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Going Global

Cameron Dunn

Chief Examiner, Edexcel

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What is globalisation?• “The growing economic

interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services, freer international capital flows, and more rapid and widespread diffusion of technology” (IMF)

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Factors • Internet and Satellite: financial

flows, business decisions.• Falling cost of communication• Containerisation • Cheap air travel, and air freight• Cross-border road and rail

networks• English: international language

of business

MONEY, GOODS and PEOPLE move more easily than ever before.

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Globalisation: getting connected Global networks come in a variety of

forms. They can be networks of:

• Business and Trade – physical and financial flows.

• Communication networks – the internet

• Transport networks – air travel, container /shipping

• Production networks – particularly TNCs

• Political networks – economic / trade ties

• Demographic networks – flows of people

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• The map below shows internet connectivity by connection density.• This is related partly to population density, but also to level of

development. • It clearly shows the global economic cores, but barely manages to

trace the outline of Africa:

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• An easy way to find out who is connected, or not, is to examine the pattern of a major TNC.

• Below is information for MacDonalds. Note the importance of the three global core areas, and the lack of presence in Africa.

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Global Hubs: megacities and world cities

• ‘cores’ with intense connectivity

• some are World Cities such as London and Tokyo.

• Others have special attributes

• Many headquarter major TNCs

• diverse populations with demographic flows

• flows of finance, trade and ideas, move towards them:

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The disconnected?• Successive WTO free trade

agreements = growing world trade

• The beneficiaries of this growth have been:

• MEDCs – who have generally maintained their share of trade.

• Asian NICs, who have seen rapid trade growth.

• On the other hand, Africa and Latin America have not benefited.

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Globalisation: the migration tide

Accurate data on migration is notoriously difficult to collect, but most estimates suggest that there are, globally:•30-40 million illegal migrants worldwide•Refugees amount to 8-10 million •130 million economic migrants

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Who is moving, and to where?

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The Globalisation / Migration link• THE GLOBAL SHIFT –

has led to a rise in migration.

• migration of executives and managers to new Asian economies

• RUM to cities• Globalisation has made

MOVING EASIER because communication and transport technology are better than ever, and has created a DEMAND for migrants.

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Summary: • Globalisattion has shrunk the world; as a process it

continues to increase connectivity.• Connectivity is most intense in global hubs; many

of these are megacities.• Megacities attract migrants, both rural-urban ones

and international ones, further fuelling megacity growth

• In turn globalization contributes to the ability of people to migrate

• Despite globalization some people remain disconnected