Theory

• The term 'globalisation' was used to describe a rapid integration of the world's economic systems in the 1990s under the combined influence of information technology revolution and the opening up of former Communist Bloc countries to the market economies
• Globalisation has since been expanded to encompass a wider range of dimensions including cultural, social, technological, political, environmental and also health-related factors - involves the spread of ideas and information across the world
• Factors of production:

  • Land
  • Labour
  • Capital
  • Enterprise
• Capital includes all money that moves between countries which is used for investment, trade or production
• In the late twentieth century, deregulation of world financial markets meant that the activities of financial institutions such as banks, insurance companies and investment companies were no longer confined within national boundaries.
• People move less easily around the world than money because of restrictions on immigration. However, in recent years there has been a phenomenal rise in the numbers of migrants crossing international borders, mainly to seek better employment opportunities - much has been from developing countries in South Asia and Africa
• Movement of labour:

  • Most migrants move short distances within local or the same region
  • North America, Europe and the Gulf countries in western Asia attract migrants from further afield
  • Bulk of economic migrants have some education and financial means
  • Largest inter-regional flow of labour is in Asia (2010-2015: 3 million workers moved south to west)