Case Study

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Key words

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features of globalisation

Globalisation is the process by which countries around the world become more interconnected. This happens through increased trade, movement of people, money, information, and the growth of multinational companies.

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• Globalisation often benefits HICs the most because they control trade, technology, and investment.

• LICs may depend on richer countries for trade, aid, and investment.

• This uneven distribution of wealth increases global inequality. </aside>

• Growth of international trade

• Increase in multinational companies (MNCs)

• Faster transport and communication

• Cultural exchange (food, fashion, music, language)

• Countries becoming economically interdependent

factors causing globalisation

Transport:

• Improvements in transport, such as container ships and air freight, have made it cheaper and faster to move goods between countries.
• This allows companies to produce goods in one country and sell them in another, creating global supply chains.

Trade Agreements:

• Many countries have reduced tariffs and trade barriers through trade agreements.
• This makes international trade cheaper and encourages countries to buy and sell goods with each other.

Communication:

• The development of the internet, mobile phones, and satellites allows instant communication across the world.
• This helps businesses manage international operations and also spreads ideas, culture, and information quickly.

Multinational Companies:

• MNCs operate in multiple countries and are a major driver of globalisation.
• They move production to countries with cheaper labour and then sell products worldwide.

global trade

Global trade refers to the exchange of goods and services between different countries. It allows countries to specialise in what they produce best and trade for what they lack.

Significance:

• Global trade allows countries to specialise in producing goods and services they are best at.
• It increases economic growth and creates jobs by opening access to global markets.
• Trade strengthens interdependence between countries, meaning economies rely on each other.
• It helps raise living standards by providing a wider range of cheaper products.

Patterns:

• Most global trade takes place between HICs because they have strong economies and advanced industries.
• HICs mainly export high-value manufactured goods and services such as cars, technology, and finance.
• LICs often export raw materials like oil, minerals, or agricultural products, which are lower in value.
• Newly emerging economies are increasingly exporting manufactured goods as their industries develop.
• Many LICs rely heavily on a small number of exports, which makes their economies vulnerable to price changes.