case studies

• Containerisation


  • Revolutionised world trade and commerce
  • Unit cost of international transport decreased from 30% to 1%
  • Increased the speed of transport
• Container ships


  Measured in twenty-foot equivalent unit (TEU) enabling the efficient transport of huge quantities of cargo
• The value of trade as a percentage of the world GDP increased from 42.1% in 1900 to 80% in 2013
• Budget Airlines (EasyJet)

  • Founded in 1996
  • Runs cheap flights within the UK and to most of Europe's major cities
  • By 2014, owned 200 aeroplanes, carried 65 million passengers, and had revenues of close to £4 billion
• 1. tailers


  Businesses focused on e-business (reshaping business organisations with computer networks) and e-commerce (the sale of goods via the internet)
• Amazon


  • Facilitated by the digital economy
  • Items purchased are cheaper than in shops due to lower operating costs and bulk buying (economies of scale)
  • Started selling books but has grown into a giant of online retail accommodating all sectors
• The traditional supermarket model is being challenged by e-tailers who operate without borders, making it difficult for governments to assess how much business tax they might have to pay
• Bretton Woods Institutions


  IMF, World Bank, and WTO
• IMF


  • Promotes global economic and financial stability
  • Encourages developing countries to accept FDI and open up their economies to free trade
  • Criticised for promoting a 'western model of economic development' that works in the interest of developed countries and their TNCs
  • Lends money for development purposes and tries to force countries to privatise government assets to increase the size of the private sector and generate wealth
• World Bank


  • Lends money to the developing world to fund economic development and reduce poverty
  • Helped developing countries build deeper ties to the global economy but has been criticised for having policies that put economic development before social development
• WTO


  • Works to reduce trade barriers and create free trade
  • Believes in free trade without subsidies or tariffs (known as barriers)
  • Seeks to encourage all trade between countries to be free of tariffs, quotas or restrictions
• China's 'Open Door' Policy (1978)


  • Encouraged foreign direct investment, primarily through special economic zones (SEZ) which stimulated rapid economic growth
  • In 1978, China's exports were negligible, but by 2013 it had overtaken the USA to become the world's biggest trading nation in goods
• AT Kearney Index


  World Cities Index that ranks cities for commerce based on business activity, cultural experience and political engagement
• Glocalisation


  The adaptation of a global product or service to local markets
• North Korea


  • An isolated country under communist dictatorship
  • Politically 'switched-off' from the world
  • Restricts flows of migration
  • Trade is under sanctions imposed by the USA and allies
  • All state TV and media is censored, and disrespect or criticism of the regime is subject to severe consequences
  • Heavily reliant on China for food aid and trade
  • Lacks connections to the global economy
• Sahel (CAR, Chad, Niger)


  • Sahelian countries are 'switched off' due to their physical geography and lack of development
  • Many nations are landlocked, which makes investment by TNCs and global businesses very costly, limiting investment in infrastructure
  • Citizens have no purchasing power, so do not truly offer new markets for Western TNCs to expand into
• Role of China in the global shift of manufacturing

  • In 1990, China's share of global trade in manufacturing (exports and imports) was just 2%, but by 2010 it had reached 10%
  • Supports the view that the global economic centre of gravity has shifted to the east
• Benefits and costs of global shift in Mumbai, India

  • Benefits: Home to clusters of key industries like finance, nuclear power generation, music, film and textiles
  • Huge infrastructure projects like the Jawaharlal Nehru Port and International airport have been required to support this growth
  • Costs: Rapid urbanisation has led to poverty and unemployment, poor public health care and poor civic and educational standards for a large section of the population
  • 60% of the population live in major slums, compared to 20% in Delhi and Rio de Janeiro
• Environmental damage in China


  • The Chinese government issues fairly strict environmental regulations, but monitoring and enforcement, crippled by a lack of specialist expertise and corruption and more concerned with economic growth, is relatively ineffective
  • The Yellow Sea, South China Sea and Yangtze River are some of the most polluted bodies of water (river systems) in the world
• Deindustrialisation in Detroit


  • During the 1920s, Detroit was the fourth-largest city in the USA, with a thriving car industry including Ford
  • Industrial restructuring as a result of the global shift has led to dereliction, depopulation, high crime rates and high unemployment
  • This led to reduced tax revenues - the city was declared bankrupt in 2013
  • Over 1/3 of all families in the city have an income below the US federal government's official poverty level
• International migration - Oligarchs in London ('Londongrad')


  • During the dissolution of the Soviet Union, businesspeople acquired many Soviet-era industries, making them incredibly rich (known as oligarchs)
  • A significant number of Russian oligarchs have bought homes in the wealthiest boroughs of London, bringing huge financial investment to the city of London, particularly through taxation
  • This has led to conflicts over house prices
• Low wage migration from South Asia (India and Pakistan) to Dubai (UAE) and Qatar


  • In Dubai, only 1 in every 8 people is a citizen of the UAE
  • The population is primarily made up of South Asian guest workers (60% of the population), who work 12-hour shifts in high temperatures for about $5 a day
  • Many workers are trapped by debts, and cannot send remittances back home which was the primary reason for their migration
• Diffusion


  The spread of cultural elements from one culture to another
• The Disney corporation and Americanisation

  • The largest TNCs are American and therefore promote their brands globally, pushing American culture and values
  • The Disney Corporation is one of the world's largest media companies, building its brand globally by redubbing films and animations for most markets
  • A particular cultural theme that appears in Disney films is the white wedding
• The white wedding was only a cultural norm in the USA, but has now become a global cultural phenomenon due to the diffusion of American culture through Disney films
• In Dubai, only 1 in every 8 people is a citizen of the UAE. The population is primarily made up of South Asian guest workers (60% of the population), who work 12-hour shifts in high temperatures for about $5 a day. Many workers are trapped by debts, and cannot send remitances back home which was the primary reason for their migration.
• Global culture


  • Changing diets in Asia
  • Paralympic movement
  • French language
  • Papua New Guinea
• Tensions caused by globalisation

  • Rise of extremism in Europe
  • Trans-boundary water conflict
  • Censorship in China North Korea
  • Diffusion
• Americanisation


  The largest TNCs are American and therefore promote their brands globally, pushing American culture and values
• Disney Corporation


  • One of the world's largest media companies, building its brand globally by redubbing films and animations for most markets
• Paralympic movement


  • The first official Paralympic Games was held in Rome in 1960, and in 1988 in Seoul, it was first held directly after the Olympic games. This set a precedent and its success is an example of how globalisation can create new opportunities for disadvantaged groups
• In Papua New Guinea, each cultural group has their own traditions, customs and religions. After independence, the government tried to allow freedom of movement and to spread Christianity and Western education. This led to class differences as some people got good jobs over others. Increasing intermarriage between cultural groups led to couples failing to pass on traditions to some children, which has led to cultural conflict. The discovery of copper provided jobs for some, but led to resentment by others. This has contributed to a civil conflict there, with law and order issues, youth gangs like the Raskols, high unemployment and urban slums
• During the 1990s, China's annual meat consumption per capita increased tenfold from 5 to 50 kg. By 2015, China had also become the world's biggest market for processed food. The physical environment is affected by this on a local and global scale. Rising affluence also puts pressure on particular plant and animal species if their use or consumption is culturally linked with social prestige. Shark fin soup is an important but expensive dish traditionally consumed at Chinese weddings by those who could afford it
• Anti-globalisation movement


  • World Social Forum
  • World Economic Forum
• World Social Forum


  Argues that growing inequality is being created by globalisation (capital vs labour) and thinks the global economy should be restructured
• World Economic Forum


  Views that globalisation is a means to drive economic growth and cooperation and will eventually lead to all nations and people benefiting
• Gender Inequality Index (GI)


  Measures gender disparity. It is a composite measure which captures the loss of achievement in a country due to gender inequality
• Air Pollution Indices


  Measure sulphur dioxide, nitrogen dioxide, suspended particulates, carbon monoxide and ozone in the atmosphere. In Malaysia, if it is above 500, a state of emergency is declared. The drive to industrialise and economically develop as part of the globalisation process can be seen as responsible for the increased energy use and air pollution emissions
• In 2013, the Rana Plaza clothing company building in Bangladesh collapsed, killing over 100 people. Building standards were poor as TNCs shifted exploitation of cheap labour from China to even cheaper markets. Prior to the disaster, extra floors had been added and cracks had appeared on the columns-yet the building was declared safe. Conditions in the factory were poor-long hours and unhygienic conditions-leading to global public outcry. It highlights the complexities of the question of who is to blame due to globalisation
• Migration from Commonwealth nations and the EU has transformed the demographic and economy of the UK since the days of the SS Windrush bringing economic migrants from the Caribbean in the 1960s. As migration has become more controversial, UK governments increased the restrictions on migrants from overseas, except on EU migrants. Many migrants have settled in UK towns