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Going global

1 Globalisation
Definition
Globalisation refers to economic and social processes that operate on a global scale. They increase
interdependence between countries through flows of ideas, people, products and services.
TNCs - They are large business like IKEA and Apple to operate in more than one country and are
dominant player due to their: flexibility, size and political influence eg. SONY which manufactures
electronic products in China, Japan and sell to Europe
Cultural dimensions of globalisation Companies like McDonalds market their products on a global
scale, transmitting American consumer values and lifestyle creating homogenisation.
Factors of Globalisation
TNCs - Due to their flexibility they can switch production to lower cost locations like 2006 Peugeot
located the production of the new 207 in The Czech Republic instead of Coventry due labour coast
being 1/5
th

Global Markets rapid population growth in the developing world from 4.14 billion in 1990 to 5.76
billion in 2012 and increasing consumerism
Example of a TNC Honda Japans 2
nd
largest automobile manufacturer and turned over $106billion in
2011 from automobile sales which is more that Bangladeshs GDP and employs 180,000 people
worldwide
Example of a TNC Disney Manafacture products in Banglandesh. Movies targeted for specific
markets e.g - Mulan marked its entry into China
Hunch back of Notre Dame was launched to rebrand Disneyland Paris
They have 24hour Disney Channels in Europe, Malaysia, Cuba and North Africa so have a large global
reach.
Explosive Migration Shang Hi Its population has trebled between 2000 and 2010 and 60% of their 7.5
million young adults are migrants.
Explosive Migration UK since 2004 One in eight people were born outside the UK
2 Global Groupings
TNCs - Their roots come from colonial business of the 18
th
and 19
th
century like the East India Company
Mergers in 1998 the oil companies BP and Amoco merged helping to form links between countries
Acquisitions The US Company Ford bought the Swedish company Volvo
Sub-contracting Nike Subcontract to Honduras where it is cheaper
FDI - The top 500 TNC provide 90% of FDI
Their power 53 of the worlds largest economic organisations were TNCs in 2010

LDC Mozambique economic instability and rely on agriculture
LEDC Egypt large proportion of people live in poverty 42% in Egypt
NIC Tiger economies like South Korea Fast growing economies
Ex Soviet states Belarus has privatised industries to create economic recovery
BRICSs China Economies expected to lead to future
MEDCS Denmark Have high GDP per captia of $58,000
OPEC Venezuela Organisation of Petroleum Exporting make money from the petro dollar
OCED 30 richest Countries like Germany, Chilie and Canada
G8 Canada, Germany and Italy make up 41% of the global GDP and the only country outside of Europe and
North America is Japan
Trade Blocks EU collectively generate $16.5 trillion more than US as it makes trade easier by removing
taxes and tariffs. Also subsidies the exports of selected industries and the Euro is a common currency
which eases movements of flows. Nissan manufactures in Sunderland instead of Japan so they dont
have to pay import tariffs to sell in the EU.
3 Global Networks
200 million people migrate internationally ever year
Europe accounts for 41% on international trade in 2010 where as Africa was only 3%
New Technology - The first long distance communication began with telegraphs cables laid across the
Atlantic in 1866
Cheap budget flights from Easy Jet make it easy to travel long distances and makes places more
connected like Tallinn, Estonia switched-on.
New more efficient planes like the Boeing 787 allow direct travel from New York Seoul
E-commerce accounted for 12% of retail sales in the UK
Switched on - Global hubs like Singapore are highly connected and have physical features like being
coastal to allow for trade GDP $63,050 (per capita)
Switched off Bhutan is a landlocked country which has limited resources and is a remote wilderness
country in the Himalayas. Their Traditional beliefs hold them back and they rely in agriculture.
Winner Physical Resources Saudi Arabia It of its wealth is petrodollar wealth and has two coasts so
can easily ship oil. It uses its money from its comparative oil advantage to develop other parts of its
economy helping it become switched on
Winner Human Resources China Has a huge population of 1.3 billion. It can provide a cheap but
skilled workforce causing its growth from FDI. Its comparative advantage in human resources has
created a multiplier effect in other parts of its economy increasing its connectivity.

Loser Zambia - the price of their copper their natural resource from on overreliance caused poverty.
84% of their GDP is paid as debt repayments. It is also politically isolated due to undemocratic
government and has economic sanctions reducing trade
Loser Kenya - have a semi-arid climate and they are not food secure as water is needed for
production of their cash cropping flowers
Odd Loser Sierra Leon rich in diamonds but hasnt been able to generate wealth due to civil war and
government corruption.
Odd Winner Las Vegas it is in the Nevada dessert but is a global hub for tourism.
4 Roots
Increase in population from 10.5 million in 1801 to 63.1million in 2011
In1837 civil registration of births deaths and marriages was made compulsory
The first census was in 1801 and in 10 year intervals apart from 1941.
In 1901 there 110 live births per 1,000 women now it is 63.6 per 1,000
Fluctuation caused by Spanish Flu in 1919 killed 150,000
1/2 of migrants are from commonwealth countries
1/3 of migrants are from the EU
NHS was created in 1948
Abortion was made legal in 1967
Small pox vaccine was created in 1798 and that killed 35% of people
People are dying from degenerate disease, 43% from Cancer, 26% from CVD
Currently 800,000 people have dementia and 1.7 million people with dementia by 2051
Deindustrialisation in 1970s and 80s cause a north south drift and sectoral shift into white collar jobs
Unequal distribution of retirement hotspot that are often coastal towns like Eastbourne
By 2035 of the population will be over 65
Over 75 spend 13 nights a year in hospital the national average is 8
Increased retirement age from 66 and will be 68 by 2050 and 1.8million people over 65 work

5 On the Move
Migration is a is the movement of people from one place to another due to economic, social,
political or environmental factors and is either be intranational or international.

1901 Britains emigrated to Colonies
1919 Britains moved to Australia
1948 - HMS Windrush brought first migrants from the West Indies
1950s Many Poles escaped the Iron Curtain
1950 60s Colonial immigration from former colonies to rebuild after the war many from Bangladesh
and Pakistan went to Manchester
1960s Family reunification
1972- 30,000 Asian Ugandan asylum seekers
West Germany in 1960 made up labour shortage by employing migrants from Turkey, 1.7million live in
Germany
6 World Cities
Sustainable Development growth in a way that lets people meet the needs of the present without
compromising the ability of future generations to meet their own needs.
In 1950 30% of the world lived in urban areas now it is 52% and by 2050 70% will live in urban areas
Rural to urban migration is taking place due to factor like 80% of GDP being generated in urban areas
Increasing world population from 7 to 9.3billion in 2050 and 95% of growth will be in the developing
world.
Carbon neutral homes in BedZED use renewable energy and green space like the Urban Corridor in
Curitiba
7 Global Challenges for the Future
Two speed world There is an increasing income gap, in 1960 the income of 20% of the richest to 20%
of the poorest people in India was 1:30 in 2000 now it is 1:70. This means India is a dual society
Social impacts of globalisation Yongkong an industrial city in China is famous for the number of
Amputees from accidents
Environmental impacts of globalisation deforestation in the Amazon from the cash crop palm oil
Xingtang in China where 1/3 of jeans are made the river is ecologically dead
Recycling has increase from 11-40% in Herefordshire 67% of waste is recycled
By 2020 EU countries must recycle half of their waste
Todmorden, Lancashire promote local food to reduce food miles and have hydroponic gardens
Ethical purchasing Gumintindo Mount Elgon, Uganda fair trade buys coffee from 7,000 farmers