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Globalisation - EQ 1 - Coggle Diagram
Globalisation - EQ 1
Types of globalisation
Economic:
- Industries moved to developing countries to save money on labour, brining economic growth there.
- TNCs trade products internationally + use international outsourcing + offshoring to lower costs
- trade blocs - create economic integration between states + promote development
- sources of income from international companies
- global transactions of money e.g. buying something that is shipped from China
Political:
- governments form connections to trade, such as trade deals + trade blocs
- western democracies esp have had global influence on political ideas, e.g dev of market economies in former communist states
- deregulation policies allow markets to grow with an international reach
- international organisations exist to harmonise national economies + political relations e.g. UN
Cultural:
- exposure to media sources e.g. television + social media allow a recognition + understanding of other cultures
- the ability to travel internationally lets people experience cultures
- individuals have a greater awareness + understanding of world events due to
- westernisation - domination of western cultural traits in non-western areas
Social:
- international immigration is creating multicultural societies where people share + adopt cultures
- social networking has revolutionised human connections, as tech platforms enable interactions with people living in different countries + access to international info
- global NGOs + charities are involved in. global improvement of education + health, e.g. world health organisation
Trade blocs
- they create conditions to reduce tariffs + increase trade connecting the member countries
EU: - 27 members + pop of 512 million - has integrated economic policies
- it guarantees free movement of goods, capital + people
ASEAN: - free trade area 10 member, 625 million - incorporates culture specific approach to conflict resolution
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Disadvantages
- Trade distortion: - common external tariff makes goods from non-members expensive, trade distorted as the witch from cheaper non-member
World trade
- is a significant flow in casting globalisation, as well as being a product of it, it has increased steadily in the late 1900s, and has expanded rapidly in the early 2000s
- number of organsiation have helped to promote free trade + end protectionism (idea that a nation wants everything for itself + stop culture erosion).
- In past protectionism has caused:
- taxes + tariffs on imported goods, making more expensive than home-produced goods
- banning foreign
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measuring globalisation
- KOF index: - measures globalisation of countries for political, economic + social indicators, measured on scale 1-100
- political:
- membership of international organisations + trad
- AT Kearney Index: - is a measure of globalised
Glocalisation:
- the process of a TNC adapting their products to suit local markets + cultures
- the process of adapting brands and products to suit the local market conditions e.g. taste, laws or cultrue
- e.g. cadbury's sweeter in china due to local taste
The increasing interdependence + interconnectedness between countries through flows of capital, trade, goods + services, as well as culture + ideas.
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TNCs
- when a firm changed from a national company to a TNC by opening
- Types of flows:
- Capital - are the movement of money for the purpose of investment, trade or business production
- Labour - are the movement of people who move around to work
- Products - physical goods from one country to another
- Services - 'footloose' industries, meaning they can locate anywhere without constraints from resources or other obstacles. services flow as they can be produced in a different country to where they are received
- information - any type of info can flow from one place to another via internet, SMS, phone calls etc, e.g. international news