Chapter 1

Nota:

• The trend of distinct national economic units toward one huge global market.

1. causes of Globalization

   Nota:

   • 2 main drivers
   1. Technology Changes
      1. Communication (the web)
      2. Transportation
      3. Information Processing (Computers)
   2. Barriers are reducing since the end of ww2
      1. Reduction of trade terrifs
2. the three areas of globalization

   Nota:

   • Markets Consumers Production
   1. Markets merging into one global market
   2. Production: How easy it is to outsource
   3. Consumers becoming a unified culture

      Nota:

      • Technology + Culture = unified culture

1. IMF

   Nota:

   • Maintains order in the monetary system. (1944).. **Lender of Last Resort**
2. WB

   Nota:

   • 1944- promotes economic development **Remember International Bank for Reconstruction and Development*
   1. IBRD

      Nota:

      • International Bank for Reconstruction and Development
3. WTO

   Nota:

   • successor of GATT- ensures that the signing members adhere to treaties.
4. UN

   Nota:

   • Promotes world peace

Nota:

• three major debates

1. Harmful effects on Jobs and income

   Nota:

   • Outsourcing in 2010 of IT jobs reaches 15 billion dollars. 3.8% growth from 2008
   1. PRO:
   2. CON:
2. Globalization labour policies

   Nota:

   • Firms from 1st world countries take advantage of third world countries. They say that adhering to labor policies enhance costs.
   1. PRO
   2. CON
3. National Sovereignty

   Nota:

   • transfers powers from governments to super-national organizations. Especially the WTO
   1. PRO
   2. CON