transport tech

• what has promoted globalisation

  technological developments in transport and communications
• when did developments start promoting globalisation


  since the 19th centuary
• what corperations did the development of transport and communications allow


  allowed the development of trans-national corperations (TNC's)
• what developed in the 1800s


  railway, telegraph and steam ships
• what developed in the 1900s

  jet aircraft and containerisation
• what developed in the 2000s


  ICT, mobile communication eg mobile phones, internet, social networking, electronic banking and fibre optics
• how do new technologies increase globalisation


  reducing transport costs
• how does a lower transport cost affect globalisation


  lower price at the destination makes the cost cheaper at the distant market, more people can afford to buy goods (deepening)

  
  

  allows it to be shipped further, more people can buy it (widening)
• what allows a larger load to be transported


  developments of fuel/energy eg

  -coal and railway steam engines

  -oil in internal combustion - jet engines, lorries, aircraft
• what do larger loads produce

  economies of scale
• what is economies of scale


  a reduces cost per unit at a larger scale of output
• how does containerisation reduce transport costs


  by dramatically lowering the 'break-of-bulk' costs when products change transport types eg from a lorry to a dock/ship

  
  

  standardised metal boxes are quickly transferrable to different transports and is easily mechanised

  -less people to pay

  -reduced labour costs as people no longer have to individually stack parcels into the hold

  -fewer losses from theft as everything is locked in a metal container

  -shipping cost is reduced as there is less time waiting in docks to unload
• impact of faster transport time on goods


  perishibles can now be shipped eg flowers from kenya, which opens up more distant markets and reduces losses (widening)
• impact of lower transport costs


  allows expansion of TNC's
• how do TNC's reduce the cost of production


  spatial division of labour
• what is spatial division of labour


  locating diff stages of production process in diff countries to minimise the costs such as a labour intensive manufactuing in a low wage developing country, research in a highly educated developed country and HQ's in a low tax country
• what does competition promote in TNC's


  competition promotes efficiency

  which reduces costs further and increases global flows