Factors in Globalisation (AQA A Level Geography)

• Digital communications through computers and mobile devices allow people to communicate with each other quickly and freely all over the world
• Technological developments such as fibre optics and satellites have enabled large volumes of data to be transmitted long distances at high speeds
• The internet enables instant communication via email, social media, and text and video messaging services
• This ready access to information and communication contributes to a shrinking world effect and is also known as time-space compression

Time-space Compression

• The global financial system facilitates quicker and easier flows of money, goods and services between countries
• Financial deregulation has reduced barriers to capital flows, meanwhile, communications technology has made trade and financial transactions faster and more secure
• The markets and institutions that facilitate global flows of capital are concentrated in HDE countries e.g. the City of London is one of the world’s leading financial centres
• Globalisation also has disadvantages as a financial crisis or recession in one country can have significant impacts on financial systems around the world
  • The Asian Financial Crisis of 1997 was caused a series of events that led Thailand's currency to plummet and this had a knock on effect in neighbouring countries
  • The Global Financial Crisis of 2008 was caused by a fall in the US housing market, ultimately leading to Iceland's banking system to collapse and a number of European countries to be unable to repay their government debts

• There has been a reduction in the frictional effect of distance as greater distances can be covered in less time
  • Steam power – steam ships and trains moved goods and armies along trade routes quickly in the 1800s
  • Railways – railway networks expanded globally in the 1800s and remains important for governments globally e.g., the High Speed 2 Railway linking London to northern England which will reduce some journey times by a half
  • Jet aircraft – intercontinental jet aircraft made international travel easier with the arrival of the intercontinental Boeing 747 in the 1960s
  • Container shipping – vital to the global economy since the 1950s 
• The growth of low-cost airlines and high-speed rail networks allow larger numbers of people to travel easily from one country to another
• Larger volumes of goods are transported between countries more quickly and easily due to the improvements in transport
  • Containerisation has been one of the most significant changes which has increased the rate of globalisation - today, the largest container ships carry 24,000 containers
  • Larger, faster planes and reduced costs have also contributed to the movement of goods

• Sometimes groups of countries work together to increase security by forming political and military alliances
• For example, the North Atlantic Treaty Organisation or NATO was founded after the Second World War to promote peace and cooperation in Europe during the Cold War
• Today, NATO aims to guarantee the freedom and security of all 30 member nations by building trust between countries to maintain global peace and stability

Map of NATO members

• Countries also work together in international institutions such as the Organisation for Economic Cooperation and Development or OECD 
• The OECD promotes international cooperation on issues such as cybersecurity by providing a forum in which countries can discuss and coordinate policies
• It aims to improve the economic and social well-being of people around the world thereby increasing economic stability and security
• However, globalisation can also increase threats to security by giving more opportunities for crimes such as counterfeiting, fraud, smuggling and even terrorism
• The backlash against globalisation can also be associated with a rise in nationalist and extremist groups which can threaten security and stability

• A trade bloc is a group of countries that work together to increase trade and boost economic growth

Map to show major trade blocs

• Trade blocs remove or reduce barriers to trade between them such as tariffs and quotas 
• This facilitates free trade and results in larger volumes of trade between member nations
• Trade agreements encourage cooperation between countries and promote peace and stability
• However, there are often external barriers or restrictions which may reduce trade with countries that are not part of the trade bloc
• There may also be a backlash against loss of sovereighty which could result in members leaving trade blocs e.g. Brexit