Factors In Globalisation

Question 1

Outline 10 factors that have influenced globalisation since 1990s

Answer 1

Trade
Communications
Transport
Collapse of communist economies
Transnational corporations
Financial investment
Global marketing,
Travel
Containerisation
Migration

Question 2

How did communication technologies facilitated grows of links between countries?

Answer 2

the development of computer technology

the advent of the internet,enabling speedy 24/7 global
communication at the click of a button; there are 4.5 billion internet users worldwide

the use of mobile phones (mobile phones are particularly important in LDEs as people and markets can be connected more easily); there are nearly seven billion mobile phone subscribers worldwide

computerised logistics systems have evolved to support supply chain distribution.

Question 3

How did financial system facilitated spread of globalisation?

Answer 3

The world became increasingly financially integrated in the 1980s and 1990s due to financial deregulation.

Deregulation made it easier to move finance across borders, making it easier to trade with and invest in other countries.

The global financial system (GFS) provides a framework that facilitates flows of capital for the purposes of financing investment and trade.

High-speed electronic transmission systems and global exchange connectivity means that transactions between importers and exporters can be completed securely with fewer concerns about exchange rates.

One major disadvantage of deregulation and free movement of capital is that it leaves the system exposed to volatile capital flows; this triggered the global banking crisis in 2008–2009.

Question 4

What transport systems contributed to easing international trade?

Answer 4

● increased size of aircraft ;integrated air traffic networks
● growth of low-cost airlines and air freight companies
● the use of standardised containers – by sea, rail,
road and air
● high speed rail networks.

Question 5

Why does global community face a number of security issues as a result of globalisation?

Answer 5

National boundaries are less of a barrier and easier travel means more fluid flows of products and people. This provides opportunities to reduce traditional security measures but also poses a number of threats.

Question 6

Outline some of the security issues occuring as a result of globalisation and how they are addressed

Answer 6

terrorism–screeningandmonitoringmovementsby
security forces as part of counter-terrorism measures

food imports – ensuring that imported products meet required safety standards

biosecurity – preventing the introduction and spread of harmful organisms or biochemical substances in order to minimise the risk of transmission of infectious diseases caused by viruses and bacteria to people, animals and plants

cybercrime – reliance on the internet has led to breaches of secure information, which in turn can lead to online fraud and other online crimes

Question 7

Why management technologies is an important factor in globalisation?

Answer 7

Globalisation is influenced by how large companies operate to produce and distribute goods and deliver services worldwide.
Investments in international production, distribution and management are organised within global value chains, where different stages of the production process are located across different countries.

Question 8

How information systems gave businesses an opportunity fir managing their chains of production more efficiently?

Answer 8

● virtually free telecommunications and video conferencing
● integrated ICT management systems, usually supplied by third-party service providers (for example, Infor Nexus) to facilitate greater supply chain organisation.

Question 9

What does JIT system involve and how this facilitates globalisation?

Answer 9

JIT(just-in-time) involves ensuring the correct quantities of materials, components and assembled goods are available
on time, in the correct location at each stage of production. This reduces costs by having fewer goods and materials held in stock.

Question 10

What are the consequences of implementation of highly-developed management and information systems?

Answer 10

● higher-order business activities being based at corporation headquarters and strategic hubs around the world
● lower-order activities being located at low production-cost
locations or near to large markets for the finished goods
● global corporations focusing on key strategic activities
and increasingly outsourcing non-strategic activities
● a rapid growth of the logistics and distribution
‘solutions’ industry.