Factors which promote globalisation
- Created by: alex robinson
- Created on: 05-01-13 11:50
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- Four factors which promote Globalisation
- Flows of Capital
- Money that's invested
- The amount of money invested in foreign countries has increased - This is FDI
- E.G. Global FDI increased from $3000 billion to $12000 billion
- Improvements in ICT means that info can be instantly transferred across the world
- Increasing flows in capital makes the world more interconnected
- E.G. Countries are dependant on flows of investment
- Flows of Production
- Manufacturing industries were located in MEDCs and products were sold in those countries
- Manufacturing has decreased in MEDCs
- Lower labour costs have lead to outsourcing of manufacturing and importing of the products made
- Increase in international trade
- UK imported £550 billion in 2005
- Increase in international trade
- More interconnected - buying goods from other countries
- Flows of Services
- Tertiary sector
- ICT allows things like banking to be done anywhere in the world for other parts of the world
- During the 70s and 80s there was a deregulation of national finance markets (USA and UK) -> easier for banks to do business with other countries
- High level services are in MEDC cities (New York and London) whereas low level are in LEDCs where labour is cheaper (call centres)
- More interconnected - by having a bank account you are connected internationally
- Flows of People
- International migration has doubled since 1975
- Both economic migrants and refugees
- More interconnected because people bring aspects of culture with them
- High skilled workers move to MEDCs for better wages and working conditions
- Low skilled workers move because of unemployment and low wages in their own country
- International migration has doubled since 1975
- Flows of Capital
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