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Factors Promoting Globalisation - Coggle Diagram
Factors Promoting Globalisation
Flows of Information
News spread quickly and easily
social media, internet, and email so large amounts of information can be delivered instantly across the globe
people in different countries can communicate and work together
increases
interconnectivity
Flows of Capital
Capital is money that is invested - its spent on something to produce income or increased profit
Makes the world more
interconnected
as countries are dependent on flows of investment to and from other countries
Money invested within a country... overtime... money invested in foreign countries (FDI)
e.g global FDi increased from $400 bil in 1996 to $1500 bil in 2016
Improvements in ICT have encouraged flows of capital around the world through the internet
Flows of Products
Decrease in manufacturing in developed countries
People employed in manufacturing the UK nearly halved from 1985 to 2014
UK imported 200 bil of manufactured goods in 1990 and £550 bil in 2008
Low labour costs
countries set up factories in developing countries and sell products in HICs (home) countries which import them
e.g Apple (TNC)
Products are manufactured in Foxconn Factories in China, then sold all around the world, in countries in predominantly the Western World
increases interconnectivity
International trade in manufactured goods is increasing
Flows of Services
Improvements to ICT means that services (e.g banking) can locate anywhere in the world and still be able to serve the needs of customers anywhere in the world.
Deregulation occured in the 70s, to remove rules to increase competition
This opened up national financial markets to the rest of the world, meaning it was made easier for banks and other financial institutions to do business in other countries.
Low level services e.g customer service (tend to be concentrated in less developed countries where labour is cheaper)
High level services e.g financial services
Flows of Labour
International migration for work purposes or because they are escaping conflict zones.
Some migrants are highly skilled workers e.g in ICT or medical workers, moving to more developed countries where wages and working conditions are better
Flows of people are making the world more interconnected as culture is brought over to the countries they move to