Globalisation = Increasing connectedness between countries through Trade, Travel, and
Technology, and growing interdependence.
- Economic globalisation - growth of TNCs, growth in FDI, growth in world trade
- Social globalisation - increasing migration and tourism makes populations more
mixed
- Political globalisation - spreading ideologies, IGOs like the UN, the dominance of
western democracies in political and economic decision making, growth in trade
blocs.
- Cultural globalisation - unifying and diversifying; people using increasingly similar:
food, clothes, music, values. Westernisation. More exposure and awareness of other
people’s culture.
There is also interdependence which is where countries rely on one another for prosperity.
Economic - reliant of flows of labour and goods for economy to grow
Political - solving political problems like wars through agreements. Eg: UN
Social - countries rely on diasporas and leisure activities
Factors affecting globalisation - creating a shrinking world
19th century - Faster steam trains replaced horses creating faster travel. Telegraphs meant
faster communication which revolutionised how businesses operate.
20th Century - More efficient Jet Aircracts reduced time for transportation and lowered cost
of international air travel, increasing tourism
Containerisation allows lower costs of transport which is beneficial for both businesses and
consumers. It also speeds up transportation which allows perishable goods to be
transported.
21st Century
- Telephones allowed quicker and better global communication and spread of ideas
and cultures through social media. Lower phone costs expanded phone usage, even
in poor areas of Africa
- Internet - 40% of global population has access to it. Social media meant spread of
ideas and cultures in a matter of seconds. It allowed people to connect instantly
through Skype and reduced cost of communication.
- Broadband and fibre optic - Large amount of data transferred quickly through cables.
It has accelerated internet and phone speeds.
- Government policy like China’s open door policy increased globalisation due to
opening up to FDI creating interdependence with other countries.
- Also, increasing wealth allowed more tourism and usage of technologies to spread
ideas.
, World Trade Organisation (WTO)
- Advocates for trade liberalisation and free trade, and removing barriers to trade like
tariffs and quotas. Has 162 members
- Beneficial for industrialising countries like China and Saudi Arabia which has
experienced export led growth.
- However, it has stopped USA from subsidising their own food producers.
- EG : Vietnam - all trade barriers removed from EU countries
- EG : Ghana joined WTO but was not allowed to subsidise ghanaian farmers despite
UK and US farmers being allowed to subsidise. This meant Ghanaian farmers
couldn't compete with them such as Tomatoes and Rice. This led to economic
decline.
World Bank
- Set up loans to help rebuild economies after WW2 and to reduce poverty.
- It uses bank deposits from wealthiest nations to provide loans for developing
countries to fuel economic development and for humanitarian disasters.
- However, it has conditions attached by Western Countries like requiring them to
adopt trade liberalisation policies and to open up to FDI by removing legal restrictions
and capital controls. Also, to open up its political system which may be refused by
developing countries due to it affecting its sovereignty. They may prefer to borrow
from China which has loaned out more money than the World Bank.
International Monetary fund (IMF)
- Grants loans to member countries if they cannot pay their debt.
- In return for loans, it tries to force countries to privatise government assets to
increase wealth.
- However, developing countries can fall into debt due to their industries privatised
which can damage the economy. TNCs mostly benefit
- The IMF has been criticised for promoting a 'western' model of economic
development that works in the interests of developed countries and their TNCs.
+ National governments can accelerate globalisation by joining Trade blocs like :
1) EU = Composed of 27 members. It guarantees free movement of goods, services and
labour. It also adopts a common currency EURO for the Eurozone. Encourages TNCs in EU
countries to invest due to less regulations.
+ Bigger Markets - no extra taxes and More FDI
+ Jobs created due to increased trade. Also, more free movement of labour from other
EU countries means more workforce
- Loss of sovereignty
- Can lead to illegal migrants moving around the EU creating political issues
- Can lead to dependence so if trade is disrupted, it can have severe consequences.
- Infant domestic companies can be damaged
Technology, and growing interdependence.
- Economic globalisation - growth of TNCs, growth in FDI, growth in world trade
- Social globalisation - increasing migration and tourism makes populations more
mixed
- Political globalisation - spreading ideologies, IGOs like the UN, the dominance of
western democracies in political and economic decision making, growth in trade
blocs.
- Cultural globalisation - unifying and diversifying; people using increasingly similar:
food, clothes, music, values. Westernisation. More exposure and awareness of other
people’s culture.
There is also interdependence which is where countries rely on one another for prosperity.
Economic - reliant of flows of labour and goods for economy to grow
Political - solving political problems like wars through agreements. Eg: UN
Social - countries rely on diasporas and leisure activities
Factors affecting globalisation - creating a shrinking world
19th century - Faster steam trains replaced horses creating faster travel. Telegraphs meant
faster communication which revolutionised how businesses operate.
20th Century - More efficient Jet Aircracts reduced time for transportation and lowered cost
of international air travel, increasing tourism
Containerisation allows lower costs of transport which is beneficial for both businesses and
consumers. It also speeds up transportation which allows perishable goods to be
transported.
21st Century
- Telephones allowed quicker and better global communication and spread of ideas
and cultures through social media. Lower phone costs expanded phone usage, even
in poor areas of Africa
- Internet - 40% of global population has access to it. Social media meant spread of
ideas and cultures in a matter of seconds. It allowed people to connect instantly
through Skype and reduced cost of communication.
- Broadband and fibre optic - Large amount of data transferred quickly through cables.
It has accelerated internet and phone speeds.
- Government policy like China’s open door policy increased globalisation due to
opening up to FDI creating interdependence with other countries.
- Also, increasing wealth allowed more tourism and usage of technologies to spread
ideas.
, World Trade Organisation (WTO)
- Advocates for trade liberalisation and free trade, and removing barriers to trade like
tariffs and quotas. Has 162 members
- Beneficial for industrialising countries like China and Saudi Arabia which has
experienced export led growth.
- However, it has stopped USA from subsidising their own food producers.
- EG : Vietnam - all trade barriers removed from EU countries
- EG : Ghana joined WTO but was not allowed to subsidise ghanaian farmers despite
UK and US farmers being allowed to subsidise. This meant Ghanaian farmers
couldn't compete with them such as Tomatoes and Rice. This led to economic
decline.
World Bank
- Set up loans to help rebuild economies after WW2 and to reduce poverty.
- It uses bank deposits from wealthiest nations to provide loans for developing
countries to fuel economic development and for humanitarian disasters.
- However, it has conditions attached by Western Countries like requiring them to
adopt trade liberalisation policies and to open up to FDI by removing legal restrictions
and capital controls. Also, to open up its political system which may be refused by
developing countries due to it affecting its sovereignty. They may prefer to borrow
from China which has loaned out more money than the World Bank.
International Monetary fund (IMF)
- Grants loans to member countries if they cannot pay their debt.
- In return for loans, it tries to force countries to privatise government assets to
increase wealth.
- However, developing countries can fall into debt due to their industries privatised
which can damage the economy. TNCs mostly benefit
- The IMF has been criticised for promoting a 'western' model of economic
development that works in the interests of developed countries and their TNCs.
+ National governments can accelerate globalisation by joining Trade blocs like :
1) EU = Composed of 27 members. It guarantees free movement of goods, services and
labour. It also adopts a common currency EURO for the Eurozone. Encourages TNCs in EU
countries to invest due to less regulations.
+ Bigger Markets - no extra taxes and More FDI
+ Jobs created due to increased trade. Also, more free movement of labour from other
EU countries means more workforce
- Loss of sovereignty
- Can lead to illegal migrants moving around the EU creating political issues
- Can lead to dependence so if trade is disrupted, it can have severe consequences.
- Infant domestic companies can be damaged
