Introduction to globalisation Flashcards
What is globalisation?
The increasing interconnectedness of people around the world through the growth of the International flow of money, ideas and culture.
Who opened up globalisation?
Christopher Columbus in 1400 - and in 1450s boats got bigger, faster and able to travel further
What are the 4 dimensions of globalisation?
encourage globalisation
Information, technology and capital
Products and labour
Services and global marketing
Production, distribution and consumption
What are capital flows?
The movement of money for the purpose of investment, trade or to produce goods/provide services.
What are the three forms of globalisation?
Economic, cultural/social, political
What processes cause economic globalisation?
Increase in free trade - removal of trade barriers
Growth of TNCs (apple)
Faster, cheaper transport
Global marketing
What processes cause cultural/social globalisation?
Migration - spreading on info
Global communication networks - internet
Impact of western culture through media, sport, leisure and celebrity
What processes cause political globalisation?
Growth of western democracies (developed countries) and their influence on poorer countries
Decline of communist economies - Russia
What is economic globalisation characterised by?
Long distance flows of goods, capital and services
What is cultural/social globalisation characterised by?
Spread of ideas, information and images
What is political globalisation characterised by?
Decrease in government policy
Increase of market economies in former communist states
What would globalisation not work without?
New technologies, communications and information: internet makes it easier and cheaper to communicate with other places
What are the global financial systems?
FTSE
Dow Jones
Nikkei
Most high-state banks operate outside their countries
What things flow globally as a result of the 6 dimensions of globalisation?
Information (news on hazards, stocks and shares, intelligence)
Capital (money which flows from one place to another or invested)
Technology (Apple - large companies, process of trade allows technology to flow)
Products (Instant coffee - product produced somewhere else)
Labour (economic migrants)
Services (banking, accountancy)
How does flows of information, technology and capital enable globalisation?
Cheap, reliable and near instantaneous communication allows for information and capital to be shared
Money can flow electronically - HDEs invest into LDEs to take advantage of cheaper production costs
How does flows of products and labour enable globalisation?
Global transport costs are cheap and efficient for moving both products and people
High speed rail networks and airports have revolutionised travel
People can move round the world for employment
Tourists travel increasing distances encouraged by global marketing and low-cost flights