globalisation
dimensions
flows of information, technology and capital
flows of product and labour
flows of service and global marketing
information and capital can be shared all parts of the world due to cheap and reliable communications
technology (internet, mobile phones) ignores political boundaries when connecting people and places
money flows electronically around the world
HDEs invest in LDES - take advantage of cheaper production cost
transport systems have become more cheaper and efficient in moving people and goods
people move around the world for work - specialised workers moving between different units/companies
tourist can travel easier and to increasing distances - encouraged by global marketing and low-cost flights
marketing is now globalised and uses International strategies delivering inter-continental messages
global products (coca-cola, nike) rely on common global brands
services (global marketing) follow flow of captial, information, people and products
factors in globalisation
new technologies, communications and information systems
information is now shared easily and cheaper
molbie phones are the most important technologies for LDEs as they connect different people, markets and trade
global financial systems
banks and financial services operate across the world and are linked together by vital transmission systems allowing lending and flow of money
transport systems
whole world is more accessible
global transport network allows movement of people and goods across vast distances
brings opportunities and threats (eg spread of diseases)
security
national barrier have become less of a barrier to more mobile and better informed populations
high profile leaks of sensitive information have brought issues of cybersecurity to greater prominence due to our reliance on information systems
international trade
uganda case study
trade agreements
the World Trade Organisation oversees 97% of world trade
without a system of global trading rules, countries would resist some foreign imports whilst favouring others
land-locked
harder to trade as isn't against the sea with a port
rich in raw resources - copper, cobalt
unable to easily extract themselves
need money from other countries (FDI)
TNCS/governments will want money/land/ influence in return
postive or negative?
negative - inequality and injustice
gap between rural and urban areas (higher poverty in rural)
Particularly in north/ north-east where population is mainly smallholder subsistence farmers
when Uganda was under the British empire, East Africa Company strongly influenced the countries exports
positive - stability and growth
low value primary products (coffee, tea and cotton) were exported around the empire
fish is main export but unsustainable
overfishing has resulted in stocks of igneous fish being at risk extinct
causing fish farms/ factories to close causing an effect on the local economy
shambas = small holdings owned by subsistence farmers see positive effects of globalisation
cheap, wireless technology now means that internet is accessible in rural areas
'village phone' offers loan to people wishing to start a mobile phone business
allows purchase of mobiles, car batteries and a booster antenna that can pick signal up for 25km away
eg farmers pay to access the internet and gain information about prices they might pay for seeds
positives
comparative advantage
a country specialised in produced only those goods that can be produced effficiently and at the lowest opportunity cost
economies of scale
producing a narrower range of goods and service - means that a country can produce in higher volumes and lower cost
purchasing power
trends
negatives
increasing trade results in increased competition- lowers prices and allows consumers to be able to buy more for their money
transfer of technology
application of new technologies is incentivised as this may lead to design improvements and cost saving as well as supporting innovation and enterprise
increased employment
increased production for export is likely to result in increased employment - multiplier effect = more jobs created across the world economy
over-specialisation
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