Globalisation

• What is globalisation?

  Increasing interdependence and interconnectedness between countries through flows of capital, trade, goods and services as well as a countries culture.
• Switched off places

  Some places cannot be affected by globalisation as they are switched off- for reasons such as:

  • landlocked countries
  • vulnerable to climate change
  • the country has a dictator
  • exclusion from trade blocs
• Offshoring

  manufacturing is based in other countries
• Outsourcing

  contract another company to do work for you
• TNC's

  TNC's can use glocalisation to help spread globalisation, where products are adapted to suit demand of the consumers
• IMF advantages

  loans money to developing countries
• IMF disadvantage

  the country must have a free market to get loans
• World bank advantage

  loans money to developing countries
• World bank disadvantage

  can create debt, dependency and can be corrupt
• WTO advantage

  promotes free trade
• WTO disadvantage

  Can be selective
• Free trade positives

  • cheaper goods
  • variety of products
• Free trade negatives

  • carbon footprint
  • protecting domestic jobs
  • similar streets in different countries
• What is liberalisation?

  A reduction in government controlled industries, creating opportunity for private businesses and TNCs within an industry.
• What are special economic zones (SEZ) ?

  Regions where the government offer incentives to attract industry there.
• The role of TNCs in globalisation

  • Production networks
  • New markets: (emerging countries using global branding and marketing to meet local needs.
  • Glocalisation: (change products to suit local culture or tastes)
  • Liberal policies: (use economic liberalisation of countries to locate outsourcing and offshore operations)
• Benefits of the global shift

  • Infrastructure investment: money from exports enables governments to improve transport links
  • Waged work: factories offer formal jobs with better pay, attracting people and providing a workforce
  • Education and training: enables governments of emerging economies to invest in schools and higher education, producing an educated population with a high skill set.
• Problems of global shift

  • Loss of productive farmland: urban areas have grown rapidly outwards onto farmland due to rural-urban migration.
  • Shanty towns: much of the outward growth is unplanned informal housing. No formal services are available.
  • Degradation of natural environment: control of pollutants from industries and within the city is often limited leading to pollution and contamination.
• Social challenges from rapid growth

  • Overcrowding: leads to lower quality of life, as there are not enough services or resources
  • Poverty: rural-urban migrants expect to find formal paid jobs but this may not be true
  • Poor housing: not enough proper housing is available and so leads to the rise of shanty housing
• Environmental challenges from rapid growth

  • Traffic flow increase: transport infrastructure cannot be expanded quickly enough to cope and congestion leads to increased air pollution
  • Lack of planning and regulation: businesses appear quickly, often without consideration of waste disposal, so air,water and land pollution increase.
• What is a global hub city?

  An urban area with lots of connections to other world cores.
• Attitudes towards globalisation (pro-globalisation)

  • Free markets and free trade provide wealth via job creation, reducing inequalities for people.
  • Increased wealth provides funding for protecting the natural environment
  • Promotes democracy and freedom#
• Attitudes towards globalisation (anti-globalisation)

  • Rapid urbanisation may happen before countries can cope
  • Economic change creates environmental risks
  • Inequalities are created when capital is put before people
• Players and attitudes- national governments

  • determining the legal position of censoring news and information
  • restricting numbers and sources of immigrants
  • establishing tariffs to protect home industries from foreign imports
• What is localism?


  Localism is a response to globalisation with the aim of increasing local sustainability.
• Benefits of localism

  • saves energy use (especially on transport)
  • reduces the size of eco-footprint
  • keeps money within local area (multiplier effect)
• Costs of localism

  • Local market may be unreliable so local businesses are not sustained
  • Prices of local products may be higher
  • Emissions from long distance transport are often offset by more efficient production methods