Dimensions of globalisation: flows of capital, labour, products, services and information
flo
flows of capital
his
core regions
money can be invested with profit made from investments the
wealthier, developed
>capital used to be invested in your own country, but increasingly happens abroad through foreign direct investment >n
countries that have
de
power >>today FDI is $1100 billion more than 20 years ago
BY
>>>countries are interdependant on other countries investments (especially emerging/developing countries/economies)
>>
>>
>>
The World Bank
>>
group of global
ch
institution that
Low level services
give out loans for
development or • require less training, and are not as
relief International Monetary Fund (IMF) important to consumers
international corporation that aims • mainly customer service based ,
to: especially call centres as workers only
need basic training to offer advice or to
• foster global monetary
sell products
cooperation flo
• [E.G. IN INDIA - OUTSOURCED HERE AS
• secure financial stability ma
IT IS A ENGLISH SPEAKING COUNTRY]
no
• facilitate international trade
do
• promote high employment and
IT
sustainable economic growth
mo
• reduce poverty around the
co
world
High level services
ser
• important and complicated, or
meaning the person delivering
>h
the service should be qualified
de
and trained so that they can
flows of information deliver the best service possible
due to internet, social media, email and • those who give financial
periphery regions
smartphones - allows for quick spread of services are usually trained and
less wealthy, developing/ less info and people to work together fully qualified as they should be
developed countries that have well-informed to make decisions
=more inter-connected
less power about money.
,Global marketing; patterns of production, distribution and consumption.
Patterns of Production, Distrib
economic environmental
• TNCs trade products internationally and use intl • pollutants from other countries can affect our
outsourcing/offshoring to lower costs climate - e.g China and S.Korea Developed markets dominate the global exports in m
US.
• industries move to LICs to save money on labour, bring econ. • laws and regulations are put in place by
growth there intergovernmental organisations (IGOs) that
affect what we can do to our environment
• trade blocs create eco. integration between states - promote
development EU and the US are the top exporters of agricultural p
are in the top 10, including Brazil, China
• sources of income for intl companies
• global transactions of money (e.g. buying a product from China) social
• intl immigration - creating
EU is the top exporter of fuels and mining products,
multicultural soceities -
Middle-East are also large producers due to the oil in
people can share and adopt
are all in the top 10 exporters of
cultures
political globalisation
• socail networking - tech
• govts form conncections to trade process of becoming more globally
platforms allow people to
(e.g. trade deals and trade blocs) connected on a variety of scales
interact from diff. countries EU dominates the iron and steel exports, but many
• werstern democracies have • movement of people, knowledge, ideas, - more access to intl info India, Brazil and Ukraine are all
influence on global political ideas goods and money across national
• global NGOs and charities -
borders
• deregulation policies - allows improvement of eduaction
markets to grow with an intl reach • borderless world and health (e.g. WHO)
EU and the US are, again, on the leaderboard. The
• intl organisations exist to emerging economies. China is, by far, the largest exp
harmonise national economies and Vietnam (which is not even considered an emerging
political relations e.g. the UN major expo
cultural
• exposure to media sources e.g. tv and social media - allowing a
recognition and understanding of other countries
Chemical exports are dominated by the EU, followed by the US. The
global marketing • ability to travel intl-ally - experiencing other cultures
chemicals, including Switzerland, Japan and Canada. Chemical expo
• allowed businesses to market • individuals have a greater awareness and understanding of
(advertise, promote and sell) their world events - education and news sources
products on an international scale
• westernisation
EU is the second largest exporter of clothing, the majority of clothing
• has grown many businesses due to
is the highest exporter of clothing, as well as India, Turkey and Indo
increased recognition and profit
Vietnam, Cambodia and Bangladesh are all large exporters of clothin
Global marketing involves different within low income countrie
marketing strategies that overall allows Awareness of the brand
the marketing to succeed:
= when a brand creates a trademark easily recognised by
consumers
, Factors in globalisation: the development of technologies, systems and relationships, including financial, transport, security, communications, management and information system
Transport
globalisation
However, in developing countries products & commodities can be shipped
=interconnected world
faster and in larger quantities
• they have less developed infrastructure
• increased travel
• exporters are encouraged to use dry
• global marketing
ports - located inland + closer to
• increased capital/investment business - saving exporter time and
High speed rail
transport cost
• containerisation (in trade)
• >allows shipment arrangement to be
• increased migration Integrating technologie
completed locally
• improvements in transport and
communications - air travel (jumbo jets,
Boeing), telephones
• TNCs Government support Larger aircraft + lower cost airlines
• increased trade economic objectives of a country = to more flows of people and migration
Standa
increase exports = increasing GDP of a
• collapse of communism more integration of cultures through tourism
country • con
and travel
>therefore they have trade departments - • imp
for easing and facilitating exports
• imp
[E.G. UK DEPARTMENT OF TRADE] effi
However recently
In the past
Financial communications and tech - making intl
trade was hindered by problems in financial information
trading easier and faster
exchange (lack of technology)
starts in America
• high speed electronic trading systems
with the designs
• deregulation of financial markets - of products
removal of (trade) barriers - movement
of finance
Food and biosecurity (disease)
Supply chain security finished product
components for consumers in
Europe, US, Canada,
manufactured in
Australia & Mexico
Asia
Crime/ anti-terrorism
Fiscal and anti-smuggling
