Globalisation Impacts

Define the key term 'globalisation'.

The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods, entertainment previously unavailable in their countries. For example globalisation has caused Indian and Chinese food to be hugely popular in the UK and other western European countries.

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Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries.

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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.

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Improvements in communications - the internet and mobile technology have allowed greater communication between people in different countries

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Greater employment opportunities for people especially in LEDCs in the manufacturing industries. Globalisation can provide jobs for poorer and indigenous people and help them to learn new skills.

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Globalisation is viewed by many as a threat to the world's cultural diversity. It is feared it might drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the capitalist North and West e.g. the Americanisation of the world.

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Availability of a greater variety of goods and services to the consumers. We can now buy a range of different imported products in countries across the world that were once not available e.g. you can buy cheddar cheese in Villa Market in Bangkok and fish sauce in Sainsbury’s in Manchester whereas 50 years ago neither of these products would have been available in those places.

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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.

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There are no guarantees that the wealth from the inward investment will benefit the local community. Often, profits are sent back to the MEDC where the TNC is based. Transnational companies, with their massive economies of scale, may drive local companies out of business. If it becomes cheaper to operate in another country, the TNC might close down the factory and make local people redundant.

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