Responses to Globalisation

This lesson examines how different actors — individuals, communities, NGOs, governments and international bodies — are responding to the challenges of globalisation. It addresses the Edexcel Enquiry Question: "What are the consequences of globalisation for countries and different groups of people?" and the broader question of whether globalisation can be managed to produce more equitable and sustainable outcomes.

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The Spectrum of Responses

Responses to globalisation can be placed on a spectrum:

Position	Stance	Examples
Pro-globalisation (hyperglobalists)	Globalisation is positive and inevitable; free markets, free trade and technological progress will ultimately benefit everyone	WTO, IMF, many TNCs, neoliberal economists
Reformists	Globalisation has benefits but needs to be managed and reformed to ensure fairness and sustainability	Fair trade movement, some NGOs, social democratic governments, UN SDGs
Anti-globalisation (alter-globalists)	Current forms of globalisation are exploitative and unsustainable; radical change is needed	Anti-globalisation protestors, some environmental groups, Marxist/post-colonial scholars
Deglobalisation	Reducing global economic integration in favour of local/national self-sufficiency	Brexit, Trump-era protectionism, localism movements

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Anti-Globalisation Movements

The Anti-Globalisation Movement

The modern anti-globalisation movement emerged in the late 1990s, driven by concerns about the social and environmental impacts of free trade and corporate power:

Key events:

Event	Date	Significance
"Battle of Seattle"	November 1999	~40,000 protesters disrupted the WTO Ministerial Conference in Seattle, USA. Protests included trade unionists, environmentalists, human rights activists and anti-capitalist groups. Police used tear gas and rubber bullets. The conference collapsed without agreement.
Genoa G8 protests	July 2001	~200,000 protesters demonstrated against the G8 summit; one protester killed by police; violent clashes
World Social Forum	From 2001	Annual gathering of civil society groups, held as a counter to the World Economic Forum (Davos). Motto: "Another World Is Possible"
Occupy Movement	2011	"Occupy Wall Street" and related protests in 80+ countries, highlighting the power of the "1%" and growing economic inequality

What Anti-Globalisation Movements Oppose

• Free trade agreements that benefit TNCs at the expense of workers and the environment.
• IMF/World Bank structural adjustment that imposes neoliberal policies on LICs.
• Corporate power — the disproportionate influence of TNCs on governments and international institutions.
• Environmental destruction driven by global commodity demand.
• Labour exploitation — sweatshops, poverty wages, unsafe working conditions.
• Cultural homogenisation — the dominance of Western consumer culture.

Exam Tip: Anti-globalisation movements are diverse — they include trade unions, environmentalists, human rights groups, indigenous peoples, farmers and anti-capitalists with very different agendas. Avoid treating them as a monolithic group. This nuanced understanding earns higher marks.

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Fair Trade

Fair trade is a trading partnership that aims to achieve greater equity in international trade by offering better trading conditions and rights to marginalised producers and workers, primarily in LICs.

How Fair Trade Works

Feature	Detail
Minimum price	Producers receive a guaranteed minimum price that covers the cost of sustainable production, regardless of market fluctuations
Fair trade premium	An additional payment (typically $20–$20–40 per tonne for coffee) that communities invest in social projects (schools, clean water, healthcare)
Long-term contracts	Stability and predictability for producers
Environmental standards	Restrictions on pesticide use, deforestation and water pollution; promotion of organic farming
Labour standards	No child labour, no forced labour, freedom of association, safe working conditions
Certification	Products carry the Fairtrade mark, allowing consumers to identify and choose fair trade products

Scale of Fair Trade

• Fairtrade International works with over 1.9 million farmers and workers in 72 countries (2023).
• Global fair trade retail sales reached approximately $12.8 billion in 2022.
• Key products: coffee (largest fair trade commodity), tea, cocoa, bananas, sugar, cotton, flowers.
• The UK is the world's largest fair trade market per capita.

Case Study: Fair Trade Coffee in Ethiopia

• Ethiopia is Africa's largest coffee producer and the birthplace of Arabica coffee.
• Fair trade cooperatives (e.g. Oromia Coffee Farmers' Cooperative Union) provide approximately 121,000 member farmers with a guaranteed minimum price.
• The fair trade premium has funded school construction, clean water projects and healthcare facilities.
• However, fair trade coffee accounts for only approximately 5–8% of global coffee sales — the vast majority of coffee is traded on conventional markets.

Criticisms of Fair Trade

Criticism	Detail
Small scale	Fair trade represents a tiny fraction of global trade — it cannot transform the system
Niche market	Consumers pay a premium; fair trade products are more expensive, limiting demand
Certification costs	Certification can be expensive for the smallest producers
Limited impact on the poorest	The poorest farmers may not be members of cooperatives and therefore do not benefit
Market distortion	Guaranteed minimum prices can encourage overproduction and keep farmers in low-value crops rather than diversifying
"Fairtrade-washing"	Some corporations use fair trade certification as a marketing tool while their broader business practices remain exploitative

Exam Tip: Fair trade is a good example of a reformist response to globalisation — it works within the existing system to improve outcomes for producers. When evaluating it, acknowledge its achievements but also its limitations — particularly its small scale relative to global trade. This balanced assessment is what examiners want.

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Ethical Consumption

Ethical consumption is the practice of purchasing goods and services produced in a way that minimises social and environmental harm. It goes beyond fair trade to encompass a wider range of concerns:

Form of Ethical Consumption	Example
Fair trade products	Buying Fairtrade-certified coffee, chocolate, bananas
Organic products	Choosing organic food to reduce pesticide use
Sustainable sourcing	Buying FSC-certified wood; MSC-certified fish
Boycotts	Refusing to buy from companies with poor labour or environmental records
Reduced consumption	Buying less, choosing quality over quantity, reducing waste
Local sourcing	Buying locally produced food and goods to reduce food miles and support local economies
Second-hand / circular economy	Buying used goods, repairing rather than replacing, recycling

Limitations of Ethical Consumption