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Copy of Globalisation

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Wei Sin Ho

on 6 July 2013

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Transcript of Copy of Globalisation

Loss of local culture

Many local people are not happy with the influx of foreign cultures

They feel that these countries force their beliefs, cultures and languages upon the rest of the world

Social Impacts of globalisation

Impacts of globalisation

Impacts of globalisation

The rise of TNCs

Impacts of globalisation

To enable the development of industries,
housing, transportation and agriculture natural resources are used at a very rapid rate
E.g. timber, oil, metals such as tin

Impacts of globalisation

Economic Impacts of Globalisation

Economic Impacts of Globalisation

Improvement in standard of living

However, this also means that local producers will face an immense competition from companies in other parts of the world which are also selling the same products.

= Compete in terms of quality, price and packaging

If not managed well, they may go out of business.

Che Guevara –chay gay vah rah

Invasion of the golden arches

Cars – Ford (US), Toyota (Japan), Mercedes-Benz (Germany)
Food and beverage -McDonalds (US), Coca-cola (US), Starbucks (US)
Computers and electronics– Microsoft (US), Dell (US), HPcompaq (US),
Nokia (Finland), Sony(Japan)
Supermarkets – Wal-mart (US), Carrefour(France)
Aircraft – Boeing (US), Airbus (France)

Examples of TNCs

advancement in technology and communications resulted in the creation of transnational co operations

E.g. DHL

global firms that operate in a number of countries
offices in many different countries.

control and coordinate their global activities with the help of technology and communications

Foreign investment in another country:
Globalisation has resulted in many businesses setting up or buying services in other countries.

Multinational corporations or transnational corporations:
Companies that operate in several countries are called multinational corporations (MNCs) or transnational corporations (TNCs)
These companies are in constant competition with one another to expand into new markets and increase their profits

Brand names like Nike, Kellogg's, Microsoft, Sony, Adidas are recognised almost everywhere in the world

Most MNCs come from developed countries:
The majority of MNCs come from more economically developed countries (MEDC) such as the US and UK.
Multinational corporations invest in other MEDCs - the US car company Ford, for example, makes large numbers of cars in the UK.
But MNCs also invest in less economically developed countries - for example the British DIY store B&Q now has stores in China.

Multinational Corporations (MNC)
Transnational Corporations

Enable people from different parts of the world to communicate faster and more conveniently

Using tools such as telephone, email, fax, internet, video conferencing, satellite

Do shopping, make hotel reservations, book plane tickets all at the click of a button!

Improvements in communication

Facilitated by the construction of integrated
infrastructure such as airports, railways, roads,
bridges, ports

Resulting in an transportation network

Improvements in transportation

DHL is the global market leader in international express, overland transport and air freight.

Aims to transport shipments rapidly, safely and on time all over the world.

DHL – global logistics company

The 20th century saw the invention of commercial jet aircraft, cargo ships and containerization.

Goods are now able to transported to different parts of the world! (global)

Containerization greatly simplified the transfer of goods from one mode of transportation to another (inter-modal transport)

Improvements in transportation systems

shorter time taken to travel from one place to another

started from the invention of the steam engine in 19th century

Used in locomotives and steam cars (Stanley steam car)

transport goods to further destinations within the country

Improvements in transportation systems

The shrinking of the world

Reduces the relative distance between different parts of the world – makes people feel that they are located nearer to one another.

= people can travel from one place to another in a much shorter period of time

Sometimes, there isn’t a need to even travel at all! (e.g. via video conferencing, web-cam etc)

Globalisation refers to the process
whereby , their and
in parts of the world

Defining Globalisation

What is Globalisation?

History of Globalisation

Factors influencing Globalisation

Rise of TNC/MNCs

Impact of Globalisation

Social Impacts of Globalisation

People can learn about the history, culture and way of life of people around the world through travelling, surfing the net, watching foreign movies and cable television (arm chair traveller)

Globalisation can bring about an increased
awareness on the need to manage our environment well.

Sustainable source of energy supply via conservation
Search for alternative sources of energy – wind, solar, natural gas (Singapore)

Impacts of globalisation

movements of goods and services contribute to global warming as aeroplanes and ships produce large amounts of greenhouse gases such as carbon dioxide and nitrogen oxide.

factories also release large number of fumes from its chimneys daily

result in higher global temperatures, melting of icebergs, sea level rise

rainforests in many countries have been
cut down

farmers also remove rainforest to grow cash crops
e.g. pineapples, rubber etc for sale

resulted in many negative environmental impacts such as soil erosion, extinction of flora and fauna, flooding and haze

Impacts of globalisation

Economic Impacts of Globalisation

Footloose talents
People who are highly skilled and talented are always in high demand.

Globalisation enables such people to seek employment in other parts of the world

There is now intense competition for such talent. EMDCs are searching the world for new talents whereas emerging ELDCs are working hard to retain and attract back their own talent e.g. China, India to avoid the problem of brain drain.

Economic Impacts of Globalisation

However, many ELDCs find it difficult to attract them due to poor infrastructure and political instability. Thus, become trapped in the poverty cycle, unable to develop further.

EMDCs also face negative impacts. Factories in their countries close down when they relocate to other countries where the cost of production is lower. This resulted in the loss of jobs of many people and the erosion of the middle income.

Increased competition among nations
TNCs seek out locations from all parts of the world for
reasons such as lowering the cost of production, to be closer to the consumers

Governments thus compete with another to attract the investments of these companies

As a country trades more, they earn more money
They can use this money to provide education, housing, public transport and health services to its citizens

Citizens can also enjoy a wide range of products besides local produce. (check out a supermarket!)

Economic Impacts of Globalisation

Reminiscing the past ,
Appreciating the present

Causes of globalisation

Improvements and advancements in

Transport systems – means by which people, materials and products are transferred from one place to another.
Communications – information is transmitted from place to place in the form of ideas, instructions and images

In the 1800s, Chinese immigrants, flocked to
Nanyang (South-east Asia today) in search
of fortune and a better life.
It took them 2 months to arrive by junk boats.

Moving trailing edge (Australia)

Wing (Japan)

Wing Tips (S. Korea)

Tail Fin (USA)

Doors (France)

Cargo doors (Sweden)

Landing Gear (Britain)

Engine (Britain)

They set up their operations in different parts of the world to capitalize on lower cost of production
TNCs like Boeing, sources for aeroplane parts from around the world

Different types of TNCs

Loss of local culture
Led to the decrease in the popularity of local cultures

Impacts of globalisation

Food chains from EMDCs such as McDonalds and Starbucks set up businesses in other countries,
brought about changes in taste preferences and way of life

Introduced a largely uniform (same) culture throughout the world

Led to the spread of pop culture – MTV, music, movies

Today, Chinese immigrants continue to flock to
Singapore in search of better paying jobs and
education for their children.
Now, it only takes about 5 ½ hours to arrive
by a Boeing 777 from Beijing!
McDonald's the US fast food chain is a large MNC
30,000 restaurants in 119 countries
Impacts can be both positive or negative
Improvement in standard of living
many companies have shifted their manufacturing plants to China e.g. Adidas, Nike, F21

Increased competition among nations
Environmental Degradation
Global Warming
Increased awareness of foreign cultures
E.g. Lonely Planet, Discovery Travel and Living, Animal Planet, National Geographic
Are you lovin' it?
Loss of local culture
puppet shows, Chinese wayang
Transportation systems
Communication technology

interconnected and integrated.
Full transcript