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Uczelnia Łazarskiego Fall 2011Economic integration and globalisation as natural phenomenon of development? Globalisation – Definition Globalisation – the increased global sourcing of goods and services, global flow of capital and importantly labour /Gordon Brown/ Globalisation describes the parallel emergence of three new forces: The first is the information and communication revolution The second is the world wide movement from the planned economies to market economies and from self-reliance to integration within the global economy The third is the entry to the world economy of vast new sources of hard working and highly motivated but cheap labour /Martin Wolf, Financial Times/ • Determinants of globalisation: • Technological revolution • Easing of barriers to international trade • Freedom of labour movement • Gold standard system Rapid economic growth Technological revolution * Decreasing costs of transportation and communication due to technological developments * Steamships became more and more important compared to sailing ships, hence decreased time of delivery * Emergence of railroads networks * Faster transmission of information due appearance of telegraphs as opposed to regular mail “Shrinking globe” phenomenon
* “Most favoured nation treatment” introduced by the UK. It established the sovereign equality of states with respect to trading policy. * Gradual reduction of barriers to trade as well as better protection of property rights * Decline in barriers to trade of manufacturing products at first * There was a free labour movement among the countries since people had no passports, except for Russia and Turkey * Shift from agricultural to industrialised manufacturing sector that was in need of more people * In 1891 Publication of Pope Leo XIII's foundational document, Rerum Novarum, also known as "On the Condition of the Working Classes“ that advocated workers’ rights, minimum wage, length of work day * The idea behind that system was to convert paper currency into gold on demand of fixed exchange rate * Exchange rate was based on parity and the currency costed more if had more gold in its reserves * It brought balance-off-trade equilibrium for all countries and reduced uncertainty in trade, hence accelerating it
Stages of economic integration • Free trade area
• Customs union
• Common market
• Currency area
• Political union
Date: 2015-01-11; view: 1041
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