globalisation

• What is Globalisation?

  Globalisation is the ever-increasing interconnectedness between countries. It is a process that involves connections, interdependence and flows between different locations.
• types of flows on globalisation:

  1. transportation, capital and migration are all able to freely move between different countries
  2. internet and information allows for flows to move easily between countries
  3. migration and tourism, airlines and a lack or boarders around the world allow for people to travel efficiently
• political globalisation

  Political globalisation describes the growth of trade blocs as different countries seek to work together to increase the prevalence of free trade.

  e.g. World Bank, IMF (International Monetary Fund), World Trade Organisation and the United Nations.
• cultural globalisation

  Cultural globalisation describes the spread of Western ideas and culture such as North American films, fast food and fashion.
• social globalisation

  Social globalisation describes the increasing number of international migrants, the increasing quality of education and healthcare and the rise of social media.
• economic globalisation

  Economic globalisation includes the growth of MNCs (Multinational Corporations) or TNCs (Transnational Companies). The growth of the internet and better communication technology is included in economic globalisation.
• The European Union

  The EU allows free movement of people across borders which means that people with EU citizenship can move with relative ease and work in other EU nations. Only people with an EU passport are awarded this right.
• The USA's travel ban

  With President Trump at the helm, the USA will not issue immigration or non-immigration visas to countries where most of the population are Muslim (e.g. Libya, Iran, Somalia, Syria and Yemen.)
• Advances in transport technology

  The growth of railways, telegraphs and steamships all accelerated the rate of globalisation. World trade began to grow more rapidly towards the end of the 1800s.Britain was the world leader in steam power in the 19th century.Having this technological advantage allowed Britain to transport goods and people to other parts of the British Empire (mainly Africa and Asia).
• emergence of TNCs

  Transnational corporations began to emerge because advances in technology allowed goods produced in one country to be transported to another country.
• transport-aeroplanes 20th century

  The development of jet aircraft to replace aircraft propellers happened during World War 2, first by the Germans and then the Americans.

  Jet aircraft were first used for military purposes. But after the Second World War, they were used for passengers. This was the start of commercial airlines.
• transport- containerisation

  Containerisation is the protocol of a uniform container size that can be placed on all ships and transported all over the world.

  The key idea is that by making sure that all containers are the same size, ships and ports around the world can be fitted to deal with all types of goods in the containers. This makes global shipping become far quicker and cheaper.
• 'shrinking world effect'

  Containerisation and jet aircraft led to the 'shrinking world' effect.

  The ‘shrinking-world’ effect means that while the physical distance between places remains the same, places feel much closer together.
• time-space compression

  ICT and mobile communication advances have lowered the costs of global communications and contributed to time-space compression. Time-space compression allows the relative distances between places to feel far shorter.
• ICT (internet communication technology)and mobile advances

  accelerated globalisation and the development in developing countries where there is a lack of infrastructure leading to a lack of economic growth
• China's Economic Decisions (FDI and urbanisation)

  In 1978, the Chinese government adopted their Open Door Policy and opened up the country to investment from abroad. This led to the transformation of China with significant economic growth and urbanisation.
• China's economic decisions (Special Economic Zones (SEZs))

  National Governments can set up Special Economic Zones (SEZs) that help to attract FDI (Foreign Direct Investment) into a region.China encourages TNCs to locate there by offering low taxes and low labour costs (China's population is very large).

  These SEZs have helped China's economic growth and have helped it to become the 'workshop of the world'.
• China's Economic Decisions(censorship and TNCs)

  Although China has opened its doors to economic globalisation, it still has a ‘closed door’ approach to some global flows. For example, social media TNCs such as Facebook and Google are censored with little or no access to the market of China.
• IMF - Since 1945 the IMF has worked to promote global economic and financial stability, and encourage more open economies. Part of this involves encouraging developing countries to accept FDI and open up their economies to free trade.The IMF lends money for development purposes. In return for loans it tries to force countries to privatise government assets to increase the size of the private sector and generate wealth. The IMF also exists to stabilise currencies
• World Bank - The World Bank’s role since 1944 has been to lend money to the developing world to fund economic development and reduce poverty. It has helped developing countries build deeper ties to the global economy but has been criticised for having policies that put

  economic development before social development.
• World Trade Organisation (WTO) - The international organisation that works to reduce trade barriers and create free trade. WTO was known as the GATT [General Agreement on Tariffs and Trade] until 1995. The WTO believes in Free Trade without subsidies or tariffs known as barriers. Removal of these barriers is called ‘trade liberalisation’. It seeks to

  encourage all trade between countries to be free of tariffs, quotas or restrictions.
• privatisation

  Privatisation is where state-owned businesses or infrastructure is sold to private TNCs. It allows foreign investors to gain a share and so can represent a form of FDI.
• Free-market liberalisation

  Free-market liberalisation is also known as neoliberalism. It is where you remove the influence of the state in the economy and allow the markets to act more freely. By doing this, it is hoped that markets will be efficient and the benefits of economic growth will trickle down to the poorest in society. This does not always work as intended.
• how can globalisation be measured?

  1. The AT Kearney Index uses four main indicators to publish a globalisation index. This index includes political engagement, technological connectivity, personal contact and economic integration.
  2. indicators can also be used to measure globalisation. These include human flows of migrants, trade flows of FDI, membership of trade blocs and membership of IGOS.
  3. KOF indexx is calculated annually based on three aspects of globalisation. It includes measures of economic globalisation, social globalisation and political globalisation.
• what is offshoring?

  Offshoring is where a TNC moves parts of its production process to other countries. This is often developing countries where production costs (e.g. labour or land) are lower.
• what is outsourcing?

  Outsourcing is where a TNC gives a contract to another company to complete part of their work. For example, they might outsource their call-centres to parts of the world where labour costs are lower.

  Many global TNCs do not make all of their products themselves and outsource the production. They simply attach their branding and logo to the good.
• what is glocalisation?

  TNCs use glocalisation to help spread globalisation. This means that they adapt their products to the needs of local consumers.

  For example, lots of global food TNCs offer a different menu in India where beef is not eaten.
• what is economic liberalisation?

  TNCs take advantage of economic liberalisation. They take advantage of the removal of barriers to trade to earn more profit and increase their market share. TNCs use outsourcing and offshoring to make sure that they are able to maximise their profits by minimising the costs of producing their goods.
• Why Are Some Places 'Switched Off' From Globalisation?

  1. environmental reasons- If a country lacks energy resources to trade or use for manufacturing, it could be switched off.
  2. economic reasons- If a country is excluded from trade blocs or is disadvantaged by trade rules, it will be switched off.
  3. physical reasons-If a country is landlocked and has no access to a port, participating in global trade is difficult.If a country has a harsh climate and so struggles to grow crops, its exports can be limited
• why are some places 'switched off' from globalisation?

  1. social reasons- If a country or region has a poorly-educated population, a TNC is unlikely to set up production there. This can result in the area being switched off.if there isn't enough skilled labour, then TNCs may not invest in a nation.
  2. political reasons-f a country is run by a dictator who chooses to exclude the country from the global economy, it will be switched off (e.g north korea)If a country has a corrupt government or a high presence of organised crime or terrorist groups