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Unlock This CourseLook at the label inside your clothes, the phone in your pocket and the snacks in your bag. Many of them were made or grown in different countries, by companies based somewhere else again. That is globalisation at work.
Globalisation is the increasing connection and interdependence of the world's countries through trade, investment, people, ideas and culture. In plain words, countries are more linked to each other than ever before, and what happens in one place affects many others.
Key terms:
Globalisation is not one thing. It has several features, which you should be able to name and describe.
| Feature | What it means | Example |
|---|---|---|
| Global trade and supply chains | Goods and services are bought and sold across the world, and products are made in stages in several countries | A pair of trainers designed in one country, sewn in another and sold in many more |
| Transnational corporations | Large companies that operate in more than one country | A car maker with factories and offices on several continents |
| Financial flows and FDI | Money moves quickly between countries | A company building a factory abroad |
| International migration | People move between countries to work, study or live | Skilled workers moving to another country for a job |
| Internet and global communications | People and businesses connect instantly across the world | A video call between offices on different continents |
| Cheap and fast transport | Goods and people move long distances quickly and cheaply | Fresh flowers flown overnight to shops |
| Global culture and brands | The same brands, music, films and food are found worldwide | A fast-food chain or a streaming service used in many countries |
| International organisations and trade blocs | Groups of countries make rules and agreements together | The WTO, IMF, World Bank and the European Union |
Countries trade far more than they used to. A product often crosses several borders before you buy it. Materials may come from one country, parts from a second, assembly from a third, and the finished item is sold in a fourth. Each country does the job it does best or most cheaply.
Transnational corporations (TNCs) are the companies that run many supply chains. They have factories, offices and shops in more than one country. You only need to know that they are a key feature here. They are studied in detail in the lesson Transnational Corporations.
Money can be sent across the world in seconds. Companies and governments invest abroad. FDI is when a company builds a factory or buys a business in another country.
International migration means people move between countries for work, study or safety. The reasons for this are covered in Types of Migrant and Why People Migrate.
The internet, social media and satellite television spread music, films, fashion and news around the world in moments. Many people now know the same brands and celebrities, wherever they live.
As countries became more connected, they needed shared rules. Three big international organisations are named in the syllabus:
Reminder from Trade, Aid and Debt Relief: a trade bloc is a group of countries that agree to make trade between themselves easier. It is a feature of globalisation because it links countries' economies more tightly.
Globalisation did not just happen. Several changes made it faster and easier.
Drivers make globalisation happen. Features are what globalisation looks like. In the exam, do not mix them up. For example, the internet is both a feature (global communications) and a driver (it makes it easier for businesses to link up).
Fig. 1.1 shows made-up data for Country M.
| Year | Trade as a percentage of GDP | People using the internet (%) |
|---|---|---|
| 1995 | 20 | 2 |
| 2005 | 30 | 25 |
| 2015 | 42 | 60 |
| 2025 | 55 | 85 |
Fig. 1.1
(a) Define the term globalisation. [2 marks]
(b) Using Fig. 1.1, describe the change in trade as a percentage of GDP between 1995 and 2025. [2 marks]
(c) Explain two features of globalisation. [4 marks]
(d) Assess the importance of technology compared with other factors in driving globalisation. [6 marks]
(a) Globalisation is the increasing connection (1) and interdependence of countries through trade, investment, people, ideas and culture (1).
(b) Trade rose steadily from 20% to 55% of GDP (1). This is an increase of 35 percentage points over the 30 years (1).
(c) Any two features, each with a description and a development, for example: Transnational corporations are large companies that operate in several countries (1), so they build supply chains where goods are made in one country and sold in others (1). The internet and global communications let people and businesses connect instantly (1), so a company can run offices on different continents as one team (1).
(d) Level 3 (5-6 marks): a balanced judgement with a conclusion. For example: Technology is very important. The internet and mobile phones let companies manage supply chains and send money across the world in seconds, and Fig. 1.1 shows internet use rising from 2% to 85% while trade rose too. However, technology did not act alone. Containerisation made moving goods by sea much cheaper, cheap flights allowed people and goods to travel quickly, and trade agreements cut the taxes and rules that slowed trade. Without these, technology alone could not have moved physical goods. Overall, technology was probably the most important driver because it connects all the other features, but it worked together with transport and trade agreements.
For an Assess question, weigh up each factor, say which matters most and give a reason. A list of factors with no judgement will not reach the top level.