Globalisation Basics - Causes and effects table in A Level and IB Geography

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Created by: Simpson.e
Created on: 21-03-15 20:04

Globalisation Basics

Causes

Capital is money invested.
Historically invested within a country.
Over time, capital invested in foreign countries increased (Foreign Direct Investment).
Information and Communications Technology improvements.
Increasing capital flows.

Effects

Get income or increased profit.
Companies expand; build new factories or set up new branches in country of origin.
EG.Global FDI increased $3000B 1996 to $12000B 2006.
Encouraged capital flows around the world eg.instantly moved via the internet.
World more interconnected eg. most economies now independent on investment flows to and from other countries.

Overall summary

Increased flows of capital on a global scale has led to the independence of the majority of economies, helped by ICT improvements and increased FDI.

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