Factors in Globalisation (AQA A Level Geography)

Revision Note

Written by: Rhiannon Molyneux

Reviewed by: Bridgette Barrett

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

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

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

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

Explain how trade agreements are a factor in globalisation

[4 marks]

Remember, this answer is point marked with 1 mark for each valid point made with extra marks for developed points (d)
The command word is ‘explain’
The focus of the question is ‘trade agreements’
You will gain marks for explaining how trade agreements accelerate globalisation and how they are the result of globalisation

Answer:

Trade agreements are formed by countries joining together to form a trade bloc that encourages trade between themselves and promotes economic co-operation (1), for example NAFTA (1d)
Trade agreements are a factor in globalisation by encouraging trade across a number of countries. This may lead to increased investment from other countries (1) for example Audi has built a factory in Mexico in order to gain access to other NAFTA countries (1).
Trade agreements can lead to people moving more freely to seek work in the trading bloc (1). This encourages globalisation by increasing links between countries as often supporting goods and services will follow (1d).
Bilateral agreements allow trade between two countries and can therefore enable greater flow of goods and labour between the two countries (1).
Without trade agreement some countries wouldn’t trade with others (1). Therefore, agreements such as the WTO which covers trade in goods, services and designs (1d) help trade flow freely by providing a forum for negotiations encouraging trade across the globe (1d).
However, it can also be argued that trade agreements are necessary because of globalisation (1). Countries need to act as bloc to be able to negotiate on a global scale due to unequal power (1d). Credit given for how lack of agreements, e.g. quotas and tariffs, will act against globalisation.

Last updated: 4 October 2024

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