Development and globalisation:What is globalisation and causes

What are the three main forms of globalization?

Economic (Under GATT and WTO, world trade has expanded. TNCs have also been a major force along with emergence of NICs) cultural ( western culture has reached many parts of the world through TV, cinema, internet, newspapers magazines etc.) political (Influence of nation states has diminished in many areas as countries organize into trading blocs. Influence on western democracies on developing countries has been strong)

Factors that promote globalization: Flows of people- What has happened to international migration since 1975?

doubled

Factors that promote globalization: Flows of production - as a result of location changes, international trade in manufactured goods has increased. Give an example in the UK

the UK imported £200 bn of manufactured goods in 1990 £550 billion in 2008

What concept means that HICs are still in a position of control, with many LICs and MICs being exploited for their cheap land and labour

the new international division of labour

define globalization

the process which has created a more interconnected world, due to easier movement of goods (through free trade) and people (due to migration and tourism)

Factors that promote globalization: flows of production- give an example of a company that has moved production and assembly part of their business

the vacuum manufacturing Dyson moved to Malaysia in 2002

Factors that promote globalization: Flows of capital - Global FDI has increased from .......... in 1996 to .............. in 2006

$3 trillion $12 trillion

Factors that promote globalization: what are the main factors? (4)

- flows of capital - flows of production - flows of services - flows of people

Factors that promote globalization: Flows of production - the number of people employed in manufacturing in the UK fell from more than .... in 1985 to less than .... in 2009

-5 million - 3 million

What are the main reasons for the acceleration of globalization since the 1980s? (5)

1. improvements to telephone networks 2. development of the internet 3. improvements in global transport 4. emergence of free market ideas promoted in the 1980s by Thatcher and Reagan, leading to increase in free trade and trading blocs (EU, NAFTA) 5. Deregulation of world financial markets. Financial companies can now scour the world looking for best returns on capital

there has been a rapid growth in globalization over the last ..... years

30

Factors that promote globalization: flows of production- lower labour costs in LICs and MICs has caused companies to relocated the production side of their business give an example

China people can be paid as little as 40p per hour

Factors that promote globalization: What has promoted the free movement of people between member countries?

Social and economic groups such as the EY which are very integrated

Factors that promote globalization: where are high level and low level services located? why? give an example

high level = cities in MEDCs such as London and new York low level = LICs and MICs labour is cheaper e.g. call centres in india employment costs are 10-20% of those in UK

Factors that promote globalization: Flows of people- why is the movement of people more restricted?

immigration policies

Factors that promote globalization: Flows of capital- improvements in what has encouraged the flow of capital around the world?

information and communications technology (ICT)

Factors that promote globalization: flows of services - how can services be split?

low level (customer services) high level (financial services)

Factors that promote globalization: flows of services - improvements in ICT have allowed services to become global industries. During the 1970s and 80s, what was deregulated, and how did this increase flows of services?

opening up of the financial markets to the rest of the world easier for banks and other financial institutes to do business in other countries