Flows of Globalisation

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  • FIVE FLOWS OF GLOBALISATION
    • FLOWS OF CAPITAL
      • All money that moves between countries which is used for investment
      • In the late 20th Century, deregulation of world financial markets mean that the activities of financial institutions (banks, insurance companies etc) were not confined within national borders.
    • FLOWS OF LABOUR
      • People move around the world less easily than money because of restrictions on imiigration
      • Much of the movement over the last few years has been from developing countries in South Asia, Africa and Latin America to richer areas of North America and Europe.
      • Most migrants move over short distances within the same region or between neighbouring regions.
      • The largest flow of labour in the world is in Asia, Around 5 million workers moved from South - West Asia between 2005 and 2010.
    • FLOWS OF PRODUCT
      • International flow f products is facilitated by the reduction in costs of trade, which includes transaction, tariffs and transport and time costs.
      • Transport and time costs have been reduced by the process of containerisation which has enabled more complex and long distance flows of products, as does air transport which can speed delivery and reduce costs of valuable or perishable cargo
      • Most obvious barrier to trade are tariffs, which with the encouragement of the World Trade Organisation (WTO) have generally been reduced in global trade.
    • FLOWSOF SERVICE
      • Services are economic activities that are traded without the production of material goods (e.g financial or insurance services.)
        • Low Level services: Services to businesses such as finance, investment and advertising
          • One trend us been the decentralisation of low level services from the developed to the developing world. Call centre operations, for example, have moved from the UK to India, where labour costs are generally 10-20% lower than the UK.
        • Low level services: services to consumers such as banking, travel and tourism, customer call centres or communication services.
          • Increasingly concentrated in cities in more developed nations (London, New York, Tokyo) which are the major centres of global industrial and financial control.
      • Services such as banking, insurance and advertising depend on communication and the transfer of information.
      • A growing number of transnational service conglomerates have emerged, seeking to extend their influence on a global scale, such as a HSBC Holdings in banking and financial services.
    • FLOWSOF INFORMATION
      • Information flows are governed by the movement of people through migration an by the speed of data and communication transfers.
        • Both factors arre responsible for the transfer of cultural ideas, language, industrial technology, design and business management support.
      • Digitalisation and satellite technology have transformed flows of information.
        • Improvements to global telephone networks, making communication cheaper and easier.
        • Email and the internet enable large amounts of information to be exchanged instantly across the globe
        • Live media coverage available on a global scale because of satellite technology
      • Importance of information flows should not be underestimated because of their contribution to the expansion of knowledge-intensive goods and sevices

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