Globalisation Flashcards
What is globalisation?
The process of the worlds economies, political systems and cultures becoming more strongly connected to each other.
What 5 factors cause globalisation?
Flows of:
-Information
-Capital
-Product’s
-Services
-Labour
Describe the flow of information and how it’s caused globalisation.
Information (financial data and the news) can be spread easily due to the development of emails, social media and the internet.
Different countries can communicate and work together making them more interconnected.
Describe flows of capital and how they cause globalisation.
Capital used to only be invested within a country but the amount of foreign investment has increased. Improvements in technology and information have encouraged flows of capital around the world making the world more interconnected.
What is capital?
Money that’s invested and is spent on something to produce a profit.
What is the flow of products and how has it increased globalisation?
Historically products were manufactured in developing countries and sold where they were made.
Manufacturing has decreased in developing countries as lower labour costs overseas has caused companies to relocate production abroad.
As a result international trade off products has increased making the world more interconnected.
Give an example of a company that has moved the production of their business to a developing country.
Dyson moved the production of their vacuums to Malaysia but vacuums are still sold in the uk.
Describe the flow of services and how it has caused globalisation.
Improvements in ICT have slowed services to become global industries as services depend on communication and have allowed them to locate anywhere in the world.
Increased flows of service make the world more interconnected.
What are services?
Economic activities that aren’t based around producing material goods (Eg: banking)
How are high and low services distributed around the world?
Developed = high level
Developing = low level
What are flows of Labour?
Movements of people who participate in the workforce from one country to another.
How have the flows of Labour caused globalisation?
More people are moving overseas to migrate to work.
High skilled Workers may move to developed countries for better wages. Unskilled workers may move for employment.
This makes the world more interconnected as aspects of their culture are bought with them.
How much has international migration increased between 2000 and 2015?
40%
What is marketing?
The process of promoting and selling products or services.
What is global marketing?
Treating the world as one singular market creating global brand awareness meaning the world identified a name with a certain product.
Marketing must be adapted to regional markets.
