p1 Flashcards
Globalisation:
The growing economic interdependence of countries worldwide through increasing volume and variety of cross - border transactions in goods and services, freer international capital flows and more rapid and widespread diffusion in technology’ - IMF
The connections shown between places represent different kinds of network flow. These flows are movements of:
Capital:
Commodities:
* Information:
Tourists:
Migrants:
Capital:
- At a global scale, major capital (money) flows are routed daily through the world’s stock markets.
- A range of businesses, including investment banks and pension funds, buy and sell money in different currencies to make profits.
- in 2013, the volume of these foreign exchange transactions reached US$5 trillion per day.
Commodities
Valuable raw materials such as fossil fuels, food and minerals have always been traded between nations.
Flows of manufactured goods have multiplied in size in recent years, fuelled by low production costs in China and even lower-waged economies, such as Bangladesh and Vietnam.
In 2015, global gross domestic product (GDP) fell just short of US$80 trillion in value.
Of this, around one-third was generated by trade flows in agricultural and industrial commodities.
Information
The internet has brought real-time communication between distant places, allowing goods and services to be bought at the click of a button.
Social networks have ballooned in size and influence, with Facebook gaining 1.5 billion users by 2015.
On demand TV has increased data usage further. Information is stored in enormous ‘server farms’ such as the Microsoft Data Centre in Washington State and Facebook’s data centre in Lulea, Sweden (where cold temperatures reduce the cost of cooling the hard drives).
Tourists
Many of the world’s air passengers are holiday makers.
Budget airlines have brought a ‘pleasure periphery’ of distant places within easy reach for the moneyed tourists of high-income nations.
Increasingly, people from emerging economies travel abroad too, using budget airlines such as AirAsia and East Africa’s Fastjet.
China is now the world biggest spender on international travel, with 120 million outbound trips made in 2014.
Migrants
Of all global flows, the permanent movement of people still faces the greatest number of obstacles due to border controls and immigration laws.
As a result, most governments have a pick and mix attitude towards global flow: they embrace trade flows but attempt to resist migrant flows unless there is a special need (such as Qatar’s encouragement of Indian construction workers).
Despite restrictions, however, record flows of people are recorded every year.
The combined number of economic migrants and refugees worldwide reached almost one-quarter of a billion in 2013.
The same year, around US$500 billion of remittances were sent home by migrants.
The combined effect of these global flows has been to make places interconnected. One result of this is the increased interdependency of places.
Transport:
Communication and transport technologies have been improving for thousands of years. Each new breakthrough has helped trade to grow in geographical scale -
Technological progress brings unexpected changes to the ways in which companies can operate
Trade:
Capitalist economies are always seeking to increase profits.
One way to achieve this involves conducting research into transport technology to help build new global markets
Economic needs drive some technological changes when companies foster innovation
Time-space compression:
Heightened connectivity changes our conception of time, distance and potential barriers to the migration of people, goods, money and information.
This perceptual change is called time-space compression.
As travel times fall due to new inventions, different places approach each other in ‘space-time’: they begin to feel closer together than in the past.
This is also called the shrinking world effect
Important innovations in transport have included:
Steam power
Railways
Jet aircraft
Steam power
Britain became the leading world power in the 1800s using steam technology. Steam ships (and trains) moved goods and armies quickly along trade routes into Asia and Africa.
Railways
In the 1800s, railway networks expanded globally. By 1904, the 9000 km Trans-Siberian Railway connected Moscow with China and Japan.
Today, railway building remains a priority for governments across the world. The proposed High Speed 2 railway (linking London and northern England) will halve some journey times.
Jet aircraft
The arrival of the intercontinental Boeing 747 in the 1960s made international travel more commonplace, while recent expansion of the cheap flights sector, including easyjet, has brought it to the masses in richer nations.