalisation

1. Scope of Global Integration
Part 1
Definition and scope
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WACE Economics – Unit 3
Video 1.1
1

2. Definition
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3. Definition
Global integration is the process of economic
integration of national economies.
As a result global integration:
• Reduces the economic significance of national
borders
• Increases the economic interdependence
between countries
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• International trade: Trade agreements, global
markets
• Foreign Direct Investment: Multinational
Corporations
• Global capital and financial markets: Portfolio foreign
investment
• Convertible currencies and floating exchange rates
• Migration
• Ideas, cultures, and technologies
• Communication: Social networks, broadcasting
Aspects of global integration

5. International Trade Reform - Freer trade
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6. International Trade Reform - Freer trade
• Multilateral reform : World Trade Organisation (WTO)
• Customs Unions (e.g. European Union)
• Regional trade agreements (e.g. Trans Pacific
Partnership)
• Bilateral preferential trade agreements (e.g. Australia
and China Free Trade Agreement)
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7. Foreign Direct Investment
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8. Foreign Direct Investment
Growth of:
• Multinational Corporations who own production facilities
in more than one country
• Private Equity Firms who buy underperforming companies
in different countries (e.g. KKR)
• Sovereign Wealth Funds funded by national governments
e.g. Dubai World
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9. Global capital and financial markets
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10. Global capital and financial markets
Involving:
• International Share Markets
• Bond markets
• Markets for derivatives
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11. Convertible, floating currencies
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12. Convertible, floating currencies
• Free exchange of currencies
• Foreign exchange market determination of the
value of currencies
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13. Migration / Foreign workers
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14. Migration / Foreign workers
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• Movement of workers between countries
• Source of cheap labour
• Source of skilled labour

15. Ideas, culture, technology
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16. Ideas, culture, technology
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• International cooperation (e.g. space station)
• Transport technologies (e.g. containers,
aircraft and ship design)
• Computing technologies (e.g. internet)
• Multiculturalism (e.g. customs, religion)
• International travel and tourism

17. Communications technologies
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18. Communications technologies
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• Broadcasting
• Social media
• Skype and Facetime
• Computer technology

19. Scope of globalisation: Review
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20. Scope of globalisation: Review
Scope
Trade, foreign investment, capital and finance,
currencies, people, technologies, ideas and culture,
communication
Indicators
Multinational companies, familiar products in
unfamiliar places, unfamiliar products in familiar
places, multiculturalism
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21. End of presentation
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