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Unit IV: globalization

The term 'globalization' is possibly the most over-used word of the last decade, which means a process of interaction and integration among people, companies, and governments of different nations as well as goods, services and ideas to share all over the world. In terms of business, globalization means integration of regional economies into global network of communication and execution moving investment from a domestic environment to an international one. This process has positive and negative effects on the environment, culture, political systems, economic development and prosperity, and on human well-being in societies around the world.

Globalization is not new, though. For thousands of years, people have been trading and travelling in lands at great distances, such as through the famous Silk Road across Central Asia that connected China and Europe during the Middle Ages.

But for the past few decades, cross-border trade, investment, and migration have increased so dramatically that many experts believe the world has entered a new phase in its economic development.

This current wave of globalization has been driven by policies implying free-market economic systems, dramatic reductions in trade barriers to commerce, international agreements to promote trade in goods, services, and investment.

Technology has been the other principal driver of globalization. Advances in information technology have given all economic participants – consumers, investors, businesses – new tools for faster and more profound analysis of economic trends throughout the world, easy transfers of assets, and collaboration with far-flung partners.

Distinguishing this current wave of globalization from earlier ones, economists claim it to be farther, faster, cheaper, and deeper.

Vocabulary practice

  1. Acquisition (n)

Поглощение

  1. Competitive advantage (n)

Конкурентное преимущество

  1. Costs (n)

Издержки

  1. Cross-border trade (n)

Международная торговля

  1. Cross-cultural (adv.)

Межкультурный

  1. Distinguish (v)

Находить отличия, различать

  1. Diversify (v)

Дифференцировать

  1. Domestic (adj.)

Внутренний (рынок)

  1. Drive (v)

Стимулировать

  1. Global (adj.)

Всемирный, мировой, глобальный

  1. In terms of (idm)

С точки зрения чего-либо

  1. Interest (n)

Доход, проценты

  1. Joint venture (n)

Совместное предприятие

  1. Market share (n)

Доля рынка

  1. Multinational company (n)

Транснациональная компания

  1. Overseas (adj.)

Внешний, зарубежный (рынок)

  1. Profitability (n)

Прибыльность

  1. Tailor to (v)

Адаптировать, приспосабливать

  1. Take advantage of (idm)

Использовать с выгодой, учитывать

  1. Trade barriers (n)

Торговые ограничения

  1. Transfer of assets

Перевод активов

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