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Role of Globalisation on Influencing Development in LEDCs - Coggle…
Role of
Globalisation
on
Influencing Development
in LEDCs
Definition
increasing
connectivity
and
interdependence
between countries
normally refers to
economic markets
but includes the
spread
of ideas, culture and political systems.
Who is
Involved?
World Bank
International
Monetary
Fund
United Nations
Trans-National
Corporations
What has it
caused?
reductions in trade tariffs
and other barriers to help
boost global market
global societies, cultures
and technologies to become
more similar
world potentially
evolving into 1
large economy
people around globe
become more connected
to each other
international
communication
is commonplace
In 2016 -
69
of world's top 100 largest
countries/corporations were TNCs
Factors Influencing
Rate
ENCOURAGE
globalisation
technological breakthrough
manufacturing
transportation
info. + communication
example = internet
enhanced connectivity
adoption of standardised
container sizes enabled:
goods be shipped around world
at low cost
multilateral institution
e.g. UN/EU
economic
liberalisation
international economic
integration
raise in Research +
Development costs
move towards free
marketing systems
advents in logistics
management
emergence of global
customer segments
reduction in
trade barriers
example = break-up of Soviet Union
opened former communist countries
growth of Multinational
Corporations (MNC)
operate in more than
1 country and have access
to international markets
headquarters always
in MEDCs
factories and workshops
often in LEDCs
HOLD BACK
globalisation
regulatory controls
emerging new
trade barriers
cultural factors
nationalism
wars + civil
disruptions
management myopia
(always doing something
for the sake of it)
Benefits of
Globalisation
ECONOMICALLY
Increased
employment opportunities
in LEDCs
increased disposable income
earn higher income than traditional employment - cocoa farming in Ghana etc
(LEDCs more able to exploit cost advantages in terms of cheap labour force)
MEDCs through TNCs make
substantial amounts of money
MEDCs set up large businesses
in LEDCs to
make use of
original labour
E.g.
- TNC Cadbury invested in Ghana
Set up '
Cadbury Cocoa Partnership
' in 2008
aims to invest £45mil over 10yrs to help
720,000 cocoa farmers in Ghana
POLITICALLY
caused many countries to
join 'leagues of nations' = EU
In an increasingly global society,
smaller nation in danger swamped
so benefited from grouping together
form
larger, stronger units
EXAMPLES -
WTO - World Trade Organisation
(promote free trade)
UN - United Nations
(promote peace + reduce conflict)
countries
cooperating on
:
economic trade deals
environmental initiatives
social development projects
SOCIALLY +
CULTURALLY
reduction in racial
and national prejudices
people all over the world
educated in different cultures
and societies
TNC Cargill set up in Ghana
'
Rural Education Project
'
resulted 6,000 children graduating
primary school
ability to share info has allowed
combat global crime
syndicates
Tackles issues like terrorism,
human trafficking, and drug running
Problems of
Globalisation
ECONOMICALLY
LEDCs are
still losing out on
trade
to MEDCs
LEDCs still main export of primary
products whilst MEDCs make big profits
through manufacturing
global organisations (WB + IMF)
increasing global poverty
through:
spending power
huge political influence
many companies in
MEDCs losing out
to bigger competitors in LEDCs - where
operating more cheaply
redundancies + unemployment
in LEDCs
POLITICALLY
national governments increasingly influenced
by more foreign concerns + less able
maintain identities
E.g.
lack of ability of UK to control
immigration from EU
more and more
political decisions
are
made by foreign bodies
E.g.
influence of Whitehouse on
Downing Street
ENVIRONMENTALLY
many of
industrial investment
in LEDCs by MEDCs has resulted
in
environmental degradation
E.g.
deforestation in S.America
Pollution Haven Theory
TNCs set up companies in countries
where
disposal of waste materials
is easy/cheap, however
not
always
environmentally safe
SOCIALLY +
CULTURALLY
cultures and beliefs are
slowly being eroded + diluted
Globalisation known as 'Americanisation'
drinking Starbucks, wearing Nike etc
2020 - world changed dramatically by Covid-19 from China
virus
transported
across globe through international business
and leisure
travel
Inter-connectedness
of global society
halted
due to lockdown
By Dec 2020 - 1.5 mil ppl dies + IMF estimated $28trn lost
PLUS SIDE
= successful vaccine no doubt result of globalisation