GLOBALISATION
3.1: ACCELERATION OF GLOBALISATION
The process of local and regional economies, societies and cultures integrating together through a global
network of communication, transport and trade
Involves widening (more locations) and deepening (more people) global connections, interdependence
and flows
Types of Globalisation:
Economic – Growth and spread of TNCs, the rise of NICs, the rise of global economic institutions like the
IMF and World Bank
Cultural – Cultural aspects move all over the globe through the Internet and migration
Political – Caused by institutions like the UN, trading blocs and the influence of western democracies and
their influence on poor countries
19th Century Transport and Trade:
Contributes to ‘Shrinking World’
Value of trade and transport increases and goods are exported more widely
Trading powers face competition, transport is kept up to date
Railways – Expanded in the 1800s to link more countries, halves some journey times
Containerisation/Steam-Ships – Getting larger, reduced cost to ship goods internationally, cost per item
reduced, more sales on a larger scale. Goods and people are transported faster, more efficient, 90% of
goods are transported in containers. Less goods go missing in travel (theft) means reduced insurance, 200
million container movements a year
Telegraph – Messages sent to replace 3 week journeys, revolutionised communication
Jet aircraft (EasyJet):
Founded in 1995, now one of Europe’s biggest retailers
European networks have become interconnected through faster and cheaper flights
Connects most European cities with 300 routes and has expanded to worldwide
Luton to Edinburgh = £29
Helps remote places switch on
More people can afford to fly so more are connected and can travel more often, 90 million passengers a
year
Easily accessible, 300 million live within 1 hour of a carrier and a mobile check-in app
Frequent promotions and discounts make customers stay alert
Technology Development and Uses:
Contributes to ‘Time-Space Compression’
Changes how companies operate
Long distance social relationships are maintained, migrants keep in touch with the family they left behind
Language and music is shared and changed faster – Gangnam Style received 1.8 billion hits
Social networks spread political views and advertise campaigns
,GLOBALISATION
TNCs expand into new countries because they can connect through video conferencing
Shops such as M&S adjust product order each time it is scanned in a store
Mobile/Telegraph – Greater connectivity between people and places, messages spread fast over social
media, businesses operate internationally
GPS – Deliveries are tracked, meaning growth in global production networks are managed.
Fibre Optics – Cables in the ocean makes data travel faster
3.2.A: INTERNATIONAL ORGANSATIONS
, GLOBALISATION
Threats of Global Flows:
Information provided deemed as threatening by their government
Not everyone welcomes cultural change migration brings
Importing raw materials and commodities threatens national industries
Players promote economic development and retain national stability
International political and economic organisations (P: role of World Trade Organization (WTO),
International Monetary Fund (IMF), World Bank) have contributed to globalisation through the
promotion of free trade policies and foreign direct investment (FDI).
World Bank:
Based in Washington and controlled by USA, established in 1994
Uses bank deposits from wealthy countries to provide loans for development
Countries taking out loans must agree to conditions on repayment and economic growth
Focuses on natural disasters and emergencies
International Monetary Fund (IMF):
Based in Washington and controlled by USA
Channels loans from rich nations to poor nations who apply for help
In return the government receiving the loan agrees to run free market economies open to outside
investment
Means that TNCs can enter their country easily which promotes globalisation
Ensures the country can pay back the loan and they often have to undergo SAPs
Structural Adjustment Programmes (SAP):
Economic policies with strict conditions imposed on developing countries receiving IMF and WO loans
Government has to make cuts to healthcare, education, sanitation, housing, leading to negative social
impacts like worse nutritional state of children, increased infectious disease, higher infant mortality rates
Reduces excess interference government in a country and opens it to private investment
Cuts government spending so they can repay the loans
Improves facilities and developing large scale projects but they have to be repaid with interest
Debt relief – less economic strain, may be tied to conditions
Must adopt free market – no profit restrictions, increased competition between companies, possibility of
market crash, protectionism prevents unfair pricing
Cuts on education – money spent carefully in schools with no wasting energy or paper, quality decreases,
gender inequality increases, less skills like health and social
World Trade Organisation (WTO):
Believes in free trade and asks countries to remove barriers like subsidies, quotas, restrictions and tariffs
on foreign imports and domestic products
If a country receives an international loan they must agree to the WTO’s rules
3.1: ACCELERATION OF GLOBALISATION
The process of local and regional economies, societies and cultures integrating together through a global
network of communication, transport and trade
Involves widening (more locations) and deepening (more people) global connections, interdependence
and flows
Types of Globalisation:
Economic – Growth and spread of TNCs, the rise of NICs, the rise of global economic institutions like the
IMF and World Bank
Cultural – Cultural aspects move all over the globe through the Internet and migration
Political – Caused by institutions like the UN, trading blocs and the influence of western democracies and
their influence on poor countries
19th Century Transport and Trade:
Contributes to ‘Shrinking World’
Value of trade and transport increases and goods are exported more widely
Trading powers face competition, transport is kept up to date
Railways – Expanded in the 1800s to link more countries, halves some journey times
Containerisation/Steam-Ships – Getting larger, reduced cost to ship goods internationally, cost per item
reduced, more sales on a larger scale. Goods and people are transported faster, more efficient, 90% of
goods are transported in containers. Less goods go missing in travel (theft) means reduced insurance, 200
million container movements a year
Telegraph – Messages sent to replace 3 week journeys, revolutionised communication
Jet aircraft (EasyJet):
Founded in 1995, now one of Europe’s biggest retailers
European networks have become interconnected through faster and cheaper flights
Connects most European cities with 300 routes and has expanded to worldwide
Luton to Edinburgh = £29
Helps remote places switch on
More people can afford to fly so more are connected and can travel more often, 90 million passengers a
year
Easily accessible, 300 million live within 1 hour of a carrier and a mobile check-in app
Frequent promotions and discounts make customers stay alert
Technology Development and Uses:
Contributes to ‘Time-Space Compression’
Changes how companies operate
Long distance social relationships are maintained, migrants keep in touch with the family they left behind
Language and music is shared and changed faster – Gangnam Style received 1.8 billion hits
Social networks spread political views and advertise campaigns
,GLOBALISATION
TNCs expand into new countries because they can connect through video conferencing
Shops such as M&S adjust product order each time it is scanned in a store
Mobile/Telegraph – Greater connectivity between people and places, messages spread fast over social
media, businesses operate internationally
GPS – Deliveries are tracked, meaning growth in global production networks are managed.
Fibre Optics – Cables in the ocean makes data travel faster
3.2.A: INTERNATIONAL ORGANSATIONS
, GLOBALISATION
Threats of Global Flows:
Information provided deemed as threatening by their government
Not everyone welcomes cultural change migration brings
Importing raw materials and commodities threatens national industries
Players promote economic development and retain national stability
International political and economic organisations (P: role of World Trade Organization (WTO),
International Monetary Fund (IMF), World Bank) have contributed to globalisation through the
promotion of free trade policies and foreign direct investment (FDI).
World Bank:
Based in Washington and controlled by USA, established in 1994
Uses bank deposits from wealthy countries to provide loans for development
Countries taking out loans must agree to conditions on repayment and economic growth
Focuses on natural disasters and emergencies
International Monetary Fund (IMF):
Based in Washington and controlled by USA
Channels loans from rich nations to poor nations who apply for help
In return the government receiving the loan agrees to run free market economies open to outside
investment
Means that TNCs can enter their country easily which promotes globalisation
Ensures the country can pay back the loan and they often have to undergo SAPs
Structural Adjustment Programmes (SAP):
Economic policies with strict conditions imposed on developing countries receiving IMF and WO loans
Government has to make cuts to healthcare, education, sanitation, housing, leading to negative social
impacts like worse nutritional state of children, increased infectious disease, higher infant mortality rates
Reduces excess interference government in a country and opens it to private investment
Cuts government spending so they can repay the loans
Improves facilities and developing large scale projects but they have to be repaid with interest
Debt relief – less economic strain, may be tied to conditions
Must adopt free market – no profit restrictions, increased competition between companies, possibility of
market crash, protectionism prevents unfair pricing
Cuts on education – money spent carefully in schools with no wasting energy or paper, quality decreases,
gender inequality increases, less skills like health and social
World Trade Organisation (WTO):
Believes in free trade and asks countries to remove barriers like subsidies, quotas, restrictions and tariffs
on foreign imports and domestic products
If a country receives an international loan they must agree to the WTO’s rules
