3.1A: What is Globalisation?
Globalisation involves widening and deepening global connections, interdependence and flows (commodities, capital, information, migrants and tourists).
- Globalisation is the process of increasing interconnectivity between countries.
- Globalisation has increased connectedness of the world's economic, social, cultural and political systems.
- economic globalisation: the growth of TNCs, which have a global brand image and presence; the spreading of investment around the world; rapid growth in world trade
- cultural: unifying and diversifying; people using increasingly similar: food, clothes, music, values - many of which are 'western' in origin (from North America and Europe)
- political: spreading ideologies, global organisations (e.g. the UN), the dominance of western democracies in political and economic decision making; spreads the view that democratic, consumerist societies are the most 'successful'
- environmental: agreements (Paris), pollution affecting other countries, species being spread to other countries; global warming is a global threat requires a global solution
- demographic: increasing migration and tourism makes populations more fluid and mixed
Widening and Deepening of Global Connections
- Widening of connections: links to new places, often farther away.
- Deepening of connections: number and type of connections increase, and volume of flows grows.
Interdependence
Globalisation increases interdependence
- This means that the success of one place depends on the success of other places.
- Economic problems in one country can quickly spread to its trading partner and quickly affect people in distant places.
- In April 2011, staff at a Honda factory in Swindon had to work only two days a week due to a shortage of parts following the Japanese tsunami.
- The German DAX (stock market) lost 1.2% within minutes after the tsunami.
Flows
Increase in flows of:
- goods and services (including commodities)
- products and commodities, that can be bought, and are often made or grown in other countries
- capital
- flows of money between people, banks, businesses and governments
- people (including migrants and tourists)
- information
- e.g. data transferred between businesses and people, often using the internet
Other notes: (classwork, not written in specification, may be placed elsewhere soon)
- Globalisation is caused by the development of new technologies and political and economic decisions (e.g. removing tariffs)
- Globalisation began centuries ago, and has accelerated over time, especially in the last few decades. The developments are cumulative, each building on those before in positive feedback.
- However, political and economic decisions can reverse globalisation
- During WW1 and WW2
- Many countries responded to the Great Depression by increasing protectionism
- During decolonisation in the 1950s, 1960s and 1970s many newly independent countries reacted against the perceived exploitative nature of the international trade system by seeking self sufficiency through import substitution.
- In the 1960s people holidayed in the UK or Spain - now holidaying in Dubai or Florida not too exotic
- 1960s: clothes made in UK - now: China, Vietnam, Bangladesh
- 1960s: curry and pasta considered exotic - now: eat food from all over the world
- Even recently isolated places like Sub-Saharan Africa are becoming increasingly connected through trade and tourism
- In the developed world, food, goods, media, music, friends and places visited are increasingly global