The Challenge of Globalisation

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  • Created by: FloraD
  • Created on: 02-06-16 10:52

Globalisation Quotes

  • "Globalisation is irreversible and irresistible" - Tony Blair, UK Prime Minister
  • "Globalisation is not a policy choice, its an economic and social-cultural fact" - Bill Clinton, ex US President
  • "Globalisation is destroying millions of livelihoods. We must fight back for our survival" - Sarath Fenando, Movement for Land and Agricultural Reform, Sri Lanka
  • "Far from being the cause of poverty and other misery, globalisation is the solution" -  Singapore Prime Minister
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Environmental Globalisation

As the workd integrates, global problems occur (eg global warming, ozone hole) which require global solutions - hence the development of global monitoring systems

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Economic Globalisation

Results from the growht of MNC-led integrated global production systems, global markets and global finance aided by free flows of captial and trade. Intenational organisations such as IMF, World Bank and WTO all contribute to globalisation of economies.

States too encourage FDI thus internationalising investment flows. 

This integration has been facilitated by technological changes responsible for the skrinking world - in information technology, communications and transport. 

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Political Globalisation

As financial systems interlock and trade blocks such as the EU evolve into full unions many people argue that the power of the Nation state has declined, with losses of power ver scale and form of service provision, tax and welfare regimes ad even the shape of the political system itself. Globalisation is heavily linked to capitalist free-market economies.

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Cultural Globalisation

This is made possible by communication technologies which circulate globalised news/media/events. TNCs market world products, hence the concern of over-Americanisation, Big Macs/Coke. Global migration encourages multi-cutural hybridisation.

These movements produce diaspora, ie the dispersal across geogrpahical and political boundaries of those sharing a common culture. 

Some fear the spread of American culture, fuelled by the universal spread of the English language can submerge local cultures and lead to xenophobia and racism.

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Globalisation is Good - Industrialisation in Vietn

Vietnam has the necessary attributes to benefit from globalisation and achieve Newly Industrialised Country-style rapid growth (av 1992-2000 of 8-10% a year). 

Vietnam has a resilient work based economy, comparativelywell educated yet low cost work force, and good access to world markets.

Until recently, foreign investors had been put off by the lack of legal, banking and accounting systems and the archaic infrastructure compared to Malaysia, Thailand or Phillipines. 

Much of the industrialisation has taken place in the South, especially in BinhDuong province (roughly 20 miles North of Ho-Chi Minh City)...marked disparity of wealth between this area and Hanoi. 

Previously, the country was heavily dependent on rice and other agricultural exports but now the leading exports are textiles and garments (19%), petroleum (13%) and footwear (11%). 

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Case Study - Vietnam Singapore Industrial Park

Vietnam Singapore Industrial Park (VSIP joint venture) was established with foreign investment from the two governments and other major investors. 

It represents just one of roughly 30 new industrial and business parks.


  • Employment has increased from 63 in 1997 to 27,000+ in 2004
  • Exports to US now worth more than $38million
  • Now 135 cumulative number of prrojects


  • Globalisation is raising living standards in Vietnam - six-fold rise in GDP in six years
  • Initially accelerated disparities, but gradually industrial developments have spread to lower cost areas in Hanoi and Hue
  • Vietnam has NIC status, but 25% of population live below poverty line
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Globalisation is Bad - Unfair World Trade?

If Africa, East Asia, South Asia and Latin America were to increase their share of world exports by 1%, the resulting gains in income could lift 128 million out of poverty. 

Rich countries spend $1billion every day on agricultural subsidies. The resulting surpluses are dumped on world markets, undermining the livelihoods of millions of smallholder farmers in poor countries. 

When devloping countries export to MEDCs, they face tariff barriers that are four times higher than those encountered by MEDCs - these cost $100bn a year (twice as much as they recieve in aid). 

Action is also needed to reduce inequalities in health, education and the distribution ofincome and opportunity, including those inequalities that exist between men and women. 

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Measuring Globalisation

  • Use of Global Technology - numbers of internet users, internet hosts and secure servers or the quality of international telephone linkages
  • Political Engagement - Number of memberships of international organisations or number of foreign embassies hosted
  • Personal Contacts - Number of passport holders as a percentage of total population, or volume of international tourism, or cross border activity, or volume of international telephone calls
  • Economic Integration - Amount of FDI attracted. Number of HQ of MNEs. Volume of trade flows visible and invisible size of financial markets
  • Cultural Integration - Degree of multi cultural people. Attitudes to immigration, refuges etc. Number of world events hosted
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