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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