Lecture 2 - Globalisation Flashcards
What is globalisation?
Increasing interconnectivity and interdependence of world’s markets, cultures, and populations.
Involves free flow of goods, services, information, capital, and people across borders.
What is interconnectivity?
Linking of economies, cultures and societies through technology, trade and communication.
What is interdependence?
Mutual reliance between countries and regions particularly in economic, social and political contexts.
What is global economy?
An intergrated world economy where economic activities in one part of the world can significantly impact others.
What are the three key drivers of globalisation?
- Technological advances
- Economic drivers
- Political and cultural factors
Technological advances
Impact of communication technologies (e.g internet, social media)
- Companies like Amazon use digital platform to connect buyers and sellers worldwide.
- Social media has created a platform for cultural exchange, allowing ideas, trends and movements to spread globally.
Advances in transportation (e.g container shipping, aviation)
- Rise of low cost airlines like Ryanair, made international travel more accessible, contributing to global tourism and business.
Economic drivers
Trade liberalisation (e.g world trade organisation, free trade agreements)
- Organisations such as the world trade organisation and regional agreements like NAFTA and the EU’s Single Market have reduced barriers to trade, promoting the flow of goods and services.
- The WTO’s role in resolving trade disputes and establishing international trade norms
- Free trade agreements have also opened up markets, allowing companies to expand beyond their domestic borders.
Growth of multinational corporations (MNCs)
- Large corporations, such as Apple and Coca-Cola operate in multiple countries, driving globalisation by bringing investment, technology, and jobs to different regions.
- Coca-Cola operates in over 200 countries, adapting its marketing strategies to fit local cultures while maintaining global branding.
Political and cultural factors
Role of International Organisations
- Institutions such as United Nations (UN), International Monetary Fund (IMF), and World Bank promote global cooperation and provide frameworks for addressing international challenges like poverty, health, and environmental sustainability.
- E.g The IMF provides financial assistance to countries facing economic instability, promoting global financial stability.
Cultural Exchange
- Globalisation has facilitated spread of ideas, values, and lifestyles, often leading to blending of cultures.
- The global popularity of American fast-food chains like McDonald’s or cultural phenomena like K-pop, which has gained international popularity beyond South Korea.
What are the 3 key impacts of globalisation?
- Economic
- Social and cultural
- Environmental
Economic impacts
Positive aspects: Market access, economic growth, job creation
- Vietnam’s economy seen rapid growth due to its integration into global supply chains, particularly in electronics and textiles.
- India’s IT sector flourished due to outsourcing from Western companies, creating jobs and boosting the economy.
Negative aspects: Income inequality, impact on local businesses
- In US, many manufacturing jobs have been outsourced to lower-cost countries, leading to job losses in industrial regions.
- Rise of Walmart in Mexico led to decline of many local small businesses that couldn’t compete on price and scale.
Social and cultural impacts
Cultural homogenization vs. cultural diversity
- Homogenisation: Globalisation can lead to loss of cultural identity as global brands and entertainment dominate local traditions. E.g Western fast food and Hollywood movies found in almost every country, sometimes overshadowing local cuisines and films.
- Cultural Diversity: At same time, globalisation facilitates the spread of diverse cultural expressions and the appreciation of different traditions. E.g The celebration of Diwali in Western countries or the growing popularity of African music in global markets.
Effects on social norms and global awareness
- Increased global awareness of social justice issues (e.g gender equality, environmental protection) has been driven by international organisations and media. E.g the global #MeToo movement, which started in US, had rippled effects in countries worldwide, raising awareness about gender-based violence.
Environmental impacts
Globalisation’s role in environmental challenges (e.g climate change)
- Increased production and trade have contributed to environmental issues such as deforestation, air pollution, and climate change.
The rise of global environmental movements
- Global awareness of environmental challenges led to rise of movements such as Fridays for Future, led by young climate activist Greta Thunberg, promoting action on climate change. E.g The Paris Agreement, a global pact to combat climate change, reflects international cooperation aimed at reducing global carbon emissions.
