GLOBALISATION

GLOBALISATION

Causes of Globalisation
1. Outsourcing of production to explot skills and lower production cost
  1. The developed world has costs that are higher due to pensions, training, sickpay etc
2. New Markets
  1. Attraction of inward investment
  2. (Foreign direct investment) FDI
3. Improvement in transport and communications
  1. Lower costs of moving raw materials
  2. Internet access
4. Avoiding other tariffs and oter barriers to trade
  1. Removal of controls over international capital flows
  2. Promotion of free trade between states
5. Growth on TNCs
  1. Clusters of industry
6. Liberalisation of trade and finance
  1. Expansion of World Trade
  2. The World Bank, the IMF and the WTO work internationally to harmonize national economies
Positives of Globalisation
1. Clothing
2. Culture
3. Food
4. Music
5. Ideas and values
6. Information
7. Jobs
8. Languages
9. Aid/ Trade
10. Migration
11. Technology and communications
12. Recognition of big brands
13. Recognition of big brands
14. Outsourcing
15. Growth
16. Value for environment
17. Shrinking world
18. Greater freedom
19. Global skills transfer
20. Cheaper phone and interweb
Negatives of Globalisation
1. Terrorism
2. Exploitation
3. Poverty
4. Shrinking world
5. Conflict
6. Sweatshops
7. Diseases
8. Outsourcing
9. Brain drain
10. Migration issues
11. Travel causes pollution
12. Transport costs increase
13. Capitalism
14. Lack of care for the environment
15. Loss of cultural identities
16. Monopoly power- rich getting richer, poor getting poorer
17. Loss of traditions and values
18. Media control over population
19. Unfair trade
Networks and Flows
1. What is a Network map?
  1. A network is an illustration or model that shows how different places are linked together
2. What is a node?
  1. A node is the points on a network map. A well connected node is known as a global hub
3. What is a flow?
  1. Flows are connections between nodes or global hubs
4. Flows in a Global Network
  1. RAW MATERIALS: Commodities such as food, minerals and oil have always been traded
  2. MONEY: Most credit cards can now work internationally, allowing easier transfers of money. Major capital flows are routed through the global stock markets. Numbers increased over years
  3. INFORMATION: The internet has brought real- time communications between distant places, allowing services to be sold, while online communities have grown in size and influence (e.g. Facebook and Twitter)
  4. MANUFACTURED GOODS AND SERVICE: The value of world trade is now 70 trillion dollars. The figure rises by about 10% each year.
  5. PEOPLE: The movement of people still face the greatest number of obstacles because of border controls and immigration laws
5. INTERCONNECTED
  1. Trade and migration flows have increased due to technology, market forces and political decisions by some nations to open their borders
6. INTERDEPENDANT
  1. What happens in one place increasingly has impacts on other places. If a firm in one nation goes bust, then workers in branch plants in other nations will lose their jobs too.
International Organisations and Globalisation
1. Political and economic organisations are bodies that are set up to control and over see international agreements. For example, the World Bank, IMF and WTO introduced free trade and now help to develop countries
Accelerants of Globalisation
1. Influences on globalisation through post-war decades
  1. TNCs are firms with operation spread across the world, operating in many nations as both MAKERS and SELLERS of goods and services
  2. Instantly recognisable ''global brands'' such as CocaCola have brought CULTURES and ECONOMIC changes to places where products are made and consumed
  3. TNCs are vital players in Globalisation
  4. Each 2015 top 10 TNCs earn more revenue a year than the GDP of some countries
  5. In 2016 60,000>TNCs
  6. The growth of TNCs accelerates cross border exchanges of raw materials, components, finished manufactured goods, shares, portfolio investment and purchasing.
2. International Organisations
  1. Grew in power throughout 20th Century
  2. For many decades, 3 international organisations have acted as ''brokers'' of globalisation through the promotion of free trade policies and FDI
  3. Together, the IMF, WB and WTO have collectively striven to build a ''free trade consensus''
  4. The most important broker is th IMF
  5. Based in Washington, it channels loans from the worlds richest nations to countries that apply for help
3. Computer and Internet technology
  1. Profound effect on how business operate and where they locate
  2. CAD/CAM have revolutionised manufacturing processes
  3. ICT allows managers and business who are geographically distant to keep in touch easier (video conferencing/ email)
  4. This has allowed TNCs to expand into new territories, either to make or sell their products
  5. Technology is used by different players in a vast array of ways which contribute to globalization. Some of these ways include; telephone and telegraph, broad band and fibre optics, GIS and GPS, and the internet.
    1. Telephone and Telegraph
      1. The first telegraph cables across the Atlantic in the 1980s replaced a three week boat journey with instantaneous communication. This revolutionized how businesses were conducted. The telephone, the telegraphs successor, remains a core technology for communicating long distances. In parts of Africa, where telephone lines have never been laid in many places are ''leap frogging'' straight to mobile phone use.
    2. Broadband and Fibre optics
      1. In the 1980s and 1990s, large amounts of data could be moved quickly through cyberspace. Today, enormous fibres of data are conveyed across the sea floor, by fibre optic cables owned by national governments ot TNCs such as Google. More than 1 million km of flexible under sea cables about the size of a garden watering hose carry all the worlds' eails, searches and tweets.
    3. GIS & GPS
      1. The first global positioning system (GPS) satellite was launched in the 1970s. There are now 24 situated 10,000 km above the Earth. These satellites continously broadcast position and time data to users through out the world. Deliveries can be tracked by companies using vehicle tracking systems, helping the growth of global production networks to be managed.
    4. Internet
      1. It began as part of a scheme funded by the US Defense department during the cold war. The early computer network ARPANET was designed during the 1960s as a way of linking important research computers in just a handful of different location. Since then, connectivity between people and place has grown exponentially. By 2014, 5 billion Facebook 'likes' were being registered globally everyday.
4. Transport
  1. Transport and trade went hand in hand during the 19th and 20th centuary
  2. Transport improvements have allowed the value of trade to increase, it is also the case that major trading pioneers such as the USA seek to maintain their competitive edge through continental transport onnovative.
  3. Steam power
    1. Britain became the leading world power in the 1800s using steam technology. Steam ships and trains moved goods and armies quickly along routes into Asia and Africa
  4. Railway
    1. 1800s railway networks expanded globally
  5. Jet Aircraft
    1. The arrival of the intercontinental Boeing 747 in the 60s have made international travel more common place, while recent expansion of the cheap flight sector (easy jet) brought air travel to the masses in richer nations
  6. Container shipping
    1. 200 million movements take place each year
5. Global Flows and Global Networks
  1. Tourists
    1. Many of the world's air passengers are holiday makers. Budget airlines have brought a 'pleasure periphery' of distant places within easy reach for the moneyed tourists of high - income nations. Increasingly, people from emerging economies travel abroad too, using budget airlines such as Air Asia and East Africa's Fast Jet. China is now the worlds biggest spender on international travel, with 120 million outbound trips made in 2014
  2. Information
    1. The internet has brought real - time communications between distant places, allowing goods and services to be brought at the click of a button. Social networks has ballooned in size and influence, with Facebook gaining 105 billion users by 2015. On demand TV has increased data usage further. Information is stored in large server farms such as Microsoft Data Centre in Washington State and Facebook's data centre in Lulea, Sweden (Where cold temperatures reduce the cost of cooling the hard drives
  3. Migrants
    1. The permenant movement of people still faces the greatest number of obstacles due to border controls and immigration laws. Most governments have a 'pick n mix' attitude in which they embrace trade flows but attempt to resist migration flows. The combined number of economic and refugees world wide reached almost 1/4 billion in 2015
  4. Capital
    1. At a global scale, major capital (money) flows are routed daily through the world's stock markets. A range of businesses buy and sell money in different currencies to make profits. In 2013, the volume of these foreign exchange transactions reach US$ 5 billion per day
  5. Commodoties
    1. Valuable raw materials such as fossil fuels, food and minerals have always been traded between nations. Flows of manufactured goods have multiplied in size in recent years, fueled by low production costs in China, and 1/3 of the GDP was generated by trade flows in agriculture and industrial commodities
Shrinking World and Technology
1. Internet
  1. With the invent of broadband large amounts of data can be quickly moved across cyberspace. This allows offices to work from home. It allows firms to employ workers living in different countries
2. Air Travel
  1. Aerospace tech continues to evolves allowing faster aeroplanes to be produced in greater numbers and with increased capacity. Cutting edge designs like the Airbus A380 (550 people) are set to increase air passenger numbers even further
3. GIS and GPS
  1. The first global positioning system (GPS) satellite was launched in the 1970s. There are now 24 in orbit 10,000 km above the Earth. These satellites continuosly broadcast position and time data to users throughout the world. Geographic information systems (GIS) are software systems that can collect, manage and analyse satellite data
4. Travel
  1. 200 AD
    1. Worlds first sailing ship

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	Created by Anjali Dhunna almost 8 years ago