Globalisation Flashcards
Describe globalisation
Worlds economies and cultures become more and more strongly connected
What are the five flows that lead to globalisation
Information e.g. Social media
Capital - i.e foreign direct investment
Flows of products - movement of manufacturing elsewhere (LICS)
Flows of services - ICT and online banking
Flow of labour - increases international migration
Why have flows of services increased dramatically?
Technology improved- online banking
Deregulation in 1970s opened global financial markets
Describe globalisation within marketing
Companies treat the whole world as 1 market so have one market globally to have economies of scale ( cheaper to have one for everywhere)
This increases global brand awareness
What is the opposite of globalised marketing give an example
Glocalisation where companies tailor goods to a specifc local market e.g. Hinduism in India so McDonalds doesnt sell beef products
What have been the biggest technological advances leading to globalisation?
Internet
Aeroplanes
Fibre optics
Satellites
Describe a global system
They are procedures that make globalisation easier for example financial systems including deregulation of markets make it easier for people to invest in a wider range of companies
When was the significant time period where globalisation started to increase?
After world war 2
Relationships were more positive towards building a better world
In terms of trade what is has caused increasing levels of globalisation?
Removal of tariffs in bilateral or multilateral trade agreements
Describe two economic advantages to globalisation
Economies of scale - can have large production lines making each product cheaper to make
Out sourcing - HICs can outsource labour work to LICs and hence reduce the production costs
What is the safety advantage of globalisation?
Interdependence means less war, UK not going to bomb china as it is dependant on its trade
Technology enables countires to share information on terror plots etc
