Interdependence

Definitions

Globalisation: the movement of people, goods and ideas around the world

Interdependence: the way in which countries around the world depend on one another, such as for trade and protection

Environmental issues: issues relating to the damage caused to te environment as a result of globalisation

Human trafficking: the abduction and illegal transportation of people for the purposes of forced labour or commercial sexual exploitation

Terrorism: the unlawful use of violence and intimidation, especially against civilians, in the pursuit of political aims

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Definitions

The United Nations: an international organisation committed to maintaining international peace and security

The North Atlantic Treaty Organisation: an intergovernmental military alliance between 29 North American and European countries

The International Monetary Fund: an organisation of 189 countries working to secure global financial stability through loans

The World Bank: an international financial institution that provides loans to countries of the world for capital projects

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Results of Globalisation

  • Increased international trade
  • Companies operating in more than one country
  • Greater dependence on the global economy
  • Freer movement of capital, goods and services
  • Recognition of companies such as McDonalds and Starbucks in less economically developed countries (LEDCs)
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Reasons for Globalisation

  • Improvements in transportation have meant that goods and people can travel more quickly and cheaply
  • Freedom of trade through organisations such as the World Trade Organisation
  • Improvements of communication due to developments in technology
  • The exploitation of LEDCs' cheaper labour and reduced legal restrictions
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Positive Impacts of Globalisation

  • Inward investment by multinational companies helps countries by providing jobs for locals
  • Multinational companies spending money on local resources, products and servives brings extra money into the local economy
  • The sharing of ideas, experiences and lifestyles between cultures
  • Increased Western awareness of events in the third world
  • Increased awareness of global issues, such as deforestation and global warming
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Negative Impacts of Globalisation

  • Operates mostly in the interests of more economically developed countries (MEDCs), causing exploitation of LEDCs. 
  • Profits are often sent back to the MEDC, meaning the LEDC does not benefit
  • Transnational companies may drive local companies out of business
  • Companies may operate unethically in LEDCs due to a lack of regulation, such as through pollution, disregard of safety hazards, poor working conditions and low wages
  • Threatens cultural diversity due to the Westernisation of other countries
  • Redundancies in the first world due to companies relocating
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Issues Requiring International Co-Operation

  • Technological developments
  • Trade
  • Conflict
  • International terrorism
  • Environmental issues
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