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Geography- Global Systems and Governance > Globalisation > Flashcards

Flashcards in Globalisation Deck (18)
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1

Globalisation

A process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, and transport

2

5 Dimensions of Globalisation

Flows of Information
Flows of Capital
Flows of Products
Flows of Services
Flows of Labour

3

Flows of Information Key Points

News, financial data
Email, internet, social media
People in different countries can communicate
Interconnected- learn about different cultures
Share ideas- development

4

Flows of Capital Key Points

Money invested, historically within a country
FDI increased by nearly 4 times in last 20 years
Deregulation of financial services

5

Why was the Deregulation of Financial Services a positive for flows of Capital?

Money moved more easily across national boundaries for:
Trade
Investment
Production

6

Flows of Products Key Points

Historically made and sold in same country
Now made in LIC's- reliance
Containerisation
WTO removal of taxes and tariffs encouraged global trade

7

What reduces Flows of Products?

Protectionist economies

8

Flows of Services Key Points

IT = global banking
Footloose companies
Deregulation of financial services means access to large markets
Low level services to LIC's, cheap labour
High level services to HIC's

9

Flows of Labour Key Points

International- some level of wealth and education
Can lead to better working conditions
Can lead to worse conditions i.e. Filipino builders in Saudi Arabia live in slums
Interconnected- mix of cultures, family all over the world

10

Importance of Marketing for TNC's

Promoting and selling products everywhere
1 single market = 1 strategy
Economies of scale- cheaper- increase profit
Brand awareness

11

Why do TNC marketing campaigns need regional adaptation?

Different laws
Different cultural attitudes i.e. alcohol

12

5 Factors affecting Globalisation

Transport
Financial
Management and Information Systems
Communications
Security

13

Factors affecting Globalisation: Transport

Containerisation
High speed rail and faster planes, people and products move around more quickly
Cars and infrastructure

14

Factors affecting Globalisation: Financial

Links to technological advances and relaxed trade barriers
Internet means a potential investor can research a company- informed decisions

15

Factors affecting Globalisation: Management and Information Systems

Allowed companies to change how they manage themselves
i.e. R&D, manufacturing, sales rarely on same site
Instant communication
Global transfer of money

16

Factors affecting Globalisation: Communications

Satellites first launched in 1960's- cheap wireless communication
Optic fibres- fast, almost instant communication
Rise in social media and instant messaging

17

Factors affecting Globalisation: Security

Online security breaches cost £1.5 million each in UK
Global trade increases global security as countries are less likely to go to war
World Customs Organisation- stays ahead of crime relating to movement of goods and services
i.e. Illegal weapons trade, drug enforcement
EU Secure Operator Initiative - important with the relaxed tariffs of the trade agreement, if too long movement of goods is slowed

18

HSBC

4th largest bank- 10 million customers
9,500 branches in 85 countries
First Direct, Bank of Bermuda (feels less global- more trusted)
HQ: Canary Wharf
Call Centres: India