1. Globalisation, factors in globalisation

Define globalisation?

The process by which the world is becoming increasingly interconnected due to factors such as transport, communication and trade. This is linked with the idea that we live in a shrinking world.

Give some examples of our “shrinking world”

• Online shopping - time space convergent

• Easier access to near and far places

• Cyber space information is instant and people can face-time from across the world - overcome the friction of distance

Name and explain 3 ways global flows have changed over time?

1. Global flows have deepened over time. Places and people feel connected in many areas of everyday life eg: imported food + social media

2. Global flows have lengthened over time. Products and services are sourced more from distant places

3. Global flows have grown faster over time. Technology allowed people to transgress space and talk in real time all over the world.

What are the 7 dimensions of globalisation?

Economic, urban, social/cultural, linguistic, political, demographic, environmental

Explain the economic dimension of globalisation? (what is it, what processes is it caused by, what’s it characterised by)

1. Economic globalisation is the intensification of economic interralations around the globe. Includes the emergence of new global economic order (shift from Westernisation → BRICS/tiger countries etc), internationalisation of finance and enhanced role of economic international institutions

2. Caused by increases in free trade, growth of TNC’s, faster + cheaper transport and global marketting.

3. Characterised by long distance flows of goods, capital and services and information exchanges

Explain the urban dimension of globalisation?

Urbanisation is argued to be associated with globalisation. More people are living in cities exposed to different cultures, food, languages etc. This led to world cities developing eg: New York

Explain the social/cultural dimension of globalisation? (what is it, what processes is it caused by, what’s it characterised by)

1. Intensification and expansion of cultural flows across the globe

2. Caused by migration, global communication networks, Westernisation. Cultural diffusion.

3. Eg: spread of food, clothes, film, religion etc. Some argue this makes the world more culturally diverse, some argue it makes the world more homogenised. Also, people are more aware of events across the world due to global news sources. Encourages multi-cultural hybridisation and spread of ideas

Explain the linguistic dimension of globalisation?

Related to the emergence of global languages and disappearance of local dialects. Eg: English has become an international language.

Explain the political dimension of globalisation? (what is it, what processes is it caused by, what’s it characterised by)

1. Intensification and expansion of political interrelations around the globe

2. Caused by growth of political ideologies eg: capitalism and democracy decreasing centralised economies and Westernisation

3. Characterised by increased political influence through the USA and political bodies such as NATO and G20. Former communist countries adopted capitalist-style economic policies, allowing private business and global trade to develop market economies eg: China.

Explain the demographic dimension of globalisation?

7-10% of relationships of interracial which has been increasing in the UK. More people go on overseas holidays. Industry is more footloose meaning people can work from anywhere in the world for some jobs.

Explain the environmental dimension of globalisation?

Least desirable component of globalisation. Many environmental issues such as rising sea levels, climate change, loss of biodiversity are global issues.

What was the first key event of globalisation in 1944?

The World Bank set up helping shape the global economy by establishing economic rules countries must follow to borrow money.

Name 3 tech based examples of globalisation?

1990 - The first proper Windows computers were sold

1996 - Broadband internet became available allowing people to share photographs, videos and music

2004 - Facebook began. A primary driver of digital globalisation effectively creating a "global village" with over 3 billion daily users across its family of apps.

Name a TNC and demographic example of globalisation?

1948 - Jamaicans move to the UK as the Windrush generation increasing the cultural diversity of the UK

1998 - Tesco opened its first overseas store in Asia. Despite Tesco sourcing food from other countries opening in Thailand increased the connectedness of the world.

What is the difference between inter-regional and intra-regional trade flows?

Intra-regional trade refers to the exchange of goods and services within a specific, defined geographic area or economic bloc (e.g. EU). Inter-regional trade involves the exchange of goods between different, separate regions or countries.

Describe the local economy?

• The local economic structure influencing the knowledge and skill base, quality of infrastructure and local institutional structure.

• Impacted by TNC’s creating jobs and the multiplier effect.

• Generates taxes for the national economy

• Vulnerable to change from the global and national economy

Describe the national economy?

• Cultural, social, political structures and institutions

• Impacted by the global shifts in production of goods and services and emergence of new centres of production

• Impacted by the emergence of new global financial systems generating unprecedented flows across national boundaries eg: FDI, World Bank

Describe the global economy?

• Global shifts in the production of goods and services, TNC’s, technological change and development, trade and the emergence of new global financial systems

• Sensitive to top-down issues such as COVID and rapid technological shifts like AI

How has rise of government support been a factor in globalisation?

• National governments have trade networks which facilitate exports by supporting and advising to encourage trade overseas eg: UK trade and investment department (UKTI)

• Governments of large developing countries encourage dry ports as they are located inland saving time and transport costs.

How has rise of finance been a factor of globalisation? Evaluate?

• Deregulation of financial markets allowed for reducing barriers to movements of finance

• Communications technology and high speed electronic trading systems made transactions easier, faster and more secure

• Financial markets are generally located in HIC’s eg: London

However, this could make countries dependant on others and vulnerable if a financial crash were to happen eg: 2008

How is the rise of transport a factor in globalisation?

There has been a reduction in the frictional effect of distance as greater distances can be covered in less time

• Railways – e.g: HS2

• Jet aircraft – increased size of aircraft, integrated air traffic networks, growth of low cost airlines and air freight companies

• Containerisation - allows large volumes of goods to be transported quickly in standardised containers: largest container ships carry 24,000 containers

How is the rise of security a factor in globalisation? Evaluate.

• Globalisation has increased issues in smuggling, terrorism etc → initiatives such as WCO (World Customs Organisation) and regionalised measures such as EU and NATO

• Some argue the piecemeal (slow) introduction has had the opposite effect increasing costs and delays

How is the rise of management a factor in globalisation?

• High volume production → economies of scale, global marketing and distribution, global management.

• Management is increasingly organised within global value chains (production is international) and a global production network → fragmentation

• Remote management of global production networks through ICT and video conferencing

• eg: computer manufacturers Apple and Dell have a production network across America, Europe and Asia for various components

• eg2: fast fashion industry mainly has production in Asia as it relies on fast transport

How is the rise of information systems a factor in globalisation?

• JIT (just-in-time) technology creates greater efficiency and reducing costs by: producing and delivering goods just in time to be sold, parts are made just in time to be assembled etc

• This led to a spatial separation between higher-order business activities (research) and lower-order (production)

• Increase of outsourcing and rapid growth of logistics industry → increased competition between service providers

How is the rise of trade agreements a factor in globalisation? Evaluate.

• Formation of trade blocs to remove/reduce barriers to trade such as tariffs eg: customs unions, free trade areas, economic unions eg: EU

• Facilitates free trade → larger volumes of trade between member nations

• Encourage cooperation + peace + trade helping members develop their economies

• However, there are often tariffs/trade restrictions for non-members + loss of sovereignty as decisions become centralised → members leaving trade blocs e.g. Brexit