Introduction to Globalisation

Question 1

What is globalisation?

Answer 1

The process of all the world’s systems and cultures becoming more integrated- its the whole world coming together like a single community with similar, shared systems and cultures.

Question 2

Around when did globalisation begin and why?

Answer 2

Probably started in the 1960s (computerisation of systems accelerated this).

Question 3

What is economic globalisation?

Answer 3

Economic globalisation- transnational corporations, more foreign exchange gets traded in a day in computer screen than physical money exists in the world.

Question 4

What is cultural globalisation?

Answer 4

Cultural globalisation- the music we listen to, the TV we watch, the food we enjoy.

Question 5

What is space time convergence?

Answer 5

Space-time convergence- the process, made possible by technological innovations in transportation (creation of the jet engine) and communication, by which distant places are brought closer together in terms of the time taken to travel (or send messages) between them.

Question 6

What is containerisation? What has occurred as a result?

Answer 6

Transportation of cargo in containers (that can be interchanged between ships, trains, and trucks)
It sped up transports of goods and makes it cheaper- rather than all these people being employed. Expanded options for trade.

Question 7

What are trade blocs?

Answer 7

Growth of trade blocs- A set of countries which engage in international trade together, and are usually related through a free trade agreement or other association.
E.g EU, NAFTA- connect countries

Question 8

What is Global Interdependence?

Answer 8

Global Interdependence- countries increasingly rely on each other- complex web of links.

Question 9

Give an example of how globalisation has been happening for thousands of years.

Answer 9

The Roman Empire- they brought a new political empire system, new technology and a different culture, some of which remained long after they left.

Question 10

Why was globalisation accelerated in the 19th century and onwards?

Answer 10

Increasing trade between European empires and acceleration continued in the 20th century because of increasing trade with the USA.

Question 11

When was global trade slowed?

Answer 11

WW1 and WW2 severely damaged European economies.

Question 12

How has globalisation accelerated since the 1980s?

Answer 12

Huge global brands and corporations have easy access to most countries and are known all over the world, helping to create a sense of global community e.g McDonald’s.

Question 13

What are the four key factors as to why globalisation is occuring at an increasing rate?

Answer 13

TNCs
New Markets
Improved Communications
International Organisations

Question 14

What are TNCs?

Answer 14

Companies that produce, sell or are located in two or more countries, e.g Sony manufacture electronic products in China and Japan and sell many of them in Europe and the US.

Question 15

Why are TNCs causing an increase in globalisation?

Answer 15

Economic, political and cultural interactions between the countries where they operate.
Some TNCs generate more money than the GDP of some nations, e.g oil companies like Shell.
Bring investment into countries, spread new technologies and can promote particular cultures, e.g McDonald’s bring western style food to other countries.
Potential investment, creation of jobs and access to new technology means TNCs can have a political influence.

Question 16

Why are New Markets causing an increase in globalisation?

Answer 16

Increasing prosperity of developing countries opens up new markets for companies, e.g Western companies can sell more to countries like China & India which have large populations and increasing wealth.
Global share trading involves buying and selling shares at stock exchanges. LDC exchanges are on the rise.
Availability of new markets and stock exchanges encourages more global trade, which accelerates globalisation.

Question 17

Why are improved communications causing an increase in globalisation?

Answer 17

People have easier access to new products and to places that are further away, making people better connected.
Electronic information exchanges allow instant communication.
Creates feeling of a smaller world- distance less important.

Question 18

How does the World Bank contribute to accelerating globalisation?

Answer 18

It offers money to poorer nations to help them develop.
It provides loans to fund development projects, e.g building schools, better roads.
Improved infrastructure means poorer countries are more likely to attract international investment, helping to create connections between rich and poor countries.

Question 19

How does the International Monetary Fund (IMF) contribute to accelerating globalisation?

Answer 19

This is an organisation that regulates the global financial system and lends money to make countries more financially stable, countries with failing economies find it hard to trade/attract investment.
IMF loans increase economic stability, helping these countries to participate in global trade.

Question 20

How does the World Trade Organisation (WTO) contribute to accelerating globalisation?

Answer 20

Regulates the rules of trade between countries, it’s designed to reduce barriers to trade between countries, e.g setting up agreements where tariffs (taxes) on trade are reduced or removed.
This increases trade between countries, which increases interaction and globalisation.