EQ1: WHAT ARE THE CAUSES OF GLOBALISTATION AND WHY HAS IT ACCELERATED IN RECENT YEARS?

what is globalisation?

- the variety of ways that places and people are becoming ever more closely linked and connected. People, culture, finance, goods and information can be transferred between countries with few/no barriers. - The process by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers

what are the 2 key indexes are used to measure the degree of globalisation within a country?

1) KOF index: economic, political and social/cultural. Procures unreliable data as a small populated country scores highly, whilst a densely populated country score badly. 2) A.T Kearney index: technological connectivity (internet users/hosts/servers), political engagement (treaties & UN Peacekeeping), economic integration (FDI & trade) and personal contact (Telephone Traffic & remittances).

advantages/disadvantages of the AT KEARNEY index

ADVANTAGES It covers 96% of worlds GDP. It covers 84% of world's population. DISADVANTAGES Only 64 countries are included in the index. Doesn't measure cultural trends.

advantages/disadvantages of the KOF index

ADVANTAGES It is calculated on the basis of 24 variables. The index allows comparing degree and changes in globalisation over a large number of countries and more than 30 years. DISADVANTAGES Cultural globalisation refers to the dominations of US cultural products.

international monetary fund

Channels loans from the rich to countries that apply for help. HQ in Washington DC. Aims for secure global financial stability. Loans have conditions that must agree to have a free market economy that are open to FDI. Loans must be spent on economic growth not social factors such as health and education. The rules and regulations can be controversial and strict on financial conditions imposed on governments who may be forced to cut back on forms of investment like education and health.

how has ICT helped economic, social, cultural or political globalisation?

ECONOMIC GLOBALISATION Allows managers of different offices and plants to communicate more easily. Video conferences, etc. this allows the TNC to expand to either sell or make their products. SOCIAL GLOBALISATION Maintaining of long-distance relationships through ICT use is a factor that supports migration. Since 2003, Skype has provided a cheap way for migrants to speak to family they have left behind. CULTURAL GLOBALISATION Cultural traits, such as music or language, are adopted, imitated and hybridised quicker. POLITICAL GLOBALISATION Social networks are used to raise awareness about political issues and to fight for change on a global scale.

what is economic, social, cultural or political globalisation?

Economic globalisation > growth of TNCs accelerates cross-border exchange of raw materials, manufactured goods, etc. > Information and communications (ICT) helps the growth of complex spatial divisions of labour for firms and international economy. > Online purchasing using Amazon on smartphone. Social globalisation > international migrations results in multi-ethnic and pluralist societies emerging. > improvements to healthcare and education = increase in life expectancy and literacy levels. > Social interconnectivity has grown due to phones, internet and e-mail. Cultural globalisation > western cultures becoming more dominant resulting in cultural dilution. > Glocalisation and hybridisation. > Circulation of ideas and information has accelerated due to Facebook. Political globalisation > growth of trade blocks allows TNCs to merge, reducing trade restrictions. > The World Bank, IMF and WTO work internationally to harmonise national economies.

how have global connections increased?

Global connections have been growing continuously for years, but modern globalisation is different to past globalisation. Before the 1940s, globalisation occurred through trade, colonialism and co-operation. However, modern globalisation is characterised by the lengthening and deepening of connections. These connections can be visualised by the idea of networks and flows. Flows of: Capital - through businesses, investment banks and pension funds. In 2013, the volume of these foreign exchange transaction reach US$5 trillion per day. Commodities - valuables raw materials such as fossil fuels, food and minerals. Information - social networks, media and technology. Tourists (due to budget airlines) / migrants.

what is glocalisation?

Glocalisation is the changing of designs of products to meet local tastes, traits or laws. There are geographical variations in: - Peoples tastes (Cadbury makes its Chinese chocolate sweeter) - Religion and culture (Domino's Pizza only offers vegetarian food in India's Hindu neighbourhoods) - Laws (driver's seat should be positioned differently in UK cars to those sold in US) - Local interests - Lack of availability of raw materials (SABMiller uses cassava to brew beer in Africa)

world bank

Lends money on a global scale. HQ in Washington DC. Gives grants to support development and poverty reduction. Loans have strict conditions. All WB presidents have been American citizens. World bank has distributed US$65 billion in loans and grants since 2014.

HOW DO GOVERNMENTS ATTRACT FOREIGN DIRECT INVESTMENT?

Low corporation tax Tax holidays or concessions for investors (temporary removal of tax) Special Economic Zones Export Procession Zones Free or subsidised land Visa approvals for key staff members Subsidies for infrastructure Subsidise for Research and Development

TNCs INFLUENCE ON THE ACCELERATION OF GLOBALISATION

MOTIVE (money/profit) - Achieving of economies of scale to reduce their unit costs e.g. amazon - Developing new products for new customers in new markets e.g. mobiles and computer software - Horizontal integration, expanding at one level of production - Vertical integration, controlling/owning production - Diversifying product range MOBILITY - Fast and cheap transport - Rapid communication systems - New production technology - Global production networks which link to sources of raw materials, finance, manufacturing, market and sales MEANS

NATIONAL GOVERNMENTS INFLUENCE ON ACCELERATION GLOBALISATION

National governments adopt policies that allow TNCs to grow in size and influence. These policies include: Free-market liberalisation (neoliberalistation) Privatisation Encouraging business start-ups

what are the indicators of globalisation on a country?

Number of TNCs Use of ICT Trade Flows Migrations Flows Transport links and Infrastructural development Facebook users

world trade organisation

Started in 1995 to replace GATT. Has 159 members. Based in Switzerland. Advocates trade liberalisation. Deters protectionism. Helps with trade disagreements. Failed to stop the worlds riches countries such as USA and UK from subsidising their own food producers, this protectionism is harmful to farmers in developing countries.

TRANSPORT AND TRADE INFLUENCE ON ACCELERATING GLOBALISATION

Steam power -> 1800s steam technology was used, steam ships and trains moved goods and people quickly. Railways -> 1800s the rail network expanded globally and in 1904 the km Trans-Siberian connected Moscow to China and Japan. Bullet trains in Japan. Jet aircrafts -> 1960s saw the first intercontinental boing 747. Flights are faster, cheaper and more fuel efficient. EasyJet: 800+ flights, 30+ countries, 90 million + passenger journeys per year. Container shipping -> around 200 million container movements take place each year. Malcom Mclean and Keitz Tallinner 1955. Unloading goods quicker = higher labour productivity Safe and secure = low incidence of theft = reducing cost of insurance

ICT INFLUENCE ON ACCELERATING GLOBALISATION

TELEPHONE AND TELEGRAPH - 1860s the first telegraph cable across the Atlantic was built, replacing a three-week boat journey. - Telephone is the core technology for communicating across distances. - In countries where lack of communications infrastructure has been a barrier to economic growth, mobile phones are removing this barrier. 2005, 6% of Africans owned a phone; by 2015, 70% owned a phone due to the fall in price and the growth of provider companies such as Kenya's Safaricom which in 2007 launched M-Pesa that allowed for credit to be transferred directly between phone users. BROADBAND AND FIRE OPTICS - 1980/1990s = large amounts of data moving quickly - Google - More than 1 million km of flexible undersea cables. GIS AND GPS - First GPS in 1970s - 2015 = 24 situated satellites 10 000km above the Earth - Broadcasting position and time INTERNET - 2014 Facebook = 5 billion likes every day