How does globalisation connect countries? (WJEC Eduqas GCSE Geography B): Revision Note

Specification links

The notes on this page cover part 1.3.2 of the WJEC Eduqas B specification – What are the global processes that connect countries at different levels of development, including the UK?

• The key drivers of globalisation include:

  • trade, technology, geopolitical links, cultural exchange, migration and economic investment by multinational companies (MNCs).

Defining globalisation

• 'Globalisation' refers to the process through which countries around the world have become, or are becoming, interconnected through:

  • cultural exchange

  • politics

  • trade

  • technology

  • tourism

  • migration

  • economic investment

• It also includes environmental globalisation through the impacts of global warming

• Globalisation is nothing new; trade between people, businesses and countries has always existed

• It makes them more interdependent

• More powerful countries and businesses affect decisions in other parts of the world 

  • This has led to a rise in global inequality

Key drivers of globalisation

• The improvements and developments in communication and transport have made globalisation what it is today—a shrinking world

• The network flows to various places and populations result from five significant developments:

  • Appearance of large multinational companies (MNCs) such as HSBC, McDonald's and Nike

  • Growth of regional economies and trading blocs 

  • Development of modern transport networks

  • Advances in IT and communications, particularly the WWW and the internet

  • The reduction in the effect of the political borders of countries

• Whereas trade would have taken weeks, months or even years in the past, modern transport and communications have made trading and interaction almost instantaneous

• Overall, connections around the globe are: 

  • Faster speeds have improved communication, travel, and money exchange

  • Deeper – connecting lives with faraway places

  • Longer – connecting links between places are further apart

• Developments in globalisation have led to the formation of a global economy

• There are very few countries in the world that haven't 'networked' in one way or another

• The key drivers are:

  • Trade

  • Geopolitical links

  • Foreign investment by multi-national companies

  • Cultural exchange

  • Labour migration

  • Information technology

Trade

• Trade is the import and export of raw materials, food goods and services

• Global trade is unequal

  • Developed countries benefit more from trade than developing and emerging countries

  • Many developing countries are paid low rates for materials and products

Geopolitical links

• Formation of alliances and blocs

  • There are fewer barriers to trade than there were previously

    • Tariffs and quotas are much lower

    • Trade blocs, such as the European Union (EU), have developed to make trade easier

• Establishment of global institutions:

  • Nations have worked to create international organisations like the World Trade Organisation (WTO) and the International Monetary Fund (IMF)

• Resource access:

  • Gaining access to important natural resources like oil and minerals is a common goal in trade relationships

Cultural exchange

• Media, migration, and trade make it easy for people from different countries to share their thoughts, values, and habits quickly

• Cultures can affect each other through interaction, which leads to new ideas and better community living

• International trade has historically influenced cultural exchange

• Trade brings foreign goods, like foods and fashion brands, into new markets, where people can adopt and change them

• To do well in global markets, businesses also need to understand and adapt to different cultures

Information technology

• Global business, culture, and society have changed due to the breakdown of geographical and communication barriers

• Communication advances allow companies to have global factories and offices

• Media and advertising boost product demand

• The Internet, email, videoconferencing (Zoom, Microsoft Teams, etc.), and social media make it possible for people on different continents to talk and work together in real time

• This has led to remote work and global teams, giving companies access to global talent

Labour and migration

• This is important to the working of the global economy, and labour migration fuels this market, either with specialist or cheap labour

• The availability of low-cost labour in developing and emerging countries has led many multinational companies (MNCs) to invest in those areas

Foreign investment

• Investment is not just monetary (economic), although this is a large part of it

  • Investment can be in people, research or products

• Investment can either be direct or indirect

• Foreign investment is when individuals or firms from abroad invest in another country

• Call centres are examples

  • Call centres can be located anywhere, e.g. India

  • Investment is made in the country through building the call centre, paying taxes, etc.

  • Local people are employed and trained

  • Service is provided to the donor country, for example, the UK

Multinational companies

• Multinational companies (MNCs) provide most of the foreign direct investment (FDI)

  • MNCs are companies which operate in more than one country

  • These companies invest in factories and infrastructure

  • MNCs have their headquarters in a single home country that coordinates their global operations

    • This is usually in a high-income country

    • Apple's HQ is in San Francisco, but manufacturing is in China

  • MNCs contribute to globalisation by:

    • Connecting markets

    • Affecting the economies of the countries where they operate

• MNCs often establish factories in low- to middle-income countries due to cheaper labour and access to inexpensive raw materials

How NICs benefit from globalisation by MNCs

• MNCs provide NICs with capital investment, create jobs, transfer technology, skills and knowledge whilst boosting the local economy and industries

• NICs, such as South Korea, Singapore, and China, have successfully used these benefits to develop their economies by attracting foreign direct investment (FDI) from larger, more developed nations

Tata Motors in India – How MNCs benefit NICs

Background

• Tata Motors is part of the Tata Group, one of India’s largest multinational corporations

• Headquartered in Mumbai, Tata Motors manufactures cars, trucks, and buses and owns international brands such as Jaguar Land Rover

• The company operates major plants in Pune, Jamshedpur, and Sanand, employing over 80,000 people directly in India (Tata Motors, 2024 (opens in a new tab))

AWAITING IMAGE

Locations of Tata Automotive in India

Job creation

• The company provides large-scale employment in both manufacturing and services

• Thousands of additional jobs are created indirectly through parts suppliers, logistics firms, and dealerships

• This has helped reduce unemployment in industrial regions such as Maharashtra and Gujarat

• Workers employed by Tata often earn higher wages than the local average, improving living standards (ILO, 2023 (opens in a new tab))

Skill and knowledge transfer

• Tata Motors runs training academies to upskill engineers, mechanics, and technicians

• Staff learn new technologies, including automation, robotics, and vehicle design

• Partnerships with technical colleges develop local expertise, improving the human capital of the workforce

• Many workers trained by Tata later join or start local businesses, spreading new skills through the wider economy (World Bank, 2023 (opens in a new tab))

FDI and capital inflows

• Tata Motors has attracted substantial foreign investment from joint ventures with global car companies such as Jaguar Land Rover

• FDI provides India with valuable foreign currency and boosts national GDP

• The company invests billions of rupees annually in research, development, and factory expansion, contributing to long-term industrial growth (UNCTAD, 2024 (opens in a new tab))

Infrastructure development

• To support production and exports, Tata Motors has helped fund new roads, ports, and power facilities

• The Sanand manufacturing hub in Gujarat required upgrades to transport links and electricity grids — improvements that also benefit nearby towns and businesses

• Local suppliers have expanded due to improved access to infrastructure, stimulating wider regional development (Government of India, 2023 (opens in a new tab))

Growth of local businesses

• Tata Motors sources materials and components from hundreds of Indian suppliers, many of which are small- or medium-sized firms

• This integration into global supply chains encourages local companies to meet higher production and quality standards

• The multiplier effect leads to further job creation, new workshops, and better technology in the local economy (NITI Aayog, 2024 (opens in a new tab))

Tax revenues and public spending

• Profitable operations generate significant corporate and income tax contributions

• Local governments benefit from higher tax receipts, funding improvements in education, healthcare, and transport

• For example, in 2023, Tata Motors paid over ₹2,800 crore (£270 million) in taxes to Indian authorities (Ministry of Finance, 2024)

Innovation and competition

• Tata Motors promotes innovation through new product design and sustainable technologies, including electric vehicles (EVs)

• The launch of the Tata Nexon EV made affordable electric cars more accessible for Indian consumers

• The presence of large firms like Tata encourages competition, motivating smaller Indian car manufacturers such as Mahindra & Mahindra to modernise and innovate

Consumer choice and improved living standards

• Tata Motors produces a wide range of vehicles, from the low-cost Tata Nano to luxury cars under the Jaguar Land Rover brand

• This variety increases consumer choice and affordability within India’s growing middle class

• Rising incomes mean more families can own vehicles, improving mobility and economic opportunity

• Greater competition has also led to lower vehicle prices and higher safety standards across the market