3.2.1.1 GSGG globalisation Flashcards
what is globalisation
the process of the world’s economies, political systems and cultures becoming more strongly connected to each other
or
a process by which national economies, societies and cultures have become increasingly integrated though the global network of trade, communication, transportation and immigration.
what are the 3 forms of globalisation
- economic e.g long distance flows of goods, capital and services
- social e.g spread of ideas, information etc
- political e.g diffusion of government polices
what is the direction of globalisation
countries are becoming more closely integrated
when did globalisation start to accelerate
1980s
what flows of information are there
1, Information, such as financial data or news of current events can be spread across the world very quickly and easily.
2, Development and rapid spread of email, internet and social media mean large amounts of information can be exchanged instantly across the globe. This allows people living in different countries to communicate and work together.
3, Increasingly flows of information are making the world more interconnected e.g. people can learn a lot about different countries and cultures without leaving their own country
what is capital
money that is invested, spent on something to produce an income or increased profit
historically how has capital flowed
Historically capital was mostly invested within country, e.g. companies would expand by doing things like building new factories or setting up new branches within their country of origin
how has the flow of capital changed over time (include figures)
Over time, the amount of capital invested in foreign countries has increased – this is foreign direct investment (FDI). Global FDI increased from about $400 billion in 1996 to nearly $1500 billion in 2016.
how has improvements in technology helped flows of capital
Improvements in information and communications technology (ICT) have encouraged flows of capital round the world – it can instantly be moved around the world via the internet
how is flows of capital related to globalisation
Capital flows are mainly, and traditionally, from more developed to the less developed countries, although this is no longer as clear cut.
Increasing flows of capital are making the world more interconnected e.g. most countries’ economies are now dependent of flows of investment to and from other countries
historically how have products flowed
manufacturing industries were located in more developed countries. The products being
produced were sold in the country they were made.
Manufactured goods flows are mainly, and traditionally, a movement of high value manufactures
from the more developed countries to the less developed countries, and of low value manufactures
from the less developed countries to the more developed, although this is no longer as clear cut
how have flows of products changed in the recent decades
manufacturing has decreased in more developed countries. E.g. UK employment in manufacturing fell from over 5 million people in 1985 to about 2.6 million in 2014.
Lower labour costs overseas have caused many companies to relocate the production side of their
business abroad – they then import the products to the countries where they are sold. E.g. Dyson
moved its production to Malaysia in 2002, but still sells the vacuums in the UK
what are flows of service
economic activities that aren’t based around producing any material goods
what is an example of a flow of service and how does it relate to globalisation
banking and insurance
they depend of communication and transfer of information so improvements in IT mean that services can locate anywhere in the world and still be able to serve the needs of the customers anywhere else in the world
how has it become easier for banks and other financial institutions to do business in other countries
during the 1970s and 1980s there was deregulation (removal of rules to increase competition) and opening up of national financial makers to the rest of the world
