What Is Globalisation
The process by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers.
Because of these breakdowns in barriers, many different places become interdependent on each other.
The UK’s economy has become increasingly globalised since the 1980s. This means it has gained more links to the rest of the world.
When TNCs are able invest anywhere without rules and restrictions to get in the way its called Free Trade.
Investing this money into another country is called Foreign Direct Investment.
Impacts of Globalisation
Globalisation is having a dramatic effect - for good or bad - on world economies and on people’s lives.
Some of the positive impacts are:
- Inward investment brings new jobs and skills for local people.
- TNCs bring wealth and foreign currency to local economies the extra money created by this investment can be spent on education, health and infrastructure.
- The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods and other products not previously available in their countries.
- Globalisation may help to make people more aware of global issues such as deforestation and global warming and alert them to the need for sustainable development.
Some of the negative impacts include:
- Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries.
- There are no guarantees that the wealth from inward investment will benefit the local community.
- An absence of strictly enforced international laws means that TNCs may may pollute the environment, run risks with safety or impose poor working conditions and low wages on local workers.
- Globalisation is viewed by many as a threat to the world’s cultural diversity. It is feared it might drown out local economies, traditions and languages.
Flow of Trade
- What is globalisation?
- Which countries trade most with each other?
- Your answer should include: USA / China