Edexcel AS Geography Unit 1 Global challenges Going global Globalisation.

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Presentation transcript:

Edexcel AS Geography Unit 1 Global challenges Going global Globalisation

Edexcel AS Geography Unit 1 Going global: Globalisation What is globalisation? The International Monetary Fund’s (IMF) definition of globalisation is: ‘the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services, freer international capital flows, and more rapid and widespread diffusion of technology.’

Edexcel AS Geography Unit 1 Going global: Globalisation Aspects of globalisation

Edexcel AS Geography Unit 1 Going global: Globalisation Globalisation and you Economic: rising petrol prices, food from the ‘global village’ Technological: the latest gadgets Political: the global ‘war on terror’, the Millennium Development Goals, events such as ‘Live 8’ Cultural: global music, art and fashion Demographic: new migrations of people Environmental: global climate change, biodiversity hotspots

Edexcel AS Geography Unit 1 Going global: Globalisation A ‘shrinking world’ (1) A shrinking world: the time taken to navigate the globe

Edexcel AS Geography Unit 1 Going global: Globalisation A ‘shrinking world’ (2) internet and satellite connections have speeded up financial flows and business decisions the costs of communication have fallen containerisation has reduced shipping costs cheap flights have brought air travel to the masses in richer nations English has become the international language of business Developments in communications and transport have reduced the importance of distance and this has aided globalisation. For example:

Edexcel AS Geography Unit 1 Going global: Globalisation Growth in world trade As transport and communications have grown, global trade has expanded phenomenally. The World Trade Organization has organised a succession of trade agreements that have increased free trade. Many countries, especially newly industrialised countries (NICs), have benefited from this growth in trade.

Edexcel AS Geography Unit 1 Going global: Globalisation Transnational corporations Other factors apart from transport, communications and trade developments have accelerated globalisation. Transnational corporations (TNCs) have grown and developed global production and sales networks. For example, Toyota has plants in 26 countries and sells its products in 140 countries. Seeking low-cost production locations, TNCs have spread into NICs and these countries have become tied into the global network.

Edexcel AS Geography Unit 1 Going global: Globalisation The ‘global shift’ The changing location of production is termed the ‘global shift’. This began in the 1950s and 1960s as low-tech production (e.g. textiles, toys) was moved to the ‘Asian Tiger’ NICs. It accelerated in the 1990s when consumer electronics shifted to China and other low-cost locations. Recently, service jobs, call centres and software development have shifted to India.

Edexcel AS Geography Unit 1 Going global: Globalisation Balance of world trade Not everyone has benefited from globalisation. The five largest exporting economies account for 37% of world trade. The least developed countries, with a total population of around 650 million, share only 0.6% of world trade.

Edexcel AS Geography Unit 1 Going global: Globalisation International migration Another consequence of globalisation is increasing international migration. Transport developments have made movement easier. As developed world economies have grown, the ‘pull’ for people from the developing world has increased. Lack of development in the least developed countries has increased the ‘push’ factor. TNCs have generated a new globe-hopping business executive elite who are continually on the move. Migrant flows have risen from 76 million in 1960, to 176 million in 2000, and 191 million in 2006.