Globalisation (Junior Cert Geography): Revision Notes

Globalisation

Globalisation

Globalisation is the process by which the world becomes more interconnected through the exchange of goods, services, information, and culture. It has led to increased trade, migration, and communication across the globe.

Reasons for Globalisation:

• Telecommunications: The rise of the internet and digital communication since 1994 has enabled companies to expand globally. It allows businesses like Amazon to reach customers worldwide, boosting trade and connectivity.
• Banking: Advances in banking and finance, such as online payments and international money transfers, have made it easier to conduct global business. Companies like PayPal enable quick and secure payments across borders.
• Transport: Improvements in transport since the 1980s, including faster ships, planes, and trucks, have made it easier and quicker to move goods internationally. This has facilitated global trade, allowing products to be shipped efficiently across long distances.

Urbanisation

Urbanisation is the increase in the population of towns and cities. It happens when people move from rural areas to urban areas, leading to the growth of cities. This process has accelerated since the 1960s, largely due to globalisation.

Urbanisation in Developed Countries:

• In developed countries, the growth of the services sector, especially in industries like finance, banking, and technology, has attracted people to cities.
• Key urbanisation patterns in developed countries include:
  • Counter-urbanisation: Some people move from cities to the countryside, leading to the development of rural areas.
  • Gentrification: Old, run-down city areas are refurbished, attracting wealthier residents and increasing property prices.
  • Regeneration: Old social housing areas are redesigned to improve living conditions and reduce issues like unemployment and crime.

New York

Urbanisation in Developing Countries:

• In contrast developing countries have had different urbanisation patterns including:
  • Cities in developing countries grow rapidly, often due to cheap labour attracting manufacturing industries. Globalisation has made industries more footloose, leading to population increases in these cities.
  • There is more unplanned development, resulting in the expansion of shanty towns (informal settlements with poor living conditions).
  • Infrastructure services like water and sewage are often lacking.
  • Social and economic inequalities are more pronounced, with wealthy people living in city centres and poorer populations on the outskirts.

Kolkata

Multinational Companies

Multinational Companies (MNCs) have encouraged globalisation by setting up operations around the world:

Advantages of MNCs:

• MNCs provide employment and income in developing countries. For example, Samsung employs thousands of workers in Vietnam.
• They pay taxes to developing countries, funding improvements in infrastructure and public services.
• Some MNCs support local communities. For instance, Unilever has programmes to improve health and hygiene in Kenya.
• MNCs create additional jobs in local businesses that supply goods and services to them.
• Increased job opportunities have driven educational improvements. In the Philippines, for example, more people pursue education to qualify for jobs in MNCs like IBM.

Disadvantages of MNCs:

• Wages are often low, with long hours and poor working conditions. For example, garment workers in Bangladesh face harsh conditions in factories.
• The benefits of MNCs often don't reach the poorest people in the country.
• Some MNCs receive special privileges. For example, in Zambia, there have been concerns that mining companies receive favourable treatment over local communities.
• MNCs can relocate easily if they find better conditions elsewhere. For instance, Nike has shifted manufacturing between countries to maximise profits.
• Many MNC jobs are low-skilled and vulnerable during economic downturns. For example, call centre jobs in India have been cut during global recessions.

BMW, a German company, has a large plant in the USA