- Globalisation:- The processes by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers, a grwoing economic interdependence of countires worldwide
Types of globalisation
Economic:- The growth of transnational corporations (TNC), and the growth of world wide trade.
Cultural:- Linked to the growth of TNC's and the makketing of world products such as coca-cola. Also due to improving technologys such as media.
Political:- Dominance of Western democracies in global decision making and the view that democratic societies and the model to which other countires should aspire.
Demographic:- Increasing migration and mixing of populations and cultures.
Environmental:- The realisation that many environmental threats are caused on a global level and are international in there nature.
The world is becoming more deeply inter- connected. More people's lives now connect with far away places ( through cheaper personal travel). It is no longer the richest that are living globally.
This is not true for everywhere. Some nations like West Africa will experience more shallow forms of integration.
The development of Globalisation
In the 19th Century, the British empire was a global network connected by:
- a network of undersea telegraph cables for rapid communications
- Trade in raw materials
- a shared head of state
- The royal Navy
- Attempts at imposing shared culture eg. international cricket
In 1945, the second world war ended and worldwide economic reconstruction began and the international monetary fund was set up.
Development of globalisation- key factors 1850-195
- Improved communications technology for a few MEDCs- emergence of the telegraph- 1850s, development of telephone ad a fist international link 1930s.
- Emergence of early TNCs such as siemens- global market for packaged goods Heinz, coca-cola etc, Development of wireless technology (bbc world services 1921)
- Emergence of international organisations, legue of Nations (1923)- development of air travel, Start of global tourism- Thomas Cook Package holiday.
- Development of global events- Olympic games 1896
- free trade- Removing tariffs (tax of imports~0 had promoted eaier and faster trade.
- International Organisations- Has promoted free trade, and trade blocs have encouraged free trade within countries
- Oil money- High oil prices in 1970s, lead to money being loaned to developing nations, and this started their industrialised state.
- TNC's- have shifted production to the developing world and created global connections.
- communications technology- satelite communications have led to growth of mobile and internet communications.
- Transport technology- containerisation since the 1960's has led to increasingly cheap, automated and efficient methods of transport. Ships can not carry 9000+ containers. Cheap air travel has revolutionised transport.
- Consumers- The global consumer has contributed to soaring demand for goods from all over the world.
- The media- Large global media corporations have contributed to the sense of a connected world.
The IMF is based in Washington, it channels loans from the world's richest nations to countires that apply for help.
The governments then must agree to fun free- market economies that are open to investment from the outside.
Other important organisations that work alongside the IMF are The world trade organisations and the world bank .
SAP'S- Strict conditions imposed on the countries receiving loans from the IMF and the world bank. Recieving governments may be required to cut back on health, education and sanitation and housing programmes in order to repay their debt.
Increasing numbers of people in major world cities have enough wealth to be significant consumers of goods and services.
China is predicted to be the world's largest market for consumer goods by 2015.
Stock markets ( where shares in companies are traded and large amounts of capital can be generated) are no longer just located in the wealthiest countries, but are also located in places such as Mumbai.
A key feature of globalisation is free trade, buying and selling goods without trade barriers such as: tariffs, quotor (restriction on the amount of import.
The idea of free trade is that every county's market will be open and free to businesses from all other countries
Containerised shipping has grown since the 1940s. Allows rapid movement of large volumes of goods to be transported globally. Around 200 million individual container movements are thought to take place every year.
Air travel has also grown rapidly. This has occurred in the case of cultural and economic globalisation.
A key theme is the quickening pace of technological change. Satellite technology, mobiles and the internet have all grown rapidly. Internet was only widely available in 2000.
The speed that information can be exchanged allows managers of offices and plants that are geographically distant to keep in touch more easily.This has allowed TNC's to expand into new territories either to make or sell their products.
TNC's are very large global companies. They have an headquarters, research development establishment and a production centre in many other countries.
Technological advances in transport,along with developments in computerisation and communications have brought about the growth in the size, number and influence these TNC's.
TNC's are usually located in:
- major cities
- around china as they will be able to afford cheap labour
- many in europe as it is a first world country
- America as it is a large country
TNC case study
Globalisation causes migration
Most migrants move for economic opportunity. A some parts of the world have become wealthier, the gap between rich and poor has widened. This encourages migration for better opportunities.
When migrants can not move legally they move illegally towards economic hotspots from LEDC'S to MEDC's.
Three economic hotspots are:
- The USA: up to 10 million immigrants from mexico
- The EU- 5 million illegal immigrants across the eu fringe eg Italy
- The Middle East: Attracts large numbers from south Asia to work in construction and domestic services.
Globalisation is helping to fuel a major movement of people from rural to urban areas in LEDC's. TNC's investing in urban LEDC's act as a magnet for people in the hope of better standards of living.
The international elite
This refers to an economically and socially powerful group . They are very affluent and have skills or financial resources that are highly prized.
- FILM STARS
- PROPERTY DEVELOPERS
- HEALTH PROFESSIONALS
- SPORTS MEN AND WOMEN
Immigration and Emigration flows
Immigration: Movement into a country
Emigration: Exit from a country or reigon
Net emigration:- One half of the territories in the world are currently experiencing net emigration. These are poorer than those with net immigration. Mexico has the highest net emigration
Net immigration:- Regions experiencing the highest net movement in immigration are North America, Western Europe and the middle east. These account for 79.5% of the world net immigration