3.3 Globalisation has affected some places and organisations more than others

Question 1

How can the degree of globalization in a country be measured using indicators and indices?

Answer 1

the AT Kearney Index:
measures lvl of global engagement by assessing factors like economic integration, political engagement, technological connectivity, and personal contact - provides quantitative measure of a country’s global connectedness

the KOF Index:
index measures degree of globalisation based on economic, social, and political dimensions - considers factors like trade flows, capital movements, information flows, cultural integration, and international institutions

Question 2

What is the role of Transnational Corporations (TNCs) in globalization?

Answer 2

contribute to spread of globalisation through global production networks
-specialisation and lower production costs

also plays a role in glocalisation
allows TNCs to cater specific cultural, economic, and regulatory contexts in different regions

TNCs contribute to globalisation by actively participating in creating new markets –> expand and reach into emerging economies –> drives economic growth and facilitates integration of previously isolates markets into global economy

also take advantage of economic liberalisation –> engage in outsourcing and offshoring –> establish operations in countries with favorable business environments and lower production costs –> relocation of manufacturing services from high cost places to lower costing ones

Question 3

What are the reasons why some locations remain largely ‘switched off’ from globalization, considering physical factors?

Answer 3

geographic isolate or remoteness

some places are landlocked or geographically distance countries

they face challenges in transportation and connectivity limiting their integration into global networks

limited natural resources

lack of valuable resources or limited access to essential resources can hinder economic development and attraction for global investment

Question 4

What are the reasons why some locations remain largely ‘switched off’ from globalization, considering political factors?

Answer 4

political instability and conflicts

regions plagued by political instability, civil wars, authoritarian regimes often surggle to attract FDI and establish stable economic ties with the global market

protectionist policies and trade barriers

govs that implement restrictive trade policies and impose high tariffs and barriers can hinder international trade and globalisation efforts

Question 5

What are the reasons why some locations remain largely ‘switched off’ from globalization, considering economic factors?

Answer 5

underdeveloped infrastructure
insufficient transportation networks
inadequate communication systems
lack of basic infrastructure
can all hinder connectivity and economic growth

high lvls of poverty and inequality
persistent poverty and widespread income inequality can limit domestic markets and discourage foreign ivestment

Question 6

What are the reasons why some locations remain largely ‘switched off’ from globalization, considering environmental factors?

Answer 6

vulnerability to natural disasters
locations prone to frequent disasters like hurricanes, earthquakes, or droughts face challenges in maintaining stable economies and attracting foreign investment

ecological fragility
fragile ecosystems and environmental degradation can limit economic activities and make ti difficult for regions to participate in global markets