Globalisation

Question 1

What are the four main forms/types of globalization

Answer 1

• Economic globalization
• Cultural globalization
• Political globalization
• Social globalization

Question 2

Define Economic globalization

Answer 2

The growth and spread of Trans National Corporations, the rise of NICs and the rise of global economic institutions like the IMF and World Bank

Question 3

What are some examples of an economic globalization

Answer 3

• Outsourcing to India: Many Western companies outsource IT services to Indian firms due to a skilled yet cost-effective workforce, showcasing global labor utilization.
• Apple Inc.: Its products are manufactured in various countries (like China, Vietnam), with components sourced globally. The company’s supply chain and sales span multiple continents, showcasing global interdependence.
• Online Retailers: Companies like Amazon and Alibaba operate globally, selling products worldwide and connecting buyers and sellers across borders.

Question 4

Define cultural globalization

Answer 4

Initially only impact of western culture,
art, media, sport, and leisure pursuits on
the rest of the world.
Now a multidirectional process, as
cultural aspects move all over the globe
through the Internet and migration.

Question 5

Give some examples for a cultural globalization

Answer 5

• McDonald’s and Fast Food Culture: McDonald’s restaurants can be found in numerous countries, offering a standardized menu while adapting to local tastes. This represents the global spread of fast food culture.
• Hollywood Films and Pop Culture: American movies, music, and television shows have a global audience and influence. For instance, the popularity of Hollywood films in countries worldwide contributes to a shared global entertainment culture.
• Social Media and Communication Platforms: Platforms like Facebook, Instagram, and Twitter connect people globally, allowing the sharing of ideas, trends, and cultural practices instantly.

Question 6

Define political globalization

Answer 6

Institutions like the United Nations, regional trading blocs and particularly the influence of western democracies and their influence on poor countries have resulted in political globalisation.

Question 7

Give some examples for a political globalization

Answer 7

• International Organizations: Entities like the United Nations (UN), World Bank, International Monetary Fund (IMF), and World Trade Organization (WTO) foster global cooperation, setting policies and regulations that affect multiple nations.
• Global Governance Initiatives: Agreements such as the Paris Agreement on climate change or the Kyoto Protocol involve multiple countries committing to collective action on global issues.
• Human Rights Advocacy: Organizations like Amnesty International or Human Rights Watch work across borders to advocate for human rights and influence policies worldwide.

Question 8

Give some examples of a social globalization

Answer 8

• Migration and Diaspora Communities: Movement of people across borders leads to the formation of multicultural societies and diaspora communities, contributing to diverse cultural exchanges.
• Social Media and Online Communities: Platforms like Facebook, Instagram, and Reddit connect individuals worldwide, enabling the exchange of ideas, information, and cultural practices.
• Global Sporting Events: Events like the FIFA World Cup or the Olympics bring together athletes and spectators from various cultures, fostering a sense of global unity and shared experiences.

Question 9

When did globalization start?

Answer 9

Globalisation is often thought of as a
recent phenomenon that is driven by
inventions like the airplane or the
internet.
However, globalisation has been taken
place for centuries; it is just that the
pace of this process is accelerating.

Question 10

What was the route called for transport in the history of globalization

Answer 10

The Silk Road: Spanned from Europe
all the way to East
Asia, moving silk and
other products from as
early as the 2nd
century BC.

Question 11

What other driver of globalization took place?

Answer 11

The triangular trade

Question 12

What sped up globalization back in the day?

Answer 12

The industrial revolution

Question 13

Describe three cons of globalization

Answer 13

1. There is supposedly free trade but there are still many barriers on imports.
2. Globalization can raise the problem of inequality everywhere in the world by increasing specialization which results in poverty.
3. Globalization can increase the
   unemployment rate since it demands
   higher-skilled work at a lower price.

Question 14

Describe three pros on globalization

Answer 14

1. Free Trade - reduces barriers such as tariffs and taxes between countries.
2. Free Trade promotes growth and creates jobs. Lowers price for consumers.
3. Poor countries benefit from foreign direct investment - capital - technology

Question 15

Define globalization and
associated key terms and concepts

Answer 15

Process in which regions and
societies get more interweaved
(connected)
OR
Glocalization is the process of adapting brands and products to suit the local market conditions, such as taste, laws, or culture.

Driving force
Advancements in

• Communication
• Transport

world gets ‘smaller’

Question 16

What is time space compression

Answer 16

Process that pushes time and space
together

The world seems to be getting smaller

And more and more interwoven

Global village

Question 17

An other word for standardized dimensions for containers

Answer 17

Containerisation

Question 18

When is the standardized dimensions for containers has a unit of cost of transportation going down?

Answer 18

Can be handled anywhere
in the world
E.g., trucks, trains, ships,
port equipment
•Optimised packaging

Question 19

What is a global city

Answer 19

Also known as world or
alpha city

•Important and most connected node in global network
•E.g., economy, finance, culture, innovation

Mostly connects core and semi-
periphery → resources, products

Question 20

What countries are Alpha ++, Alpha + and Alpha?

Answer 20

Alpha ++ : London and NYC
Alpha + : Dubai, Paris, Tokyo…
Alpha : Amsterdam, Brussels, Chicago, Madrid…

Question 21

What happens when firms with operations produces in more than one country

Answer 21

• Lower production costs (lower wages)
• Lower transport costs (closer to markets)
• Avoid protectionism (no import tariffs)

Question 22

What is a worldwide system

Answer 22

• Maximize production
• Minimize costs
  So
  Communication and
  transport advances

Question 23

What are some pros of MNCs (Multinational corporations)

Answer 23

• Size benefits consumers: lower average costs and prices for consumers.
• Bring advanced technology to developing countries
• Create jobs and wealth for developing economies
• Global standards are set and are expected to be adhered (attached) to
• Access of quality products regardless of the place
• Large profits are consumed for development and research.
  E.g., pharmaceutical industry,
  automobile manufacturers, solar panels and windmills
  -Creation of huge markets domestically and internationally

Question 24

What are some cons for MNCs (Multinational corporations)

Answer 24

• Vulnerable to shocks in different parts of the world that halt production E.g the 2011 Japanese tsunami halted component supplies to the offshore Nissan factory in Sunderland
• Outsourcing jobs can lead to job losses in the home country
• Local cultures and traditions can be
  eroded by TNC brands and western ideas
• Market dominance: small markets and small businesses find it hard to succeed
• Criticized for using ”slave labor“: workers are usually paid small wages.
• Environmental threat: pollution of the environment by using non renewable resources (production and transport)

Question 25

What means glocalisation

Answer 25

Glocalization is a combination of the words “globalization” and “localization“​

Glocalisation is the process of adapting brands and products to suit the local market conditions, such as taste, laws or culture.