3.1 Globalisation Flashcards
3.1a Globalisation, Interdependence and Flows
globalisation
Globalisation is ‘the increasing integration of economies around the world, particularly through eh movement of goods, services, and capital across border. There are also broader cultural, political, and environmental dimensions of globalisation.’ IMF
Globalisation involves widening and deepening global connections, interdependence and flows (commodities, capital, information, migrants and tourists)
3.1a Globalisation, Interdependence and Flows
economic globalisation
the growth of TNCs accelerates cross-border exchanges of raw materials, components, finished manufactured goods, shares, portfolio investment and purchasing
information and communications technology (ICT) supports the growth of complex spatial divisions of labour for firms and a more International economy
e.g. online purchasing using Amazon on a smartphone
3.1a Globalisation, Interdependence and Flows
social globalisation
international immigration has created extensive family networks that cross national borders- world city-societies become multi-ethnic and pluralistic
global improvements in education and health can be seen over time, with rising world life expectancy and literacy levels, although the changes are by no means uniform or universal
social interconnectivity has grown over time due to the spread of ‘universal connections’ such as social media, the internet and email
3.1a Globalisation, Interdependence and Flows
cultural globalisation
western cultural traits come to dominate in some territories e.g. the ‘Americanisation’ or ‘McDonaldisation’ of tastes and fashion
globalisation and hybridisation are. more complex outcome that take place as old cultures merge with globalising influences
the circulation of Idas and information has been accelerated through the media
3.1a Globalisation, Interdependence and Flows
political globalisation
the growth of trading blocks (e.g. EU, NAFTA) allows TNCs to merge and make acquisitions of firms in neighbouring countries while reduced trade restrictions and tariffs help markets to grow
global concerns such a as free trades credit crunch and the global response to natural disasters
The World Bank, the IMF and the WTO work internationally to harmonise national economies
3.1a Globalisation, Interdependence and Flows
interdependence
if two places become over-reliant on financial and/or political connections with one another, then they have become interdependent
the success of one place depends on the success of other places
for example, if an economic recession adversely affects the host country for migrant workers, then the economy of the source country my shrink too, due to falling remittances
3.1a Globalisation, Interdependence and Flows
flows of capital
at a global scale, major capital flows are reputed daily through the world’s stock markets
a range of businesses, including investment banks and pension funds, buy and sell money in different currencies to make profits
in 2013, the volume of these foreign exchange transactions reached US$3 trillion per day
3.1a Globalisation, Interdependence and Flows
flows of commodities
valuable raw materials such as fossil fuels, food and minerals have always been traded between nations
flows of manufactured goods have multiplied in size in recent years, fuelled by low production costs in China and even lower-waged economies , such as Bangladesh and Vietnam
in 2015 global GDP fell just short of US$80 trillion in value, of this around one-third was generated by trade flows in agricultural and industrial commodities
3.1a Globalisation, Interdependence and Flows
flows in information
the internet has brought real-the communication with distant places, allowing goods and services to bought at the click of. button
social networks have ballooned in size and influence, with Facebook gaining 1.5 billion users by 2015
on demand TV has increased data usage further
information is stored in enormous ‘server farms’ such as the Microsoft Data Centre in Washington State and Facebook’s data centre in Sweden (cold temperatures reduce the costs of cooling the hard drives)
3.1a Globalisation, Interdependence and Flows
flows of tourists
many of the world’s air passengers are holiday makers
budget airlines have brought a ‘pleasure periphery’ of distant places within easy reach for the moneyed tourists of high-income nations
increasingly, people from emerging economies travel abroad too using budget airlines
China is now the world’s biggest spender on International travel with 120 million outbound trips made in 2014
3.1a Globalisation, Interdependence and Flows
flows of migrants
of all global flows, the permanent movement of people still faces the greatest number of obstacles due to border controls and immigration laws
as a result most governments have a ‘pick and mix’ attitude towards global flow: they embrace trade flows but attempt to resits migrant flows unless there is special need (such as Qatar’s encouragement of Indian construction workers)
despite restrictions, there are record flows of people recorded every year
the combined number of economic migrants and refugees worldwide reached almost one-quarter of a billion in 2013; the same year, around US$500 billion of remittances were sent home by migrants
3.1b Transport, Technology and Globalisation
19th century: railways
in the 1800s, railway networks expanded globally
By 1904, the 9000km Trans-Siberian Railway connected Moscow with China and Japan
3.1b Transport, Technology and Globalisation
19th century: the telegraph
the electric telegraph was the first long-distance instant communication technology (1830s)
the Trans-Atlantic telegraph cable in the 1860’s replaced a 3 week boat journey with instant Morse Code messages
3.1b Transport, Technology and Globalisation
19th century: steam ships
Britain became the leading world powering the 180s using steam technology
steam ships and trains moved goods and armies quickly along trade routes into Asia and Africa
steam ships increased the spend and cargo capacity dramatically from sailing ships
3.1b Transport, Technology and Globalisation
20th century: jet aircraft
the arrival of the intercontinental Boeing 747 in the 1960s made international travel more commonplace, while recent expansion of cheap flights has brought it to the masses in richer nations
