Globalisation

• What is Globalisation


  The process by which the world is becoming increasingly interconnected as a result of massively increased trade & cultural exchange.
• What has globalisation done to the production of goods and services?


  It has increased, the biggest companies are no longer National firms but multinational corporations with subsidiaries in many countries.
• What keywords does globalisation involve?


  Movement of people, Trade, Communications Transport, Environmental issues, politics.
• Why is globalisation NOT a new process?


  Because European empires started to expand in the 19th century making the world come more connected as Europeans colonised different countries.
• KEY features of globalisation?

  Transport, tech, labour, trade.
• TNC meaning?


  Trans-National corporation - company that operates in several countries. May have headquarters in one country and factories in another.
• Factors that have accelerated globalisation since the end of WW2?

  Communications - planes, internet.

  
  

  Transport networks - land, sea, air.

  
  

  Growth of trading blocs - Barriers broken down t o allow for more global trade.

  
  

  TNC - size, influence.

  
  

  New markets - free trade allows borders to be broken down.

  
  

  Trade blocs/ new markets

  
  

  Aid

  
  

  Labour

  
  

  IT
• How has Globalisation Caused a Global Shift?


  The global economy describes the connectedness of the economies of the world's industrial countries which together are considered to be a single economic system.
• Advantages of outsourcing TNC's?


  The companies help the development of the country by bringing in technology and knowledge that the host country does not possess.
• DisAdvantages of outsourcing TNC's?


  Unless the company actively participates in a program to educate local companies in the new technologies, the country's industry will not really benefit.
• What does aid mean?


  Either donor/ receiver- usually money.
• What does foreign investments mean?


  TNC's exploit opportunities to make money. E.g oil in North Western Africa.
• Why is manufacturing shifting to developing countries, especially south east Asia?


  Transport Is cheaper.

  Communications tech is improving.

  They have raw materials that can be exploited.

  Presence of cheap labour.

  Absence of tight anti pollution regulations(UK HAS these regulations).

  Cheap land for large factories.
• Positive impacts of global shift?


  Cheaper imports of goods mean the cost of living decreases.

  Increased tax in host countries for money to be spent on healthcare and education.

  Efficient industries so higher profits for TNC's.

  Jobs created in manufacturing in the host country, means people learn new skills and earn money.
• Negative impacts of global shift?


  Unemployment in home country factories due to deindustrilisation - leads to widening inequality.

  Exploration of people in home country who work long hours and poor conditions.

  Pollution from manufacturing damaging environment in home country.

  Host country loses culture because of TNC influence and pressure.
• Name some global institutions.

  UN

  WORLD Bank

  IMF

  WTO
• What are their roles?


  They Are private enterprises known as TNC's.
• Name some more powerful players in globalisation?

  USA

  China

  Oil producing nations (Saudi Arabia).
• Why could globalisation be seen as not a source for good?

  It has brought the loss of biodiversity, growth of local population and climate change. Also a threat to National economies as global companies are taking over the power. Exposed to more common languages, exploiting the minority ones.

  Technology takes over workers.
• Why might globalisation NOT be good for people such as in Bangladesh (factories)?


  No fair wages.

  Just working for the western countries like slaves.

  Better if everyone got paid equally.
• WTO role in globalisation?


  Settle trade dispute

  Trade rules

  Trade in developing countries.
• IMF role?


  Encourages trade expansion

  Economic cooperation between different countries.
• TNC role?


  Relocating manufacturing

  Can control activities over borders.

  Active participation in globalisation.
• NGO role?


  contribution to participation of multinational companies.

  Provides community service.

  Relies on donations.
• World Bank role?


  Helps developing countries.

  Protects the environment.

  Provides food and water.
• OPEC role?


  Influence on money prices

  93.9million barrels traded in 2022.
• What is geopolitics?


  The study of the relationships between and the influence

  of geographical factors on the relationships
• What makes a country powerful?


  HDI

  Oil made by Dead Sea creatures

  Geo location

  Resources

  Population

  Access to money

  Level of education

  Tech advances.
• What do trade blocs allow for?


  Trade blocs allow freer trade between member countries.
• Advantages of trade blocs?

  promotes free trade.

  Free movement of people.

  Creates good trading relationships.

  Can remove trade barriers.

  Free flow land and labour.
• Disadvantages of trade blocs?


  Trading between countries outside the bloc is difficult.

  Countries can often only be part of one bloc.

  Benefits of global trade can be lost as countries concentrate on only their bloc.

  Relaxed borders so illegal immigrants can move around the bloc.
• Neo colonialism definition?


  Use of economic, political, cultural or other pressure to control or influence other countries.
• Global shift in manufacturing


  the movement of manufacturing, or the economic centre of gravity, to recently industrialising countries.
• Division of labour


  The division of labour occurs where the production process is broken down into many separate tasks. Division of labour can raise output per person as people become proficient through constant repetition of a task. This is called learning by doing.
• Primary sector


  The primary sector includes all those activities the end purpose of which consists in exploiting natural resources: agriculture, fishing, forestry, mining, deposits.
• Secondary sector


  The secondary sector covers all those activities consisting in varying degrees of processing of raw materials (manufacturing, construction industries).
• Tertiary sector?


  The tertiary sector covers a wide range of activities from commerce to administration, transport, financial and real estate activities, business and personal services, education, health and social work.
• Quaternary sector?


  The quaternary sector is defined as the industry based on human knowledge which involves technology, information, financial planning, research, and development.
• What is the biggest factor that has accelerated globalisation???


  Communications otherwise you wouldn't be able to travel around the world and communicate with other countries. This also ties in with technology, making people wish they could travel to other places.
• What is the global economy?


  The world economy or global economy is the economy of all humans in the world, referring to the global economic system, which includes all economic activities conducted both within and between nations,