Global governance: Globalisation

1) Economies, political systems and culture = becoming more strongly connected

2) No globalisation = no interaction between countries

Complete globalisation = the world would be 1 single community 

Real world = somewhere inbetween 

3) Globalisation caused by movement of information, capital, products, services and labour between countries. This has been happening for a while but properly started in the 80's.

4) World = more globalised = countries more interdependent = led to global scale attempts to manage a range of international issues. 

1) Info spread very quickly and easily acorss the world

2) People living in different countries can communicate and work together - email, social media, the internet.

3) Increasing flows of information = world more interconnected

Capital is money invested

1) Historically capital was invested within a country 

2) Over time more capital has been invested in foreign countries = Foregin Direct Investment (FDI)

3) Improvements in ICT encouraged flows of capital around the world - can be instantly moved around the world via internet

4) Increased flows of capital = world more interconnected 

1) Historically, products were made in developed countries

2) Recently manufacturing decreased in developed countries

3) Low labour costs overseas mean companies relocate production abroad and then import products where they're sold

4) As a result, international trade is increasing 

5) Changing flows of products = world more interconnected

Services are econmoic activities aren't based around products e.g. banking

1) Services can locate anywhere and still serve customers anywhere

2) In 70's and 80's deregulation and opening up of national financial markets. Meant it was easier for financial institutions to do business

3) Services can be split into low level: customer service, less developed countries. And high level: financial services, cities in developed countries. Companies are relocating low level to less developed countries where labour is cheap

4) Increasing flows of service = world more interconnected

Flows of labour = movements of people who participate in workforce from one country to another 

1) More people moving overseas

2) Some migrants are highly skilled workers who move for better pay and working conditions. Unskilled workers move to look for employment 

3) Increasing flows of people = world more interconnected 

1) Marketing = promoting, selling products and services

2) Products sold all over world - marketing has had to become global 

3) Involves treating world as one single market and using one marketing strategy to advertise

4) Economies of scale - cheaper to have one marketing campaign that lots of little ones for each countries

5) Global brand awareness - consumers around the world can identify a name or logo with a particular company 

6) Marketing needs to be adapted to regional markets though - different countries have different laws and cultural attitudes