What is globalisation?
- TNCs - companies around the world
- Leads to glocalisation
- Taking away from local companies
- Communication - social media
- 'Smaller world'
- Easier transportation
- Western influence globally
- Rich get richer
Globalisation - the processes by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers.
- Physical aspects
- VISAs/migration laws
- Laws (China, DPRK)
- Border security
- Social classes
Interdependence between countries means that they are dependent on one another in some way.
Glocalisation - where TNCs source parts close to markets, so they can customise products to meet local tastes and laws (economic and cultural reasons).
Factors affecting globalisation:
- 1930s - average of 11 people on each aircraft. Journey to Bangkok 8 days, now 11 hours
- International trade - large cargo ships
- Technology helps businesses to connect to different countries
- Media coverage
- Employing people in developing countries (no minimum wage)
- Uniformative products e.g. iPhone
- International marketing
- No barriers to trade (e.g. European Union)
- IMF (International Monetary Fund), NATO (North Atlantic Treaty Organisation), UN (United Nations)
- Increase in trade - today, US$8 trillion per year
- China key factor in world trade
- Easy to trade between countries - improved transport and technology/communication
- US and China have the largest travel and tourism economies. Far away from each other - 'smaller world'
- Progressive policies on VISAs and taxation - easier to get to, more tourists
- Will account for 9.5% of total employment - 2014, 227 million jobs
Mulitplier effects - where a change in one part of the economy results in knock-on effects in other parts of the economy.
Impacts of globalisation:
- Some TNCs (e.g. Shell Oil) have higher turnover than the GDP of some countries
- Trillions of dollars are exchanged electronically every day in payments, loans, shares and debt.
- Companies (News International) influence how people think on issues
- A loss of national identity. Companies gain power over national governments. Governments may lose control over their countries
- People with IT, management and finance skills are moving around the world to where jobs exist
- Global tourism has increased, transporting…