globalisation Flashcards
what is globalisation
it is the process of countries becoming more connected:
- it is the process of the world’s economies, political systems and cultures becoming more connected to each other
- if there was no globalisation then there would not be any interaction between different countries but if there was complete globalisation then the world would act like one community
-it is caused by the movement of information, capital, products, services, and labour between different countries
-countries become more interconnected
when did globalisation start to accelerate
in the 1980’s
what are 5 factors that promote globalisation
- flows of information
- flows of capital
- flows of products
- flows of services
- flows of labour
how do flows of information promote globalisation
- information is able to spread across the world very quickly and easily
- the development and rapid spread of email, the internet, and social media mean that large amounts of information can be exchanged instantly across the globe, this allows people in different countries to be able to communicate and work together
- increasing flows of information are making the world more interconnected
how do flows of capital promote globalisation
- capital is the money which is invested
- capital is mostly invested within a country
- the amount of capital being invested into foreign countries has increased, this is called foreign direct investment (FDI), global FDI has increased from $400 billion in 1996 to nearly $1500 billion in 2016
- improvements in information and communication technology have encouraged flows of capital around the world, it can instantly be moved around the world
- increasing flows of capital have made the world more interconnected
how do flows of products promote globalisation
- historically manufacturing industries were located in more developed countries, the products that were produced were also sold in the same country that they were manufactured
- manufacturing has since decreased in more developed country, number of people who work in manufacturing in the UK have decreased from 5 million in 1985 to around 2.6 million in 2014
- lower labour costs overseas means that many companies have relocated, products are then important to be sold
- due to this international trade in manufactured goods is increasing, the UK imported £200 billion of manufactured goods in 1990 and £550 billion in 2008
- changing flows of products are making the world more interconnected
how do flows of services promote globalisation
- services are the economic activities which arent based around producing any material goods
- 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. improvements to ICT mean that services can locate anywhere in the world and still be able to serve the needs of customers anywhere else in the world
- during the 1970’s and 1980’s there was also deregulation and opening up of national financial markets for the rest of the world. this meant that it was easier for banks and other financial institutions to do business in other countries
- services can be split into low level and high level. high level services can tend to be concentrated in cities in more developed countries, companies are increasingly relocating low level services to less developed countries where labour is cheaper
- increasing flows of services make the world more interconnected
how do flows of labour promote globalisation
- flows of labour are movements of people who participate in the workforce from one country to another
- more people are moving overseas, international migration increased by over 40% between 2000 and 2015. some people move because they have to but others move for work
- some migrants are highly skilled workers moving to more developed countries where wages and working conditions are better. others are unskilled workers who move to developed countries to look for work because of unemployment or poor wages in their own countries
- increasing flows of people make the world more interconnected
what is marketing
it is the process of promoting and selling products or services
what does it mean when marketing has become global
when the world is treated as one singular market and one marketing strategy is used to advertise the product to customers around the world
what does global marketing offer
an economy of scale as it is cheaper to have one marketing campaign for the whole world than different ones for different countries. it also offers a global brand awareness
what is the issue with global marketing
it has to be adapted to regional markets because of laws and cultural attitudes
