What is Globalisation?


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For Yr 12 International Studies

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What is Globalisation?

  1. 1. What is Globalisation? It refers to the rapid increase in the share of economic activity taking place across national boundaries. http://www.youtube.com/watch?v=uI0itS3gQFU Ppt originally by Rebecca Nicholas.
  2. 2. Global income is more than $31 trillion a year, but 1.2 billion people of the world's population earn less than $1 a day.
  3. 3. 80% of the global population earns only 20% of global income, and within many countries there is a large gap between rich and poor.
  4. 4. The 3 billion people living in the 24 developing countries that increased their integration into the world economy enjoyed an average 5% growth rate in income per capita, longer life expectancy and better schooling.
  5. 5. The digital and information revolution has changed the way the world learns, communicates, does business and treats illnesses. In 2002, there were 364 people per 1000 using the internet in high income countries, while there were only 10 per 1000 in low income countries.
  6. 6. Two billion people, living in countries in sub-Saharan Africa, the Middle East, and the former Soviet Union, have been unable to increase their integration into the world economy, and their economies have contracted, poverty has risen, and education levels have risen less rapidly than in the more globalised countries.
  7. 7. Economic Globalisation The increasing integration of national economies that is occurring in association with modern technology and trade liberalisation. What might political globalisation mean?
  8. 8. <ul><li>They include:- </li></ul><ul><li>Multinational enterprises that carry out business across national boundaries; </li></ul><ul><li>The World Trade Organisation (WTO), through which international trade agreements are negotiated and enforced; </li></ul><ul><li>The World Bank and the International Monetary Fund (IMF) which are meant to assist governments in achieving development aims through the provision of loans and technical assistance; and </li></ul><ul><li>National governments, who together with these international institutions, are instrumental in determining the outcomes of globalisation. </li></ul>Key Players in Globalisation
  9. 9. Large corporations active in a number of countries. Multinational Companies
  10. 10. Reasons for Globalisation <ul><li>Globalisation helps minimise labour costs </li></ul><ul><li>In some labour-intensive industries (eg. clothing, toy making etc), wages represent the largest input for businesses. </li></ul><ul><li>Many labour intensive areas of production are located in countries such as Mexico, China, India and Sri Lanka. </li></ul>
  11. 11. <ul><li>Globalisation increases access to natural resources. </li></ul><ul><li>Some countries have limited access to cheap resources. </li></ul><ul><li>Firms therefore relocate to take advantage of production abroad. </li></ul>
  12. 12. <ul><li>Globalisation increases flexibility in decision making. </li></ul><ul><li>Can improve flexibility or choice they have in decision making. </li></ul><ul><li>Eg. Ford, BHP-Billiton, Fiat have plants located around the world. </li></ul>
  13. 13. Corporate Expansion <ul><li>Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others. </li></ul>No matter where you go in the world, certain businesses will always have a presence. Copyright: mkeky, stock.xchng
  14. 14. <ul><li>Key Issues: </li></ul><ul><ul><li>Damage to the environment? </li></ul></ul><ul><ul><li>Exploitation of labour? </li></ul></ul><ul><ul><li>Monopoly power </li></ul></ul><ul><ul><li>Economic degradation </li></ul></ul><ul><ul><li>Non-renewable resources </li></ul></ul><ul><ul><li>Damage to cultures </li></ul></ul>Shell and Nike’s activities have come under severe criticism in some quarters. Copyright: Homsel, stock.xchng
  15. 15. http://www.youtube.com/watch?v=ljbI-363A2Q
  16. 16. Does our future look brighter?
  17. 17. <ul><li>Answer with reference to </li></ul><ul><li>globalisation </li></ul><ul><li>technology </li></ul><ul><li>developed and developing worlds </li></ul><ul><li>500 word essay </li></ul><ul><li>explanation of globalisation </li></ul><ul><li>referenced </li></ul>