IB AND OI HISTORY AND GEOGRAPHY REVISION
Theme : Globalisation
The increasing interconnectedness of the world economically, culturally and politically
develops from internationalisation
the extension of economic activities across national boundaries
leads to a more extensive geographical pattern of economic activity
The ties that bind the world together are:
Trade, investment and migration. The movement of goods, money and people around the globe brings far off places
closer together. The WTO has played a vital role in the increase in world trade.
Increasing role played by the UN around the world epitomises the developing cooperation between nations.
3) Trade Blocs
Many countries are now in some sort of trade agreement with their regional neighbours. EU is the most advanced model.
4) Growing importance of cross-border pressure groups
Amnesty International. Combined actions of these
organisations and others have resulted in a growing framework of international rules on trade, the environment, human rights, war, and other aspects of international relationships.
5) Mixing of cultures
Another important dimension of globalisation that occurred through
the rapid spread of news, ideas and fashion through the media, trade, travel and the growth of global brands such as Nike, Coca Cola and McDonald's
that serve as common reference points.
"A company that has the power to coordinate and control
operations in more than one country , even if it does not own them." - Peter Dicken
Overseas investments in physical capital by transnational corporations.
MNCs are the driving force behind economic globalisation
they are the capitalist enterprises that engage in FDI and organise the production of goods and services
in more than one country.
in some countries and regions their influence on the economy is huge.
they play a major role in world trade in terms of what and where they buy and sell.
a proportion of world trade is intra-firm, taking place within TNCs e.g. car manufacturing - intra-firm
with engines, gearboxes and other key components produced in one country and exported for assembly elsewhere.
The intense global competition for market share has lead to the growing domination of the largest
companies. The 10 largest corporations in their field now control:
86% of the telecommunications sector
85% of the pesticides industry
70% of the computer industry
Spatial Division of Labour
Labour intensive production of components will be situated in low-wage areas, while the production of
high-technology and high value-added parts will require a skilled or well-educated workforce.
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