Key Content: Driving forces of globalization
developments in transportation
growth of Multinational Corporations (MNCs)
technological advancements
The process through which ideas and activities of people in different parts of the world become interconnected in every sense.
This can lead to interdependent relationships between global and local developments.
Businesses and organizations become more globally dispersed and internationally organized
Activities and relationships are far more integrated than ever - new interdependencies and mutual reliance have now emerged.
Refers to the development of efficient and integrated transport infrastructure eg. roads, airports, seaports
Modern transportation technology has enabled the flows of material and movement of people around the world faster than ever before
Improvements made to speed and carrying capacity - facilitate movement of goods & people at a higher level of efficiency to allows easier movement & transportation around the world – transfer of people and goods
Equally, the movement enabled by transportation technology has made travel cheaper and far more cost effective than in the past
People can travel easily to anywhere for business or leisure → integration and interconnectedness between different countries’ businesses and cultures
Overall, the world has ‘shrunk’ in terms of time needed to get from one place to another. The world has become “smaller” with the shrinking effect of distance, space and time.
This facilitates the process through which people’s activities and ideas become more interconnected and interdependent.
HENCE, development in transportation has allowed more efficient and convenient movement of goods and people → businesses functioning and growing at high speeds
MNCs are large corporations headquartered in one country, but coordinate transnational economic activities around the world, usually running businesses in more than one country
Today, MNC are growing in number and size → control more aspects of international trade and investments
MNCs involved in more extensive international trade and investment, provides economic benefits to host countries
Set up businesses around the world, spread foreign ideas and culture
Collaborate with local companies- bring in new technology and expertise
These companies locate certain functions in specific countries to take advantage of the location's competitive advantage e.g. low cost labour, high skilled workforce
HENCE, economies become integrated due to the deepened economic interconnections between people and goods throughout the world
These interconnections can lead to interdependent relationships between the parties involved in the operations of MNCs
MNCs also create investment and employment opportunities in countries they set up facilities in → benefit locals (employment) and the country in interconnections between countries
Spurs integration and interconnectedness of the world
Advancements in areas of communications technologies today take the form of widened and greater access to the Internet and increasing use of mobile communications technologies.
Facilitates the communication and exchange of information from anywhere across the world
With the invention of smartphones, mobile phones are not limited to only making voice calls.
The smartphone today is equipped with the ability of access the internet at one’s fingertips.
Software applications allow people across borders and continents to communicate at a low cost and flexible manner.
HENCE, communication among people in different locations is becoming faster and more convenient
Businesses across the globe can grow rapidly due to the shrinking world as people can purchase goods and services anywhere
New ideas can be formulated and conveyed at a much faster rate.
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