Qn: What are the driving forces of globalisation?

Development in transportation and communications Globalisation could not have happened without improvement in transportation and communication technology. These 2 forms of technology perform two different but complementary roles in encouraging globalisation. Transportation systems are the means by which people, materials and products are transferred from one place to another. Communication systems are the means by which information is transmitted from place to place in the form of ideas, instructions and images. Transportation Improvements in transportation technology has shrunk the world considerably in terms of time taken to get from one place to another. A major improvement in transportation technology in the 19th century included the widespread use of the steam engine. In the 20th century, the commercial jet aircraft, large ocean-going vessels and containerisation greatly increased the movement of goods and people from one place to another. Containerisation has reduced the time and cost of moving goods over long distances. It has also greatly simplified the transfer of goods from one mode of transportation to another as containerisation can be easily transferred from ships to trucks. In a globalisation world, there is an increasing mobility of goods and people. Countries have built efficient and integrated transportation infrastructure such as airports, seaports, railways and highways to facilities this movement. The efficient transport network worldwide has made it possible for goods to be moved around the world easily. At the same time, it has also meant that people can travel easily. For example, a parcel from overseas can reach Singapore by courier service within a few days. A businessman from Hong Kong can have a morning meeting in Singapore and be back in Hong Kong by evening. Communications Improvement in technology has made communications among people in different locations faster and more convenient. People across the globe can communicate via tools such as telephone, electron mail, fax and video conferencing. Satellite technology has enabled messages to be transmitted from one location and received in another part of the

world almost simultaneously. Similarly, optical fibre systems have very large carry capacity and transmit information at very high speed. The invention of advanced communication such as the Internet has enabled consumers to access information about new products and places more conveniently and efficiently. For example, one can make a reservation for a hotel room or buy an air ticket via the Internet without even leaving the home. The Internet has greatly transformed the way one communicates, conducts business, obtain information and purchases goods and services. Advances in communication technology allow Transnational Corporations to cooperate and control their worldwide activities easily. International corporations (TNCs) TNCs are large global forms that operate in a number of countries and have production or services facilities outside the country of their origin. Some examples of TNCs include Microsoft Corporation and Toyota Motor. TNCs set up their operations in different locations around the world for a variety of reasons. Some of these reasons include sourcing for new markets and lowering the cost of production. These worldwide operations are coordinated and controlled by the headquarters which are located in the country of origin. At the same time, TNCs also source for components from around the world before assembling the final product in another country. As such, economies around the world have become more integrated.