While physical distances between parts of the world remain the same, changing communications have reduced the time that it takes to trade or pass information globally from months or weeks to seconds.
What is globalisation?
Globalisation started in the 1970s. The wealthy invest and manufacture goods, whilst the poor supply them with cheap raw materials. Manufacturing has now shifted to poorer countries, globalisation has widened in scope.
Those who decide to manufacture overseas and provide investmenent come mainly from ther worlds most wealthy countries, North America, Japan and Europe, plus wealthy investors from the Middle East. 'New Players' such as China, India and South-East Asia have become the manufacturers of the world, joining others like Brazil. In Africa and the worlds poorest countries become more and more detached and isolated to the rest of the world with very little economic influence into the global economy.
People have much different views when it comes to globalisation...
brings people closer together and trade spreads wealth more equally across the world
existing inequalities are made worse, as a result of this there will be more winners and losers.
IMPACTS OF GLOBALISATION
- Global capitalism is now spread by large transnational corporations (TNCs) who achieve greater turnovers than the GDP (Gross Domestic Product) of many individual countries. They use cheaper labour when developing economies to supply consumers in America and/or Europe.
- Trillions of dollars are exhanged electronically each day around the world in payments, loans, share purchases and debt.
- Companies such as News International (who own Sky TV, the Sun and Times newspapers) influence how people vote and think about issues. Politicians seek these companies support because voters' opinions are affected by what they see & read.
- There has been an expanison f international political organisations, just like the EU.
- As TNCs and politcal organisations gain power over national governments. Governments loose the ability ability to control the events which occur in their countries.
- Global trade barriers have been removed, tarrifs & quotas.
- People with skills in management, finance, and IT are moving around the globe to where they are most in…