Data Flows on Global Interactions (DP IB Geography)

Revision Note

Global Data Flows

  • Connections around the globe are:

    • Faster: faster speeds for talking, travelling, money exchange, etc

    • Deeper: connecting lives with faraway places

    • Longer: connecting links between places are further apart

  • Developments in flows have made globalisation what it is today—a shrinking world

  • These connections are considered network flows to places and populations through four significant developments:

    • Appearance of large transnational corporations (TNCs)

    • Growth of regional economics and trading blocs 

    • Development of modern transport networks

    • Advances in IT and communications, particularly the WWW and the internet

  • The flow of digital information has become seamless, surpassing geographical boundaries and has shaped the modern era

  • Digitalisation has lowered the cost of cross-border communication and transactions, allowing businesses to connect with each other and their customers around the globe

  • NICs and LICs are slowly closing the gap on global connectivity

  • Some of the challenges of the digital age include:

    • Companies have to adapt to pricing pressures and digital security

    • New communities are created by social media, but it also increases social pressures on users and is a method of spreading violence and extremism

    • Global data flows have benefited many countries and small businesses, allowing them to compete on the global market, although goods still have to be physically delivered

  • E-commerce represents 13% of the global goods trade

  • Approximately 50% of the world's traded services are digitised

  • The flow of digital goods is instantaneous, e-books, apps, online games, music and streaming services are all common place

  • Meta (Facebook) noted that they have around 50 million small and medium businesses on its platform

  • Digital platforms allow companies to reach further than their local market

  • Global flows are uneven and are spread narrowly, with Singapore, Europe and the USA at the centre of the global digital network

Examiner Tips and Tricks

Remember that not everyone benefits from the 'shrinking world'. There are many losers, such as the elderly, migrants and refugees, who do not or cannot have the same access to or ability to use the internet. Some countries, such as China and North Korea, heavily censor access to the internet.

Transport Development

  • 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 plans to link London to Birmingham and some parts of 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: has been vital to the global economy since the 1950s 

  • The growth of low-cost airlines and high-speed rail networks allows 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 that 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

Communication Infrastructure

  • 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

Time-space compression

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