Flashcards in Dimensions Of Globalisation Deck (20):
Globalisation is a process by which economies, societies and cultures become more integrated or connected. This is made possible by a global network of trade, communications and migration.
What are the dimensions of globalisation?
Flows of capital
Flows of labour
Flows of products and services
Flows of information and ideas
Global distribution of production and consumption
Define Flows of Capital
This refers to all money that flows between countries which is used for investment
What are examples of Flows of Capital?
• Foreign direct investment (FDI) - $1500 billion in 2016. Usually by TNCs
• Loans from and to global financial institutions - IMF
• Bilateral loans and aid – between 2 countries
• Remittances – payments by diaspora
Define Flows of Labour
This refers to the migration of people mainly in search of better employment opportunities
Describe Flows of Labour
•The flow is largely from periphery to core regions.
•These people are known as economic migrants.
•There has been a 40% rise in international migration between 2000 and 2012.
Describe Flows of Products and Services
Products can flow easily around the world due to containerisation and a reduction in protectionism.
Services can also flow globally. They include financial and insurance services. They can be sub-divided into high level services (to business) and low level services (to consumers).
Describe Flows of Information and Ideas
Globalisation means that ideas and information can flow globally.
This flow has been made possible by:
•Increases in international migration
•Improvements in technology. In particular digitisation and satellite technology leading to widespread use of the internet and mobile communications.
Describe Global Marketing
Marketing refers to the process of promoting, advertising and selling both products and services.
•Global marketing means that companies are able to sell the same product, in the same way everywhere.
•This is an effective strategy for the TNCs as it reduces costs – called economies of scale.
Define Global Marketing
Global marketing means that companies are able to sell the same product, in the same way everywhere
Define Global Distribution
Global distribution refers to the spread of products or services across the world.
TNC refers to a company which has branches in more than one country
Define Global Shift
Global shift refers to the transfer of manufacturing industries from HICs (the core) to NICs (the new core) and LICs (the periphery)
De-industrialisation refers to the decline in manufacturing (secondary industry) in HICs
How has the global distribution of production changed?
Global shift has seen movement of manufacturing plants to NICs – firstly ‘Asian Tigers’ but more recently China. It has also seen the movement of high level services to NICs. In particular to India – this is called outsourcing.
How has the global distribution of consumption changed?
Global shift has seen an increase in spending power and higher demand for good and services. Consumption increases in NICs.
Also rapidly increasing population also leads to higher consumption
Why has the global distribution of production changed?
TNCs seek comparative advantage through lower labour costs and relaxed health, safety and environmental regulations. educational and skills levels can match those in HICs. India has a large educated, English speaking graduate workforce. All supported by government incentives.
Why has the global distribution of consumption changed?
TNCs provide direct and indirect employment in NICs. The local workforce have increased disposable income and can spend this on good and services. Consumption increases in NICs.
What are the consequences of the global distribution of production changing?
De-industrialisation has led to job losses in HICs. Tax revenues fall – the negative multiplier effect. However, jobs are transferred to NICs.