Globalisation

Globalisation

1. Process by which people, their ideas and activities in different part of the world become interconnected or integrated

2. What drives globalisation?

   • Dvlpment in Transport
     • Improved transport tools(steam engine)---> greatly increased mobility of goods&people, goods move easily&quickly, ^cost effective-->$.$
   • Dvlpment in Communications
     • IMPROVEMENT IN TECHNOLOGY-->Communicate across globe by tools(INTERNET)-->faster & convenient & efficient, access info abt new products&places easily, coordinate and control worldwide activities easily.
   • Transnational Corporations
     • Large global firms, operate in many countries to source for new markets and lower cost of production--> make economies around world more integrated&interdependent

3. Impacts of Globalisation

   • Economic Impact
     • Improve standards of living
       • Trade and foreign investment-->Increase in income levels,^revenue-->more$$ for public goods and services-->standard of living^
       • Free trade-->consumers can purchase foreign goods-->wide variety of choices-->quality of life^
     • Increased competition among nations
       • TNCs search for lower production costs-->Countries face intense competition in investments and markets
         • How to attract:Tax incentives, tax rebates, duty free trade, develop infrastructure
         • ALL TNCs MOVE TO CHINA
           • eg.Dalian:Well developed infrastructure,>88 air routes, low tax rates, 10 banks
       • High demand for talent
         • stable/shrinking pop countries wif advanced economies want 2 attract talents, strong economies want 2 ATTRACT BACK
     • Widen income gap btwn poor&rich
       • Globalisation-->rapidly increased income gap(rapid development+spread of poverty), TNCs move investments&talent away from poor areas(low pay,low quality of goods etc)
   • Social Impact
     • Increased awareness of foreign culture
       • Through internet, travelling, watching foreign movies--> learn abt different cultures
     • Loss of local culture
       • Global brands enter-->create homogenous culture eg.pop culture(kpop<3), locals feel threathened that foreign culture advancing and replacing theirs.
   • Environmental Impact
     • Environmental degration
       • Deforestation etc.
         • Development of industries, agriculture, housing ,transport-->Loss of nature-->natural disasters(HAZE,FLOODING)--> heavy economic loss eg,China's Three Gorges Project
       • Global warming
         • Movement of goods contribute to global warming, temp^
     • Environmental Management
       • Globallisation brings ^awareness of protecting Earth( need to preserve environment)-->resources working well, generate$$