Chapter 8, What are the factors that contribute to Globalisation Flashcards
1
Q
Tech advantages due to globilisation
A
- Developments in Transport
- Developments in Digital technology
2
Q
Developments in Transportation (Speed)
A
- In terms of speed, different modes of transportation are able to travel much faster and cover longer distances.
- In 2010s, there are commercial planes that can fly up to 1050 km/h and are also bigger in size, for example, the Boeing 787-10 is 68 m in length and 17 m in height.
- This is much bigger and faster than the world’s first airplane the 1903 Wright Flyer that is 6.4m in length and 2.8m in height, and could fly up to 48 km/h.
- This also helped Singapore as a global transport hub, as **Singapore is a key transit node on many flight routes that connect the Americas, Europe, Asia and Australasia. **
- Asia’s economic rise has further strengthened Singapore’s status as an important aviation hub.
- Singapore has an advantage as it is located within a seven-hour flight radius of major markets in East Asia and Southeast Asia.
- These networks provide Singapore with access to vital trade links with other countries.
- Developments in transportation enable MNCs to move people, goods and services around the world in larger volumes quickly and at lower costs.
- Hence, the world has become more interconnected. There is also greater interdependence because countries may depend on the people and goods that come from other parts of the world for their economies.
3
Q
Developments in Transportation (Capacity)
A
- In terms of capacity, more people and goods can be carried per trip to different parts of the world.
- Container ships since 1956 can carry a maximum capacity of 600,000 tonnes. Containers can be stacked on container ships, enabling large volumes of goods to be transported to increase efficiency and reduce costs. This was not possible in the 1800s, where steam ships had limited capacity due to space taken up by its large engine and fuel.
- This helped Singapore as global transport hub due to its strategic geographical location and advanced infrastructure.
- The Port of Singapore situated at the crossroads of some of the world’s busiest commercial shipping lanes that connect Asia, the Middle East, Europe and the Americas.
- It serves as a transhipment and refuelling hub. Annually, over 130,000 vessels call at the Port of Singapore, which serves about 200 shipping lines linking more than 600 ports in over 120 countries.
- These networks provide Singapore with access to vital trade links with other countries.
- Developments in transportation enable MNCs to move people, goods and services around the world in larger volumes quickly and at lower costs.
4
Q
Development of transport (Cost)
A
- In terms of cost, faster movement of larger volumes of goods, services and people per trip around the world have resulted in lower transport costs.
- The rise of low-cost of airlines since the 1990s reduce the cost of flights substantially. With lower airfares, more people are now able to afford air travel. This was not possible in the 1950s, where flying was considered a luxury experience that only affluent and business travellers can afford.
- This also helped Singapore as a global transport hub, as Singapore is a key transit node on many flight routes that connect the Americas, Europe, Asia and Australasia.
- Asia’s economic rise has further strengthened Singapore’s status as an important aviation hub.
- Singapore has an advantage as it is located within a seven-hour flight radius of major markets in East Asia and Southeast Asia.
- These networks provide Singapore with access to vital trade links with other countries.
- Developments in transportation enable MNCs to move people, goods and services around the world in larger volumes quickly and at lower costs.
5
Q
Developments in Digital Technology
A
- Digital technology refers to the electronic tools, systems, devices and resources that generate, store of process data. It also helps to facilitate communication between people, businesses and countries.
- Rapid developments in communications enable people to stay connected, and share information and ideas.
- They also facilitate activities across vast distances and different time zones.
- For example, in just 48 hours after the earthquake in Syria and Turkey, 5 digital activists launched a website, TakeShelter, to connect displaced persons with hosts around the world offering their homes as shelter.
- Other Turkish groups, activists and influencers also promoted TakeShelter through social media and by word of mouths, which has been translated into English, Turkish and Arabic.
- The website also enforces identity verification checks on hosts and regularly reviews the website for malicious users to prevent displaced people from being an easy target for people with ill intent. - This ensured that people who want to help can sign up for TakeShelter to open their homes to displaced quake survivors.
- It also provided shelter for displaced earthquake survivors, who could search the website for nearby host families.
- Hence, the world has become more interconnected. There is also greater interdependence because countries may depend on the people that come from different parts of the world to assist them during disasters.
6
Q
Growth of MNCs
A
- MNCs are large corporations which operate in various countries.
- MNCs drive globalisation through their supply chains that are global in scope. A supply chain is a network of individuals and companies involved in creating a product and delivering it to the consumer.
- For example, Starbucks, an American MNC travelled to the source since its 1st store in 1971, travelled to the source around the world to get the best coffee beans.
- It launched its C.A.F.E Practices sustainable programme in 2004 to build personal relationships with locals.
- It opened its first Farmer Support Center in Costa Rica and hired a team of agronomists to bring farmers into the programme.
- With Starbucks help, they are producing new varieties of coffee of good quality. This helped Starbucks to expand its outlets across 6 continents.
- In the 15 years that followed, Starbucks expanded its global network of farmer support. To date, Starbucks have trained more than 200,000 farmers, providing free access to education and resources.
- Hence, the operations of MNCs, such as Starbucks, link numerous people and activities across different places in the world through their supply chains. This has created global interconnections and interdependence.
7
Q
How Technological advancements reinforce growth of MNCs
A
- Development in transportation facilitate the movement of raw materials and products produced by MNCs to different parts of the world.
- Developments in digital technology enable efficient and reliable long-distance communication for coordination of MNCs’ business activities.
- For example, Decathlon is able to revolutionise their e-commerce operations by investing in technology.
- Robots like the Geek+ were used to move customers’ orders from the shelves at Decathlon’s warehouses to the employees’ picking station for them to pack and assemble their customers’ orders.
- Decathlon wanted to use robots to boost their efficiency. The use of robots increased the efficiency at Decathlon’s warehouse by three times as compared to manual operations.
8
Q
How Growth of MNCs reinforce advancements of tech
A
- The need for MNCs to do business globally and efficiently continually encourages developments in transportation and digital technology.
- For example, Decathlon is able to revolutionise their e-commerce operations by investing in technology.
- Robots like the Geek+ were used to move customers’ orders from the shelves at Decathlon’s warehouses to the employees’ picking station for them to pack and assemble their customers’ orders.
- Decathlon wanted to use robots to boost their efficiency. The use of robots increased the efficiency at Decathlon’s warehouse by three times as compared to manual operations.
