Examine The Factors Which Have Given Rise To Globalisation
Examine the factors which have given rise to globalisation
Globalisation can be defined as the growing interdependence of world economies. Before you proceed with this essay you must take two key points into consideration; firstly, that globalisation is not an end result, but is a continuing process that is always growing and gathering momentum, and secondly, that globalisation leads to world economies becoming more dependent upon each other.
Globalisation is not a new phenomenon, in fact it has occurred naturally throughout history, although it was more limited in geographical area than what most people think of the term today.
One factor which many people would argue has led to increased globalisation is the development of trading blocs. A ‘Trading bloc’ refers to a set of countries that form an economic or customs union. An obvious example would be the European Union (EU), which is made up of 28 member states, including the UK, France and Germany. There are no tariffs or quotas on trade between these 28 countries, meaning there is free trade. This allows for countries to switch from a high-cost producer to a low-cost producer in the purchasing of particular goods. For example, since 1973, consumers from the UK have had access to cheaper wine from France. However, this free trade between member states comes at a cost, as upon joining the EU, all agricultural produce from outside the bloc became subject to very high tariffs. This has meant that over the years many countries have had to lower their imports on particular goods, and have had to turn to domestic supplies or goods from other member states.
As well as this the EU also guaranteed to buy any surplus goods at a minimum target price. Once the surplus was purchased it would be dumped on the world market, which caused problems for world farmers, as there was excess supply on the market, leading to lower incomes. The USA then retaliated in a few ways, one of which was by imposing restrictions on EU exports
Globalisation can be defined as the growing interdependence of world economies. Before you proceed with this essay you must take two key points into consideration; firstly, that globalisation is not an end result, but is a continuing process that is always growing and gathering momentum, and secondly, that globalisation leads to world economies becoming more dependent upon each other.
Globalisation is not a new phenomenon, in fact it has occurred naturally throughout history, although it was more limited in geographical area than what most people think of the term today.
One factor which many people would argue has led to increased globalisation is the development of trading blocs. A ‘Trading bloc’ refers to a set of countries that form an economic or customs union. An obvious example would be the European Union (EU), which is made up of 28 member states, including the UK, France and Germany. There are no tariffs or quotas on trade between these 28 countries, meaning there is free trade. This allows for countries to switch from a high-cost producer to a low-cost producer in the purchasing of particular goods. For example, since 1973, consumers from the UK have had access to cheaper wine from France. However, this free trade between member states comes at a cost, as upon joining the EU, all agricultural produce from outside the bloc became subject to very high tariffs. This has meant that over the years many countries have had to lower their imports on particular goods, and have had to turn to domestic supplies or goods from other member states.
As well as this the EU also guaranteed to buy any surplus goods at a minimum target price. Once the surplus was purchased it would be dumped on the world market, which caused problems for world farmers, as there was excess supply on the market, leading to lower incomes. The USA then retaliated in a few ways, one of which was by imposing restrictions on EU exports