Topic 3: Globalisation
1
, 3.1 - Globalisation is a long-standing process which has accelerated because of rapid
developments in transport, communications and businesses.
Key terms:
• Globalisation - The growing connection between countries and people worldwide, through
trade, technology, ideas, and culture. It is caused by the development of new technologies
and political and economic decisions (e.g. removing tariffs)
• Interdependence - When countries or people rely on each other for resources, goods,
services, or ideas.
• Flows - The movement of things like people, goods, money, and information between
places.
• Commodities - Raw materials or basic goods that are bought, sold, and traded, like oil,
coffee, or metals.
• Widening of connections - links to new places, often farther away.
• Deepening of connections - number and type of connections increase, and volume of
flows grows.
• Shrinking world - The concept that advancements in technology, communication, and
transportation make the world feel smaller by reducing the time and effort needed to
connect distant places.
• Time space compression - The process through which improvements in technology and
transport reduce the perceived distance between places, making interactions faster and
easier, e.g., the internet and travel (e.g., high-speed trains or airplanes).
Examples of globalisation;
Cultural Globalisation
• Cuisine Exchange: Diverse culinary experiences are now commonplace worldwide. For
instance, Japanese sushi restaurants operate in New York, Indian curry houses thrive in
London, and American fast-food chains are present in Tokyo.
Economic Globalisation:
• Global Trade Resilience: Despite challenges like the Ukraine conflict, global food markets
have remained stable, ensuring the continuous supply of staple foods to low-income
2
, countries. This stability highlights the effectiveness of open trade and market mechanisms
in maintaining food security.
Developments in transport and trade in the 19 th century;
• Technological developments in transport and communication in the 19th century promoted
globalisation and led to the development of TNCs.
• The 19th Century saw the development of the railway, telegraph & steam ship.
• The 20th Century saw the development of the jet aircraft & containerisation.
• These increase globalisation by reducing transport costs per unit output - so products are
affordable for customers in a distant market, setting up a new flow of goods/information
19th century;
→ Faster steam trains replaced horse-drawn and canal transport
→ Railways: Enabled faster movement of goods and people across countries, boosting trade
and connectivity.
→ Telegraph: Revolutionised communication by allowing instant messages across vast
distances.
→ Steamships: Made maritime trade more efficient, reducing travel time and increasing
cargo capacity.
20 century;
th
• Jet Aircraft: Transformed international travel and trade by significantly reducing travel
times for people and goods.
• Containerisation: Standardised shipping containers made global trade faster, cheaper,
and more efficient by simplifying the transport of goods. In 2013, the world’s largest
container ship had 18,000 containers, By January 2024, MSC's Irina became the largest
container ships, boasting a capacity of 24,346.
• Contribution to a ‘Shrinking World’: These innovations reduced the time and cost of
connecting distant places, making the world feel smaller and more interconnected. Other
factors that have led to a shrinking world; internet, mobile phones, technology, relations
between countries
21st-Century Developments in ICT and Communication
Mobile Phones: Widely available and affordable, enabling instant global communication. As of
2023, approximately 70.3% of the world's population uses a mobile phone, equating to 5.75 billion
unique users
Internet: Connects people and businesses worldwide, facilitating information sharing and e-
commerce. iPhones enable a rapid global transfer of music and video. e.g. South Korean K-pop 1.8
billion online views of 'Gangnam Style' in 2012
3
, Social Networking: Platforms like Facebook, Instagram, and Twitter foster global cultural
exchange and communication.
Electronic Banking: Simplifies international transactions and boosts global trade. over 300 million
mobile money accounts globally in 2022
Fibre Optics: Transmit data quickly and reliably across continents, supporting high-speed internet
and global connectivity.
Contribution to Time-Space Compression: These advancements have dramatically reduced the
time and cost of communication, making distant locations feel closer and accelerating the pace of
globalisation.
3.2 - Political and economic decision making are important factors in the acceleration of
globalisation.
Foreign Direct Investment - is the financial capital flow from one country to another for the
purpose of constructing physical capital, i.e. building a factory in another country.
Organisation Role Contribution to globalisation
World Trade Oversees global trade Encourages free trade policies, opening markets
Organization rules, aims to reduce and boosting international trade flows.
(WTO) trade barriers (e.g., Example - In 2012, the US, EU, and Japan
tariffs), and settles challenged China’s export limits on rare earth
Est. 1995 disputes between minerals, which are vital for tech industries. The
countries. 164 WTO ruled in 2014 that China’s restrictions broke
members, 98% of world trade rules, and China was told to remove them.
trade China appealed, but the WTO upheld the ruling,
forcing China to lift the restrictions.
International Provides financial Promotes economic stability and integration into
Monetary Fund assistance to countries the global economy, encouraging policies that
(IMF) facing economic foster open markets and investment.
instability, often in the
form of loans with
conditions.
World Bank Provides long-term Supports economic growth and infrastructure
loans and grants to development, promoting conditions that attract
developing countries for foreign investment.
development projects
(e.g., infrastructure,
poverty reduction).
4
1
, 3.1 - Globalisation is a long-standing process which has accelerated because of rapid
developments in transport, communications and businesses.
Key terms:
• Globalisation - The growing connection between countries and people worldwide, through
trade, technology, ideas, and culture. It is caused by the development of new technologies
and political and economic decisions (e.g. removing tariffs)
• Interdependence - When countries or people rely on each other for resources, goods,
services, or ideas.
• Flows - The movement of things like people, goods, money, and information between
places.
• Commodities - Raw materials or basic goods that are bought, sold, and traded, like oil,
coffee, or metals.
• Widening of connections - links to new places, often farther away.
• Deepening of connections - number and type of connections increase, and volume of
flows grows.
• Shrinking world - The concept that advancements in technology, communication, and
transportation make the world feel smaller by reducing the time and effort needed to
connect distant places.
• Time space compression - The process through which improvements in technology and
transport reduce the perceived distance between places, making interactions faster and
easier, e.g., the internet and travel (e.g., high-speed trains or airplanes).
Examples of globalisation;
Cultural Globalisation
• Cuisine Exchange: Diverse culinary experiences are now commonplace worldwide. For
instance, Japanese sushi restaurants operate in New York, Indian curry houses thrive in
London, and American fast-food chains are present in Tokyo.
Economic Globalisation:
• Global Trade Resilience: Despite challenges like the Ukraine conflict, global food markets
have remained stable, ensuring the continuous supply of staple foods to low-income
2
, countries. This stability highlights the effectiveness of open trade and market mechanisms
in maintaining food security.
Developments in transport and trade in the 19 th century;
• Technological developments in transport and communication in the 19th century promoted
globalisation and led to the development of TNCs.
• The 19th Century saw the development of the railway, telegraph & steam ship.
• The 20th Century saw the development of the jet aircraft & containerisation.
• These increase globalisation by reducing transport costs per unit output - so products are
affordable for customers in a distant market, setting up a new flow of goods/information
19th century;
→ Faster steam trains replaced horse-drawn and canal transport
→ Railways: Enabled faster movement of goods and people across countries, boosting trade
and connectivity.
→ Telegraph: Revolutionised communication by allowing instant messages across vast
distances.
→ Steamships: Made maritime trade more efficient, reducing travel time and increasing
cargo capacity.
20 century;
th
• Jet Aircraft: Transformed international travel and trade by significantly reducing travel
times for people and goods.
• Containerisation: Standardised shipping containers made global trade faster, cheaper,
and more efficient by simplifying the transport of goods. In 2013, the world’s largest
container ship had 18,000 containers, By January 2024, MSC's Irina became the largest
container ships, boasting a capacity of 24,346.
• Contribution to a ‘Shrinking World’: These innovations reduced the time and cost of
connecting distant places, making the world feel smaller and more interconnected. Other
factors that have led to a shrinking world; internet, mobile phones, technology, relations
between countries
21st-Century Developments in ICT and Communication
Mobile Phones: Widely available and affordable, enabling instant global communication. As of
2023, approximately 70.3% of the world's population uses a mobile phone, equating to 5.75 billion
unique users
Internet: Connects people and businesses worldwide, facilitating information sharing and e-
commerce. iPhones enable a rapid global transfer of music and video. e.g. South Korean K-pop 1.8
billion online views of 'Gangnam Style' in 2012
3
, Social Networking: Platforms like Facebook, Instagram, and Twitter foster global cultural
exchange and communication.
Electronic Banking: Simplifies international transactions and boosts global trade. over 300 million
mobile money accounts globally in 2022
Fibre Optics: Transmit data quickly and reliably across continents, supporting high-speed internet
and global connectivity.
Contribution to Time-Space Compression: These advancements have dramatically reduced the
time and cost of communication, making distant locations feel closer and accelerating the pace of
globalisation.
3.2 - Political and economic decision making are important factors in the acceleration of
globalisation.
Foreign Direct Investment - is the financial capital flow from one country to another for the
purpose of constructing physical capital, i.e. building a factory in another country.
Organisation Role Contribution to globalisation
World Trade Oversees global trade Encourages free trade policies, opening markets
Organization rules, aims to reduce and boosting international trade flows.
(WTO) trade barriers (e.g., Example - In 2012, the US, EU, and Japan
tariffs), and settles challenged China’s export limits on rare earth
Est. 1995 disputes between minerals, which are vital for tech industries. The
countries. 164 WTO ruled in 2014 that China’s restrictions broke
members, 98% of world trade rules, and China was told to remove them.
trade China appealed, but the WTO upheld the ruling,
forcing China to lift the restrictions.
International Provides financial Promotes economic stability and integration into
Monetary Fund assistance to countries the global economy, encouraging policies that
(IMF) facing economic foster open markets and investment.
instability, often in the
form of loans with
conditions.
World Bank Provides long-term Supports economic growth and infrastructure
loans and grants to development, promoting conditions that attract
developing countries for foreign investment.
development projects
(e.g., infrastructure,
poverty reduction).
4
