Lesson 1.

Causes and Consequences of Globalisation

Video 1: Globalisation Theories

https://www.khanacademy.org/test-prep/mcat/society-and-culture/demographics/v/globalization-
theories

Questions: Globalisation Theories

What three regions do World Systems Theories divide the world into?
According to the world systems theory, the world is divided into three types of
countries or areas: core, periphery, and semi-periphery.

What are the characteristics of the Core Countries?

Characteristic of core countries include a strong central government with enough taxes to support
themselves, industrialized, economically diversified, have strong middle and working classes,
relatively independent of outside control, and focus on material goods rather than raw goods. These
countries are found in North America, Western Europe, Australia, and Japan.

Where are Peripheral countries located?

These Peripheral countries are found in Latin America, Africa, Eurasia, and southern Asia.

What are some of the Semi-periphery Countries?

Some examples of Semi-periphery countries are India, Brazil, and China.

What do Modernisation Theories suggest?

It suggests that all countries take the same path to becoming modernized.

How do Dependency Theories explain why some countries have not developed
to become economically developed?
The theory explains some countries have not developed because they have been integrated into the
world country as a developing countries, which put them in an undesirable position that would force
them to depend on developed countries.

Reading 1: What Caused Globalisation?

https://www.economicshelp.org/blog/401/trade/what-caused-globalization/

Questions: What Caused Globalisation?

There many factors caused globalization: improved transport, containerisation, improved
technology, growth of multinational companies, growth of global trading blocks, reduced tariff
barriers, firms exploiting gains from economies scale, growth of global media, global trade cycle,
financial system became more global, improved mobility of capital, increased mobility of labor,
and internet.

What are the main causes of globalisation?

The main causes are the advancement of technology, the rise of multinational companies, the drop
in tariffs, improved transport, labour mobility, and the mobility of capital.

Reading 2: Positive Impact of Globalisation

https://www.bbc.co.uk/bitesize/guides/zxpn2p3/revision/4

Questions: Positive Impact of Globalisation

What are some advantages of globalisation?

Some advantages of globalization include TNCs providing new jobs and skills for local people, TNCs
bringing in wealth and foreign currency to local economies, the sharing of culture and ideas, and it
increases our awareness of foreign affairs.

Reading 3: Negative Impacts of Globalisation

https://www.bbc.co.uk/bitesize/guides/zxpn2p3/revision/5

Questions: Negative Impacts of Globalisation

The negatives of globalization are that it operates mostly on the interest of wealthy countries,

there is no guaranteed wealth from the inward investment that would benefit the local

community, there’s a lack of strictly enforced international laws, it seen to threaten cultural

diversity, and more competition for local companies.