IB 3341 Midterm: Globalization and it’s major characteristics

• School: St. John's University
• Department: IB - INTERNATIONAL BUSINESS
• Course: IB 3341
• Professor: Nicolo Tartaglia

Document Summary

Globalization is used to describe the growing interdependence of the world"s economies, cultures and populations, brought about by cross-border trade in goods and services, technology and flows of investment, people and information. In other words, globalization is the economic integration of countries; a historical process with large and increasing cross border flowers of goods and services, capital, info and people together with increasing living standards world-wide and some new socio-economic concerns. There are four sides of globalization: trade, capital, information and people. We are able to measure trade flows by the balance of payments: balance of payments are official documents recording all types of transactions of countries with the rest of the world. Balance of payments are made up of both current accounts and financial accounts. Current accounts are measured by subtracting exports from imports. If exports are higher than imports there is a surplus.