What is globalisation?
The process by which people, culture, finance goods and infrastructure are transferred seamlessly between countries. It brings people and the world closer together
How has transport helped to speed up globalisation?
- Improvements in transport have reduced the time it takes to trade and communicate globally.
- These improvements have lead to a ‘shrinking world’
How has technology helped to speed up globalisation?
Improved fibre-optic technology has allowed both trade to be facilitated quickly as well as allowing peoplepeople to communicate across continents quickly.
What is the world bank and how does it help globalisation?
The World Bank loans money to developing countries from deposits placed by the worlds wealthiest countries. This increases globalisation as developed countries are becoming more invested in by different countries from across the world
What is the IMF and how does it increase globalisation?
The IMF loans developing countries money if the ensure the privatisation of government owned industry. This allows TNCs to buy into these industries, thus increasing globalisation
What is the WTO and how does it increase globalisation?
The WTO encourages free trade amongst countries in the world. This increase globalisation as it allows countries from around the world to trade freely and easily with each other
How have trade blocs Increased globalisation?
Trade blocs e.g. the EEA promote free trade within their member states. This encourages globalisation as member states trade lots with each other
How has the role of U.K. governments increased globalisation?
- In the 80s, Thatcher’s Government fully embraced market liberalisation and globalisation
- The Government offered tax breaks to companies investing in the new docklands area and grants to foreign companies thinking of setting up in the U.K., thus increasing FDI
How did the Chinese Government increase globalisation?
- In 1978 The Government enacted the ‘open door’ trade policy, allowing Foreign trade and investment
- This encouraged mass investment from the US and Europe, and made China the largest recipient of FDI
- Now, the Chinese government invests heavily globally, most notably in Africa
- The Government has also set up special economic zones. These areas have little to no taxes and so encourages foreign companies to invest or set up in those areas
How does the KOF index measure globalisation?
Measures countries based on:
- Economic globalisation (e.g. FDI)
- Social globalisation (e.g. flows of information)
- Political globalisation (e.g. the country’s membership of different international organisations)
How does the Kearney index measure globalisation?
- Political engagement
- Technological connectivity (e.g. the number of internet users)
- Personal contact (e.g. telephone calls)
- Economic integration (e.g. the volumes of international trade and FDI)
What is Outsourcing and Offshoring?
Outsourcing: When a TNC makes contact with another company to complete some of the work (manufacturing or service), rather than doing it themselves to reduce cost
Offshoring: Where a TNC moves part of its operation to another country, often for lower labour costs, low taxes/tariffs or less stringent environmental legislation
What are some physical factors that cause countries to become ‘switched off’?
-The country May be landlocked or small, thus limiting its trade potential
What are some political factors that cause a country to be ‘switched off’?
A government e.g. N.Korea may choose to not allow foreign trade and so shuts off the country from globalisation
