The OECD defines globalization as
"The geographic dispersion of industrial and service activities, for example research and development, sourcing of inputs, production and distribution, and the
cross-border networking of companies, for example through joint ventures and the sharing of assets."
Characteristics of globalisation
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Greater trade in goods and services both between nations and within regions
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An increase in transfers of capital including the expansion of foreign direct investment (FDI) by trans-national companies (TNCs) and the rising influence of
sovereign wealth funds
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The development of global brands that serve markets in higher and lower income countries
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Spatial division of labour– for example out-sourcing and off shoring of production and support services as production supply-chains has become more
international. As an example, the iPhone is part of a complicated global supply chain. The product was conceived and designed in Silicon Valley; the software was enhanced by software
engineers working in India. Most iPhones are assembled / manufactured in China and Taiwan by TNCs such as FoxConn
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High levels of labour migration within and between countries
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New nations joining the world trading system. China and India joined the WTO in 1991, Russia joined the WTO in 2012
A fast changing shift in the balance of economic and financial power from developed to emerging economies and markets – i.e. a change in the centre of gravity
in the world economy
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Increasing spending on investment, innovation and infrastructure across large parts of the world
Globalisation is a process of making the world economy more inter-dependent
Many of the industrializing countries are winning a rising share of world trade and their economies are growing faster than in richer developed nations
especially after the global financial crisis (GFC)
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