3.1. What is Globalisation? Flashcards
What is globalisation?
The process of the world’s economies, political systems and cultures becoming more strongly connected to each other.
What is time-space convergence?
The process made possible by technological advances in transport and communication by which distant places are brought closer together in terms of the time taken to travel between them.
Example of capital flow?
2019 -> daily volume of foreign exchange transactions reached US $6 trillion
Capital flows fell during COVID-19 ->Direct Investment was reduced by 40% and global GDP fell by 4%
How are flows of capital a dimension of globalisation?
- Capital is money that’s invested -> it’s spent on something to produce an income or increased profit from it
- Increasing flows of capital are making the world more interconnected.
- Online banking and FDI have increased capital
Examples of flows of labour
- Before COVID-19 pandemic in 2020, there were 1/4 of a billion economic migrants in the world.
- However, 10s of millions of migrants returned to their homes during the pandemic, suggesting the ‘age of migration’ might be over
- Migration increased by over 40% between 2000-2015
How are flows of labour a dimension of globalisation?
- More people are moving overseas
- Increasing flows of people between countries are making the world more interconnected
Examples of flows of product
- 2019 -> global GDP reached $87 trillion in value before falling to $84 trillion in 2020.
- Of this, around 1/4 was generated by trade flows in agricultural and industrial commodities
How are flows of product a dimension of globalisation?
- In recent decades, manufacturing has decreased in more developed countries as lower labour costs overseas have caused many companies to relocate the production side of their business abroad.
Examples of flows of service
- By 2040, India is expected to be the 2nd largest economy in the world and some of its economic success is attributable to call centre services which Indian workers provide for large US and EU companies.
How are flows of service a dimension of globalisation?
- Services are economic activities that aren’t based around material goods e.g. banking
- Improvements to ICT have allowed services to become global industries
- Companies outsource low-level services to less developed countries where labour is cheaper.
Examples of flows of information
- Facebook had 2.8 bn users in 2021
- Major platforms like YouTube, Instagram, WhatsApp etc increase info flows
How are information flows a dimension for globalisation?
- The internet has brought real time communication between distant places, allowing goods and services to be bought at the click of a button
