GSGG Factors of globalisation

Just in Time

A manufacturing system in which materials or components are delivered immediately before they are required in order to minimize storage costs.

Border security

Has been relaxed in some areas of the world allowing for easier trade but increasing security concerns. E.g. Shengen area in European Union allows for the free movement of people and goods.

TNCs

Have accelerated globalisation through mergers, expansion and shifting production areas.

Management and information systems

Improved transport and communication systems have led to a production revolution, this has transformed how companies manufacture products and distribute them globally.

Security issues

Include supply chain security, crime, anti-terrorism, food and bio-security, fiscal and anti-smuggling.

Mobile phone technology

Is particularly important in Low Income Countries as they connect people, markets and trade in ways that were not previously possible because of high infrastructure costs

The rise of computer technology

Makes information storage more efficient while also making it transferable to other areas almost instantly.

Deregulation of financial markets

Allowed arrangements for the removal or relaxing by governments of barriers to movements of finance.

Collapse of communism

Allowed for more countries to develop liberal free market economies increasing globalization

The Internet

Allows for speedy and 24/7 communication with limited regulation or barriers to the movement of that communication

Schengen Area

An area comprising 26 European states that have officially abolished passport and all other types of border control at their mutual borders.

Transport, Products and commodities

Can be shipped more quickly and in larger quantities as a result of integrating several new technologies, easing international trade.

Improvements in transport include

Containerisation, increase in aircraft size, computerized logistics networks and high-speed rail networks. All increase globalisation.

New technologies, communications and information systems

Mean that information can now be shared easily and cheaply with an audience of billions.

High speed electronic trading systems

Means that financial transactions between importers and exporters can be completed quickly and securely

KOF index

Measures social, economic and political measures of globalisation, on a scale of 0 to 100 with 100 being most globalised.

Banks and financial systems

Operate across the globe and are linked together by transmission lines and communications that allow the flow of money across the globe.

Online security breaches

Serious consequence of globalisation of information and personal data

Capital & Investment

There has been an increase in the movement of capital allow an increase in globalisation

Global value chains

When international production, trade and investments are increasingly organised where the different stages of the production process are located across different countries. Globalisation motivates companies to restructure their operations internationally through outsourcing and offshoring