Globalisation
EQ1: What are the causes of globalisation and why has it accelerated in recent decades?
3.1 Globalisation and how it changes over time: Globalisation – the process by which people and culture can be transferred globally. The way in which the world becomes more interconnected. Time space compression – developments in technology changes our concept of time and distance. The time it takes to trade globally has been significantly reduced. Shrinking world effect – distant places slowly start to feel closer as they take less
time to reach. Types of globalisations: Economic – global capitalism is spread by TNCs. Cheap labour is found in developing countries.
Social – skilled people move around the world to where they are most in demand.
Cultural – traits such as language and music are adopted globally. Wester traits often dominate e.g. ‘Americanisation’ or ‘mcdonaldsisation’. Political – Trade barriers are reduced or removed. Environmental – treaties and agreements are created to protect the environment.
An example of this is the Paris Agreement in 2016.
Flows:
Flows – the connectiveness of places and how things move around the world.
Transnational organisations flow – businesses operating in more than one nation providing goods and service globally. Global brands that can erode cultures and enhance homogenization. Capital flows – money flows around the stock markets on a daily basis (buying and selling currencies to make profits). Commodity flows – raw materials and manufactured goods are traded and ‘flow’ around the world daily. Informal flows -retail, social networks, internet, flow of information at the click of a button. T ourist flows – budget airlines have increased air passengers and made previously hard to reach places more interconnected. This has supported the growth of a number of emerging economies. Migrant flows – the global flow of people. Migrant workers, long term settlers, asylum seekers and refugees. A complex international product of globalisation. Spatial division of labour – the movement of low skilled labour abroad often to emerging economies where labour costs are low. Transport Innovations: 1800s Steam Power – this allows us to move goods and people on a global scale. This allows Britian to become the leading world power in the 1800s. Steam ships and trains moved goods and armies quickly along trade routes into Asia and Africa. 1800s Railways – significantly reduced the time it takes for us to travel globally. By 1904 the 9,000km trans-Siberian railway connected Moscow with China and Japan. 1950s Containerisation – These allowed us to quickly transport a range of products globally. 1960s Jet Craft – The arrival of jet aircrafts in the 1960s made international travel
more commonplace while recent expansions of cheap flights have brought it to the masses.
Easy Jet: Easy Jet is an example of an airline that over time has increased the number of passengers able to travel to a place for increasingly cheaper prices. This decreases the perceived distance between places as people are able to travel at a more readily available rate. Factors leading to the acceleration of globalisation: T elephone and telegraph: the first telegraph cables across the Atlantic in the 1860s replaced a three-week boat journey with instant communication. This revolutionised how business was conducted. These both remain a core technology around the world.
GIS and GPS: the first global positioning system was launched in the 1970s. There are now twenty-four situated 10,000km above earth. Deliveries can be tracked by companies using vehicle tracking systems helping the growth to be managed. Fibre Optics: With the invention of broad band internet in the 1980s and 1990s, large amounts of data could be moved quickly through cyberspace. T oday enormous flows of data are conveyed across the ocean floor by fibre optics.
Electronic banking: First conceptualised in the mid-1970s with some banks offering electric banking in 1985. Customers who use e-banking tend to be more profitable, loyal, and willing to refer to friends and family. Online customers also maintain higher balances require less customer support than offline customers.
Internet: the internet began life as a part of a scheme funded by the US defence department. Early computer networks were designed in the 1960s as a way of linking important research computers. By 2014 five billion Facebook likes recorded daily.
3.2: Political and economic factors in accelerating globalisation: Bretton woods: Introduced in 1946 as a response to the worldwide great depression. The main aim was the restabilise the world economy. The three main institutions were the world bank, the international monetary fund and the world trade organization. Institutions What are they? Criticisms International monetary fundChannels loans from rich nations to
countries that apply for support. One of the key conditions is that the country opens up its market and industries from government control leading to privatisation. Often leads to environmental or workforce
exploitation. Countries who struggle to pay their debt have to cut funding in areas such as education.
The World BankLoans money to developing nations with the aim of improving development and enabling globalisation. Many critics say this doesn’t benefit developing countries, instead, promoting countries to increase their debts. The World Trade OrganisationAims to liberalise trade by removing tariffs, subsidies and quotas. Failed to prevent the EU and USA from implementing protectionist measure like subsidies. Unsuccessful in creating equal opportunities for all countries to trade.
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