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GLOBALISATION

GLOBALISATION. Globalisation. Globalisation is the international integration of markets for goods, labour and capital. Globalisation is the integration of economies through markets across frontiers. Integration of Economies. The increasing reliance of economies on each other

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GLOBALISATION

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  1. GLOBALISATION

  2. Globalisation Globalisation is the international integration of markets for goods, labour and capital. Globalisation is the integration of economies through markets across frontiers.
  3. Integration of Economies The increasing reliance of economies on each other The opportunities to be able to buy and sell in any country in the world The opportunities for labour and capital to locate anywhere in the world The growth of global markets in finance Stock Markets are now accessible from anywhere in the world! Source: edrod, http://www.sxc.hu
  4. Integration of Economies Made possible by: Technology Communication networks Internet access Growth of economic cooperation – trading blocs (EU, NAFTA etc) Collapse of ‘communism’ Movement to free trade
  5. North South Trade Model Advanced North has R&D and advanced technology to innovate South cannot initially compete with this. Nth innovates and X new goods to Sth. However, once Sth has new technology, it can compete in world trade.
  6. Benefits of Globalisation
  7. Disadvantages of Globalisation
  8. Global shifts in trade Inc. in manufactured products from the NICs. Expansion of education in 1960s World S of low skilled labour has grown Previously scarce skilled labour has become abundant. Losers are the low-skilled workers in the developed world as manufacturing has shifted eastwards.
  9. Who are the BRICS? Brazil Russia India China http://www2.goldmansachs.com/ideas/brics/brics-at-8/index.html
  10. “The BRICs markets – Brazil, Russia, India and China – have weathered the global economic crisis remarkably well, emerging stronger than before. They are on pace to equal the G7 in size by 2032, seven years earlier than originally predicted. Jim O’Neill, Head of Global Economics, Goldman Sachs.
  11. BRICs by the Numbers China as big as the US by 2027? - in less than 18 years. BRICSs as big as the G7 by 2032, 7 years earlier than originally thought. 2000 - 2008, BRICs contributed almost 30% to global growth 16% in the previous decade. Since the start of the financial crisis in 2007, some 45% of global growth has come from the BRICs, up from 24% in the first six years of the decade. BRICs likely to account for 50% of global equity markets by 2050. more than 70% of global car sales growth in the next decade, with China expected to account for almost 42% of this increase.
  12. Threats from China and India China and India may overtake the developed nations as scientific and technological leaders By 2010 China produced more PhDs in science than the USA (and trained in US). Off shoring by Western technology businesses of R&D and ICT software development to India (The Bangalore effect).
  13. Growth environment score Human Capital Economic Stability Economic Stability GES Technological Capabilty Political Stability
  14. WHAT IS THE GES OF KAZAKHSTAN?
  15. Kazakhstan’s economic freedom score is 63.7 67th freest in the 2014 Index. 0.7 points higher than last year, improvements (What are 3 improvements?) investment freedom business freedom monetary freedom
  16. Kazakhstan’s economic freedom score is 63.7 deterioration (what are the two things that have got worse?) in the rule of law as measured by property rights freedom from corruption.
  17. Globalisation and the Kazakhstan Kazakhstan is an open economy Strong links with other countries Open financial markets Globalisation creates opportunities and threats, they key is to be competitive
  18. Winners in Kazakhstan from globalisation Businesses Leading brands Financial services Niche high value manufacturers Utilities and power Individuals People with cross cultural skills Consumers of low cost imports
  19. Losers in Kazakhstan from globalisation Businesses Mass market manufacturers Individuals Low and medium skilled workers in sectors open to migrant labour.
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