Globalisation and Glocalisation

IB HL

Definition

• Globalisation: is defined as the growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the rapid and widespread diffusion of technology.

Definition

• Glocalisation: is a term that was invented in order to emphasise that the globalisation of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture it is marketed in. The increasing prescence of McDonald’s restaurants worldwide is an example of globalisation, while the changes in the menus of the restaurant chain that are designed to appeal to local tastes are an example of glocalisation.

The Manufacturing SectorGlobalisation Glocalisation

Organisation Worldwide Concentrated in the E.U., North America, and Japan.

Locational Requirements

Comparative advantage and economies of scale.

Depressed regions of major international trade blocs.

Labour and management

Foreign managers in senior ranks; spatial division of labour.

Very difficult for foreign managers to reach senior ranks.

Market Production for world markets. Geographically dispersed.Export-orientated strategy.

Production for local or regional markets.Geographically concentrated.Export-orientated strategy.

Globalisation

• Aims at a worldwide intra-firm division of labour.• Activities are established in many sites and

spread over the world based on a country’s advantages.

• Labour-intensive production is based in low-wage areas.

• The high-tech parts require a skilled and well-educated workforce.

• This means locating research facilities in core areas and assembly plants in periphery areas.

Glocalisation

•Decentralisation of production to hierarchical networks of local subcontracting.

•A high degree of control over supply and distribution.

Activities

• Using Geography For The IB Diploma P211-217, answer the following…

1. Define Globalisation and Glocalisation.2. Using Figure 1 (P212), explain the term

Localisation.3. What is a Glocal Forum and what does it aim to

do?4. Using Figure 8 (P217), suggest reasons for the

distribution of cities that are members of the Glocal Forum network.