3.1A: What is Globalisation?

• What is globalisation?

  Globalisation is the process by which people, culture, finance, information and goods transfer between countries with few barriers.
• Economic globalisation

  The growth of TNCs, which have a global brand image and presence; the spreading of investment around the world; rapid growth in world trade.
• Social globalisation

  International immigration has created extensive family networks that cross national borders.

  Global improvements in health and education can be seen over time, with rising world life expectancy and literacy.

  Social interconnectivity has grown over time thanks to the spread of 'universal' connections such as mobile phones and the internet.
• Cultural globalisation

  Unifying and diversifying; people using increasingly similar: food, clothes, music, values - many of which are 'western' in origin (from North America and Europe).

  The circulation of ideas and information has accelerated thanks to 24-hour news casting (CNN 1980).
• Political globalisation

  The growth of trade blocs allows TNCs to merge and make acquisitions of firms in neighbouring countries, while reduced trade restrictions and tariffs help markets to grow.
• Widening and Deepening of Global Connections

  • Widening of connections: links to new places, often farther away.
  • Deepening of connections: number and type of connections increase, and volume of flows grows.
• Globalisation increases interdependence


  • This means that the success of one place depends on the success of other places.
  • Economic problems in one country can quickly spread to its trading partner and quickly affect people in distant places.
• Flows

  Increase in flows of:

  • goods and services (including commodities)
  • products and commodities, that can be bought, and are often made or grown in other countries
  • capital
  • flows of money between people, banks, businesses and governments
  • people (including migrants and tourists)
  • information​
  • e.g. data transferred between businesses and people, often using the internet