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Rainbow [258]
3 years ago
10

studoc Recent decades have seen a trend toward globalization, which means that buying and selling in markets have crossed nation

al borders to an increasing extent. As a result, firms and workers from different countries are increasingly interconnected. Globalization has occurred for a number of reasons. List three reasons and briefly describe their effect contributing toward globalization. (5 points)
Social Studies
1 answer:
finlep [7]3 years ago
4 0

Answer:

- Economic liberalization.

- Development of communications technologies.

- Growth of multinational companies.

Explanation:

Globalization refers to a process where, according to Anthony Giddens, international ang global social, economic and political relations are closely interlinked, to the point where an event that takes place in some corner of the world affects another distant corner of the world. This late 20th century process occured for a number of reasons - we can list three of them:

-  Economic liberalization: mixed economies where the state had a large role in the economy were dominant in most capitalist economies after the Second World War, influenced by Keynesian economics. However, the economic slump of the 1970s was blamed on too much state intervention. Neoliberal economists argued that, in order to restart the economy, the state had to take a hands off approach to the economy and let market forces lead it. This meant opening up areas of the economy that were formerly reserved to the state, and tearing down protectionist economic policies. This form of economic liberalization meant that not only goods, but also capitals, freely flowed across borders, linking more and more regions around the globe.

- Development of communications technologies: the Space Race between the Soviet Union and the United States wasn't merely a political show, but it also had a major impact on everybody's life through the development of communication satellites. These allowed for almost instant communication and transfer of information between different corners of the globe. Other new technologies, especially the internet, would further enhace international communication.

- Growth of multinational companies: another major feature of the late capitalism of the 20th century was the surge of companies who held large economic power. Some companies eventually became behemoths that overflowed their domestic markets, and in their search of profits, took advantage of economic liberalization to export their goods and their capital all around the planet.

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