· Key drivers of globalization and why : One main driver of globalization is falling barriers to trade and investment. The General Agreement on Tariffs and Trade (or GATT) promoted free trade by reducing tariffs and nontariff barriers. A revision of that Agreement lowered tariffs and subsidies for agricultural products, protected intellectual property rights, and created the World Trade Organization. World Trade Organization goals include helping the free flow of trade, negotiating the further opening of markets, and settling trade disputes among member nations. Regional trade agreements involve smaller groups of nations outside the framework of the World Trade Organization that are integrating their economies. A second driver of globalization is technology—which makes it easier, faster, and less costly to move data, goods, and equipment around the world.
· The defining characteristics of the globalization of markets and globalization of production: globalization of markets: convergence in buyer preferences in markets around the world. Globalization of production: is the dispersal of production activities worldwide to minimize costs or maximize quality. Global products are products marketed worldwide, essentially without any changes. Globalization of markets : reduces marketing costs , creates new market opportunities , levels income stream. The benefits of global production include: Access to lower-cost workers to help cut overall production costs. Access to technical expertise otherwise unobtainable. Access to production inputs unavailable or more costly at home.
Know when the first and second waves of globalization occurred (not specific years but general times or events which happened around those times) - slide 20 and more info in your textbook
A first age of globalization extended from the mid-1800s to the 1920s.
· Back then, like today, migration levels reached record highs, workers feared cheaper labor abroad, and trade and capital flowed freely.
But a backlash to globalization in the early 1930s led to high tariffs and other barriers. The geographic divide between East and West became an ideological divide between communism and capitalism. Second wave, great war, world one, great depression, because all of Europe had spend so much during the first war, so globalization was put on the back burner. Stricter trade regulations, high tarrifs were put into place and world split between capitalism and communism, after world war 2 the second wave, since the US entered the war late they had so many more resources, this is how they became a world power, the world bank was established and the pound was no longer the world monetary currency, the US dollar became it
· what opponents and supporters of globalization would have to say about jobs, wages, labor, environment and markets
· jobs and wages : Opponents: eliminates jobs in developed nations, lowers wages in developed nations. Supporters: increases wealth and...