GS: Globalisation

Question 1

How does globalisation have a range of meanings

Answer 1

The way it is defined in any context tends to reflect the priorities or prejudices of whoever is writing. Economists, historians and geographers may all define globalisation differently, according to there own interests. Some people may take a scientific viewpoint and define globalisation in a way that is free of any values or perspectives. Others believe that the impact of globalisation on people’s lives means there should always be a moral or ethical dimension to its discussion.

Question 2

Define globalisation

Answer 2

The growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services, freer international flows of capital and labour, and more rapid and widespread diffusion of technology.

Question 3

Geographers describe globalisation in general terms as the process by which places and environments become more:

Answer 3

Interconnected

Interdependent

Deeply connected

Connected together in real time as part of a shrinking work (also known as time/space compression)

Question 4

How has the shrinking world concept been enhanced by the use of information and communications technology (ICT)

Answer 4

An important outcome of the relationship between ICT and globalisation is the growth of extensive networks of people and places. All kinds of global networks can be modelled, ranging from social networks such as Facebook and twitter to the complex supply chains of global corporations.

ICT enables all these interactions by providing affordable, instantaneous connectivity. Over time, network connections have become faster and more inclusive of all people in society, not just privileged groups. As a result, a staggering amount of globally available digital information has been created since 2000.

Question 5

Tell me some aspects of the ‘shrinking world’

Answer 5

Up to the mid nineteenth century most travel was on horseback, with an average speed of 10mph.

Steam trains have moved at up to 70mph, and steam ships at over 30mph

By the mid twentieth century, air travel was much more common, again reducing travel times across the world.

From the late twentieth century, communication has become almost instant with the internet.

Question 6

What are the different types of globalisation

Answer 6

Economic

Political

Social

Cultural

Question 7

Tell me about economic globalisation

Answer 7

Th growth of transnational corporations (TNCs) has accelerated cross border exchanges of raw materials, components, finished manufactured goods, shares, portfolio investment and purchasing. ICT supports the growth of complex spatial divisions of labour for firms and a more international economy. The internet and World Wide Web have allowed extensive networks of consumption to develop (such as online purchasing on eBay and Amazon).

Question 8

Tell me about political globalisation

Answer 8

The growth of trading blocs (eg European Union (EU), the North American free trade association (NAFTA)) allows TNCs to merge and make acquisitions of firms in neighbouring countries, while reduced trade restrictions and tariffs help markets to grow.

The G7/8 and G20 groups of countries meet regularly to discuss global concerns such as the global economy and the environment (the financial crash of 2007 and climate change being two major issues of recent years). The world bank, International Monetary Fund and the world trade organisation work internationally to harmonise national economies.

Question 9

Tell me about social globalisation

Answer 9

International migration has created extensive family networks that cross national borders. City societies across the globe have become multi ethnic and pluralistic. Global improvements in education and health can be seen over time, with rising life expectancy and literacy levels, although the changes are by no means uniform or universal. Social inter connectivity has grown over time due to the spread of universal connections such as mobile phones, email and the use of ‘social media’.

Question 10

Tell me about cultural globalisation

Answer 10

Successful western cultural traits have come to dominate in some nations - sometimes called the Americanisation or ‘Mcdonaldisation’ of tastes and fashions.

‘Glocalisation’ is a more complex outcome that takes place as old local cultures merge and meld with globalising influences. The circulation of ideas and information has accelerated due to 24 hour news reporting: people also keep in touch using virtual spaces such as Facebook, Skype, twitter and WhatsApp. The latter have been linked to the globalisation of terrorism.

Question 11

Tell me about another way of considering globalisation

Answer 11

Is to describe it as the latest chapter in a long story of global trade, migration and cultural change. Globalisation can be said to be the continuation of a far older, and ongoing, economic and political project of empire building. Globalisation can therefore be seen as a series of periods in an economic, social, political and cultural story.

Question 12

Tell me about economic, social, political and cultural globalisation during the 1950s.

Answer 12

Period 1 during the 1950s: the end of the age of colonial empires with, for example, independence for African and Asian countries; post war settlements and bodies (the IMF, World bank, general agreement on tariffs and trade (GATT) and the WTO); the growth of container shipping.

Question 13

Tell me about economic, social, political and cultural globalisation during the 1960s -1980s

Answer 13

Period 2:The rise of the Asian tigers (Hong Kong, South Korea, Taiwan, Singapore) And deindustrialisation of parts of western core countries, the rising influence of the organisation of petroleum exporting countries (OPEC) and their oil price rises; offshoring beginning in earnest; the spread of financial deregulation and the growth of money markets.

Question 14

Tell me about economic, social, political and cultural globalisation during the 1990s to the present day

Answer 14

Period 3: the fall of the Soviet Union; the growth of the BRIC (Brazil, Russia, India, China) economies; the growth of trade blocs (EU, NAFTA); the acceleration of technology; punctuated by period of economic crisis.

Question 15

Tell me about economic, social, political and cultural globalisation for the future

Answer 15

The rise and rise of China and India and some new emerging economies such as Indonesia and Malaysia.

Question 16

When a company decides to embark on global marketing, what does it view the world as

Answer 16

One market and creates products that fit the various regional marketplaces. The ultimate goal is to sell the same thing, the same way, everywhere

Some examples include: Coca Cola, mars and lever brothers

In many cases, it seems that the common factor is to align with markets in the USA and Far East.

Question 17

Define global marketing

Answer 17

Marketing on a worldwide scale, reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.

Question 18

Tell me about Coca Cola using global marketing

Answer 18

The company uses the same formulae (one with sugar, the other with corn syrup) for all its markets. The classic contour bottle design is incorporated in every country, although the size of bottle and can that is marketed is the same size as other beverage bottles and cans in any particular country.

Question 19

Tell me about the global marketing of Mars

Answer 19

The company introduced a chocolate bar called ‘snickers’ around the world, though for a time, until 1990, it was marketed under the marathon in the uk and Ireland.

Question 20

Tell me about the global marketing of lever brothers

Answer 20

In 2000, lever brothers (uk) decided to rename its household cleaning product ‘Jif’ to ‘Cif’, the company’s global moniker for the product.

Question 21

Globalisation has brought about a new international division of labour. At its simplest, it is possible to recognise two groups:

Answer 21

Occupations that are highly skilled, highly paid and involve research and development (R & D), decision making and managerial roles. These are largely concentrated in developed (or high income countries)

Occupations that are unskilled and poorly paid assembly roles. Those tend to be located in the emerging economies, often developing (low income) countries, based on low labour costs.

Question 22

Tell me about the radical changes to the simple division in labour in the last 50 years

Answer 22

Many countries that were classified as developing have become newly industrialised countries (NICs) and even within this group it is possible to recognise several generations, all at various stages of development.

In the mid 1950s, around 95% of manufacturing was concentrated in the industrialised economies. Since then, decentralisation has occurred, which has been largely the result of foreign direct investment by TNCs in those developing countries able to take on manufacturing tasks at a competitive price.

Question 23

Define foreign direct investment

Answer 23

(FDI) the money invested into a country by TNCs or other national governments.

Question 24

What is global shift?

Answer 24

The filtering down of manufacturing industry from developed countries to lower wage economies has become known as global shift. It has also resulted from the fact that high technology is no longer associated with high productivity and high wages.

Question 25

What does the transfer of technology enable

Answer 25

The transfer of technology enables many countries within the developing world to increase their productivity without raising their wages to the levels of developed countries. This could also widen the development gap, as workers in the developing world are paid less to make the same products as their counterparts in developed countries. By the first decade of the twenty first century, over 50% of all manufacturing jobs were located in the developing world and over 60% of exports from such countries to the developed world were of manufactured goods.

Question 26

Define transfer of technology

Answer 26

The movement of ideas and technology from one region or country to another.

Question 27

Tell me about the changes to provision of services

Answer 27

The provision of services has become increasingly detached from that of the production of goods. The financial sector, for example, has no direct relationship to manufacturing. Therefore, as manufacturing has become dispersed world wide, high level services have increasingly concentrated in places different from the old centres of manufacturing.

Question 28

What did the 1990s see the emergence of

Answer 28

A growing number of transnational service conglomerates, seeking to extend their influence on a global scale, particularly in banking and other financial services, and advertising. The movement of capital around the world has speeded up, with the outcome that conglomerates now own many manufacturing and service industries, purely for their financial gain. Such organisations are known as private equity firms and venture capitalists.

Question 29

Tell me about the decentralisation of low level services

Answer 29

Another recent trend has been the decentralisation of low level services from the developed to the developing world. Call centre operations, for example, have moved from the UK to India, the Middle East and South Africa, where employment costs are generally at least 10-20% lower. This globalisation of services is simply following what has been happening in manufacturing over several decades.

Question 30

Tell me about deindustrialisation

Answer 30

One of the consequences of a global shift in the developed world has been deindustrialisation. This has not been entirely due to global shift, as other factors such as outmoded production methods, long established products entering the end of their life cycles and poor management have all contributed to the decline in manufacturing in those regions.

Question 31

Where are the major financial services located in the world today

Answer 31

At the highest level, the top of the service hierarchy is to be found in world cities such as London, New York and Tokyo, which are the major nucleus of global industrial and financial command functions. Other cities of prominence include Frankfurt, Chicago, Paris, Milan and Los Angeles.

Question 32

What is ‘just-in-time’ production?

Answer 32

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