Globalisation is the "integration of the political, economic and cultural activities of geographically and/or nationally separated people" (US Department of Defence, 1999, p1) which results in the widespread economic interdependence of nations across continents through the exchange of: capital and goods; information and ideas; people and environmental substances. This massively increased scale of trade and cultural interchange has been aided by a variety of processes: Improvements in transportation - providing cost effective and speedy shipping and travel - means better mobility (Crash Course, 2012). Improvements in communication; technological changes such as fibre optic, cheaper satellites and increased availability of wireless communication
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Mobility and further liberation was increased with technological advancements in communication such as the internet and mobile technology, not only to purchase orders but also to receive information (Steger, 2009) However, this single global market creates an interdependence for example a global financial supermarket in cyberspace emerged, as the internet connected stock exchanges between different countries, however, this money does little to supply capital for the productive investments of the companies, instead they can create economic depression and endanger the social welfare of entire regions such as the South East Asia Crisis of 1997 (Steger, 2009; Browne, …show more content…
(David, 2014). POSITIVE??? However, a reflection of the unequal power relations between LEDC 's and MEDC 's is reflected in the fact that none of these TNC 's have headquarters outside of America, Europe, Japan and South Korea, (Steger, 2009). Critics coined the phrase "race to the bottom" when referring to TNC 's exploitation of the absence of enforced laws and regulations in developing nations; operating in ways that would pollute the environment; and allow health and safety risks; or impose poor working conditions and low wages on local workers (Hoffman, 2006). TNC 's have the power to influence the economic, political and social welfare of many nations, for example Nokia pressuring Finnish governments to lower taxes, or driving companies out of business if there was a more profitable arrangement in another country (Castells and Himanen,
Mobility and further liberation was increased with technological advancements in communication such as the internet and mobile technology, not only to purchase orders but also to receive information (Steger, 2009) However, this single global market creates an interdependence for example a global financial supermarket in cyberspace emerged, as the internet connected stock exchanges between different countries, however, this money does little to supply capital for the productive investments of the companies, instead they can create economic depression and endanger the social welfare of entire regions such as the South East Asia Crisis of 1997 (Steger, 2009; Browne, …show more content…
(David, 2014). POSITIVE??? However, a reflection of the unequal power relations between LEDC 's and MEDC 's is reflected in the fact that none of these TNC 's have headquarters outside of America, Europe, Japan and South Korea, (Steger, 2009). Critics coined the phrase "race to the bottom" when referring to TNC 's exploitation of the absence of enforced laws and regulations in developing nations; operating in ways that would pollute the environment; and allow health and safety risks; or impose poor working conditions and low wages on local workers (Hoffman, 2006). TNC 's have the power to influence the economic, political and social welfare of many nations, for example Nokia pressuring Finnish governments to lower taxes, or driving companies out of business if there was a more profitable arrangement in another country (Castells and Himanen,