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what are the causes of globalisation and its acceleration - Coggle Diagram
what are the causes of globalisation and its acceleration
the acceleration of globalisation
-globalisation:"a process in which geographical distance becomes a factor of diminishing importance in the establishment and maintainance of cross border economic, political, sociocultural and environmental relations"
-economic: (eg, amount of remmitances contributes more than 3X aid)
-increased flow and exchanges of resources, goods,services and finances
-growth of global companies, markets and finances
-political: (eg, world trading organisation and 'trade blocs')
-growth of political links between countries, produce goods for each other
-sociocultural: (eg, dominance of western culture)
-spread of products and ideas
causes of globalisation
-global interdependance:
-when 2 countries become completely dependant on each other, either as a result of financial or political connection
-eg, UK depends on China for phones and cheap technology and China depends on UK TNCs
-Nigeria+Saudi Arabia for oil
-America for defence and trade
-communication factors:
-advances in communication have sped up the transfer of information between geographical location
-each new technology has led to a "shrinking world" where geographical distance is less important
-in 1844 the first telegram was sent
-in 1991 the WWW was invented
-in 2006 youtube was released
transport factors affecting globalisation
-advances in transport have enabled and encouraged the flow of people and produces between people and places
-each new technology has lead to a "shrinking world" where geographical distance is no longer as important
-air travel:
-1919 WW1 bomber made first non-stop atlantic crossing
-1970 Boeing 747 launched, carrying 500 passengers at 900km/hour
-containers:
-"containerisation" was associated with a 320% increase in bilateral trade in the 1st 5 years of their introduction (the economist 2013)
-characteristics of pre-container cargo transport:
-slow, labour intensive and tough
-1 ship load of cargo = 100 people including crew
-unloading by hand with basic equipment
-breakages common, insurance costs high
-sickness and accidents, slow work further
-transport and globalisation:
-1 container ship can carry 19,000 containers
-1 million aeroplane passengers are now in the sky at any one time
-this has accelerated globalisation
-invention of steel containers:
-invented by US trucker Malcolm Mclean in 1956
-corrugated steel box- 8ft by 8ft by 40ft/20ft
-can carry 25,000kg of cargo
-twist lock system allows them to be lifted by corners
-Keith Tantlinger persuaded Mclean not to patent it
-this led to standardisation- any ship, crane or truck can use it
switched on/off
-measuring globalisation:
-not all countries can experience globaisation at the same rate
-globalisation can be measured with:
-indicators: single measure
-indices: composite measure
-the KOF index:
-the KOF swiss economic institute produces an index of globalisation that considers political, social and economic factors
-economic: eg, international trade
-political: eg, number of embassies in the country
-social: eg, levels of internet use
-top 3: Netherland, Iceland and Belgium
-bottom 3: Solomon islands, Critea, and equitorial Guinea
-the AT Kearney index:
-measures the level of globalisation of cities
-world cities are those that have global influence
-top 3: New York, London, Paris
-made of 5 dimensions: business activity, human capital, info exchange, cultural, experience and political engagement
-a perfect global city has a score of 100 (composite)
-switched off to globalisation:
-there are physical, political, economic, and environmental reasons that locations stay switched off from globalisation
-eg, low GDP in Burundi- $900 per capita- may affect personal/social globalisation eg, level of internet use
-eg, Burundi's landlocked location affects its economic globalisation through limited ability to trade internationally
-TNCs and switching off:
-it is argued that in the future there will be far fewer countries switched off due to an increase in TNCs and therefore globalisation
-North Korea: (switched off)
-since 1848 NK has run autocratically by a single family who chose to remain politically isolated from the rest of the world
-Kim Jong-Un: supreme leader of the democratic peoples republic of Korea
-NK citizens cannot:
-access the internet
-buy 'western' goods or access 'western' culture
the causes of globalisation
-globalisation doesnt automatically occur due to new technology
-political and economic factors are also significant
-international organisation:
-promote free trade (no taxes or tariffs and encourage FDI), foreign direct investment is a financial injection
-eg, World Trade Organisation (WTO):
WTO founded in 1995, replaced 1948 general agreement on tariffs and trade
-a 'bretton woods organisation' is a organisation established after WW2 to avoid returning to the great depression in 1920, in a meeting at bretton woods
-rhe WTO seeks to create free trade and globalisation while operating trade rules between nations at a global level
-represents 97% of world trade
-positives:
-160 members with a common cause
-free movement of goods and encourages inports and exports
-negatives:
-not all have equal power
-developed countries can group and block/pass as a group
-developing countries would prefer to use taxes/tariffs so they arent out competed
-national governments:
-by encouarging privatisation to lead to the multiplier effect and encourage globalisation
-eg, China:
-since 1978 encouraged globalisation
-achieved rapid growth: since 1978 an annual GDP growth of 10%
-due to globalisation and global shift of manufacturing as a result of the 'open door policy'
-the 'open door policy':
-land reform: farmers can own land and make a profit
-migration: people encouraged to move to cities and work in factories (1978-2000 = > 300 million people)
-economic: special economic zones to encorage FDI in manufacturing with more relaxed rules
-China is now the worlds leading exporter of goods (2.3 trillion US$) eg, 85% of iphones assembled in China
-positives:
80% increase in human development since 1980 (HDI)
-steady employment with secure wages leading to multiplier effect
-investment in infrastructure and services by government
-negatives:
-exploitation of poor workers
-loss of culture due to TNCs
-large environmental impacts (smog)
-poor working conditions
-trade blocs:
-a voluntary group of countries that have developed trade agreements to bring economic strength and security for members
-whithin blocs free trade is encouraged with removed tariffs
-eg, COMESA:
-"common market for eastern and southern Africa"
-19 member states from Libya to Swaziland
-eg, airtel Africa: phone company found in 17 african states, from Kenya originally