Globalisation - EQ1 Flashcards
Definition of globalisation
Globalisation is the increasing integration of economies around do the world, through global flows such as people, capital and goods.
What’s does globalisation lead to?
Globalisation lead to the winding and deep if of global connections.
Transitional corporations
Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods.
How’s has globalisation be accelerated?
- development in transport
- development in trade
- TNC activity
- Improvements in communication and ICT
How has development in transport accelerated globalisation?
Development in transport such as railway (19th century)m jet air craft and containerisation (20th century) has led to increased in globalisation by
- reducing transport cost per unit making reduces affordable for distant markets setting up more global flows
- New forms of power allow larger loads to be transported (coal in stem engines)
- encouraged growth in trade as cheaper and more efficient (flows of goods and people)
What is example of globalisation increased by transport?
Easyjet:
- Founded in 1995 with only two small aircrafts
- now has over 300 flight routes within the EU and serval long haul ones
- by 2014 has 200 planes carrying 64 million people annually
this made many destination affordable for UK citizens.
What is containerisation?
Containerisation is the development of large capacity intermodal containers which can be transported large distances through many differ to types of transport.
Role of containerisation in the acceleration of globalisation?
-reduce transport costs making consumer -goods cheaper
-speed up trade by making it more efficient.
-intermodal
-the process has been easily mechanised (cranes) reducing labour costs.
Proof of role of containerisation in acceleration of globalisation
Container ships are so efficient that the transport coats of moving an iPhone or television from China in the UK are less than £1.
What is the ‘Shrinking world’?
Though the physical disgrace between places remain unchanged, heightened connectivity changes our conception of time and distance. Distance places begin to ‘feel’ closer.
Development in ICT and communication role in accelerating globalisation
ICT and communication have accelerated globalisation through
- reducing communication costs
- increases global communication flows
- helped to expand TNC allowing them to communicate from distant places.
- helps to foster a sense of global citizenship
- social networks and Skype allow people to communicate instantly and without charge increasing global flows of people
- mobile banking aids with remittance
All contributing to the space-time compression
Communication and ICT 1 line case study’s
-by 2015, 70% of people in Africa owned a mobile phone
-Skype was founded in 2003
What did safaricom launch?
In 2007, Safariccom launched M-Pesa as a simple mobile phone service that allowed credit to be directly transferred between phone users, and consign lives in Kenya.
- 1/3 of the county’s GDP is sent through M-Pesa system annually.
-allows farmers and fishermen to check market prices before selling products
- allows women in rural areas to secure micro loans.
What is the role of the world trade organisation?
An international organisation that works to reduce both trade barriers and promote free trade.
Deals with flows of goods a services.
Role of the International Monetary Fund
Aims to maintain a stable international finically system, promoting free trade and globalisation.
They have been criticised as they make recipients adopt structural adjustments and trade liberalisation; programmes opening up countries to free tease and FDI.
