Aspects Of Globalisation

Globalisation.

Globalisation is defined as the freedom and ability of individuals to initiate voluntary economic transactions with residents of other countries. Aspects of Globalisation include increased trade flows, movement of capital, the development of global financial systems and the emergence of both Multinational and Global companies.

Features of Globalisation include more flows of goods and services, greater movement of people and  an emphasis on Technology. Globabalisation spreads beyond the Business world as identified by Anjun Appudural who highlighted ideoscapes and mediascapes the global sharing of ideas and media images and reports. A domination of world brands such as Coca Cola results in much local identity being overshadowed by large multinational companies, in fact at times every part of the planet feels the same

.Direct Investment is often called Foreign Direct Investment and involves building productive capacity from scratch or acquiring existing productive assets in other countries.  Portfolio investment occurs when financial institutions buy Bonds and Shares in other countries, funds move regularly between countries and short term capital flows and movement of capital are much more frequent than movement of people which is inhibited by language barriers, visa requirements and high relocation costs .Recent patterns in trade have seen the development of a North/North pattern with more goods being traded between the advanced Northern Economies. A growing proportion of world trade has moved to services and there has been increased trade in oil gas and coal.

Deindustrialisation a decline in the manufacturing base within the UK, has occurred due to the promotion of a service based economy under Margaret Thatcher and Britain predominantly imports manufactured goods thus running a Bop defecit on visible goods which many argue highlights a fundamental weakness in the Uk economy which is made worse by a lack of competitive and comparative advantage.