Globalisation

Question 1

What is Globalisation?

Answer 1

Globalisation is the process of the world’s economies, political systems and cultures becoming more strongly connected to each other.
Globalisation is caused by the movement of information, capital, products, services and labour between different countries. Globalisation started to accelerate in the 1980s

Question 2

One of the factors that promote Globalisation-Flows of information

Answer 2

Information can be spread across the world very quickly and easily
The development and rapid spread of e-mail, the internet and social media mean that large amounts of information can be exchanged instantly across the globe. This allows people living in different countries to communicate and work together.

Question 3

One of the factors that promote Globalisation-Flows of capital

Answer 3

Capital is money that’s invested.
capital was mostly invested within a country, e.g. companies would expand by doing things like building new factories or setting up new branches within their country of origin.
Over time though, the amount of capital invested in foreign countries has increased-this is foreign direct investment (FDI). E.g. global FDI increased from about $400 billion in 1996 to nearly $1500 billion in 2016

Question 4

One of the factors that promote Globalisation-Flows of Products

Answer 4

In recent decades, manufacturing has decreased in more developed countries, e.g. the number of people employed in manufacturing in the UK fell from more than 5 million in 1995 to around 2.6 million in 2014. 3) 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’re sold. E.g. vacuum manufacturer Dyson moved the production side of its business to Malaysia in 2002, but the vacuums are still sold in the UK.

Question 5

One of the factors that promote Globalisation-Flows of Services

Answer 5

Services are economic activities that aren’t based around producing any material goods E.g. banking.
Improvements in ICT have allowed services to become global industries in recent decades. Things like banking and insurance depend on communication and transfer of information.

Question 6

One of the factors that promote Globalisation-Flows of Labour

Answer 6

Flows of labour are movements of people who participate in the workforce from one country to another.
Some migrants are highly skilled workers (e.g. ICT and medical workers), moving to more developed countries where wages and working conditions are better. Others are unskilled workers who move to more developed countries to look for work because of unemployment or poor wages in their own countries.