Globalisation Case Studies
Where/What? General Information The Good The Bad
The Flows Capital (Money) -Money is daily routed through stock markets.
-In 2013, the volume of foreign exchange transactions reached $5 trillion a day
Commodities - Valuable raw materials such as fossil fuels & food have always been traded. Recently, the flow of manufactured goods has multiplied
due to low manufacturing costs in China, Vietnam etc.
-In 2015 global GDP was almost $80 trillion. 1/3 was generated by trade flows in agricultural & industrial commodities.
Information -The internet has brought close communication between lots of places.
-Social Networks are huge. 1.5billion Facebook users in 2015.
Tourists -Many of the world’s air passengers are holiday makers.
-Budget airlines mean easy, cheap travel.
-People from emerging economies are travelling abroad too-Air Asia & East Africa’s Fastjet.
-China is the world’s biggest spender on international travel with 120million outbound trips made in 2014.
Migrants - The permanent number of people still faces the greatest number of obstacles due to border controls & laws.
-Most governments have a ‘pick and mix’ attitude to global flow.
-Combined number of economic migrants & refugees reached almost 1/4 billion in 2013. The same year $500 billion of remittances were sent home.
World Trade -Formerly GATT. - -Asks countries to abandon protectionist attitudes. -It has failed to stop the world’s richest countries from subsidising
Organisation Aims for free trade -In 1930s average tariff was 50%, now its 9%. their own food producers. (prices fall= LIC countries can’t
(WTO) without subsidies or -It boots global GDP and stimulates world demand for compete)
tariffs. developing exports. -It is harmful to farmers in developing countries who want to
-164 member states. - -Free trade without restrictions or tariffs. trade fairly.
Formed in 1947. -Has a continue lack of success in getting its members to reach a
global agreement, especially in relation to food.
International -Lends money for -It exists to stabilise currencies & maintain economic -2008 Greek crisis– Greece was forced to cut back on its own
Monetary Fund development growth. expenditure. Many protests occurred because of this.
(IMF) purposes. -Recipients must agree to a free market. -Can be controversial, especially the strict financial conditions
-189 countries -Aims to reduce the % of people on less than $1.25 a day imposed on governments. They may be required to make cut
-Formed in 1945. to 3% of population by 2030. backs on health care, sanitation etc.
-Aims to reduce inequalities by encouraging income -TNCs can enter the country more easily.
growth for the bottom 40% of every country.
-Successfully took Mexico out of a financial crisis in 1995
with a $52billion loan.
Where/What? General Information The Good The Bad
, World Bank -Lends money on a -In 2014,a $470million loan was granted to the -Strict conditions on loans and grants.
global scale & gives Philippines for a poverty reduction programme. -All world bank presidents have been American citizens.
grants to developing -In 2014, help was given to the DRC to start a mega dam -The global financial crisis of 2008-9 which originated in the US &
countries. project. EU undermined the entire global economy. As a result,
-189 members. -Distributed $65billion in loans & grants in 2014. governments in developing countries have been sceptical of the
-Formed in 1944. -Focuses on natural disasters and humanitarian financial advice it offers.
emergencies
New -Supports public or -It plans to give priority to projects aimed at renewable -Has a capital base of $50 billion which is to small to meet the
Development private projects energy-sources. needs of India.
Bank through loans and -It wants to fund projects that benefit both local people -China will be holding 40% of the funds initial $100bn.
other methods. and the environment. -Its headquarters are in Shanghai meaning China will get a bigger
-In force in 2015 -In 2016, the NDB approved loans for 7 projects in all of influence.
-Its members are its members, totalling $1.5billion. -Similar to China Development bank.
BRICS.
Global Shift -Refers to the MEDC -Cheaper imports can keep cost of living down. MEDC- Can lead to job losses. The UK’s manufacturing sector has
international -Loss of industry can improve the environment. shrunk by 2/3 in the last 30 years.
relocation of industry -Greater industrial efficiency can lead to the development -Job losses are in certain areas leading to structural
from the ‘west’ to of new technologies & may attract foreign investment. unemployment.
Asia & South LEDC & NIC -Can trickle down to local areas. Over -Big gaps between skilled & unskilled workers.
America. 500million people in China have escaped being under the LEDC & NIC -TNC’s can potentially exploit places. In 2010, 140
poverty line as they have a more stable job. worker were injured in China using a poisonous chemical to clean
-Can lead to exposure to new technology, improvement IPhone screens.
of skills & labour productivity. -Can lead to over-dependence on a narrow base economy.
-Spreads wealth & can help close the development gap. -Can destabilise food supplies due to a change in industry.
-Environmental issues associated with industrialisation.
Offshoring -Some TNCs build -The US guitar maker fender opened its Mexican plant in -Profits are often routed elsewhere to avoid tax.
their production Esenada in 1987. -Potential labour exploitation.
facilities in ‘offshore’ -Shareholders in TNCs benefit from higher profits. -Environmental concerns (Coca-Cola in Kerala where the ground
low wage -Consumers may benefit from cheaper goods. water table went from 12m to 35m due to exploitation)
economies’.’ -Multiplier effect in poorer countries. -Deindustrialisation in MEDC & structural unemployment.
Where/What? General Information The Good The Bad
The Flows Capital (Money) -Money is daily routed through stock markets.
-In 2013, the volume of foreign exchange transactions reached $5 trillion a day
Commodities - Valuable raw materials such as fossil fuels & food have always been traded. Recently, the flow of manufactured goods has multiplied
due to low manufacturing costs in China, Vietnam etc.
-In 2015 global GDP was almost $80 trillion. 1/3 was generated by trade flows in agricultural & industrial commodities.
Information -The internet has brought close communication between lots of places.
-Social Networks are huge. 1.5billion Facebook users in 2015.
Tourists -Many of the world’s air passengers are holiday makers.
-Budget airlines mean easy, cheap travel.
-People from emerging economies are travelling abroad too-Air Asia & East Africa’s Fastjet.
-China is the world’s biggest spender on international travel with 120million outbound trips made in 2014.
Migrants - The permanent number of people still faces the greatest number of obstacles due to border controls & laws.
-Most governments have a ‘pick and mix’ attitude to global flow.
-Combined number of economic migrants & refugees reached almost 1/4 billion in 2013. The same year $500 billion of remittances were sent home.
World Trade -Formerly GATT. - -Asks countries to abandon protectionist attitudes. -It has failed to stop the world’s richest countries from subsidising
Organisation Aims for free trade -In 1930s average tariff was 50%, now its 9%. their own food producers. (prices fall= LIC countries can’t
(WTO) without subsidies or -It boots global GDP and stimulates world demand for compete)
tariffs. developing exports. -It is harmful to farmers in developing countries who want to
-164 member states. - -Free trade without restrictions or tariffs. trade fairly.
Formed in 1947. -Has a continue lack of success in getting its members to reach a
global agreement, especially in relation to food.
International -Lends money for -It exists to stabilise currencies & maintain economic -2008 Greek crisis– Greece was forced to cut back on its own
Monetary Fund development growth. expenditure. Many protests occurred because of this.
(IMF) purposes. -Recipients must agree to a free market. -Can be controversial, especially the strict financial conditions
-189 countries -Aims to reduce the % of people on less than $1.25 a day imposed on governments. They may be required to make cut
-Formed in 1945. to 3% of population by 2030. backs on health care, sanitation etc.
-Aims to reduce inequalities by encouraging income -TNCs can enter the country more easily.
growth for the bottom 40% of every country.
-Successfully took Mexico out of a financial crisis in 1995
with a $52billion loan.
Where/What? General Information The Good The Bad
, World Bank -Lends money on a -In 2014,a $470million loan was granted to the -Strict conditions on loans and grants.
global scale & gives Philippines for a poverty reduction programme. -All world bank presidents have been American citizens.
grants to developing -In 2014, help was given to the DRC to start a mega dam -The global financial crisis of 2008-9 which originated in the US &
countries. project. EU undermined the entire global economy. As a result,
-189 members. -Distributed $65billion in loans & grants in 2014. governments in developing countries have been sceptical of the
-Formed in 1944. -Focuses on natural disasters and humanitarian financial advice it offers.
emergencies
New -Supports public or -It plans to give priority to projects aimed at renewable -Has a capital base of $50 billion which is to small to meet the
Development private projects energy-sources. needs of India.
Bank through loans and -It wants to fund projects that benefit both local people -China will be holding 40% of the funds initial $100bn.
other methods. and the environment. -Its headquarters are in Shanghai meaning China will get a bigger
-In force in 2015 -In 2016, the NDB approved loans for 7 projects in all of influence.
-Its members are its members, totalling $1.5billion. -Similar to China Development bank.
BRICS.
Global Shift -Refers to the MEDC -Cheaper imports can keep cost of living down. MEDC- Can lead to job losses. The UK’s manufacturing sector has
international -Loss of industry can improve the environment. shrunk by 2/3 in the last 30 years.
relocation of industry -Greater industrial efficiency can lead to the development -Job losses are in certain areas leading to structural
from the ‘west’ to of new technologies & may attract foreign investment. unemployment.
Asia & South LEDC & NIC -Can trickle down to local areas. Over -Big gaps between skilled & unskilled workers.
America. 500million people in China have escaped being under the LEDC & NIC -TNC’s can potentially exploit places. In 2010, 140
poverty line as they have a more stable job. worker were injured in China using a poisonous chemical to clean
-Can lead to exposure to new technology, improvement IPhone screens.
of skills & labour productivity. -Can lead to over-dependence on a narrow base economy.
-Spreads wealth & can help close the development gap. -Can destabilise food supplies due to a change in industry.
-Environmental issues associated with industrialisation.
Offshoring -Some TNCs build -The US guitar maker fender opened its Mexican plant in -Profits are often routed elsewhere to avoid tax.
their production Esenada in 1987. -Potential labour exploitation.
facilities in ‘offshore’ -Shareholders in TNCs benefit from higher profits. -Environmental concerns (Coca-Cola in Kerala where the ground
low wage -Consumers may benefit from cheaper goods. water table went from 12m to 35m due to exploitation)
economies’.’ -Multiplier effect in poorer countries. -Deindustrialisation in MEDC & structural unemployment.
