Definition of Globalisation:

Globalisation is the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa. -Anthony Giddens, The Consequences of Modernity Globalisation is the widening, deepening and speeding up of global interconnectedness Globalisation is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital.

Globalisation is the worldwide movement toward economic, financial, trade, and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers.

Definition of Global Industrial Shift/ Trend of Transference:

A worldwide change in the global economy and industry entailing:

1. A change in location of large-scale manufacturing/production plants (from MEDCs to LEDCs) 2. A change in the types of industries located in different countries.

Factors that facilitate the Global Industrial Shift:

Large Markets Space-Shrinking Technology Transport Technology Communication Technology Movement of labour/capital across borders

Global Industrial Shift/ Trend of Transference: Due to rising labour costs in more economically developed countries (MEDCs), large scale Multinational Corporations (MNCs)/ Transnational Corporations (MNCs) are move their manufacturing and production plants to less economically developed

countries (LEDCs) where labour costs are cheaper, allowing for lower productions costs and higher profit margin. Ideally, this provides a win-win situation for various stakeholders. (+) MNCs/TNCs: Low labour costs -> Lowered production costs -> High profit margin (Products may even be sold cheaper while allowing the MNCs/TNCs to maintain high profit margins) (+) LEDCs: When factories and secondaries move into their countries, more employment opportunities are provided for the people (mostly low-skilled jobs). Though low skilled jobs=low wages, revenue is generated --> increase in GDP --> Contribute to countrys economic development. Also, technology is brought into LEDCs (host countries). Hence, the Global Industrial Shift/ Trend of Transference assists the transfer of technology from MEDCs to LEDCs. Also, when workers in LEDCs are provided jobs, the level of skills of some of these workers also increase. (+) MEDCs: MEDCs=Consumer Base. Lower production costs could result in lowered prices of goods sold to people in MEDCs. Also, MEDCs are usually where the MNCs/TNCs are based. Hence, revenue generated by the MNCs/TNCs increases the GDP of the MEDCs, contributing to the economic development of the MEDCs.