Scale of Globalisation (Edexcel A Level Geography)
Revision Note
Written by: Louise Stone
Reviewed by: Bridgette Barrett
Variation in Globalisation
Uneven globalisation
Globalisation has affected places differently, which is due to a variety of reasons, such as:
Variations in poverty
Physical factors such as resource availability and accessibility
Government policies and attitudes for and against globalisation
Measuring globalisation
Uneven levels of globalisation can be measured using a range of indicators and indices, which include:
KOF Index (The Swiss Institute for Business Cycle Research) produces an annual Index of Globalisation
First published in 2002, it contains data from 1970
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
Issues with KOF Index
This information is only available for 122 countries (2023)
Some of the indicators used are now outdated due to improvements in telecommunications
There is cultural bias in some of the indicators for example, the number of McDonalds
Trade indicators ignore the informal economy
It does not take into account environmental factors
AT Kearney World Cities Index
First published in 2008
It aims to look at how countries cope with population growth and a shrinking world
Ranks cities according to their ‘business activity’, ‘cultural experience’ and ‘political engagement’
Data for this includes the number of TNC headquarters, museums and foreign embassies
It includes countries which account for 96% of the world's GDP and 84% of the population
Issues with AT Kearney World Cities Index
Only includes 156 countries (2023)
Indicators include trade bloc membership, levels of migration or FDI
Examiner Tips and Tricks
Be careful not to confuse globalisation with development. They are not the same, so make sure you understand the difference.
Globalisation is the increasing connectedness of countries around the world through movement of goods, services, capital and ideas across borders
Development is progress a country makes to improving the standard of living for its population
Transnational Corporations (TNCs)
Uneven growth of Transnational Corporations (TNCs)
TNCs are vital to globalisation and help connect countries across the world
However, some countries have benefitted far more than others from FDI from TNCs due to:
Unsuitability of some sites for production of goods e.g., accessibility, natural resources
Not enough market potential to attract large retailers due to low incomes or culture
TNCs and glocalisation
TNCs try to build their global businesses through:
Offshoring: moving parts of their production process, such as factories or offices, to other countries to reduce costs (e.g. labour)
Outsourcing: contracting with a different company to produce goods and services they need
Global production networks: setting up chains of connected suppliers of parts and materials that contribute to the manufacturing or assembly of consumer goods
In an attempt to increase profits, many TNCs have adapted their products to suit local tastes, religion and culture, local interests, laws and lack of natural resources— this process called glocalisation
Worked Example
Study Figure 1a. Identify which one of the following describes this investment by a TNC
[1 mark]
A. Fair Trade
B. Development of a new market
C. Deindustrialisation
D. Outsourcing for cheaper labour
Answer:
B Development of a new market
Incorrect answers:
A. Fair Trade: – a food outlet is not a Fair Trade investment
C. Deindustrialisation – involves closure of heavy industry
D. Outsourcing for cheaper labour is not involved in this investment
Lack of Globalisation
Switched-off places
There are some places in the world, often LDCs that remain relatively switched off from the global networks
Strong flows of trade and investment with other countries are absent in these countries
Examples include North Korea and the Sahel region
North Korea has chosen to remain isolated from the rest of the world
The Sahel region experience many challenges such as the arid climate, desertification and poverty that has hindered their development and consequently their ability to connect to the global networks
Worked Example
Explain why one political factor and one social factor might cause some countries to be ‘switched off’ from globalisation
[4 marks]
You will need to provide one political reason and one social reason for a country being ‘switched off’ and will achieve 1 mark for each of these
You will need to explain each reason for the remaining 2 marks (you can only achieve 2 marks for one reason)
Your answer has to be a political and social reason, if any other factors are mentioned it will not be accepted
Answer:
Political factors:
Political instability due to war [1] so TNCs choose not to locate there as trade would be disrupted negatively affecting profits [1]
Choice of government (e.g., North Korea) [1] controls the media and restricts trade so there is limited knowledge of the area [1]
Corrupt government e.g., misuse of aid/tax [1] would discourage TNCs from investing as business would be difficult [1]
Social factors:
Lack of technology and infrastructure [1] which would make trading/transporting goods difficult which is not attractive for TNCs [1]
Poverty/unemployment [1] reduces the ability of a country to trade with other countries [1]
Low literacy rate (education) [1] possibly low-skilled population would mean that TNC investment is unlikely [1]
Examiner Tips and Tricks
Be careful when using ‘corrupt government’ as a reason in your answer. You will need to provide examples of the corruption, for example, misusing aid or tax revenue or bribery.
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