Topic 3 - Globalisation
Enquiry question 1 - what are the causes of globalisation and why has it accelerated in recent decades
1.1 - globalisation is a long standing process which has accelerated because of rapid developments in
transport, communications and business
1.1.1 - what is globalisation?
globalisation involves widening and deepen connections, interdependence and flows (commodities, capital,
information, migrants and tourists)
globalisation is the ever-increasing interconnectedness between countries
it is a process that involves connections, interdependence and flows between different locations
it is about
1) interconnectivity
2) interdependence
3) integration
it is more than internationalisation - extension of economic activity across national boundaries
globalisation is known as 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 HICs becoming more involved in global markets and forums, whilst
LICs become increasingly interdependent on one another
causes of accelerating globalisation
economic
- the volume and influence of transnational companies (TNCs) has increased
- TNCs have influenced global culture and improved local economies by providing job
opportunities
- TNCs try to appeal to local markets by the process of globalisation
- glocalisation → products are specially designed for the taste of the consumer
- eg, Marvel has produced Indian Spiderman
- TNCs develop new markets and take advantage of economic liberalisation by offshoring and
outsourcing (basing manufacturing etc away from the market country)
- online purchasing between countries is becoming increasingly common
- foreign direct investment → stock are traded from across countries and countries invest in each other
- some financial businesses (pension funds and investment banks) trade large amounts of
currencies in order to make profit
political
- trade blocs have become more influential and have reduced tariffs and other protectionist measures
- IGOs work to harmonise economies, whilst promoting democratic ideology
- political views and ideology are expressed in worldwide media outlets
migration
- 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
- time space compression has occurred
, cultural
- americanisation and westernisation of other parts of the world
flow of commodities
- goods can easily be imported, increasing countries interdependence on one another
- the volume of manufactured goods has increased rapidly due to low cost countries such as Bangladesh
and Vietnam
technology
- the internet has rapidly allowed the spread of information and knowledge
- improvements in mobile communications, internet, social media and fibre optics have allowed people to
connect together from all over the world
- social networking sites have become very popular
- networks can allow the spread of culture, ideology and opportunities for migration and tourism
factors responsible for globalisation
1) computer technologies
2) development of the internet
3) cheaper and quicker transport
4) organisations such as the WTO and trade blocs promoting free trade
5) multinational companies investing worldwide
6) growth of a global service industry (such as global insurance firms)
types of flows in globalisation
- commodities, capital (or finance), information, migrants and tourists can all flow more freely between
different countries
- as the world becomes more globalised, the connections between places are becoming wider and
deeper in most of these areas
globalisation has led to
- the lengthening of connections
- people can now travel further afield and goods are brought in further away
- deepening of connections where connections are penetrating more in depth into most aspects of life
- faster speed of connections
- people can now talk in real time from different parts of the world and you can travel much faster
between different countries
migration
- a borderless world does not exist because there are still obstacles to migration
- the free movement of people is only possible within some trade blocs and within some regions
tourism
- budget airlines have resulted in the huge growth of tourist flows because people are able to travel to
different countries at a reasonable cost
political barriers to migration
the european union
- the EU allows free movement of people across borders which means that people with EU citizenship
can move with relative ease and work in other EU nations.
- only people with an EU passport are awarded this right
, the USA’s travel ban
- with President Trump at the helm, the USA will not issue immigration or non-immigration visas to
countries where most of the population are Muslim
- e.g. Libya, Iran, Somalia, Syria and Yemen
- this started in January 2017 and was upheld by the Supreme Court in June 2018
- the government can grant waivers for people from these countries to enter, but only 2% of
applications are successful
israelis in Kuwait
- people with Israeli passports are not allowed to enter Kuwait, even for a short amount of time
- this is because of Kuwait’s ongoing boycott against Israel
the impact that ICT has had on the globalised world
pros cons
- communication between government is now - private information is now difficult to control if
much easier and quick shared between companies
- companies can outsource part of their - technology industry has had some negative
function to other places to trade advantage impacts on environment
and cheaper labour - global inequality has increased due to the
- sharing of information for the benefit of more buying and selling of equipment
people - access to information online can be tightly
- collaboration is much more effective controlled and manipulated by governments
- selling of products is now much easier due to - exploitation of labour in ICT industry
advertising online - dependency on the internet can make
- encouraging of links between cultures helps companies vulnerable to attack (cyber crime)
understanding
- news online travels much faster
- businesses producing ict equipment has
boomed
types of globalisation
economic globalisation
- economic globalisation includes the growth of MNCs (Multinational Corporations) or TNCs
(Transnational Companies)
- for example Inditex (which owns Zara), Domino's Pizza, Apple, Google and Facebook
(which owns Instagram and WhatsApp)
- the growth of the internet and better communication technology is included in economic
globalisation
cultural globalisation
- cultural globalisation describes the spread of Western ideas and culture such as North
American films, fast food and fashion
political globalisation
- political globalisation describes the growth of trade blocs as different countries seek to work
together to increase the prevalence of free trade
- important organisations in political globalisation are the World Bank, IMF (International
Monetary Fund), World Trade Organisation and the United Nations
social globalisation
- social globalisation describes the increasing number of international migrants, the increasing
quality of education and healthcare and the rise of social media
, 1.1.2 - developments in transport and trade in the 19th century
development in transport, such as the railway, and trade in the 19th century accelerated in the 20th century
with the production of jet airway and containerisation (mode of shipping in excess)
- this has contributed to a shrinking world, where the world seems much smaller due to its interrelations
- eg, in the past it would have taken weeks to get to the other side of the world whereas it only takes up
to 24 hours today
globalisation in the 19th century
advances in transport technology
- world trade began to grow more rapidly towards the end of 1800s
- the growth of railways, telegraphs and steamships all accelerated the rate of globalisation
emergence of TNCs
- transnational corporations began to emerge because advances in technology allowed goods produced
in one country to be transported to another country
- eg DuPont was a chemicals and gunpowder manufacturer founded in 1802, advances in
transport allowed DuPont to start to sell internationally
britain's role in globalisation
- britain was the world leader in steam power in the 19th century
- having this technological advantage allowed Britain to transport goods and people to other parts of the
British Empire (mainly Africa and Asia)
globalisation in the 20th century
transport - aeroplanes
- in the 20th century, technology in transportation continued to advance
- the development of jet aircraft to replace aircraft propellers happened during WW2, first by the
Germans and then the Americans
- jet aircraft were first used for military purposes, but after the second world war they were used for
passengers → this was the start of commercial airlines
transport - containerisation
- containerisation → the protocol of a uniform container size that can be placed on all ships and
transported all over the world
- they can also be called intermodal containers
- the key idea is that by making sure that all containers are the same size, ships and ports around the
world can be fitted to deal with all types of goods in the containers
- this makes global shipping become far quicker and cheaper
shrinking world effect
- containerisation and jet aircraft led to the shrinking world effect
- the shrinking-world effect means that while the physical distance between places remains the same,
places feel much closer together
1.1.3 - developments in transport and trade in the 21st century
globalisation in the 21st century
ICT and mobile advances
- the rapid development of IT and mobile communication all accelerated globalisation
- mobile phones
Enquiry question 1 - what are the causes of globalisation and why has it accelerated in recent decades
1.1 - globalisation is a long standing process which has accelerated because of rapid developments in
transport, communications and business
1.1.1 - what is globalisation?
globalisation involves widening and deepen connections, interdependence and flows (commodities, capital,
information, migrants and tourists)
globalisation is the ever-increasing interconnectedness between countries
it is a process that involves connections, interdependence and flows between different locations
it is about
1) interconnectivity
2) interdependence
3) integration
it is more than internationalisation - extension of economic activity across national boundaries
globalisation is known as 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 HICs becoming more involved in global markets and forums, whilst
LICs become increasingly interdependent on one another
causes of accelerating globalisation
economic
- the volume and influence of transnational companies (TNCs) has increased
- TNCs have influenced global culture and improved local economies by providing job
opportunities
- TNCs try to appeal to local markets by the process of globalisation
- glocalisation → products are specially designed for the taste of the consumer
- eg, Marvel has produced Indian Spiderman
- TNCs develop new markets and take advantage of economic liberalisation by offshoring and
outsourcing (basing manufacturing etc away from the market country)
- online purchasing between countries is becoming increasingly common
- foreign direct investment → stock are traded from across countries and countries invest in each other
- some financial businesses (pension funds and investment banks) trade large amounts of
currencies in order to make profit
political
- trade blocs have become more influential and have reduced tariffs and other protectionist measures
- IGOs work to harmonise economies, whilst promoting democratic ideology
- political views and ideology are expressed in worldwide media outlets
migration
- 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
- time space compression has occurred
, cultural
- americanisation and westernisation of other parts of the world
flow of commodities
- goods can easily be imported, increasing countries interdependence on one another
- the volume of manufactured goods has increased rapidly due to low cost countries such as Bangladesh
and Vietnam
technology
- the internet has rapidly allowed the spread of information and knowledge
- improvements in mobile communications, internet, social media and fibre optics have allowed people to
connect together from all over the world
- social networking sites have become very popular
- networks can allow the spread of culture, ideology and opportunities for migration and tourism
factors responsible for globalisation
1) computer technologies
2) development of the internet
3) cheaper and quicker transport
4) organisations such as the WTO and trade blocs promoting free trade
5) multinational companies investing worldwide
6) growth of a global service industry (such as global insurance firms)
types of flows in globalisation
- commodities, capital (or finance), information, migrants and tourists can all flow more freely between
different countries
- as the world becomes more globalised, the connections between places are becoming wider and
deeper in most of these areas
globalisation has led to
- the lengthening of connections
- people can now travel further afield and goods are brought in further away
- deepening of connections where connections are penetrating more in depth into most aspects of life
- faster speed of connections
- people can now talk in real time from different parts of the world and you can travel much faster
between different countries
migration
- a borderless world does not exist because there are still obstacles to migration
- the free movement of people is only possible within some trade blocs and within some regions
tourism
- budget airlines have resulted in the huge growth of tourist flows because people are able to travel to
different countries at a reasonable cost
political barriers to migration
the european union
- the EU allows free movement of people across borders which means that people with EU citizenship
can move with relative ease and work in other EU nations.
- only people with an EU passport are awarded this right
, the USA’s travel ban
- with President Trump at the helm, the USA will not issue immigration or non-immigration visas to
countries where most of the population are Muslim
- e.g. Libya, Iran, Somalia, Syria and Yemen
- this started in January 2017 and was upheld by the Supreme Court in June 2018
- the government can grant waivers for people from these countries to enter, but only 2% of
applications are successful
israelis in Kuwait
- people with Israeli passports are not allowed to enter Kuwait, even for a short amount of time
- this is because of Kuwait’s ongoing boycott against Israel
the impact that ICT has had on the globalised world
pros cons
- communication between government is now - private information is now difficult to control if
much easier and quick shared between companies
- companies can outsource part of their - technology industry has had some negative
function to other places to trade advantage impacts on environment
and cheaper labour - global inequality has increased due to the
- sharing of information for the benefit of more buying and selling of equipment
people - access to information online can be tightly
- collaboration is much more effective controlled and manipulated by governments
- selling of products is now much easier due to - exploitation of labour in ICT industry
advertising online - dependency on the internet can make
- encouraging of links between cultures helps companies vulnerable to attack (cyber crime)
understanding
- news online travels much faster
- businesses producing ict equipment has
boomed
types of globalisation
economic globalisation
- economic globalisation includes the growth of MNCs (Multinational Corporations) or TNCs
(Transnational Companies)
- for example Inditex (which owns Zara), Domino's Pizza, Apple, Google and Facebook
(which owns Instagram and WhatsApp)
- the growth of the internet and better communication technology is included in economic
globalisation
cultural globalisation
- cultural globalisation describes the spread of Western ideas and culture such as North
American films, fast food and fashion
political globalisation
- political globalisation describes the growth of trade blocs as different countries seek to work
together to increase the prevalence of free trade
- important organisations in political globalisation are the World Bank, IMF (International
Monetary Fund), World Trade Organisation and the United Nations
social globalisation
- social globalisation describes the increasing number of international migrants, the increasing
quality of education and healthcare and the rise of social media
, 1.1.2 - developments in transport and trade in the 19th century
development in transport, such as the railway, and trade in the 19th century accelerated in the 20th century
with the production of jet airway and containerisation (mode of shipping in excess)
- this has contributed to a shrinking world, where the world seems much smaller due to its interrelations
- eg, in the past it would have taken weeks to get to the other side of the world whereas it only takes up
to 24 hours today
globalisation in the 19th century
advances in transport technology
- world trade began to grow more rapidly towards the end of 1800s
- the growth of railways, telegraphs and steamships all accelerated the rate of globalisation
emergence of TNCs
- transnational corporations began to emerge because advances in technology allowed goods produced
in one country to be transported to another country
- eg DuPont was a chemicals and gunpowder manufacturer founded in 1802, advances in
transport allowed DuPont to start to sell internationally
britain's role in globalisation
- britain was the world leader in steam power in the 19th century
- having this technological advantage allowed Britain to transport goods and people to other parts of the
British Empire (mainly Africa and Asia)
globalisation in the 20th century
transport - aeroplanes
- in the 20th century, technology in transportation continued to advance
- the development of jet aircraft to replace aircraft propellers happened during WW2, first by the
Germans and then the Americans
- jet aircraft were first used for military purposes, but after the second world war they were used for
passengers → this was the start of commercial airlines
transport - containerisation
- containerisation → the protocol of a uniform container size that can be placed on all ships and
transported all over the world
- they can also be called intermodal containers
- the key idea is that by making sure that all containers are the same size, ships and ports around the
world can be fitted to deal with all types of goods in the containers
- this makes global shipping become far quicker and cheaper
shrinking world effect
- containerisation and jet aircraft led to the shrinking world effect
- the shrinking-world effect means that while the physical distance between places remains the same,
places feel much closer together
1.1.3 - developments in transport and trade in the 21st century
globalisation in the 21st century
ICT and mobile advances
- the rapid development of IT and mobile communication all accelerated globalisation
- mobile phones
