Globalisation (全球化) Vocabulary
For better or worse, globalisation is a fact of modern life.
National economies are undoubtedly becoming more integrated as cross-border trade, investment by financial institutions increase.
This international economic integration means that consumers are buying more foreign goods, a growing number of firms now operate across national borders.
One positive view is that globalisation has the potential to boost productivity and living standards everywhere.
This is because a globally integrated economy allows low-wage countries to specialise in labour-intensive tasks .
However, increased competition from low-wage developing countries may destroy jobs in today's rich economies, who will have to reduce wages, taxes, welfare benefits and environmental controls to make themselves more "competitive".
The critics also worry that while there has been a surge in the global economy, problems in one country or area of the economy could lead to a global slump.
The US sub-prime mortgage crisis
Currently, issues such as the rising cost of oil and the US Sub-Prime Mortgage Crisis are good examples of this.