Globalisation: Countries

Topics: Economics, Developed country, Economy Pages: 62 (20916 words) Published: February 21, 2013
Human Geography – The Globalisation of Economic Activity
1. Uneven Development in the Global Economy
* Globalisation
* Characteristics
* Processes
* Impact on the world economy
* Uneven global distribution of activities
- Illustrate how globalisation has affected the economies of LDCs, DCs and NIEs * NIDL
* Causes of the emergence of a new NIDL
* Impact of the emergence of NIDL on the global economic activities * Impact of new technologies on work
* Job specialisation, multi-skilled production, changes in production and labour * Impact of global economic change
* Rise in new service sectors: tertiary, quaternary and quinary * Locational trends in producer and consumer services
* Internationalisation of service firms
* Rise of SMEs
* Privatisation / Deregulation of public services
2. Transnational Corporations
* Characteristics of TNCs
* Spatial organisation of TNC’s activities
* Linkages with host economy
* FDI and influence on national and regional economies
* Case study of TNC
3. Role of the State and Supranational Bodies
* Role of state in economic development and its impact on national economies * Supranational bodies and their impact on national and regional economies * Trading blocs / regional blocs

* International institutions

1. Uneven Development in the Global Economy
* Discuss the characteristics and processes of globalisation. * Discuss the impact of globalisation on the world economy.|

What is globalisation?
* Increasing interconnectedness & interdependency of people, cultures, economics and politics at all spatial scales. * More functionally integrated and independent. The compression of the world. Processes involved in globalisation

* Economic: Flow of capital and goods: production and investments by TNCs, etc., the changing structure of firms * Social: Movement of people: migration, tourism, demographic changes, multicultural states. * Cultural: Diffusion of information and cultures: InfoTech like internet, cultural forms (movies, brands), cultural homogenisation * Political: Rise of international organisations: UN, IMF, ASEAN, EU etc. Supranational organisations, trade blocs, FTAs Globalisation is driven by:

* Improvements in transport – air freights, shipping.
* Improvements in communication – Internet, phones, email * The search for new, unsaturated markets by economic agents like firms * Need to find the most efficient methods of production – comparative advantages The impacts of globalisation on the world economy

* Shrinkage of distance – a ‘Shrinking World’
* Spatial division of the global economy
* Spatial interdependence – the global supply chain
* Increased mobility and flexibility – increased flow of funds, capital * Accentuation of regional disparities
* Convergence and divergence of economic activities

Reasons for economic globalisation
PUSH FACTORS from home country|
Expensive labour on standardised goods| * For textile companies, the hourly operation cost in Switzerland is US$35, compared to US$12 in Sri Lanka or $11 in Bangladesh.| Strong unions| * In the US, in addition to health care, unions fought for and gained retirement plans, compensated sick days, and defined benefits plans. The median weekly income of a union worker is $917 compared to $717 for non-union workers.| High expenses on labour welfare| |

Saturated markets| * The technology market in the US or Japan are far more saturated in comparison.|

PULL FACTORS from host country|
Cheaper labour| * In China, wages are a fraction of those in the US, and six times cheaper than Mexico - averaging about 40 US cents an hour for a factory worker.| ‘Standardisation’ of products| * Mass production technology – Fordist car assembly lines| Cheap raw materials| * Oil...
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