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Chapter 8: What does it mean to live in a Globalised world, producers -…
Chapter 8: What does it mean to live in a
Globalised world
Driving forces of globalisation
8.1:Technological advancements in transportation and digital technology
8.1.1: Developments in transportation
technological advancements have led to improvements in land, sea and air transportation
transportation has improved in terms of:
capacity
land, sea and air transportation has also improved in terms of capacity. This means that more people and goods can be carried per trip to different parts of the world
1800s: Steam-powered ships first sailed across the Atlantic Ocean between America and Europe and along shipping routes to Asia. Due to space taken up by its large engine and fuel, it had limited carrying capacity
since 1956: Depending on size, container ships have a carrying capacity ranging from 25,000 to 60,000 tonnes
Containerisation: the method of transporting goods in large, standardised containers. They can be stacked on container ships, enabling large volume of goods to be transported. Since 1960s this method has been widely used globally and made cargo handling in ports more effective thus reducing costs
costs
technological advancements in transportation have sped up the movement of larger volume of goods, services and people per trip around the world, resulting in lower transport costs
1950s: flying was considered a luxury experience and apart from the affluent and business travellers, few people could afford it
since 1990s: with the rise of low-cost airlines, the cost of flights has decreased drastically. with lower airfares, more poepl are now able to afford air travel
speed
different modes of transport such as trains, ships and aircraft have improved in terms of speed. They can now travel faster and cover longer distances
1830s: The Liverpool and Manchester Railway marked at the beginning of steam-powered rail travel. It covered a distance of about 50km and the trains travelled about 48km/h
1 more item...
Link (how does this affect globalisation):
the developments in transportation have led to a "shrinking world" as people, goods and services are able to move around the world more easily, quickly and at lower costs. Business ideas and activities are becoming more interconnected and intredependent globally, thus accelerating globalisation
transport systems are the means where by people, materials and products are transferred from one place to another
8.1.2: Developments in digital technology
Digital technology refers to the electronic tools, systems, devices and resources that generate, store or process data. it also helps to facilitate communication between people, businesses and countries
developments in long-distance communication
For example, many applications such as Whatsapp, Telegram or Facetime can be easily installed on a smartphone. Such applications help people to connect and communicate through message and video calls. these applications can also be used to send different kinds of files ranging from word documents to videos, facilitating discussions and information sharing
(developments in e-commerce?) (i coundnt find in the textbook but whatever)
For example, technological advancements have enabled the electronic transfer of money in business transactions through e-commerce. This enables business to be conducted at a faster pace as it removes the need to make a physical visit to the bank and business can also be transacted internationally.
the exponential development of the Internet also allows for the development of niche business that are home based and conducted online. for example, the internet, through social media apps such as TIktok, has made it possible for sellers to conduct livestreams and promote their goods to viewers, allowing them to reach more people that previously possible with physical shops
Link (how does it accelerate globalisation)
the prevalent use of the internet and social media has enabled people to keep in touch with each other and bring people together to address worthy causes. People can also access information and keep in touch of the news in other parts of the world. This allows the exchange of ideas between people from different parts of the world to happen at a greater frequency and intensity. As a result, ideas and products are shared globally and the world becomes more interconnected
the developments in digital technology have transformed the way many people conduct their business and shopping and this can help promote entrepreneurship and economic growth around the world, making the world more interdependent and interconnected
on the other hand, the use of the internet and social media may also easily create divisions among people, especially between people with differeing perspectives on societal issues. It can also deepen the digital divide between people who have access to digital technology and those who do not
8.2: Growth of multinational cooperations (MNCs)
Multinational cooperations (MNCs) are large cooperations that operate in various countries. Thye usually set up subsidaries or acquire other companies. As MNCs continue to grow in terms of their number and size, they increasingly control international trade and investment
MNCs drive globalisation through their supply chains that are global in scope. A supply chain is a network of individuals and companies involved in creating a product and delivering it to the consumer
MNCs may choose to operate in different countries due to advantages such as more affordable supply of raw materials or labour and the right skils at a lower cost. For example, Starbucks coffee Company sources its coffee beans from more thn 30 different countries across Latin America, Africa and Asia. Thier factories are located in different cities in the United States and India, they also sell their coffee to consumers in over 35000 stores across the world
Example 2: For example, foreign owned MNCs have brought many benefits to Singapore. In a modern knowledge-based economy having concepts and ideas are crucial. MNCs can help facilitate the exchange of ideas. Foreign owned gaming companies such as Hoyoverse and Riot Games establish collaborations with local Singaporean firms and introduce technology that can be applied beyond gaming such as motion capturing. Collaborations allow MNCs and local institutions to build up on each others strengths and expertise to market more relevant products and spur economic growth
Link: - when MNCs set up subsidiaries in other countries, they increase interconnections between people, activities and goods throughtout the world. At the same time, they facilitate the exchange of ideas between countries. With the increasing web of operations owned by MNCs within and between countries, they drive globalisation as more interdependent relationships are established, where operations in one country may affect the operations in another
MNCs have thus been a key driving force in globalisation by helping in the spread of ideas and integrating production processes the world over the global span of these operations drives globalisation as it increases the economic interconnections between people and goods throughout the world. These interconnections can also lead to interdependent relationships between the parties involved in the operations of the MNC
Globalisation
Refers to the process through which ideas and activities of people living together in different parts of the world become
interconnected
these
interconnections
are links created or established among people, businesses and countries through the movement of goods, services, people, knowledge and resources
such interconnections can lead to
interdependence
where developments in the world (global) and developments in a specific place (local) affect one another. It means that events in one part of the world may affect other parts of the world
interconnections and interdependent relationships in a globalised world can be seen in the production and sale of iPhones
producers - make things for sale
consumers are
dependent
on producers, such as Appl Inc., for products like iPhones
Apple Inc,. a producer, is dependent on suppliers from various parts of the world for materials such as lithium, to make iPhones
suppliers are dependent on producers such as Apple Inc,, to buy their raw materials
consumers - buy products or services for their own use
producers like Apple Inc. are dependent on consumers to buy their products
suppliers - provide materials that businesses need for the production of goods