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Definition: The processes by which people, their cultures, money, goods and information can be
transferred between countries with few or no barriers.
In 1492, Columbus first landed in America, and established European control which shaped the
patterns of trade and the global economy, due to the new connections (how places and people are
linked together) made. Today's global patterns are still largely shaped by those early trading links.
European countries became wealthy, by trading with their colonies (country or area under their
control), who supplied raw materials and labour and then the European nations could become
manufacturers. A core and periphery emerged and geographers use the theory to explain why some
countries become wealthy and other poor.
The core (primary industry): where the most wealth is produced. Global core areas include N.
America, Europe and Japan. They own and consume 80% of global goods, earn highest incomes,
make the most decisions about global economy and provide most global investment.
The periphery (secondary industry):
where the least wealth is produced.
They own and consume the
remaining 20% of global
goods, despite having 75%
of the worlds population, earn
low incomes, make few decisions
and provide little global investment.…read more

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In 1945 when the 2nd world war ended, worldwide economic reconstruction began, and globalisation
became noticeable. The factor that accelerate it were/are:
Transnational corporations (TNC's): cultural and economic changes to places where products are
produced and consumed by companies, such as Coca-Cola and McDonalds.
Transport: In the 1960's the Boeing 747 made international travel more common, and more recently, the
expansion of cheap flight sectors has increased air travel. Secondly containerisation (shipping goods) since
the 1940's has increased globalisation.
Computer & internet (and media): Computer aided design (CAD) and manufacturing (CAM) have made
manufacturing less human reliant allowing firms to become more footloose. And ICT has allowed video
conferencing and emails, allowing TNC's to expand worldwide.
International organisations: Such as the International Monetary Fund (IMF), which channels loans from
worlds richest nations to countries which seek economic help. In return, the requesting country has to
agree to free-market economies, which means TNC's can enter, promoting globalisation. The World Trade
Organisation (WTO) and World Bank also work along side the IMF. Non-governmental organisations
(NGO'S) such as Oxfam, also have had major influence, working to connect places through aid and debt
Type of impact Negative impact Positive impact
Financial Some TNC's have a higher turnover than Cheaper labour is available in developing
countries GDP's. countries to supply consumers in MEDC'S.
Political A loss of national identity as companies gain Expansion of international political
power over national governments. organisations.
Cultural Global tourism increasing to far flung areas. Americanisation - western lifestyles spreading.
People Media has influenced how people think and Jobs in ICT, finance and management are
live too much. moving around the world.…read more

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Effect of globalisation on migration
People are seen as global citizens because we can visit or move to
distant places e.g. UK to Australia. There is a distinct link
between globalisation, inward investment to cities and migration.
Inward investment is where a city takes money from an external
source and uses it to improve their region by investing in
industries, businesses etc. This then leads to job opportunities in
that area which will result in migration to that particular location.
Globalisation has also made it easier to travel, import and export to
other countries. Many choose to invest in china and expand their
businesses their due to cheap labour. This has then resulted in
people migrating to the bigger cities in search of work.
It is important to note, that although globalisation has made it
easier for money, food and goods to travel, for people it has
become harder mainly due to terrorism. America is one of the
strictest countries for letting people cross their boarders, along with
European countries…read more

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Has globalisation reduced global differences?
Traditionally the world was viewed as developed core (north) or developing periphery (south) however
globalisation has made this more complex as some countries are poor but have rich elites and make it hard to
generalise. Countries are now classified as High, Middle or Low, using these indicators and then grouped
politically, economically or by companies (TNC'S):
Economic Development Indicators
Gross National Product (all The value of all the goods and services earned by a company including
trade) companies working abroad (TNCs).
Gross Domestic Product The value of all the goods and services earned by a country excluding
(internal trade) foreign earnings.
Per Capita Statistics providing an average per person.
Purchasing Power Parity Relates average earnings to prices and what they will actually buy.
Human Development Indicators
Physical Quality Of Life Made up of life expectancy, literacy rates and infant mortality.
Human Development Made up of life expectancy, literacy rates, infant mortality and school enrolment.
Human Suffering Index Made up of daily calorie intake, access to clean water, inflation rate, access to
communications, political freedom and civil rights.…read more

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Economic groupings
1) Classifying the world by their wealth. This is done by grouping countries of similar wealth (using
economic + human indicators) and naming them Eg/ Kenya and Vietnam etc were named LDC'S, then
classified as Low, as a group, not as individual countries.
G8 + 5 ­ Aima to create deeper international
co-operation and an understanding of climate
change and international trade.
OECD (Organisation for Economic Co-
operation and Development)
It is a global `think tank' for 30 of the world's
wealthiest nations and ensures wealth is
distributed evenly across the nations.
G20 - This actually has 23 members from
the developing world, and was formed in
2004 with a focus on agricultural trade.
OPEC (Organisation for Petroleum
Exporting Countries) - Established to
LDCs (Least Developed Countries) - NICs (Newly regulate the global oil market. Stabilise
50poorest countries classified by the UN Industrialised Countries) - prices and ensure a fair return for the 11
Countries undergoing member states who between them supply
Ex-soviet states ­ After the break up of industrialisation where 40% of the world's oil.
the soviet Union in '89, there were 15 ex average earning and exports BRIC (Brazil, Russia, India + China) -
soviet states remaining, which scored have increased dramatically They all have newly advanced economic
poorly in HDI and GDP since the 70's. China. development.…read more

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