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Summary Edexcel Geography (Human) Globalisation
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Edexcel Geography (Human) Globalisation
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Globalisation – Human Geography Notes Paper 2Definition of 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 of technology.
Different Types of Globalisation
1. Cultural Globalisation
• Western Cultural Traits dominate some territories e.g. Americanisation
• TNCs
• The circulation of ideas and information – through social media
• “Global village – glocalisation”
2. Political Globalisation
• Spread through the internet
• Big banks (e.g. IMF) deal with economies
• Trades and global response to natural disasters – IGOs (e.g. world bank)
• G7 and G20
• Trade blocks (e.g. NAFTA and EU)
3. Economic Globalisation
• TNCs increase international exchanges of raw materials, components, finished
manufactured goods, shares, portfolio investment and purchasing
• ICT supports the growth of divisions of labour for firms and a more international
economy
• Online purchasing (e.g. Amazon)
4. Social Globalisation
• Immigration laws
• Global improvements on services
• Social interconnectivity through technology and internet
Causes of Accelerated Globalisation:
1. Free trade – the breakdown of barriers and tariffs increase interdependence and prosperity
2. International organisations (e.g. IMF, WTO and World Bank) – these organisations influence
and connect places through flow of money or aid
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,3. Oil money (petrol dollar) – High oil prices in the 1970s-created wealth in OPEC countries.
Money was loaned to developing countries and this started industrialisation
4. TNCs – These companies have changed the global pattern of consumption and production
5. Communication technology (time space compression) – Computers and Internet technology
has affected how businesses operate and where they can locate. It enabled a deepening and
lengthening of communications
6. Containerisation – The growth of containerised shipping since the 1940s has allowed goods
to be transported further and more economically
7. Financial deregulation – Financial institutions and stock markets have become increasingly
international and money can now be moved between countries quickly and easily
8. Consumers – The global consumers have contributed to soaring demand for goods from
around the world
9. The media – Large global media corporations have global reach and present a similar
worldview of the news, contributing to the sense of a connected world.
10. Cheaper and faster air travel – expansion of low cost airlines has brought air travel to the
masses
11. Education – The quantity and quality of education can determine whether and how
countries can participate in the processes of globalisation, through increased trade and
migration
Globalisation and Politics
IGOs and governments responsible for making key decisions that influence globalisation:
• Trade (trade blocks/agreements)
• Immigration policies
• Development policy
• Foreign policy
• Political and economic decision-making is important factors in the acceleration of
globalisation. International and Economic organisations (e.g. WTO) have contributed to
globalisation through the promotion of free trade policies and foreign direct investment
(FDI).
• Free Trade: a policy by some international markets in which countries’ governments
don’t restrict imports from, or exports to, other countries. Free trade is exemplified by
the European Economic Area (EEA) and the NAFTA which have establish open markets.
• Trade Block: trade agreements that exist between multiple countries – so no taxes,
tariffs in trade
• Foreign Direct Investment (FDI): economic input from a foreign source (e.g. TNCs), it
tries to attract TNCs’ investments.
• Free market liberation (Neoliberalism): 2 beliefs are the government intervention in
markets hinders economic development and as overall wealth increases, trickle-down
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, will take place from the richest members of society to the poorest. This meant
restrictions being lifted on the company and banks operated.
Political groupings:
• Trade blocks differ from economic groupings in 2 different ways:
1. To trade freely agreements have been drawn up that allow national boundaries to be crossed
by flows of goods, money and sometimes workers.
2. Trade blocks contain nations at varying levels of economic development (e.g. Mexico and
USA in NAFTA). This can benefit nations at different level.
Example – the EU:
• 28 nations (Brexit 27?)
• 513 million population
• Largest trading block
• GDP £11.3 Trillion
Roles of IGOs:
1. International Monetary Fund (IMF)
• Created alongside world bank
• Monitors the exchange rate
• 188 members
• Low interest rate
• Aim to reduce inequality
• It channels loans from MEDCs and distribute it to countries that apply for help.
• In return the recipients must agree to run free market economies
• The US exerts significant influence
• IMF rules and regulations can be controversial
2. World Bank
• Aim: to increase income of bottom 40% of people by 2030
• 189 countries
• It lends money on a global scale
• In 2014 $470 million loan was granted to the Philippines for a poverty reduction
programme
• It also gives direct loan to LEDCs (e.g. Democratic Republic of Congo for mega-dam
project)
• It distributed $65 billion in loans and grants in 2014
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, • Imposes strict conditions for loans and grants
3. World Trade Organisation (WTO)
• Aim: trade facilitation
• A forum where governments can go and negotiate different trade agreements
• Aims to promote multilateral trade
• It operates the “trade rules:”
• Supports trade liberalization especially for manufactured goods
• It failed to stop rich countries from subsidizing their own food produces – this affects
farmers in LEDCs.
Political and Economic Decision Making Accelerate Globalisation
Case Study – China Open Door Policy
Background:
• Introduced in 1978 by Deng Xiaoping.
• The reforms allowed China to embrace globalisation but still stay in a one-party
authoritarian rule
• Urbanisation encourages TNCs to start investing in China. Some started trade
relationships with Chinese owned factories in new special economic zones.
• By 1990s the special economic zones generated over 50% of China’s GDP
Location of SEZs:
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