Globalisation

• Types of Globalisation:

  • political
  • economic
  • cultural
  • social
• Dimensions of Globalisation - When countries share things with one another, it’s known as a flow. This is because things are flowing (moving) from one country to another. Flows can be physical like people or products, but they can also be ideas and concepts such as money (capital), services, or information.
• The different flows in globalisation are: capital, labour, products, services and information .
• Factors influencing globalisation:

  • New technologies, communications and information systems
  • Global financial systems
  • Transport systems
  • Rise of security

  Rise of Trade agreements
• Factors in globalisation:

  New technologies, communications and information systems

  • Technological developments such as fibre optics and satellites have enabled large volumes of data to be transmitted long distances at high speeds
  • The internet enables instant communication via email, social media, and text and video messaging services
  • This ready access to information and communication contributes to a shrinking world effect and is also known as time-space compression (when the relative distance between places seems smaller due to developments in transport and communications)
• Factors in globalisation: Global financial systems

  • Financial deregulation has reduced barriers to capital flows, meanwhile, communications technology has made trade and financial transactions faster and more secure
  • Globalisation also has disadvantages as a financial crisis or recession in one country can have significant impacts on financial systems around the world
  • The Global Financial Crisis of 2008 was caused by a fall in the US housing market, ultimately leading to Iceland's banking system to collapse and a number of European countries to be unable to repay their government debts
• Factors in globalisation: Transport systems

  • Containerisation has been one of the most significant changes which has increased the rate of globalisation - today, the largest container ships carry 24,000 containers
• Factors in globalisation: Rise of security

  • As national boundaries have become less of a barrier, traditional and more simple security measures have reduced in significance.
  • Sometimes groups of countries work together to increase security by forming political and military alliances
  • For example, the North Atlantic Treaty Organisation or NATO was founded after the Second World War to promote peace and cooperation in Europe during the Cold War
• Factors in globalisation: Rise of Trade agreements

  • A trade bloc is a group of countries that work together to increase trade and boost economic growth

  -Trade blocs remove or reduce barriers to trade between them such as tariffs (taxes on imported/exported products) and quotas (limits on amount of products which can be imported/exported)

  -This facilitates free trade and results in larger volumes of trade between member nations

  -However, there may also be a backlash against loss of sovereignty which could result in members leaving trade blocs e.g. Brexit
• Global commons refer to the Earth's shared resources and systems that are not owned or controlled by any one country or group of people. E.g the atmosphere, outerspace, and antarctica.