Curso de Inglés Comercial y de Negocios

Before you listen to global economist Harry Worth read the following notes on Globalisation.

Increases competition and makes international trade

Developing countries have higher and national .
Countries open to world trade have seen a reduction in the gap between the and the .
Companies save money on and.

Governments have less money for .
Workers are by multi-national companies and have little protection for and .
In some countries may be exploited.
Because of low production costs, companies in the West cannot with firms manufacturing in developing countries.
have less control over large corporations.

As more companies relocate and capital moves to developing countries, we may have a serious problem of in the West.

Look at the following table of nouns and verbs from the previous listening and write the missing words.

Globalisation (or Globalization) has become identified with a number of trends, most of which may have developed since World War II. These include greater international movement of commodities, money, information, and people; and the development of technology, organizations, legal systems, and infrastructures to allow this movement.

Characteristics

Increase in international trade (1) at a faster rate than the growth in the world economy.

Increase in international flow (movement) of capital including foreign direct investment (2)

Creation of international agreements leading to organizations like the WTO (World Trade Organization) and OPEC (Organization of the Petroleum Exporting Countries).

Development of global financial systems (3)

Increased role of international organizations that deal with international transactions.

Increase of economic practices like outsourcing (4), by multinational corporations.

Reduction or elimination of tariffs (5); construction of free trade zones (6) with small or no tariffs.

Reduced transportation costs.

Reduction or elimination of capital controls.

Reduction, elimination, or harmonization of subsidies for local businesses.

(1) International trade is the exchange of goods and services across international boundaries or territories.
(2) Foreign direct investment (FDI) is the movement of capital across national frontiers in a way that gives the investor control over his/her investment. It is different from portfolio investment which may cross borders, but does not offer such control.
(3) The global financial system (GFS) refers to those financial institutions and regulations that act on the international level, as opposed to those that act on a national or regional level.
(4) ) Outsourcing (or contracting out) is the transfer of jobs from internal production inside a business to an external company (such as a subcontractor) that specializes in that operation. Outsourcing is a business decision that is often made to lower costs. A related term, offshoring, means transferring work to another country, usually overseas.
(5) A tariff is a tax on imported goods.
(6) A free trade zone (FTZ) or export processing zone is one or more areas of a country where tariffs and quotas are eliminated and bureaucratic requirements are lowered in order to attract companies by raising the incentives for doing business there.