What is globalisation and how have developments in ICT affected it?

As transport becomes faster and our economies more entwined, the process of globalisation occurs. Globalisation is the name given to the increasing interdependency of all the countries on earth. In a perfect world, each country contributes and each benefits from globalisation – but we don’t live in a perfect world. Some countries benefit more than others.

As globalisation spreads, many manufacturing companies in particular are taking advantage. For instance companies which used to make televisions or computers in the West now have them made in China at a fraction of the cost. However this has ramifications for the West, where manufacturing jobs are lost forever, and for China – where workers are often exploited.

The enormous technological improvement in ICT in recent years has also had an impact on globalisation. The internet, satellite and wireless technology mean that in theory most companies can be based anywhere on earth, and have a ‘reach’ far beyond traditional boundaries.

Improved ICT has also meant that companies are able to move parts of their business overseas. For instance, many British companies, including banks and computer firms, now have ‘call centres’ in places like India, where people will work for much less money. This sometimes causes resentment among British workers.

What are the advantages and disadvantages of global businesses?

Companies which operate in more than one company are called trans-national corporations (TNCs). Examples of TNCs include Coca-Cola, Sony and Tesco. TNCs have a great deal of power, both economically and politically; some people believe they have far too much power and are only interested in their own profits rather than improving people’s lives.