Globalisation- Factors accelerating globalisation

Globalisation- Factors accelerating globalisation

1. TNCs

   • Have brought cultural as well as economic changes to places where products are made and consumed
   • TNCs have shifted production from more developed countries to developing countries (GLOBAL SHIFT) and at the same time created global connections and trade links

2. Transport

   • International travel has become incresingly easier. Recent cheap flights companies e.g. Ryan air have allowed mass travel

3. international organisations

   • international Monetary Fund for example has been able to channel loans from the richest countries to countries who apply for help. other examples include WTO and NGOs such as Oxfam who connect places and people through flows aid or debt relief
   • The World Trade Organisations has promoted free trade. Trade blocs like the EU have encouraged free and easier trade between groups of countries. The IMF provides loans to governments to help them develop and trade
   • High oil prices in the 1970s created wealth in countries like OPEC members which kick started their economies and generated wealth that could be invested elsewhere

4. Markets

   • More people have enough wealth to consume large amounts of goods and services. Lead to the growth of stock markets e.g. London, Shanghai
   • The global insatiable appetite for more and more goods, services and food has led to soaring demand for finite resources. Supplies are therefore exploited all around the world. China will be the world's largest market within the next five years
   • Government controls on banks, interest rates and companies have been reduced which has allowed easier access for investments globally on stock markets e.g. Wall Street in New York

5. Communter and IT

   • Computer aided design and manufacturing have allowed it to become more flexible and less reliant on human labour. IT technology allows managers to keep in touch via email and video conferencing

6. Media coporations

   • Large media organisations such as BBC and Fox news, CNN etc are seen all over the world influencing people's ideas and expectations. Movies and TV channels also have a roles to play in changing people's way of life.
     • Large global media corporations like News International CNN and the BBC have global reach and present similar 'world views' of news items which contributes to the feeling of a connected world