1) What is globalisation and how is it changing people’s lives?
Globalisation: The process of the worlds systems and cultures becoming more integrated – it’s the world coming together like a single community with similar, shared systems and cultures.
Globalisation has been happening for thousands of years due to exploration and war. Resulting in the trading of different cultures, politics and beliefs. In the 16th century the Portuguese starting establishing trading posts (factories) from Africa to Asia and Brazil, to deal with trades of gold spices and timber.
A pattern of movement and relocation of industries (initially secondary but increasingly primary and tertiary) from highly industrialised MEDC’s and NIC’s to emerging/developing countries.
Reasons for global shift:
§ The key players in global shift are MNC’S and TNC’S as they hold enormous economic power, they source materials from LEDC’s and supply worldwide markets in globalised areas.
§ Most TNC’S have headquarters in N. America, Europe and Japan however invests directly into overseas countries for production (FDI – Foreign Direct Investment) due to a range of advantages such as getting around trade barriers and tariffs, and lower production costs.
§ The transport revolution – can easily transport materials around the world
§ The information and communications revolution – broadband, mobile ect allowed globalised production systems to be set up
§ Movement towards free trade.
The result of Global Shift:
Location of industry is changing, and different stages of industry are being undertaken in new locations, labour intensive manual secondary tasks are being increasingly offshored (relocated to TNC factories in low cost countries) or outsourced. Tertiary and Quaternary tasks are still being undertaken in globalised countries, the new redistribution of jobs is the new division of labour. (Link to Clark-fisher model)
Why is globalisation accelerating?
4 key reasons:
The role of TRANS-NATIONAL COPERATIONS (a company located in 2+ countries)
§ TNC’s bring investment into countries, spread new technologies, and promote particular cultures
McDonalds bring western style fast food into other countries; there are McDonalds in 120 countries. They employ 465,000 people globally
§ TNC’s provide political investment, the creation of jobs, and access to new technology meaning they have political influence
§ TNC’s have grown in size and number in the last 50 years and are continuing to expand
§ They are one of the main forces behind globalisation due to the economic political and cultural interactions that occur between countries where they operate.
§ Increasing prosperity of developing countries (switching on) opens up new markets for companies, e.g. western companies can start providing to countries such as china and India, as they have large populations and increasing wealth.
§ Global share exchanging involves buying and selling stock exchanges, exchanges are increasing in LEDC’s and attracting more investment (SHANGHAI AND MUMBAI)
§ These encourage more global trade therefore accelerating globalisation.