Scale of Globalisation (Edexcel A Level Geography)

Uneven globalisation

• Globalisation has affected places differently, which is due to a variety of reasons, such as:
•  Variations in poverty
•  Physical factors such as resource availability and accessibility
• Government policies and attitudes for and against globalisation

Measuring globalisation

• Uneven levels of globalisation can be measured using a range of indicators and indices, which include:
  • KOF Index (The Swiss Institute for Business Cycle Research) produces an annual Index of Globalisation 
    • First published in 2002, it contains data from 1970
    • Measures the social, economic and political aspects of globalisation
    • Uses a wide range of data, such as participation in UN Peace-keeping missions to TV ownership
    • Countries are scored out of 100 and the higher the number, the more globalised the country is
  • Issues with KOF Index
    • This information is only available for 122 countries (2023)
    • Some of the indicators used are now outdated due to improvements in telecommunications
    • There is cultural bias in some of the indicators for example, the number of McDonalds
    • Trade indicators ignore the informal economy
    • It does not take into account environmental factors
  • AT Kearney World Cities Index 
    • First published in 2008
    • It aims to look at how countries cope with population growth and a shrinking world
    • Ranks cities according to their ‘business activity’, ‘cultural experience’ and ‘political engagement’
    • Data for this includes the number of TNC headquarters, museums and foreign embassies
    • It includes countries which account for 96% of the world's GDP and 84% of the population
  • Issues with AT Kearney World Cities Index
    • Only includes 156 countries (2023)
  • Indicators include trade bloc membership, levels of migration or FDI

Uneven growth of Transnational Corporations (TNCs)

• TNCs are vital to globalisation and help connect countries across the world
• However, some countries have benefitted far more than others from FDI from TNCs due to:
• Unsuitability of some sites for production of goods e.g., accessibility, natural resources
• Not enough market potential to attract large retailers due to low incomes or culture 

TNCs and glocalisation

•  TNCs try to build their global businesses through:
• Offshoring: moving parts of their production process, such as factories or offices, to other countries to reduce costs (e.g. labour)
• Outsourcing: contracting with a different company to produce goods and services they need
• Global production networks: setting up chains of connected suppliers of parts and materials that contribute to the manufacturing or assembly of consumer goods
•  In an attempt to increase profits, many TNCs have adapted their products to suit local tastes, religion and culture, local interests, laws and lack of natural resources— this process called glocalisation

Switched-off  places

• There are some places in the world, often LDCs that remain relatively switched off from the global networks
• Strong flows of trade and investment with other countries are absent in these countries
• Examples include North Korea and the Sahel region
• North Korea has chosen to remain isolated from the rest of the world    
• The Sahel region experience many challenges such as the arid climate, desertification and poverty that has hindered their development and consequently their ability to connect to the global networks