Dimensions of Globalisation (AQA A Level Geography)
Revision Note
Written by: Rhiannon Molyneux
Reviewed by: Bridgette Barrett
Flows of Globalisation
Globalisation is the process whereby the world has become more economically, politically and socially interconnected
Economic connections refer to the exchange of goods and services across borders and the creation of global supply chains
Political connections refer to countries working together in international organisations such as the United Nations or the European Union
Social connections refer to the exchange of cultures and ideas e.g. people sharing their thoughts and experiences via social media, the increase of multicultural societies
Cultural connections result from the ability to travel further afield and more easily, greater knowledge and understanding of other cultures
The term 'global village' was used by McLuhan to describe the breakdown of differences between nations
He argued that other scales of economic, social cultural processes were becoming less important than the global scale
The global societies mean that almost all nations and peoples are influenced and affected by other nations
Globalisation is caused by the movement or flow of people, information, money, goods and services between countries
The map below shows how countries are connected through global trade of a valuable resource such as oil
Examples of Flows of Globalisation
Flow | Description |
|---|---|
Flows of labour | Highly skilled and unskilled workers migrate from one country to another, bringing aspects of their culture with them |
Flows of information | Information such as news spreads very quickly and easily via email, the internet and social media |
Flows of capital | Money is invested by companies overseas – this is known as Foreign Direct Investment (FDI) |
Flows of products | Manufactured goods are often produced in LDE countries due to outsourcing, and then exported for sale in HDE countries |
Flows of services | Customer services are often provided in LDE countries to serve the needs of customers in HDE countries |
KOF Index (The Swiss Institute for Business Cycle Research) produces an annual Index of Globalisation
Measures the social, economic and political aspects of globalisation
Uses a wide range of data such as participation in UN Peace-keeping missions to TV ownership
Countries are scored out of 100 and the higher the number, the more globalised the country is
| How it is measured |
|---|---|
Economic |
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Social |
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Political |
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Global Marketing
Marketing is the promotion and sale of goods and services
Many companies advertise and sell their product all over the world using one global marketing strategy
An example of this is Coca Cola which sells soft drinks in over 200 countries with a brand identity that is recognised globally
Having one global strategy reduces costs and develops global awareness
This enables companies to boost sales and achieve economies of scale due to global awareness of, and trust in the brand
When customers around the world recognise a particular brand or logo, this contributes to the acceleration of globalisation
Examiner Tips and Tricks
Another term which is used is glocalisation. This when a global company produces goods which are aimed at the local market for example Starbucks do not have beef or pork products on their menu in India and Whirlpool redesigned their washing machines to account for the challenges of washing five foot long saris.
Production & Globalisation
In the past, most manufacturing was concentrated in industrialised countries such as USA, UK and Germany
More recently, TNCs have moved production to Emerging Market Economy (EME) countries such as China to take advantage of cheaper costs of land and labour
This process is known as global shift
The largest markets for manufactured goods remain in Highly Developed Economy (HDE) countries, so most products are exported for sale to Europe and North America
As EME countries continue to develop, it is likely that patterns of production and consumption will shift again
Examiner Tips and Tricks
It is important to recognise the difference between LDE, EME and HDE countries in case the question specifies which you should write about.
LDE countries are those with the lowest economic development and a low GDP per capita e.g. Sudan or Haiti.
EME countries are those with accelerating growth and development but they still tend to have lower GDP per capita e.g. China or India.
HDE countries are those with the highest economic development and a high GDP per capita e.g. UK or USA.
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