patterns and factors in globalisation

• comparative advantage


  ability of individual / group to carry out particular economic activity more effectively
• comparative advantage - Umbrella city

  - Songxia, China

  - 1/2 billion umbrellas made annually

  - specialisation in umbrellas

  - access to domestic + international markets

  - low labour costs, 40,000 workforce

  - gov support for single product city (have tax incentives)
• worlds economic centre of gravity

  - its shifting due to deindustrialisation in HICs + moving to lower wage economies

  - benefiting developing countries + reducing unemployment

  --- may lead to structural unemployment in developed countries
• global division of labour

  - undergone radical changes in last 40 years

  - asian tigers

  - BRIC economies

  - MINT economies
• who are the asian tigers?

  • hong kong
  • singapore
  • south korea
  • Taiwan
• who are the BRIC economies?

  Brazil, Russia, India, China
• who are the MINT economies?

  Mexico, Indonesia, Nigeria, Turkey

  - could be the next four emerging economic giants
• production


  process of making a product
• distribution


  transport of goods from factory to consumer
• consumption


  when a good is used
• patterns of production, distribution + consumption

  • consumption still predominantly in richer countries
  • pattern changing, as countries develop + become more affluent, they demand products similar to those they export
  • in 1954, 95% manufacturing jobs in industrialised economies
  • now 50%manufacturing jobs are in developing countries
• why is manufacturing now in developing countries?

  - decentralisation due to FDI by TNCs

  - lower land + labour costs

  - transfer of tech by TNCs enabling developing countries to be productive
• communication technologies


  - pivotal in accelerating globalisation

  - computer tech enhances data processing

  - internet expansion means instant communication + info sharing
• financial systems


  • world become increasingly financially integrated due to financial deregulation
  • easier to move money across borders + trade / invest with other countries-global financial systems (GFS)
  • framework facilitating flow of capital for purposes of financing investment + trade
• transport systems


  - products can be shipped faster + in larger quantities

  - containerisation means reduced loading times

  - improved rail transport

  - air transport offers faster delivery options + increased global reach
• security systems


  - globalisation faces security challenges

  - national boundaries = less of a barrier + easier travel means more fluid flows of people + product

  - food imports = need to meet safety standards

  - biosecurity = preventing introduction + spread of harmful organisms to lower the spread of disease
• management + info systems

  - global value chains allowing different stages of production to occur in various places globally

  - just in time tech introduced cost saving advantages, allowing for efficient production + distribution