What is globalisation?

Extension: What is a MEDC?What is an LEDC?

What is a TNC?

MEDC = More Economically Developed Country.

LEDC = Less Economically Developed Country.

TNC = Transnational Corporation.

Globalisation

Learning OutcomesBy the end of this lesson, I will:

be more familiar with terms surrounding globalisation be more confident in individual research and application

of examples

Globalisation We now communicate and share each other's cultures through travel and trade, transporting products around the world in hours or days. We are in a huge global economy where something that happens in one area can have knock on effects worldwide. This process is called globalisation.

Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services. The biggest companies are no longer national firms but multinational corporations with subsidiaries in many countries.

Globalisation has been taking place for hundreds of years, but has speeded up enormously over the last half-century.

Globalisation has resulted in:• increased international trade• a company operating in more than one country• greater dependence on the global economy• freer movement of capital, goods, and services• recognition of companies such as McDonalds and Starbucks in LEDCs

Although globalisation is probably helping to create more wealth in developing countries - it is not helping to close the gap between the world's poorest countries and the world's richest.

Reasons for globalisation• There are several key factors which have influenced the process of

globalisation:• Improvements in transportation - larger cargo ships mean that the cost

of transporting goods between countries has decreased. Economies of scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also mean that goods and people can travel more quickly.

• Freedom of trade - organisations like the World Trade Organisation (WTO) promote free trade between countries, which help to remove barriers between countries.

• Improvements of communications - the internet and mobile technology has allowed greater communication between people in different countries.

• Labour availability and skills - countries such as India have lower labour costs (about a third of that of the UK) and also high skill levels. Labour intensive industries such as clothing can take advantage of cheaper labour costs and reduced legal restrictions in LEDCs.

Transnational CorporationsGlobalisation has resulted in many businesses setting up or buying operations in other countries. When a foreign company invests in a country, perhaps by building a factory or a shop, this is called inward investment. Companies that operate in several countries are called multinational corporations (MNCs) or transnational corporations (TNCs). The US fast-food chain McDonald's is a large MNC - it has nearly 30,000 restaurants in 119 countries.

Advantages:• Increased free trade between nations.• Increased liquidity of capital allowing investors in developed nations to invest in developing nations.• Corporations have greater flexibility to operate across borders.• Global mass media ties the world together.• Increased flow of communications allows vital information to be shared between individuals and corporations around the world.• Greater ease and speed of transportation for goods and people.• Reduction of cultural barriers increases the global village effect.• Spread of democratic ideals to developed nations.• Greater interdependence of nation-states.• Reduction of likelihood of war between developed nations.• Increases in environmental protection in developed nations.

Disadvantages: • Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor• Increased likelihood of economic disruptions in one nation affecting all nations• Corporate influence of nation-states exceeds that of civil society organizations and average individuals• Threat that control of world media by a handful of corporations will limit cultural expression• Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage• Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity• International bodies like the World Trade Organization infringe on national and individual Sovereignty• Increase in the chances of civil war within developing countries and open war between developing countries as they vie for resources• Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries

General Overview:The globalisation of media means that we now have more globalised cultural influences available to us in terms of lifestyle choices and consumption. This globalisation takes several forms. Ownership of mass media is no longer restricted by national boundaries. Moguls, such as Rupert Murdoch, and media conglomerates, such as Time Warner, own hundreds of media companies spread throughout the world. Satellite television has opened up the world to the television viewer. Access to the worldwide web via the Internet, global webservers (such as AOL or Google) and new technology (such as wireless broadband) mean that we can access information and entertainment in all parts of the world. Advertising occurs on a global scale and particular brands and logos have become globalised as a result. Post-modernists see the global media as beneficial because it is primarily responsible for diffusing different cultural styles around the world and creating new global hybrid styles in fashion, music, consumption and lifestyle. It is argued that, in the post-modern global world, this cultural diversity and pluralism will become the global norm. However, Marxists argue that globalisation restricts choice because transnational media companies and their owners have too much power. Marxists are particularly concerned that local media and cultures may be replaced by a global culture. Kellner (1999) suggests that this global media culture is about sameness and that it erases individuality, specificity and difference. However, Cohen and Kennedy (2000) suggest that cultural pessimists under-estimate the strength of local cultures – they note that people do not generally abandon their cultural traditions, family duties, religious beliefs and national identities because they listen to Madonna or watch a Disney film. Rather, they appropriate elements of global culture, and mix and match with elements of local culture, in much the same way as the citizens of the USA and Britain. - See more at: http://revisionworld.co.uk/a2-level-level-revision/sociology/mass-media-0/new-media-globalisation-and-popular-culture#sthash.W7tVlu47.dpuf

Links for Independent Research

• http://www.mediaknowall.com/as_alevel/Advertising/advertising.php?pageID=global

• http://nfgsa2mediaexam.blogspot.co.uk/2013/03/discuss-positive-and-negative-effects.html

Summarise :

How important is the growth of worldwide media networks?