Globalisation

Question 1

What is Globalisation?

Answer 1

It is the process of the world’s economies, political systems and cultures becoming more strongly connected to each other.

Question 2

What is Globalisation caused by?

5 factors

Answer 2

• Flows of information
• Flows of capital
• Flows of products
• Flows of services
• Flows of Labour

Question 3

When did Globalisation begin to accelerate?

Answer 3

1980-

People have been moving between countries and international trade has been going on for ages.

Question 4

What is information?

Answer 4

( such as data or news of current events)

Question 5

What has helped information spread quickly?

Answer 5

The development and rapid spread of :
-email, 
-the internet 
-social media 
mean that large amounts of info can be exchanged instantly across the globe.

Question 6

What are Flows of information helping?

Answer 6

Increasing flows of info are making the world more interconnected.

Question 7

What is capital?

Answer 7

Capital is money that’s invested- Its spent on something to produce an income or increased profit from it.

Question 8

Over time how was Capital changed ?

Answer 8

Historically, capital was mostly invested within a counrty.

Over time, The amount of capital invested in foreign countries had increases. The Foreign direct investment has increased from
$400 billion in 1996 to
$1500 billion in 2016

Question 9

What has improvement to Capital done?

Answer 9

Improvements in information and communication technology have encouraged flows of capital round the world-

Question 10

How have flows of products changed over time?

Answer 10

Historically, manufacturing industries were located in more developed countries, (the products being produced were also sold in the county they were made)

In recent years, manufacturing has decreased in more developed countries.

in the uk people employed in manufacturing decreased from 5 million to 2.5 million

Question 11

What has low labour costs overseas lead to?

Answer 11

It has caused many companies to relocate the production side of their business abroad- they import the products to the countries where they’re sold.

Question 12

How has international trade increased?

Answer 12

The uk imported £200 billion of manufactured goods in 19190 and £550 billion in 2008

Question 13

What are services?

Answer 13

Services are economic activities that aren’t based around producing any material goods eg. banking

Question 14

How has improvements in ICT affected services?

Answer 14

It has allows services to become global industries in recent decades. Things like banking and insurance depend on communication and transfer of information.

ICT means that services can locate anywhere in the world and still meet the needs of the customer.

Question 15

How did flows of services change in the 1970’s and 1980’s?

Answer 15

There was also deregulation and opening up of national financial markets to the rest of the world.

This made it easier for banks and other financial institutions to do business in other countries.

Question 16

What is the differences between high and low level services?

Answer 16

They are split into 2 parts
Low level- customer service
Increasing relocating to less developed countries where labour is cheaper

High level- financial.
High level services tend to be concentrated in cities in more developed countries.

Question 17

What is flows of labour?

Answer 17

Flows of labour are movements of people who participate in the workforce from one county to another

Question 18

What happens because people are moving over seas?

Answer 18

international migration increased by over 40% between 2000 and 2015.

Question 19

What happens due to different skilled workers in flows of people?

Answer 19

Some migrants are highly skilled workers (eg 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 beauce of unemployment or poor wages in their own countries.

Question 20

What is marking?

Answer 20

Is the process of promoting and selling the products or services.

Question 21

What does global marketing involve?

Answer 21

It involves treating the world as one single market and using one marketing strategy to advertise a product to customers all over the world.

Question 22

What does gobal marking give?

Answer 22

Global marketing gives economies of scale it is cheaper to have a marketing campaign for the whole world, rather than having a different campaign for every country.

Question 23

What can Global marketing create?

Answer 23

Global marketing can create a global brand awareness consumers around the world identify a name or logo with a particular product or service, so they will purchase that product rather than a lesser - known competitor.

Question 24

What does Global marketing need to adapt to?

Answer 24

Marketing needs to be adapted to regional markets though — different populations still have different laws and cultural attitudes, e.g. Different countries have different laws and attitudes about consuming alcohol.