Globalization booklet 1

Globalization Revision

• Definition: The increasing integration of economies around the world, particularly through the movement of goods and services.
• Economic Impacts: Growth of TIVC's (Technology, Information, and Value Chain Companies) accelerated by smartphones and online purchasing (e.g., Amazon).
• Social Impacts: Created extensive cross-national networks through smartphones, enabling global improvements in education and healthcare.
• Political Impacts: Growth of trading blocks (e.g., EU, NAFTA) allows mergers and acquisitions of firms in neighboring countries.
• Cultural Impacts: Circulation of ideas and information is accelerated by 24-hour reporting.
• Migration Impacts: In 2013, $500 billion in remittances were sent home by migrants. Mass migration means a substantial amount of money is sent back to less economically developed countries (LEDCs) from high-income countries (HICs) (e.g., from the USA to parts of Asia, like India and Mexico).

Shrinking World

• Positive Impacts: Increased sharing of ideas and technologies; global communication speedier due to improved technologies like smartphones, quicker communication, and online shopping, and reduced costs; products can be made cheaper.

Containerization

• Definition: Standardized transport system for goods that can be easily transferred between ships, trucks, and trains.
• Before Containerization: Goods were loaded and unloaded into ships in crates, making transportation slow and more expensive (more time spent at docks).
• After Containerization: Costs of loading and unloading fell; significant reduction in theft and loss of goods; faster shipping; reduced labor force required to load and unload ships; products were moved at 1.7 tonnes per hour as compared to 30 tonnes before.

Political International Organisations

• Purpose: International meetings of governments aim to re-establish world economic stability, and create international organizations.

International Money Fund (IMF) and World Bank

• IMF: Promotes international financial stability, international trade, and provides financial stability for countries.
• World Bank: Fights poverty in low-income countries, provides loans, and offers advice on development.

Trade Blocks

• Advantages: Larger markets, permits economic scale, and reduces costs of production.
• Disadvantages: Regionalism, loss of sovereignty for participating countries, interdependence amongst participating countries.

Maquiladoras in Mexico

• Background: Factories in northern Mexico that assemble imported components into finished goods for export. Many workers are young women.
• Wage: ~$0.50 per hour
• Living Conditions: Often located in towns near the factories, without consistent access to electricity or safe water, negatively impacting the workers' quality of life.
• Impact of Globalisation: Workers in certain factories (maquiladoras) are paid lower wages and work in worse conditions than if they were working in their home countries. Chinese factories have similar problems. -China: Increasingly successful economy with a large workforce, strict labor policies and regulations, leading to high production of goods.

Test your knowledge on the various impacts of globalization including economic, social, political, and cultural aspects. This quiz will help you understand how globalization influences integration among different countries. Prepare to explore the role of technology and migration in shaping our global economy.