BU491 Chapter Notes - Chapter 2: General Agreement On Tariffs And Trade, North American Free Trade Agreement, World Trade Organization
Document Summary
Mnes to respond to three simultaneous yet often conflicting sets of external demands; the need for cross market integration, national responsiveness, and worldwide innovation and learning. Forces for global integration and coordination: forces of change: scale, scope, factor costs, and free trade. The industrial revolution created pressures for much larger plants that could capture the benefits of the economies of scale. In less capital-intensive industries, companies that were largely unaffected by scale economies often were transformed by the opportunities for economies of scope. With changes in technology and markets came the requirement for access to new resources at the best possible prices, making differences in factor costs, a powerful driver of globalization. Liberalization of world trade agreements became an equally powerful source of change in the past half century (gatt, Reduction of barrier to international trade, made the trading environment less restricted. High economic growth rates of emerging markets.
