Name the 6 factors influencing globalisation:
- Financial systems
- Major developments in transport technology
- Security
- Communications
- Management and info systems
- Trade agreements
How have financial systems influenced globalisation?
- since the 70s, flows of capital have dramatically increased e.g. banking+insurance= finance is now globalised d2 deregulation, reform of services and developments in comms
- Global finance system= concentrated in world cities- LDN, NYC but flows also go undetected- remittance payments etc
How have major developments in transport technology influenced globalisation?
- Mid to late 20th century- acceleration of time-space convergence, commercial jet aircraft, containerisation etc
- Commercial jet aircraft (50s)-> growth of TNCS (50s)
How has security influenced globalisation?
- continued intervention from HICs in conflict with LICs (e.g. over valuable resources)
- Development of technology has increased the destructive caapcity of weapons and improvements in communications have raised the profiles of extremist groups e.g. ISIS
- Globalisation promotes ecological awareness+ improvements in technology have influenced greater environmental monitoring (many global activities are polluting etc)
How have communications influenced globalisation?
- Transporting materials, goods, and people is now cheaper and faster, influencing changes in transport and communications tech e.g. satellite tech + conventional messages)
- Only large organisations have the resources to utilise these communications tech e.g. TNCs
How have management and info systems influenced globalisation?
- globalisation has created many changes to work and organisations e.g. flexibility of working at home- contrasts early models of production e.g. fordism
- world change from industrial-> post industrial society (goods-> services), social and economic inequalities, extreme deprivation for LICs, incr wealth of TNCs, greater access to products etc
How have trade agreements influenced globalisation?
-world trade organisation (WTO)- rules of trade between nations, global scale-> represent more than 97% of total world trade
- WTO liberalise trade, negotiate agreements, settle trade disputes, organise trade rules to help trade flow
BUT trade relations often involve conflicting interests
How many stores does Walmart have around the world, and outside of the USA?
11,000 stores worldwide
600 stores outside the US- in 26 countries such as China, Japan, UK etc
How are Walmart an example of glocalization in China?
- Chinese prefer leafy vegetables-> the veg section is x2 the size of American Walmarts
- possible to buy chicken feet, pickled lettuce etc (products not found in USA Walmarts)
- 85% of products sold in Walmart China come from 14,000 Chinese suppliers
How did Walmart adapt to German customers when opening in 1988?
German customers did not like ‘friendly greeters’ tradition in USA and found it superficial-> scrapped, instead
‘singles shopping night’ on Fridays- profits increased by 25% and over 30 couples met this way
