The Causes of Globalisation
- Globalisation refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies
- In 2000, the value of global trade was approximately $6.45 trillion. By 2020, this figure was at $19 trillion
- Numerous factors have contributed to the rapid increase in the pace of globalisation but perhaps two of the most significant are the improvements in containerised shipping and the innovation in communication technology
Causes of Globalisation
Cause |
Explanation |
Economies of scale |
|
Technology |
|
The growth of the WTO |
|
Multinational corporations |
|
Geopolitical changes |
|
Deregulation |
|