Factors in globalisation

Question 1

What is a factor of globalisation?

Answer 1

Any accelerators which make globalisation occur quicker.

Question 2

How has technology accelerated globalisation? (3)

Answer 2

1. The internet - allows information to be broadcast all around the world
2. Satellites and high speed fibre optic cables - connects mobile phones between countries
3. ‘Zipline’ drone development in Rwanda - allows for the transportation of blood and medicinal products to remote hospitals

Question 3

How have management and information systems accelerated globalisation?

Answer 3

Changes in transport and communications have allowed for the global management of information and goods, causing companies to manufacture and distribute goods differently.

Question 4

How have most companies changed their management and information systems?

Answer 4

Changed from a fordist to an automated process of production:
1. Fordist - mass production line using large warehouses which store inventories (e.g Detroit’s 3 mile production line of cars)
2. Just - in - Time (automated) - inventories are delivered as needed.

Question 5

What are the benefits of Just - in - Time production?

Answer 5

• Production is more flexible
• Businesses can offer a wider range of specialised products

Question 6

What are the disadvantages or Just - in - Time production?

Answer 6

• Unable to meet sudden unexpected changes in demand
• Increased costs associated with deliveries
• Security breaches can be extremely detrimental

Question 7

How has finance accelerated globalisation? (3)

Answer 7

1. The digitisation of money has increased the ease of global trade.
2. Removal of quotas (limits on amounts which can traded) and tariffs (taxes on goods traded), e.g. Whiskey from the USA.
3. High speed electronic trading systems allow for safe and secure financial transactions.

Question 8

How has government support accelerated globalisation? (3)

Answer 8

1. Promoting free trade policies by reducing quotas and tariffs
2. Set up Enterprise zones with lower taxes to encourage investment from TNCs (Apple in Shenzen)
3. The creation of new infrastructure and other facilities can stimulate foreign investment (e.g the Doncaster Iport is an intermodal rail terminal owned by the Woodland Group - attracted £56 million investment)

Question 9

How has transport (specifically containerisation) accelerated globalisation? (3)

Answer 9

• Modern ports can move more than 70 containers per crane per hour
• Use of standardized containers has increased the efficiency of global product flows
• Dry ports (ports located inland and close to businesses) have been created to save exporter time and transport costs.

Question 10

How has containerization created problems (e.g. decelerated globalisation)?

Answer 10

1. Aircrafts have gotten bigger (e.g. Airbus A380 can seat 525)
2. Computerised logistics make it easy to track goods around the world
3. Air traffic control systems are now standardised across the globe (safer and cheaper travel so more accessible).

Question 11

How has security accelerated globalisation? (3)

Answer 11

1. Security forces screen and monitor the movements of people to prevent terrorism
2. Prevents the introduction and spread of harmful organisms or biochemical substances to prevent infectious disease (COVID 19 travel ban)
3. Ensures that imported products (e.g meat products) meet required safety standards