Y10W25WR Globalisation and Its Consequences

Question: Write a three-paragraph explanatory piece explaining what globalisation is, what its main economic and cultural effects have been and what the key criticisms of it are. Select the most relevant material from the notes, organise it clearly and write entirely in your own words. You will need to decide what to leave out.

Stimulus: Read the following notes carefully. They contain more information than you can use.

Globalisation refers to the increasing interconnection of economies, cultures and political systems across national borders. It is driven by reductions in trade barriers, advances in transport and communications technology, the growth of multinational corporations and the movement of capital, goods, services and people across borders. Economic globalisation has produced significant growth in international trade. Supply chains for many manufactured goods now span multiple countries. This has reduced the cost of many consumer goods and contributed to economic growth in countries that have integrated into global manufacturing networks. Critics argue that globalisation has also increased economic inequality within countries, suppressed wages in manufacturing sectors in wealthier nations and created dependencies on supply chains that can be fragile — as demonstrated by disruptions during the COVID-19 pandemic. Cultural globalisation involves the spread of ideas, values, media and consumer culture across borders. English has become a dominant global language partly as a result. Supporters argue this fosters understanding and shared values. Critics argue it produces cultural homogenisation and threatens the survival of minority languages and local cultural practices. Financial globalisation involves the rapid movement of capital across borders. This can bring investment to economies that need it but also creates vulnerability to financial contagion — when financial crises spread rapidly from one country to others, as occurred in 2008. Globalisation has been associated with the rise of global governance institutions including the World Trade Organisation, the International Monetary Fund and the World Bank. Critics argue these institutions reflect the interests of wealthy nations and impose policy conditions on developing countries that limit their autonomy. Responses to globalisation include protectionist trade policies, economic nationalism and bilateral trade agreements. The relative merits of free trade versus managed trade remain actively contested.