Scarica Globalisation: Process, Impact, and Controversies e più Appunti in PDF di Inglese solo su Docsity! WHAT IS GLOBALISATION? - pag. 156 Globalisation is the process by which the world is becoming increasingly interconnected because of a growth in trade and cultural exchange. Globalisation is the result of a number of factors: - travel and communication links have improved dramatically in recent years. This has become easier with the spread (diffusione) of the Internet worldwide; - protectionism for home-produced goods and services has been reduced. Consumers can now buy goods and services produced in other countries without having to pay high import taxes; - in the past countries like China and other South-East Asian countries used to import many goods because they had underdeveloped manufacturing industries. This has changed because now they have very strong industries and can export goods and services in large quantities. This has increased global competition and dependence on the global economy: if something happens in one area it can have a knock-on effect (effetto domino) worldwide. The mass production of goods has led (condotto) to economies of scale. This means that the cost per item can be reduced when operating on a larger clase in order to generate bigger profits; for this reason consumers can choose from a wider range of products and buy them at lower prices. The Internet and mobile technology has allowed the world to become better connected and less isolated. It is now easier for people to share ideas, experiences, lifestyles and cultures. Globalisation may also help to make people more aware (attente) of global issues, such as deforestation and global warming. Multinational corporations have expanded into new markets and places for production in order to remain profitable. Businesses have been forced to become more efficient in order to cope (fronteggiare) with increased competition. Companies which wanted to operate successfully in foreign markets have merged (fondersi) with foreign businesses. This is one of the reasons for the growth of transnational corporations. Multinational corporations also invest in developing countries for different reasons: - cheap raw material (materie prime); - cheap labour supply (costo del lavoro); - good transport; - access to markets where the goods are sold; - friendly government policies. Reasons against globalisation - pag 158 Anti-globalisation is the general term for a group of different protest causes including: environmentalism, child labour, anarchism and anti-capitalism. Opponents of globalisation say it causes the exploitation of the world’s poor. Even if globalisation is most likely helping to create more wealth in developing countries, it is not helping to close the gap between the world’s poorest countries and the richest. A small group of countries are currently experiencing economic growth → they are currently known as the ‘CIVETS’ = Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. They are emerging markets and they are expected to grow in the future. Many countries that have missed out on globalisation are mainly the countries in Africa, because they are underdeveloped due to (a causa di) an unstable political situation and strict governments. The KOF Index of Globalisation - pag 159 The KOF (acronym of a German world) Index of Globalisation measures the 3 main dimensions of globalisation: 1. The economic dimension measures cross-border trade, investments and income flows in relation to GDP and the impact of restrictions on trade and capital movement. 2. The social dimension comprises personal contacts and cultural proximity to the global mainstream as well as exports and imports in relation to GDP 3. The political dimension is measured in the number of foreing embassies, international organisations which the country has joined. ** GDP → gross domestic product = prodotto interno lordo The role of technology in globalisation - pag 159 Globalisation has been taking place for hundreds of years but has rapidly increased since the mid- 1980s thanks to advances in technology. IT is a driving factor in the process of globalisation because advancement in Internet-based tools is changing the way people use and share information for personal, political and commercial purposes. IT also drives the innovative use of resources to promote new products and ideas across nations and cultures, regardless of geographic location. ‘The global village’ is a new term coined in the 1960s to express the belief that electronic communication would unite the world. Businesses improve their global competitiveness and productivity with: - more efficient electronic transaction - instant access to information This has a direct impact on the way the products and services are bought, sold and delivered. GLOCALISATION – pag.160 Glocalisation is the combination of the words gbobalisation and localisation It first appeared in the late 99 in articles by japanese economist in the Havard Business Review and it is used to describe a product or service that is developed and distibuted in the global, but one that is also changed to accomodate the consumer in a local market. this means that product or service may be tailored to conform to local laws, costums or consumer preferences. Products or services that are effectively glocalised are going to be of much greater interest to the end user. Google is an example of a company that practise glocalisation. It market a portal which is viewed worldwide and offers different vision of its website and its services for different users. The international fast food chain mcdonald’s is another example which illustrates the concept of glocalisation : they change their mainusure to appeal to local plates and customs. For example, in India, a country in which the cow is sacred, the menu features McVeggies instead of humburgersz. In singapore, costumer scan order a Chicken SingaPorridge ; in Hong Kong, some Seawed Shake Fries OUTSOURCING AND OFFSHORING - pag. 161 Outsourcing and offshoring are 2 terms used when talking about economic globalisation.
