3.1 Globalisation is a long-standing process which has accelerated because of rapid
developments in transport, communications and businesses
Globalisation - is the increasing connectedness of countries around the world through
movement of goods, services, capital and ideas across borders
People and countries have become more connected in four main ways:
Economic globalisation
- Increase of transnational companies (TNCs), many TNCs have higher incomes
than GDPs of many countries + there use of outsourcing and offshoring to lower
costs
- Communications technology - rise in online purchasing
- FDI
- Global transactions of money
- Trade blocs create economic integration
Social globalisation:
- International migration is creating multicultural societies
- Social networking - tech platforms enable interactions with people living in different
countries and access to information information
- Global NGOs
Cultural globalisation
- Exposure to media sources eg social media allows recognition and understanding of
other cultures
- Ability to travel internationally lets people experience cultures eg budget airlines
- More awareness due to education and new sources
- Westernisation - domination of western cultural traits eg starbucks in china
Political globalisation
- Governments form connections to trade eg trade blocs
- Deregulation allow markets to growth with an international reach
- IGOs exist to harmonise national economies and political relations eg UN
- Western democracies influence international political and economic ideas eg
development of free markets economies n former communists states
Global connections
The way global connections are made have changed
- In the past they were made through trade, colonialism and cooperation between
countries
Today:
- Lengthening of connections between people and places eg products obtained from
further away than ever before from trade
- Deepening of connections with the feeling of being deeply connected to other people
and places in every aspect of life
- faster speed of connections, the ability to communicate with others in real time using
new technologies or travelling quickly between continents
, Global flows and interdependent
The world consists of networks (flows) connecting countries together
These flows of movement are:
- Capital - money flows through the world's stock market - the turnover in the global
foreign exchange market reached $7.5 trillion per day in 2022
- Commodities - valuable raw materials are traded globally eg fossil fuels, minerals
etc)
- Information - the internet allows real time communication between countries globally
eg TikTok
- Migrants - the permanent movement of people - still face challenges due to border
controls and immigration laws
- Tourists - budget airlines have made if possible to travel further more easily
These global flows have increased interconnectedness of places which has increased the
interdependence of places
Global flows and interdependence is viewed as a threat by some:
- Imports threatened domestic industries
- Migrants can bring cultural changes and religious diversity (not welcomed by all)
- Information provides citizens with knowledge that governments find threatening (loss
of sovereignty over the population)
- Interdependence means that countries are more vulnerable to external shocks eg
2008 financial crisis (interconnectedness of financial markets), natural disasters,
COVID-19 etc
A shrinking world theory
As technology improves transport and communication, our concept of time and distance
changes so places feel closer than they did in the past (time-space compression)
Developments in transport and trade
Important development in transport:
- Steam power - stream ships and trains moved goods and armies along trade routes
quickly in the 1800s
- Railways - expanded across the world in the 1800s eg HS2
- Jet aircraft - have allowed goods to be transported quickly between countries, and
most recently created competition between budget airlines (eg Ryanair, easyjet tec)
has allowed more people to travel abroad
- Containerisation - lower the cost of transport benefiting businesses and consumers
- there are more than 200 million container movements every year
Development in ICt and global communication
- Telephone and the telegraph - communicating long distances in real time
- Broadband and fibre optics - large amounts of data are carried across the ocean
floor by fibre optic cables in real time reducing cost of communication
- Social networks - connects people and places in real time eg facebook recorded 5
billion likes in 2014
- GPS and GIS - satellites broadcast position and time data consciously so deliveries
can be tracked in real time + essential for modern cars eg google maps
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