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What is globalisation?

There are opportunities and challenges associated with the emergence of the globalisation. But what are the drivers of globalisation?
© Coventry University. CC BY-NC 4.0

A global economy is one in which goods, services, people and resources move freely across geographic borders.

The main drivers of globalisation are indicated by the following three areas:

  • International trade of goods and services: international trade means global economies become more interdependent through exchanging of goods and services

  • Financial capital transfer from one country to another: the development of multinational enterprises and booming foreign development investment epitomises the free flow of financial capital

  • People’s movement across national borders: with the development of the global market, the barrier of labour flow is falling also

But does the emergence of this globalisation offer only opportunities or does it pose challenges as well? In the task below you will explore this question by reading two articles that look at the impact of trading in a globalised economy on a nation and its citizens.

Number of international migrants in 2017. North America: 5 million. Europe: 64 million. Asia: 110 million. Oceania: 2 million. Africa: 38 million. Latin America and Caribbean: 39 million. Overall 258 million international migrants; this is an 85% increase since 2000. Median age of migrants: 39. 14% of migrants are below 20 years old. 48% of migrants are women.

Your task:

  • What are the benefits of globalisation for both developed economies and developing nations?
  • What are the challenges?
Share your own experiences with globalisation in the comments area.

References

Abeyratne, S. (2019, February 10). Globalisation: Winners and losers. The Sunday Times. http://www.sundaytimes.lk/190217/business-times/globalisation-winners-and-losers-336041.html

Gonzalez, A. (2016). The Changing Trade Landscape: Trade Agreements, Globalization and Inequality. The World Bank. http://www.worldbank.org/en/news/opinion/2016/09/14/the-changing-trade-landscape-trade-agreements-globalization-and-inequality

© Coventry University. CC BY-NC 4.0
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