Social Studies Chapter 8

What Are The Different Drivers of Globalization?

  1. Technological Advancements.

  1. The Growth of Multinational Companies.

  1. Examples for Technological Advancements.

  • Advancements in Transportation.

(SPEED)→ For example, in the past using steam-powered trains, it would take 6 hours and 45 minutes go from Tokyo to Osaka. However, with the new advancements in Transportation, the Shinkansen Bullet Train Network only takes 3 hours and 10 minutes to go from Tokyo to Osaka.

(CAPACITY)→ For example, in the 1960s, steam-powered ships were used to transport items around the world, however due to its need to have a large engine and fuel to operate, it took up a large amount of space, reducing amount of goods that could be carried. However, since the 1990s, container ships have been invented and could carry up to 600 000 tons depending on its size, allowing for more goods to be transported at a single time.

(COSTS)→ Back in the 1960s, flying on an airplane was a luxury that many people could not afford other than businessmen and women. However, in the 2000s with the emergence of budget airlines, costs have decreased dramatically, allowing people to fly all over the world at cheaper costs. This is possible due to the usage of fuel-efficient planes and landing at airports with cheaper air fares.

  • Advancements in Digital Technology.

→ For example, back in the past, people would use letters that are transported by sea to communicate with each other. Moreover, these letters would take months to arrive or even get lost as sea making communication unreliable. However, in the current time of the 2000s, mobile phones have allowed for faster and cheaper communication with a range of functions between people, allowing people to communicate across different time zones

How does Technological Advancements Increase Globalization?

→ It allows for globalization to take place around the globe for easily, making the movement of goods, services, knowledge, resources and people more efficient and reliable. It also makes the flow of capital more efficient. It also helps businesses to have access to a larger market, so that demand for goods and services will increase, allowing people to earn more income.

  1. Examples for Growth of MNCs

→ For example, Starbucks is a multinational company that harvest coffee beans from over 30 countries like Asia and Africa. These beans are then transported to coffee bean grounding facilities in the United States and India. Moreover, the coffee beans are then transported to warehouses to be package and distributed all over the world. In 2022, Starbucks’ coffee beans have been distributed to over 35 000 chains in different forms like sachets and ground coffee bean packets.

How Does Growth in MNCs Increase Globalization?

→ Growth in MNCs increase the movement of good, services, knowledge, resources and people more. People from different companies overseas may move to other countries to work in the company facilities for a duration of time, increasing the movement of people and knowledge. People also travel to other countries to obtain certain goods and services of a country, increasing globalization.