Economics Globalisation Essay

Topics: International trade, South Africa, Africa Pages: 13 (3749 words) Published: September 8, 2013
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Economics 2013 grade 11
Economics 2013 grade 11
Globalisation Research Essay
Sarah Morritt-Smith and Bilqees Baker
“THE WORLD HAS BECOME OUR GLOBAL VILLAGE Globalisation is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Put in simple terms, globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications infrastructure, including the rise of the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.” (Source: http://en.wikipedia.org/wiki/Globalization) Globalisation Research Essay

Sarah Morritt-Smith and Bilqees Baker
“THE WORLD HAS BECOME OUR GLOBAL VILLAGE Globalisation is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Put in simple terms, globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications infrastructure, including the rise of the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.” (Source: http://en.wikipedia.org/wiki/Globalization) 08

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Contents Page:

Page 1: Cover
Page 2: Contents
Page 3: Introduction and Key structure of Globalisation
Page 4: Integration of economic Activities
Page 5: Causes of Globalisation
Page 6: Consequences of Globalisation
Page 7: Consequences of Globalisation cont.
Page 8: Impact of Globalisation on the Economy
Page 9: Advantages and Disadvantages of Globalisation
Page 10: Conclusion
Page 11: Bibliography

Introduction:

Globalisation includes trade between countries, which creates capital markets (including developing countries). Tourism and migration also increased in some places with new technologies linking all areas of the world. Globalisation consists of a key structure where there is an integration of economic activities. There are causes and consequences of globalisation, which have an impact on the economy. Globalisation presents both advantages and disadvantages.

Key Structure of globalisation:
TRADE
LOGISTICS
PRODUCTION
COMMUNICATIONS
TRADE
LOGISTICS
PRODUCTION
COMMUNICATIONS

FIGURE 1
(Source: Enjoy Textbook Grade 11)

For trade to take place three elements (production, communications, logistics) need to be present. The most important element being production as it provides a product or service to be traded. There needs to be communication for demand and supply to be expressed and transport for the goods to be delivered and consumed.

Production is a result of multinational enterprises, who have well known brand names such as Coca Cola, they operate globally with franchise factories placed in different countries therefore the different stages of production are spread around the world using Coca Cola’s resources as well as other businesses in the countries, for example SABMiller produces Coca Cola on franchise in South Africa as well as having factories in 31 other countries.

Communication can happen electronically (email and social media) with the aid of computers and the internet as the auxiliary power to achieve successful channels for communication.

Transport has improved immensely which has resulted in a higher trade growth. Owing to this, the rapid growth of trade has been higher than the production growth. In the long run this could have a negative affect on the secondary sector causing the raw materials to not reach the final stage of production before being sold to the consumers.

Integration of economic activities:

Businesses strive for low cost production in whichever country they may be. This means that they are trans- or multinational businesses. A multination business is a business...

Bibliography: Levin, Mike and Pretorius, Edwin. Enjoy Economics Grade 11. Heinemann, Gauteng. 2012.
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