The increase in trade and communication between countries internationally
Causes of globalisation
The internet
Improvements in global transport (things like container shipping)
Improvements in communication
Transnational corporations (TNCs)
Businesses that sell goods & services globally in lots of different countries
TNCs operating in India
Unilever Hindustan
Vodafone India
How TNCs increase globalisation
Create supply chains that go across the countries where they operate
Spread skills across the world
Spread culture (e.g. McDonald's fast food stores in India spreading American culture)
How governments increase globalisation
Organisations like the European Union and NAFTA encourage globalisation
Free trade agreements and removing tariffs encourages trade instead of producing all goods and services domestically
Governments offer businesses tax incentives to operate in their country
Strategies for reducing global inequality
NGO-led, bottom-up intermediate technology-led
Inter-governmental-funded infrastructure projects
TNC-driven growth
IGO-funded large infrastructure projects
Advantages: Can improve a nation's energy, sanitation or transport infrastructure
Disadvantages: If interest rate on borrowing is high, governments will spend lots of money repaying the loans; If government is corrupt, only a small % of the money will go to the project
NGO-led intermediate technologies
Advantages: Given directly to the people who need them, may create small economies in the areas that receive the technologies
Disadvantages: Hard to scale, large-scale infrastructure cannot be funded this way