globalisation

• Globalisation


  The increasing interdependence between countries through flows of capital, trade, goods and services as well as culture and ideas
• The rate of globalisation is increasing, with LEDCs becoming more involved in global markets and forums, whilst MEDCs become increasingly interdependent on one another
• Causes of accelerating globalisation


  • Economic
  • Political
  • Migration
  • Cultural
  • Flow of Commodities
  • Technology
• Transnational companies (TNCs)


  • Many TNCs have incomes higher than GDPs of many countries
• Online purchasing


  Becoming increasingly common between countries
• Stocks


  Traded from across countries and countries invest in each other (Foreign Direct Investment)
• Financial businesses


  Trade large amounts of currencies in order to make profit
• Trade blocs


  E.g. NAFTA, EU, have become more influential and have reduced tariffs and other protectionist measures
• IGOs


  E.g. IMF, WTO and the World Bank, work to harmonise economies, whilst promoting democratic ideology
• Worldwide media outlets


  E.g. BBC, Fox, CNN, express political views and ideology
• International migration


  Has led to extensive family networks living across the globe, leading to the spread of culture and finance (through remittance)
• International tourism


  Has increased - more people can travel abroad for holidays due to lower transport costs
• Americanisation and Westernisation


  Of other (often developing) parts of the world
• Imported goods


  Goods can easily be imported, increasing countries interdependence on one another
• Manufactured goods


  The volume has increased rapidly due to low cost countries such as Bangladesh and Vietnam
• Internet

  Has rapidly allowed the spread of information and knowledge
• Social networking sites


  E.g. Facebook had 1.5 billion users in 2015, can allow the spread of culture, ideology and opportunities for migration and tourism
• Server farms


  E.g. Microsoft's data centre in Washington, which store substantial amounts of data
• Globalisation has led to


  • Lengthening of connections
  • Deepening of connections
  • Faster speed of connections
• Important innovations in transport

  • Steam power
  • Jet aircraft
  • Containerisation
• Technological advancements


  • Telegraph
  • Telephones
  • Broadband and fibre optics
  • GPS
  • Internet
• Dimensions of globalisation


  • Capital
  • Labour
  • Products
  • Services
  • Information
• Capital flows


  The movement of money for the purpose of investment, trade or business production
• Labour flows


  The movement of people who move to work in another country
• Product flows


  The movement of physical goods from one country to another
• Service flows


  Services that can be produced in a different country to where they are received (e.g. international call centres)
• Information flows


  Any type of information that can flow from one place to another via the internet, SMS, phone calls etc.
• Reasons countries may be 'switched off' from globalisation

  • Environmental
  • Political
  • Economic
• Landlocked countries


  Cannot be independent in trade as they must rely on its neighbours to travel through before participating in trade
• Poor fertility of land, mountainous or arid conditions, limited land space


  Can all reduce a country's ability to produce a commodity for trade
• Vulnerability to climate change

  The natural environment could change to unfavourable conditions (sea level rise, desertification, etc)
• Political agenda and governance


  May limit flows of people or culture (anti-migration policies, censorship, etc)
• Terrorism or active conflict


  Can be hugely detrimental to a region's global connectivity
• Corruption within the government

  Means money is lost rather than invested
• Unstable markets or weak currencies

  Will deter investment and businesses
• Importing raw materials and commodities


  Could hurt domestic suppliers and industries
• Migrants from abroad


  Could create tensions as they may not be wanted
• Foreign information


  Could be seen as a threat (e.g. China's Great Firewall)
• IMF - International Monetary Fund


  Loans money to poorer developing nations, with a key condition being that the country opens up its markets and industries from government control, leading to privatisation
• The World Bank


  Loans money to developing nations with the aim of improving development, and so enabling globalisation