5. Communication leads to globalisation

Question 1

Explain the world has shrunk and trading in our shrinking world (15)

Answer 1

• Electronic communication & transport shrunk world
• messages can be sent to the other end of world
  *an item bought in Europe today could be in SA in a day or 2
  *we sit at home and we can see what is happening somewhere else by TV.
• on sep 11 2001 millions people watch 2 planes hit the world trade centre towers
  *transport makes possible
  *it is possible for senior officials of BMW to communicate between Germany and USA
• verbal communication is easiest thing in world
• provided that the time difference is taken into account
  *trade names familiar to us like Coca cola ( USA ) McDonalds (USA) Mercedes Benz (Germany)
  *trade names familiar to us even if it doesn’t originate here
  *also add a trade name such as Bell equipment which originate in SA
  *Bell manufactures big earthmoving machinery and heavy equipment for the forestry industry
  *Bell origins in KwaZulu-Natal
  *Anglo American (headquarters moved to London)
  & De Beers are originated in SA

Question 2

Explain Concern regarding globalisation (6)

Answer 2

• Poor countries exploited by rich countries
• there very little ethical conduct in most companies race for profit
• poor countries exploited bc they see opportunity for economic growth in overseas investments only a few benefits-the rest of people and environment are sacrificed
• Globalisation increase gap between rich countries & poor countries rather than decreasing
• local enterprises with limited resources could be destroyed
• if political leaders do social & environmental damage ,or are corrupt & do not keep promises, they can be voted out ;but what hold does does the government of poor country (in desperate need of investment) have over powerful international corporations.