Globalisation

Definition of globalisation

Definition of globalisation

• Globalisation is where the world has become more interconnected through the processes of economics, culture, politics, trade and tourism

• Globalisation is nothing new; trade between people, businesses and countries has always existed

• Whereas trade would have taken weeks, months or even years in the past, modern transport and communications have made trading and interaction almost instantaneous

Flows to places and populations are the result of four significant developments:

• Appearance of large transnational corporations (TNCs)

• Growth of regional economics and trading blocs 

• Development of modern transport networks

• Advances in IT and communications, particularly the WWW and the internet

Key features of globalisation

Key features of globalisation

• Globalisation reduces the effect of political borders of countries

  • It makes them more interdependent

• Global cities have developed, which are the focus of the world economy

• The improvements and developments in communication and transport have made globalisation what it is today—a shrinking world

• Overall, connections around the globe are: 

  • Faster – faster speeds for talking, travel, money exchange, etc.

  • Deeper – connecting lives with faraway places

  • Longer – connecting links between places are further apart

Impacts of globalisation

Impacts of globalisation

• Globalisation has a wide variety of impacts, both positive and negative

Communications

• Mobile phones and the internet have transformed global communication

• As of 2024, more than 60% of the world's population has access to the internet

• Instant communication lets businesses work on different continents

• Rapid communication allows businesses to hire skilled workers from around the world, which leads to more business innovation

• Faster communication has also made it easier for people to get news from around the world

• This makes it easier to respond to disasters and brings attention to global problems like climate change

Culture

• Today's world features international institutions with hundreds of member nations, such as the Olympic Games

• More people speak English as a second language

• Globalisation makes it easier for people from different cultures to share arts, sports, languages, and other things

• Businesses operate in different regions, taking into account the cultures of their consumers and employees

• People from different cultures can share their thoughts and improve global understanding when they interact with each other

• However, some people see globalisation as a threat to local cultures because Western practices often replace traditional ones, which can damage cultural diversity

Trade

• Globalisation has opened up new markets, which has helped trade and business grow

• In the 1800s, advances in technology made transportation cheaper, which led to more foreign trade

• The end of the World War II in 1945 saw global trade rebound

• To help keep up the benefits of a connected world economy, the International Monetary Fund (IMF) and the World Bank were set up to encourage economic growth and cooperation

• Today, more than half of the world's total economic output comes from goods that are exported and imported across foreign borders

Transport

• By making global travel faster and cheaper, trains, steamships, and jet planes allowed more people to experience different cultures and countries in the 19th and 20th centuries

• The 'shrinking world' connects markets on a scale never seen before, boosting trade

• The expanding number of global goods requires complex logistical infrastructure

• Modern international trade requires a complicated supply chain

• Every nation's roads and trains must connect to the global airport and shipyard network

• As economies grow, more goods and services are created and sold, and transport networks need more energy, increasing carbon emissions

• Shipping and haulage emit 60% of world emissions

• Businesses must invest more in ethical supply chains and sustainable transportation to meet legal requirements and environmentally conscientious customers

Technology

• Technological innovations like steamships and the internet have fuelled globalisation, which in turn drives more technological advancement

• Our growing reliance on global connectivity makes communication essential for economic activity

• Infrastructure like satellites and fibre optic cables have further improved communication

• These technological advances can enhance growth and improve quality of life worldwide

  • For instance, governments, private companies, and multilateral organisations collaborated to produce effective vaccines for COVID-19

  • However, manufacturing processes and the use of fossil fuels for energy contribute to air and water pollution, impacting human health and ecosystems

• GPS and weather monitoring are made possible by the increasing number of satellites in low earth orbit.

• E-waste contains toxic materials that can leach into the soil and water because technology becomes quickly outdated and electronic devices are improperly discarded

• Satellite construction and launch have a large carbon footprint, and low-earth-orbit satellites pollute the night sky and harm wildlife