Globalisation
• There a time when most regions were
was self-sufficient. Locally produced
economically
foods, fuels and raw materials were generally
processed local Trade between
for consumption.
different regions
• Today, the was quite
of limited.
most are so
economies countries
interconnected theyeconomy.
single, interdependent global form part of a
that
Types of Globalisation
1. Economic
Countries that trade with many others and have
few trade barriers are economically globalised.
2. Social
A measure of how easily information and ideas
pass between people in their own country and
between different countries (includes access to
internet and social media networks).
[Link]
The amount of political co-operation there is
between countries.
Causes of Globalisation:
1. Improved
Communications
• The development of communication
technologies such as internet, email and mobile
phones have been vital to the growth of
globalisation because they help Multi National
Companies to operate throughout the world.
• The development of satellite TV channels
such as Sky and CNN have also provided
worldwide marketing avenues for the concept
and products of globalisation.
Causes of Globalisation
2. Improved Transport
• The development of refrigerated and
container transport, bulk shipping and
improved air transport has allowed the
easy mass movement of goods throughout
the world. This assists globalisation.
Causes of Globalisation:
3. Free Trade Agreements
• MNCs and rich capitalist countries have
always promoted global free trade as a way of
increasing their own wealth and influence.
• International organisations such as the
World Trade Organisation and the IMF also
promote free trade.
Causes of Globalisation:
4. Global Banking
• Modern communication technologies allow vast
amounts of capital to flow freely and instantly
throughout the world.
• The equivalent of up to $US1.3 trillion is traded each
day through international stock exchanges in cities
such as New York, London and Tokyo.
Causes of Globalisation:
5. The Growth of MNCs
• The rapid growth of big MNCs such as Microsoft, McDonalds
and Nike is a cause as well as a consequence of globalisation.
• The investment of MNCs in farms, mines and factories
across the world is a major part of globalisation.
• Globalisation allows MNCs to produce goods and services
and
to sell products on a massive scale throughout the world.
The Effects of Globalisation:
1. Changed Food Supply
• Food supply is no longer tied to the seasons.
We can buy food anywhere in the world at
any time of the year.
The Effects of Globalisation:
2. Division of Labour
• Because MNCs search for the cheapest
locations to manufacture and assemble
components, production processes may
be moved from developed to developing
countries where costs are lower.
The Effects of Globalisation:
3. Less Job Security
• In the global economy jobs are becoming more
temporary and insecure.
• A survey of American workers showed that people
now hold 7 to 10 jobs over their working life.
The Effects of Globalisation:
4. Damage to the
• MoreEnvironment
trade means more
transport which uses more
fossil fuels and causes pollution.
• Climate change is a serious
threat to our future.
The Effects of Globalisation:
5. Cultural Impact
• Websites such as YouTube connect people
across the planet. As the world becomes more
unified, diverse cultures are being ignored.
MNCs can create a monoculture as they
remove local competition and thereby force
local firms to close.
Replacing
The Effects of Globalisation
6. Increase in anti-Globalisation Protests
• There is a growing awareness of the negative
impacts of globalisation. People have begun to
realise that globalisation can be challenged by
communities supporting each other in
business and society and through public
protest and political lobbying.
What Are the Benefits of Globalization?
Globalization impacts businesses in many different
ways. But those who decide to take on international
expansion find several benefits, including:
1. Access to New Cultures
Globalization makes it easier than ever to access foreign
culture, including food, movies, music, and art.
2. The Spread of Technology and Innovation
Many countries around the world remain constantly
connected, so knowledge and technological advances
travel quickly.
3. Lower Costs for Products
Globalization allows companies to find lower-
cost ways to produce their products.
4. Higher Standards of Living Across the Globe
Developing nations experience an improved
standard of living.
5. Access to New Markets
new customers and diverse revenue streams
6. Access to New Talent
Globalization allows companies to find new,
specialized talent that is not available in their
current market
What are the Challenges of Globalization?
One of the challenges is the Loss of Cultural
Identity
While globalization has made foreign countries
easier to access, it has also begun to meld
unique societies together.
The success of certain cultures throughout the
world caused other countries to emulate them.
But when cultures begin to lose their distinctive
features, we lose our global diversity.