Detailed Notes - Globalisation - Edexcel Geography A-level

Understanding Globalisation

  • Definition: Globalisation refers to the increasing interdependence of countries due to the flows of capital, trade, goods, services, culture, and ideas.

  • Current Trends: The rate of globalisation is accelerating, with LEDCs becoming more involved in global markets and MEDCs becoming more interdependent.

Causes of Accelerating Globalisation

Economic Factors

  • Transnational Companies (TNCs): TNCs have significant influence, often with revenues higher than the GDPs of smaller countries.

  • E-commerce: Online purchasing across borders is becoming commonplace.

  • Foreign Direct Investment (FDI): Countries are investing in each other, exemplified by the trading of stocks and currencies.

Political Factors

  • Trade Blocs: Groups like NAFTA and the EU reduce tariffs, promoting economic integration.

  • International Governmental Organizations (IGOs): Organizations like the IMF, WTO, and World Bank aim to harmonize economies and promote democratic ideals.

Social and Cultural Factors

  • Migration: International migration creates family networks that spread culture and finance through remittances.

  • Tourism: Increased international travel due to lower costs promotes cultural exchange.

Technological Factors

  • Internet: Facilitates rapid information exchange and the rise of social media.

  • Data Centers: Large server farms support the storage and dissemination of information.

Impacts of Globalisation

Lengthening Connections

  • Travel: People and goods can now travel greater distances.

Deepening Connections

  • Integration: Connections penetrate deeper into various aspects of life.

Speed of Connections

  • Real-Time Communication: Instantaneous conversations and travel enable streamlined communication and movement.

Historical Context of Globalisation

Innovations in Transport

  • Steam Power: In the 1800s, steam technology facilitated rapid movement of goods and military forces.

  • Jet Aircraft: Recent advancements in aviation have made international travel more affordable and accessible.

  • Containerisation: Over 200 million container movements yearly emphasize the importance of efficient global transport.

Technological Advancements

  • Telegraph and Telecommunications: The telegraph revolutionized communication; mobile phones and broadband enhanced connectivity further.

Dimensions of Globalisation

Flows in Globalisation

  • Capital: Money movement for investments and trade.

  • Labour: Migration flows for work opportunities.

  • Products & Services: Movement of goods and the global service industry.

  • Information: Dissemination through digital means.

Barriers to Globalisation

  • Switched-Off Areas: Countries unable to participate in globalisation due to environmental, political, and economic factors.

Inter-Governmental Organisations (IGOs)

Roles and Controversies

  • International Monetary Fund (IMF): Loans to developing nations with conditions that may lead to exploitation.

  • World Bank: Aims to improve development but has been criticized for exacerbating debt issues.

  • World Trade Organisation (WTO): Works to liberalize trade, but faces criticism for failing to ensure fair practices.

Free Market Models

Market Liberalisation and Privatisation

  • Policies: Advocated in the 1980s, leading to the deregulation of the banking sector and widespread privatisation.

Encouraging Business Start-ups and Foreign Investments

  • FDI Types:

    • Offshoring: TNCs establish operations in cheaper labor locations.

    • Mergers and Acquisitions: Companies combine resources to enhance global reach.

    • Transfer Pricing: Profit management through tax havens.

Trade Protectionism

  • Definition: Implements tariffs and quotas to protect domestic industries.

  • Case Study: Chinese steel dumping affected global markets.

Lead-Up to Globalisation: Trade Blocs

Benefits and Drawbacks

  • Benefits:

    • Access to larger markets and increased revenue opportunities.

    • Reliability in essential materials trade.

  • Disadvantages:

    • Excludes non-member countries from trading opportunities.

Measuring Globalisation

KOF and AT Kearney Indices

  • KOF Index: Measures political, economic, and social indicators of globalisation.

  • AT Kearney Index: Assesses globalized cities based on economic, personal, technological, and political factors.

Economic Measures and Indices

  • GNI, PPP, Income per Capita: Different metrics assess economic performance and inequality.

TNCs and Globalisation

  • Role of TNCs: Provide products/services, create jobs, and influence global markets; however, can lead to environmental and ethical challenges.

Understanding Winners and Losers in Globalisation

Economic Changes

  • Global Shift: Migration of manufacturing from the West to the East due to labor costs.

Impacts of Outsourcing

  • Benefits: Job creation in host countries; supporting local economies.

  • Costs: Exploitation and environmental degradation.

Urbanization Trends

  • Push and Pull Factors: Migration driven by employment opportunities, services, and infrastructure.

  • Challenges: Overcrowding, strain on services, and political tensions.

Cultural Aspects of Globalisation

Cultural Globalisation

  • Influence of TNCs and media on food, language, and customs.

  • Cultural Erosion: Vulnerability of traditional cultures to global influences.

Resistance to Cultural Change

  • Examples of state interventions aiming to control cultural diffusion.

Environmental Implications

Sustainability and Localism

  • Rising awareness of environmental costs of globalisation; localism as a counter-movement.

  • Transition Towns and Fairtrade: Initiatives aimed at promoting local economies and fair practices.