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Globalization

KFC in Mumbai, IndiaGlobalization is the increasing exchange of products, money, people and ideas across the world. This exchange is made possible by improvements in transport (such as large container ships to carry goods cheaply over long distances) and telecommunications, particularly the internet. Globalization makes the economy and culture of each country closely connected with, and dependent on, those of every other country. Multinational enterprises (worldwide businesses), such as McDonalds, Samsung and Toyota, thrive in a global economy; their products are produced and sold all over the world. Critics of globalization claim that the power of such huge companies is shaping our world to the disadvantage of poorer nations, workers and the environment.


Outsourcing

Large sections of the A380 airliner are built in France, Germany, Spain and the UK, and assembled in Toulouse, France. As shown...Read More >>Large sections of the A380 airliner are built in France, Germany, Spain and the UK, and assembled in Toulouse, France. As shown on this map, they are brought to the assembly hall by road convoys, ships and barges. Other A380 components are provided by suppliers from around the world. Large sections of the A380 airliner are built in France, Germany, Spain and the UK, and assembled in Toulouse, France. As shown...Read More >>Large sections of the A380 airliner are built in France, Germany, Spain and the UK, and assembled in Toulouse, France. As shown on this map, they are brought to the assembly hall by road convoys, ships and barges. Other A380 components are provided by suppliers from around the world.In the global economy, manufacturing of goods can be relocated, or outsourced, to other countries where the costs of production (labour in particular) are lower, or where the manufacturing process is more efficient in some way. Products are often assembled from parts produced in a number of different countries. Anything from aircraft to shoes can be manufactured in this way.

Although the term “globalization” is a recent one (it gained its current meaning in the 1980s), the world’s economies and cultures have long been connected, going back to ancient times. Trade on the Silk Road between China and the Middle East, for example, dates back to the third century BC.

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