Globalization

• Globalisation


  The process of increased connection of countries, especially in economics, politics and culture
• Examples of globalisation


  • Clothing made in different countries
  • Export of oil from Saudi Arabia
  • American soap operas shown in Israel
  • Lebanese restaurants in London
• Globalisation


  • All countries now belong to the global economy where something that happens in one country can have effects throughout the world
• Globalisation has been taking place for hundreds of years, but its speed has increased over the last half century
• Causes of increased globalisation


  • Increased trade - important to economies of most countries, companies rely on it to make large profits
  • International organisations promoting free trade
  • Free trade agreements between countries
  • Labour availability and skills in LEDCs
  • Improvements in transport - larger ships, goods and people can travel more quickly
  • Quick communications - internet and mobile technology allowing greater communication between people in different countries
• Transnational corporations (TNCs)


  • McDonald's
  • HSBC
• Transnational corporations (TNCs)


  • No longer national firms but operate in many countries
  • Markets for goods and services are global
  • Set up offices, factories or shops in other countries
  • Move factories and jobs to LEDCs (outsourcing) to pay lower wages and have less strict laws protecting workers and environment
• Globalisation has benefits


  • Money invested in LEDCs providing new jobs and skills, allowing them to develop technology and improve standard of living
  • TNCs bring wealth and foreign currency to LEDCs
  • Global competition helps keep prices low
  • Ability to respond quickly to global issues like climate change and natural disasters
  • Greater access to foreign culture
• Globalisation also has problems


  • Richest countries dominate world trade at expense of LEDCs
  • No guarantees investment will benefit local community, profits sent back to MEDCs
  • Outsourcing takes away manufacturing jobs from MEDCs
  • Different cultures begin to lose individuality
  • Lack of strictly enforced laws puts worker safety and environment at risk