1. Processes of globalisation

Question 1

What is the definition of globalisation?

Answer 1

The increasing interconnection and interdependence of the world’s economic, social, cultural and political systems (has different dimensions)

Question 2

Describe economic globalisation.

Answer 2

interconnection of commercial and financial activities globally (primary, secondary, tertiary and Quaternary)

Question 3

Describe cultural globalisation.

Answer 3

the sharing, transfer and hybridisation of cultures globally (e.g. Media, arts, literature, cuisine etc)

Question 4

What are the economic factors responsible for globalisation? (there are 11 reasons)

Answer 4

• Trade blocs/ trading (cheaper imports)
• Rise of TNCs (exploitation of resources on a global scale) à FDI
• Transport revolution (cheap sea and air travel, bulk carriers [containerisation])
• Communications revolution – telephones, Internet, e-commerce
• Financial market – deregulated and linked = easier to raise funds
• Comparative cost advantage – areas specialise, NIDC
• Economies of scale – larger markets, concentration is in the hands of large-scale producers (TNCs)
• Ease of transferring capital – international currencies (US dollar)
• Global marketing – international advertising, branding etc
• Global shift (large scale filter-down of economic activity from MEDCS to NICs and LEDCs) – global economy
• Opening of economies (China and India)

Question 5

What are the social factors responsible for globalisation?

Answer 5

• Education and culture – increased interest in other cultures (sinoisation)
• Media and internet – satellites allow instant communication anywhere
• Language – increased spread of certain languages (e.g. English via the internet) = easier communication
• Migration – ease of migration, professional mobility etc
• Spread of consumerism/ westernised culture – international brands

Question 6

What are the politicial factors responsible for globalisation?

Answer 6

• International bodies (WB, IMF, WTO)
• Development of free market economies
• Former communist states adopting forms of capitalism
• Spread of democracy and capitalism – common links
• Removal of barriers to free trade

Question 7

Suggest some future trends of globalisation. (8 points)

Answer 7

• Reduction in role/ influence of nation states – world state
• Companies with no territorial identity
• Reduced inequalities between countries
• Mobile populations reacting to international demands
• English as common language
• Instant freedom of communication (Internet)
• Rise o reactionary forces (nationalism and religious fundamentalism), isolationism (North Korea), protectionism against cheap imports (USA)
• Reduction in the important of economic factors and the development of other aspects (e.g. democracy)