What is Globalization?
An increasing interdependence and interconnectedness between countries through flows.
What are the types of flow in Globalization?
- Capital
- Commodities
- People (tourists & migrants)
- Information
Why is globalization happening faster in rate?
It is a continuous process that has been accelerating recently due to its development in technology, trade & transport.
What is the types of Globalization?
- Economic
- Social
- Political
- Cultural
What is the economic benefit of Globalization?
- The growth of TNC’s accelerates cross-border exchanges of goods
- ICT supports growth of complex spatial divisions of labor
- Online markets eg Amazon or ebay
What is the social benefit of Globalization?
- International immigration creates networks of societies
- Global improvements in education & health
- Communications through mobile phones, internet, email.
What is the political benefit?
- Trade blocs (eg NAFTA, EU) allows TNCs to work with other companies in neighboring countries.
- Global concerns of free trade, disaster responses.
- World Bank, IMF, WTO harmonize economies
What is the cultural side of Globalization?
- Countries becoming more westernized eg Americanization
- Glocalization and hybridization
- Ideas & information can be spread easily through social media
What happened during the 20th century of Globalization?
- Advances of transport (aviation)
- Containerization (cheaper goods)
- Time-space compression
What happened during the 21th century of Globalization?
- Advances in ICT and mobile communication
- LEDCs jump out of outdated technology
What happened during the 19th century of Globalization?
- Advances in early transport
- Emergence of TNCs
- UK was the world leader in steam power
What is switched-off places by definition?
- Some places that are not affected by globalization as they are “switched off”
What are factors of switched-off places?
- Physical
- Environmental
- Social
- Political
- Economic
Examples of switched-off places?
- North Korea - a communist dictatorship where people cannot access the internet or move abroad.
- The Sahel Region - has severe water scarcity which leads to many droughts and famines, and includes some landlocked countries
What are TNCs?
Why are they important?
- Transnational Corporation
- TNCs are important aspect of globalization as they can have their HQ, production and sales across the globe.
What is offshoring?
Manufacturing is based in other countries (ie LEDCs)
Outsourcing
Contract another company to do work. However it creates sone risks since natural disasters disrupt supply chains.
Why glocalization promote globalization?
TNCs use this to contribute Globalization where products are adapted to suit the demand the consumers eg McBaguette, France
What is the AT Kearney Index?
Ranks cities based on business activity, cultural experience and political engagement
What is the KOF Index?
Ranks countries based on economic, social, poltical and cultural globalization.
What is an IGO?
What are the main 3 insititutions?
Intergovernmental Organizations to promote free trade policies to encourage FDI.
- WTO
- IMF
- World Bank
What is the BRICS group?
- Brazil, Russia, India, China, South Africa
- Rival of the institutions
- Set up New Development Bank to rival the World Bank
What are the 4 main government policies?
- Free-market liberilization (neoliberlism)
- Privatization
- Offering subsidies
- Encouraging business start-ups
What is neoliberilism?
Removes restrictions and government intervention in markets, this allows to deregulate and act more freely.
