Globalisation

Globalisation

1. What is Globalisation?

   • All the worlds economies becoming integrated
   • It happens because of international trade, international investments and improvements in communication.
   • Countries have become inderpendent as a result of globalisation
   • They rely on each other for resources or services

2. Communications

   • ICT
     • Improvements in ICT include e-mail, internet, mobile phones and phone lines that carry out information faster
     • Made it quicker for businesses all over the world to communicate
   • Transport
     • Improvements in transport include more airports, high speed trains and larger ships
     • Made it easier for people to communicate face to face
     • Made it easier to get supplies all over the world and to distribute their products around the world
   • Call centres abroad
     • Handle telephone enquiries about their business
     • Just as easy to phone a far away country
     • Cheaper labour which reduces running costs

3. TNCs

   • Increase globalisation
     • Companies that produce products, sell products or are located in more than one country
     • Linking countries through the production and sale of goods
     • Located n poorer countries because labour is cheaper- makes more profit
     • Headquarters are located in richer countries
   • Advantages
     • Creates jobs
     • Poorer countries get a more reliable income compared to other jobs
     • TNCs spend money to improve local infrastructure
     • New technology and skills are brought to poorer countries
   • Disadvantages
     • Employees in poorer countries paid lower wages than in richer countries
     • Employees in poorer countries have to work long hours in poor conditions
     • Profits go back to richer countries when it is made in poorer countries
     • The jobs created in poorer countries aren't secure

4. Manufacturing Industry

   • Cheap labour- Minimum wage is very low in some countries or it isn't applied. This reduces the cost of manufacturing goods because factory workers are paid less
   • Long working hours- The rules about working hours aren't strict in NICs compared to places in the EU. This means employees work longer so more product is made
   • Laxer health and safety rules- Fewer health and safety rules in NICs. Lowers the cost of manufacturing because less money is spent on the safety of factories
   • Prohibition of strikes- Some NICs don't allow strikes. This means money isn't lost due to employees stopping working
   • Tax incentives and tax free zones- This increase the profit of TNC because they pay lower taxes
   • Declining in other countries
     • Rich countries have history of manufacturing goods- Manufacturing had declined
     • DEINDUSTRIALATION
     • Manufactures move factories abroad
     • Manufactures close down because they can't compete with the price abroad
     • Lots of manual workers lose their jobs

5. Energy demand

   • Social Impacts
     • More power plants built- people may have to move out of an area
     • Waste from nuclear power plants is radioactive- can cause deaths, illnesses and contaminate land so people will have to move
     • Jobs are created
   • Economic impacts
     • Countries with lots of energy resources will become richer
     • Countries with fewer resources will have to buy energy from them
   • Environmental impacts
     • Burning fossil fuels releases carbon dioxide- increases global warming
     • Acid rain can occur
     • Gathering wood for fuel can cause deforestation
     • Mining for coal causes air and water pollution
     • Transporting oil is a risky business

6. Food supply

   • Economic impacts
     • Using chemicals can be expensive to farmers to grow their crops- become in debt
     • Farmers generate steady income by exporting to other countries
   • Social impacts
     • Some farmers are switch from subsistence farming to commercial farming
     • Reduces amount of food produced for locals- so they have to import food
     • Food prices decrease- farmers don't earn enough money
   • Political impacts
     • Water is needed- farmers need to irrigate land with water from rivers and lakes- conflict between countries that use the same water source
   • Environmental Impacts
     • Carbon dioxide produces- higher food miles, more carbon dioxide produced
     • Carbon footprint
     • Wide rage of food is available all year round
     • More food needs to be produced locally
     • Farmers us marginal land- degrading the environment

7. Reducing impacts of globalisation

   • Kyoto Protocol
     • Cut emissions of carbon dioxide- each country is set an emission target
     • Countries under their target gain carbon credits which they can sell to other countries- reward for low emissions
     • Earn carbon credits by helping poorer countries reduce their emission
   • Reduce poilution
     • International agreements
     • Emission targets to reduce acid rain and other pollution
   • Recycling
     • Recycling to reduce landfills increasing
     • Recycle to make new products
   • Buying locally
     • Reduce food miles
     • Support local farmers