Globalisation
- Created by: keeels
- Created on: 09-05-14 18:38
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- Globalisation
- Big global community
- Every country has its own political and economic systems as well as it's own culture
- Globalisation is the process of all the world's systems and cultures becoming more integrated- it's the whole world coming together like a single community with similar, shared systems and cultures
- Globalisation changes how people think of distance and time. People can interact easily with other people anywhere in the world, no matter how far apart they are - it feels like the world is shrinking
- the connections between places are lengthening- new links are being formed between places that are far apart e.g you can fly to pretty much any country and companies operate in multiple countries
- For example, in a globalised world Great Britain could potentially have as much political, economic and cultural interaction with countries on the other side of the world, like New Zealand, as it can with its immediate neighbours, like France
- The connections between places are becoming deeper - more people's lives are increasingly involved with far away places, not just the richest people. e.g anyone can buy products imported from all over the world in their local supermarket, you can easily reach anyone in the world by phone or the internet
- Cultural globalisation - e.g the adoption of western lifestyles by man countries
- Economic globalisation- e.g trading goods with people all over the world
- Past globalisation
- Exploration and war have led to interactions between different populations for thousands of years. This has resulted in the trading and sharing of different cultures, politics and beliefs.
- For example, the Roman Empire spread across (and controlled) large areas of the world around 2000 years ago. They brought a new political system, new technology and a different culture, some of which remained long after they left
- Goods have been traded around the globe for a long time, though the global economy system we know today is a fairly recent development.The recent system started when large companies began to operate in several countries
- e.g in the 17th century the East India Company traded a lot with British colonies throughout east Asia
- Globalisation accelerated in the 19th century because of increasing trade between European empires. Acceleration continued in the 20th century because of increasing trade in the USA. Global trade was slowed by the First and Second World Wars because they severely damaged European economies, slowing globalisation
- Exploration and war have led to interactions between different populations for thousands of years. This has resulted in the trading and sharing of different cultures, politics and beliefs.
- Accelerating
- TNCs
- TNCs are companies that produce, sell or are locked in two or more countries, e.g Sony manufacture electronic products in China and Japan and sell many of them in Europe and the USA
- Some TNCs generate more money than the GDP of some nations, e.g oil companies like Shell
- TNCs bring lots of investment into countries, spread new technologies and can promote particular cultures,, e.g McDonald's bring Western-style fast food to other countries
- Potential investment, the creation of jobs and access to new technology means TNCs can have political influence
- TNCs have grown in size and number in the last 50 years, and are continuing to move into more countries
- They're thought to be one of the main driving forces behind globalisation because of the economic, political and cultural interactions that occur between the countries where they operate
- Improved communications
- Communications can mean transport mechanisms e.g aeroplanes and high speed rail, or information exchanges e.g the internet and email
- Transport meachanisms have been improving since the mid 20th century. more people have easier access to new products and to places that are further away , making people better connected
- Electronic information exchanges allow instant communication for individuals and business to any part of the world
- Better communications make the world seem smaller - distance becomes much less important allowing businesses and individuals to interact with anyone, anywhere
- TNCs
- more Acceleration
- New Markets
- The availability of new markets and stock exchanges encourages more global trade which accelerates globalisation
- The increasing prosperity of developing countries opens up new markets for companies, e.g Western companies can sell more to countries like China and India, which have large populations and increasing wealth
- Global share trading involves buying and selling shares at stock exchanges. Exhanges in less developed countries are getting bigger and attracting more investment e.g Mumbai (India) and Shanghai (China)
- International organisations
- International organisations bring people, money and information together- helping to accelerate globalisation
- The World Bank offers money to poorer nations to help them develop. It provides loans to fund development projects e.g building schools and better roads. Improved infrastructure means poorer countries are more likely to attract international investment, helping to create connectionsbetween rich and poor nations
- The International Monetary Fund is an organisation that regulates the global financial system and lends money to make countries more financially stable. Countries with failing economies find it hard to trade or attract investment. IMF loans increase economic stability, helping these countries to participate in nglobal tracde
- The World Trade Organisation regulates the rules of trade between countries. It's designed to reduce barriers to trade between countries, e.g setting up agreements where traiffs on trade are reduced or removed. this increases trade between countries, which increases interaction and globalisation
- New Markets
- Big global community
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