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Globalistaion
Process of becoming more globally connected. National boundaries eroded and economies, societies and cultures become more integrated
Types of globalisation
Economic
Political
Social
Cultural
Economic globalisation
Measured by actual flow of trade, investments and restrictions applying tow flows
Social globalisation
expressed as spread of ideas, information and people estimated by personal contact, information flows and cultural proximity
Political globalisation
Characterised by degree of political cooperation. Measured by number of embassies, membership of intention organisation, and number of international treaties signed.
Characteristics of economic globalisation
TNCs
Sources of income
Trade blocs
Global transaction
Characteristics of political globalisation
Government connections
Deregulation policies
International organisations
Western democracies
Characteristics of cultural globalisation
Exposure to media sources
Ability to travel internationally
Individuals awareness of world events
Westernisation
Characteristics of social globalisation
International immigration
Social networking
Global NGOs presence
Flows in globalisation
Capital
Labour
Products
Services
Information
Flows are of gloabalisation.
Dimensions. They are the reason globalisation exists.
Capital flows
Movement of money for purpose of investment, trade or business production
Labour flows
Movement of people who move to work in another country
Product flows
flow of physical good from one country to another
Service flows
Services are ‘footloose’ industries, meaning they can locate anywhere without constraints from resources or other obstacles. Services flow as they can be produced in a different country to where they are received
Information flows
Any type of information can flow from one place to another via the internet, SMS, phone calls etc
Flows of capital: major flows occur between which 4 main groups
Core regions - wealthier, developed countries that have power
Periphery regions - less wealthy, less developed countries that have less power
The International Monetary Fund (IMF) - an international corporation that aims to ‘foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.’
The World Bank - a group of global institution that give out loans for development or relief.
Flows of capital: funding loans
World Bank provides disaster relief and development loans
IMF offers stabilising loans to prevent economic collapse
Flows of capital: Investment and aids
FDI - core regions invest in periphery regions for long term benefits
Bilateral aid so governments send financial help to nations in need
Remittance payments- workers in core regions send money back to families in periphery regions
Flows of capital: economic flows back to core regions
migration - workers from periphery regions contribute to core economy
Repatriation of profits- profits from tics in periphery regions are sent back to core regions
Flow of labour: % of population that are international migrants
3-4 . Majority to HICs as 14.1% of HICs are intentional migrants while LICs are 1.6%
Flow of labour: Within continents, the three major labour flows are between and amount of migrants
1)Asia- S Asia to W Asia. (better job opportunities eg oil rich countries) 63M
2)Europe- E Europe to W Europe (Germany and UK especially). 41M
3)Africa- SA highest migrant population. Neighbouring countries. 19M
Flow of labour: Between continents, the largest labour flows are
1)LAC to N America. 26M. (LAC to USA, esp Mexico to California)
2) Asia to Europe. 20M.
3) Asia to N America. 17M.
Flow of labour: high skilled workers and unskilled workers
Highly skilled workers are highly trained in jobs that require a great deal of skill, eg medicine, science, or ICT. Highly skilled workers may move to HIC as wages are higher for the same job than in LIC.
Unskilled workers are those who are underqualified and don’t have ‘expert knowledge’ in their employment. Unskilled workers also move to developed countries for better wages and usually because of high unemployment rates in their countries. This can lead to overpopulation and exploitation.
Flows of products: integration from international trade
● Products used to be produced mainly in HICs as they had money to manufacture
● Products are now traded internationally due to technological advancements, such as better transportation and communication.
● A lot of production has relocated internationally especially to LICs. These countries often have lower labour costs and reduced taxes, enhancing profits for companies.
● HICs import products from LICs, then sell them at much higher prices to make a profit.
● Emerging economies have increased the flows of consumer products to these countries, as there are more wealthy people.
Flows of services: types of services
High level services: activities that generally require a higher skill level, meaning the person delivering the service should be qualified and trained. Eg financial services; those who give financial services are usually trained and fully qualified as they should be well-informed to make decisions about money.
Low level services: services that require less training, and are not as important to consumers. Mainly customer service based, especially call centres as workers only need basic training to offer advice or to sell products.
Flows of information: types of flows and importance
Fast broadband and connections allows news and financial information to be transferred almost instantly, allowing people to be more informed about globalncurrent events.
● Social media has allowed people to communicate across countries, and allows people to experience other cultures, making people across the world more
interconnected.
● Real time data and data transfers contribute to the ‘knowledge economy’ (quaternary industry). the industry that requires information to develop. The ability to transfer information has created developments in stock markets, high-tech products etc.
● Large databases and archives can be used for research and education.
● The ability to research allows people to seek better employment opportunities, creating more global connections and allowing online,
work-from-home jobs.
Global marketing
Globalisation has allowed businesses to market, advertise, promote and sell their products on an international scale which grows many businesses due to increased recognition and profit.
Global marketing strategies
Capital
financial assets or resources used for investment, production, and trade on a global scale. Usually money
Repatriation of Profits
When multinational companies (MNCs) send profits made in foreign countries back to their home country, impacting local economies by reducing reinvestment in the host country.
Remittance Payments
Money sent by migrant workers to their home countries, contributing to global financial flows and supporting economic development in less developed nations.
Conglomerates
Large multinational corporations that operate in multiple industries and countries, benefiting from global trade and economies of scale.
Tariff
A tax imposed on imported goods to protect domestic industries or generate revenue, often a key factor in global trade policies.
Protectionism
Government policies that restrict international trade to protect local industries from foreign competition, often through tariffs, quotas, or regulations.
Containerisation
A shipping method using standardised containers, making global trade more efficient by reducing costs and improving transport speed.
Dimension of Globalisation
The different aspects of globalisation, including economic (trade and investment), political (international agreements), social (cultural exchange), and environmental (global challenges like climate change).
Economic Leakages
When money flows out of an economy rather than being reinvested, often due to repatriation of profits by multinational corporations or reliance on foreign goods and services.
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