By the end of this lesson you will have: 3.2 Political and Economic Factors in the acceleration of Globalisation By the end of this lesson you will have: Understood how political and economic factors have also accelerated globalisation Learnt what the ‘WTO, IMF, FDI and World Bank’ are and their impact on globalisation

Globalisation – Enquiry Question 1 What are the causes of Globalisation and why has it accelerated in recent decades? 3.2 Political and economic decision making are important factors in the acceleration of globalisation. a. International political and economic organisations (P: role of World Trade Organization (WTO), International Monetary Fund (IMF), World Bank) have contributed to globalisation through the promotion of free trade policies and foreign direct investment (FDI). b. National governments are key players in terms of promoting free trade blocs (P: role of European Union (EU), The Association of Southeast Asian Nations (ASEAN)) and through polices (free-market liberalisation, privatisation, encouraging business start-ups). (P: role of governments in economic liberalisation) c. Special economic zones, government subsidies and attitudes to FDI (China’s 1978 Open Door Policy) have contributed to the spread of globalisation into new global regions (P: role of governments in attracting foreign direct investment (FDI))

The Big Picture Globalisation Enquiry Question 1 – The acceleration of globalisation 3.1 How globalisation is a long standing process 3.2 The political and economic factors associated with globalisation 3.3 The affect of globalisation on some places and organisations Enquiry Question 2 – Geographical impacts of Globalisation 3.4 The global shift and how this has created winners and losers 3.5 Economic migration and the impact of this on the physical environment 3.6 The emergence of global culture Enquiry Question 3 - The Development and Environmental Challenges of globalisation 3.7 The increase of development in some countries and how this has created disparities 3.8 The social, political and economic tensions which arise from globalisation 3.9 Ethical and environmental concerns about unsustainability

Test 1. Define Globalisation 2. In which three ways were countries connected before globalisation? 3. Name one consequence of social globalisation 4. Name a consequence of cultural globalisation 5. What are the three measurements of how the economy has changed since the 1940s? 6. Name the five global flows 7. What are the four improvements in transport which have accelerated globalisation? 8. What is spatial division of labour? 9. Define GDP 10. What is the M-Pesa system in some African countries?

Key Terms World Bank World Trade Organisation International Monetary Fund Bretton Woods Institutions Foreign Direct Investment BRICS Players TNCs Digital Divide

The Politics and Economics of Globalisation Last week we learnt how transport and technology accelerated globalisation in a political, economic, social and cultural sense This week we need to learn how there were also political and economic causes of globalisation

Key Terms World Bank = The World Bank is an international financial institution that provides loans to developing countries for capital programs. Its aim is to reduce poverty. World Trade Organisation = The World Trade Organization (WTO) is an intergovernmental organization which regulates international trade. International Monetary Fund = The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., of "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." Bretton Woods Institutions = The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australia and Japan in the mid-20th century. Foreign Direct Investment = A foreign direct investment is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. BRICS = BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. Players = an important person, company, etc. in a particular area of activity: TNCs = A transnational corporation or worldwide enterprise is an organization that owns or controls production of goods or services in one or more countries other than their home country. Digital Divide = A digital divide is an economic and social inequality with regard to access to, use of, or impact of information and communication technologies (ICT).

The IMF, WTO and World Bank 15mins We need to know the role of these three institutions in globalisation and be able to evaluate their success In groups of four, complete a reciprocal reading task for the table 12.3 on page 168 of the textbook (there are 6 paragraphs to read and summarise) READER – This person reads a paragraph at a time. There are 6 paragraphs all together. SUMMARISER – This person needs to summarise for everyone else what to write in their notes. CLARIFIER – This person needs to use the key words sheet to clarify any words that you may not understand SPEAKER – This person will speak at the end to the rest of the class. They need to have the correct information.

Foreign Direct Investment Transfer Pricing TASK: Make notes on the four types of FDI using the table at the bottom of page 168 to help you Offshoring Foreign Mergers Foreign Acquisitions

FDI in the UK TASK: Use the map on page 170 of your textbook, make a spider diagram with ‘FDI in the UK’ in the center. Did you get?.... China owns 10% of Heathrow Airport Mini is owned by Germany’s BMW Manchester City is owned by Abu Dhabi United Group

Stay Standing If… You know the three main ‘brokers’ of globalisation through the promotion of free trade You know why might some governments not want investment from foreign TNCs? You know what might undermine the Bretton Woods players from maintaining their influence in the future? You know what the BRIC countries are You can give an evaluation of the WTO You can define foreign acquisitions

By the end of this lesson you will have: 3.2 Political and Economic Factors in the acceleration of Globalisation By the end of this lesson you will have: Understood how political and economic factors have also accelerated globalisation Learnt what the ‘WTO, IMF, FDI and World Bank’ are and their impact on globalisation