GLOBALIZATION

Globalization

GLOBALIZATION

Economic globalization is the creation of a global market that abolishing all trade barriers to allow free movement of capital: financial, commercial and productive. Financial capital is money, international loans and credits and foreign investment. Its characteristic is that it occupies a particular place and thanks to technology can move from one place to another quickly. Productive capital constitutes the money invested in raw materials, capital goods and labor.

The commercial capital, goods and services are finally being bought and sold on the international market. In this international market, major vendors are multinational companies such as: Shell, Coca Cola, Sony, IBM, Unilever, Phelps Dodge, ...