Globalization IB HL

Definitions Core and Periphery: The concept of a developed core surrounded by an undeveloped periphery. The concept can be applied at various scales. Cultural Imperialism: The practice of promoting the culture or language of one nation in another. It is usually the case that the former is a large, economically or militarily powerful nation and the latter is a smaller, less affluent one.

Definitions Gross Domestic Product (GDP): The value of all final goods and services produced within a nation in a given year. The measure is easy to compute and gives a precise measure of the value of output. Globalization: The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology. (IMF).

Definitions Globalization Index: The A.T. Kearney Index is one of several measures of globalization. It tracks changes in the 4 key components of global integration: Trade and investment flows, Movement of people across borders, Volumes of international telephone traffic and internet usage, and Participation in international organisations (A.T. Kearney, Foreign Policy).

Definitions Glocalization: A term that was invented in order to emphasise that the globalization of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture it is marketed in. The increasing presence of McDonalds restaurants worldwide is an example of globalization, whereas the changes in the menus of the restaurant chain that are designed to appeal to local tastes are an example of glocalization.

Definitions Gross National Income (GNI): This term is now used in preference to gross national product; GNP. GNI is the total value of goods and services produced within a country, together with the balance of income and payments from or to other countries. Outsourcing: The concept of taking internal company functions and paying an outside firm to handle them. Outsourcing is done to save money, improve quality, or free company resources for other activities.

Definitions Time-Space Convergence: The reduction in the time taken to travel between 2 places due to improvements in transportation or communication technology. Transnational Corporation (TNC): A firm that owns or controls productive operations in more than one country through foreign direct investment.

Measuring Global Interactions The globalization index tracks and assesses changes in 4 key components of integration. The 72 countries ranked in the 2007 globalization index account for 97% of the world’s GDP and 88% of the world’s population. Major regions of the world, including developed and developing countries, are covered to provide a comprehensive and comparative view of global integration.

Measuring Global Interactions Economic integration combines data on trade and foreign direct investment (FDI) inflows and outflows, international travel and tourism, international telephone calls, and cross-border remittances. Technological connectivity counts the number of internet users and internet hosts. Political engagement includes each country’s membership in a variety of representative international organisations.

Measuring Global Interactions The resulting data for each given variable are then “normalised” through a process that assigns the value of 1 to the highest data, with all other data points valued as fractions of 1. The base year (1998) is assigned a value of 100. The given variable’s scale factor for each subsequent year is the percentage growth of decline in the GDP-or population-weighted score of the highest data point, relative to 100. Globalization index scores for every country and year are derived by summing all the indicator scores.

Activities Using “Geography For The IB Diploma: Global Interactions” P1-7, answer the following… Define Globalisation. What are the main components of a global economy and how do these components relate to each other? How are TNC’s and NIC’s defined? What factors are responsible for economic globalisation? Explain the New International Division of Labour (NIDL).

Activities Using “Geography Course Companion” P317-319, answer the following… What are the most globalised countries in the 2010 index? What characteristics do they share? What could be the reasons behind these countries being the most globalised? Which countries have a globalisation index between 20-40 and what characteristics do they share?