Human Geography

Globalisation

Enquiry question 1: What are the causes of globalisation and why has it accelerated in recent decades?

3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses

Causes of globalisation:

Globalisation refers to the way people and places across the world have become closely linked together. This has deepened global connections, interdependence and flows of capital, commodities, migrants and tourists

• TNCs have influenced global culture (such as McDonaldisation) and improved local economies by providing job opportunities. TNCs try to appeal to local markets by the process of glocalisation which means products are specially designed for the taste of the consumer

• Transport and Communications: Improvements in mobile communications, internet, social media and fibre optics have allowed people to connect together from all over the world. Transports development has produced cheap travel, reaching everyone and causing time-space compression

• Technology: Computer-aided design and manufacturing have allowed technology to become more efficient and less reliant on human labour. This saves time but causes job losses

• International Organisations: These provide aid and assistance to countries in need, forming a global community where countries try to support one another

• Developments in transport, such as the railway, and trade in the 19th century accelerated in the 20th century with the production of jet airway and containerisation. This has contributed to a ‘shrinking world’ where the world seems much smaller due to its interrelations. For instance, in the past it would have taken weeks to get to the other side of the world whereas it only takes up to a 24 hours today

3.2 Political and economic decision making are important factors in the acceleration of globalisation

The World Bank – similar to the IMF, loans money to developing nations with the aim of improving development, and so enabling globalisation. Like the IMF, The World Bank is also seen as controversial and many critics say both these organisations don’t benefit developing countries. Instead, they promote LEDCs to increase their debts and limit the government’s sovereignty

The WTO – World Trade Organisation is headquartered in Geneva, Switzerland which aims to liberalise trade by removing tariffs, subsidies and quotas. The WTO has been criticised because it has failed to prevent the EU and USA from implementing protectionist measures like subsidies, and so it has been unsuccessful from creating equal opportunities for all countries to trade

Special Economic Zones (SEZs):

• Special economic zones are enclaves where investors receive special tax, tariff and regulatory incentives

• About 50 million people in more than 100 countries work in such locations

• SEZs are used by some countries to attract FDI, spreading globalisation to new regions

• Successful SEZs need good infrastructure, close proximity to trade routes or emerging markets, minimum bureaucracy and rule of law

• The World Bank funded infrastructure improvements for ports, power supplies and roads. Gap and Levis FDI followed

• Exports soared from $2 billion in 1980 to $200 billion in 2000

• China joined the WTO in 2001, guaranteeing other countries would lower tariffs on exports from China

• By 2006, China was receiving $60 billion in FDI per year

• Information flows are controlled. Google and Facebook access is limited. The Chinese Youku is the social media provider.

• Cultural erosion is limited - a quota of 34 foreign films per annum in Chinese cinemas

3.3 Globalisation has affected some places and organisations more than others

Switched off locations:

North Korea political:

• Kim Jong-Un rules North Korea as a dynastic dictatorship

• It is a one-party state with a command economy based on the communist model

• Since 1955, it has adopted the Junche policy of'self-sufficiency,' limiting commerce with other nations

• Ordinary North Koreans are not permitted to emigrate or travel abroad

• North Koreans in general do not have access to the internet or social media. There are no data cable connections subsea

• This is due to a personality cult in which all triumphs are credited to Kim's broad leadership, which the internet and overseas travel would undermine

The Sahel region:

Is an area of west Africa just south of the Sahara Desert, e.g. Chad, Mali, Niger, Burkina Faso. They all have low GDI per capita

• Colonial era borders divide/combine different ethnic/religious groups

• Political parties based on ethnicity/religion lead to political instability with frequent coups or civil wars, e.g. Tuareg attempted succession in Mali in 2012.

• This leads to poor long-term investment, slowing development

• High level of corruption and uncertainty over contract enforcement makes it unattractive for FDI

• Poor infrastructure and low literacy levels of the working-age population make it unattractive for offshoring FDI

• Low income levels mean it lacks market size to attract retail outlet FDI. Few households other than elite can afford to purchase imported goods or engage in foreign tourism

• All four Sahel region countries are landlocked, rely on poor quality roads, and freedom of passage through neighbouring countries to access coastal ports.

• Resulting high transport costs may make exports unattractive in foreign markets and deter FDI

Enquiry question 2: What are the impacts of globalisation for countries, different groups of people and cultures and the physical environment?

3.4 The global shift has created winners and losers for people and the physical environment

3.5 The scale and pace of economic migration has increased as the world has become more interconnected, creating consequences for people and the physical environment

International migration:

International migration has risen in global hub cities and regions, increasing regional interdependence (elite migration (Russian oligarchs to London) and mass low-wage economic migration) (India to UAE or the Philippines to Saudi Arabia)

Migrants are particularly drawn to global hub cities, which have an extraordinarily high density of transsport, commercial, political, and cultural linkages to the rest of the globe, such as London, Dubai, or New York

Various categories of migrants are attracted:

• TNC headquarters and offices are frequently located in global centres, attracting high-paid professional personnel (lawyers, stock-market speculators, and bankers) and generating enormous wealth

• Maids, drivers, nannies, and gardeners are frequently employed by these global elite migrants

• This attracts low-skilled migrants such as Indian and Bangladeshi migrants to the UAE and Filipinos to Saudi Arabia

• In 2015, India accounted for 27 percent of the UAE's population

Some cities, such as London and New York, attract affluent migrants. One example is Russian oligarch billionaires (very rich business individuals) investing in London real estate and living there part-time. This is done in part to allow oligarchs to easily send their children to the UK's best private schools, and in part to shift money out of Russia and invest it in London real estate

3.6 The emergence of global culture, based on western ideas, consumption, and attitudes towards the physical environment, is one outcome of globalisation

Cultural Diffusion:

Cultural dispersion happens as a result of globalisation; TNCs, global media companies, tourism, and migration all contribute to the creation and spread of a more 'westernised' global culture that has an influence on both the environment and people. The growth of a global culture has also resulted in a new awareness of potential for underserved communities, particularly in emerging and developing countries

The interchange of ideas between diverse individuals as they mix and interact as a result of globalisation is known as cultural diffusion.

Cultural diffusion has expanded Western culture:

• Migrants travel and share their beliefs and traditions

• People are exposed to other cultures as a result of tourism

• TNCs market and sell their products all over the world

• Global media organisations such as Disney, CNN, and the BBC promote a Western perspective on international affairs

Impacts on both the environment and people (Changing diets in Asia):

Western culture is perceived to have both beneficial and harmful effects on the physical environment and on individuals. With the growth of McDonald's, KFC, and other fast food restaurants, the spread of a Western diet (high fat, high sugar, fast food based) is affecting diets all over the world, particularly in Asian cities. This has been related to increased obesity and diabetes rates in a number of developing countries. A fast-food consumption culture is also extremely wasteful of resources, such as discarded fast food packaging and fashion goods worn just once or twice. This can be attributed to deforestation, excessive industrial water consumption, and air and water pollution

Enquiry question 3: What are the consequences of globalisation for global development and the physical environment and how should different players respond to its challenges?

3.7 Globalisation has led to dramatic increases in development for some countries, but also widening development gap extremities and disparities in environmental quality

Levels of development can be measured using single and composite indicators. They all vary in validity (how relevant), reliability (how accurate), and comprehensiveness

Economic Indicators:

Gross National Product (GNP)

Measures output produced by country's factors of production wherever located

Gross National Income (GNI)​

• GNP discounted for depreciation - lost value through machinery wear and tear

• Includes TNC profits and remittances sent home

Gross Domestic Product (GDP)

• measures the total output of goods and services produced in a country over a year

• GDP per capita calculated by dividing GDP by total population of country

• Usually expressed in US $/year