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2.3 Global Governance > 1.3 Key factors in globalisation > Flashcards

1.3 Key factors in globalisation Flashcards

1
Q

What is globalisation

A

The increased integration of economies, societies and cultures globally

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2
Q

How many years ago did globalisation really take off

A

30 years ago

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3
Q

What are the 6 main factors of globalisation

A
  1. Government support (trade)
  2. Finance (technology)
  3. Transport (technology)
  4. Security (technology)
  5. Management and information systems
  6. Trade agreements
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4
Q

How has government support contributed to globalisation

A

By encouraging trade

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5
Q

How does government support encourage trade

A

Governments often have trade departments in other countries to facilitate exports

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6
Q

Give an example of the UK government support system

A

The UKTI hav centres in over 100 countries, where they offer support and advice on trade to encourage business and new exporters.

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7
Q

How has integrated finance contributed to globalisation

A

By allowing for fast transactions and allowing economies to trade money

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8
Q

How has integrated finance made transactions easier

A

Exchange rates have been made easier by the deregulation of financial markets

Transactions completed quickly and securely through algorithmic trading (mathematic formulas to make computer decisions)

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9
Q

How has transport contributed to globalisation

A

Products can now be shipped more quickly, in larger quantities for cheaper prices

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10
Q

Why is transport always getting better

A

Containerisation
Fast computer systems
High speed rail networks

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11
Q

Give an example of a global transport network

A

Eddie Stobart has over 24 global distribution centres with lorries, aircraft and boats

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12
Q

How has security contributed to globalisation

A

An increase in security means an increase in global trade, through secure finance systems etc.

However security can actually hinder globalisation

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13
Q

What is the ‘stable door’ security approach

A

The stable door approach means keeping the door to trade open, and relaxed

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14
Q

Why has the ‘stable door’ had to be shut and what are the consequences

A

Terrorist incidents, Smuggling, Bio security

This means that costs have risen and goods have been delayed

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15
Q

How have management and information systems contributed to globalisation

A

They control all of the other categories listed and by managing them better, the other categories become more efficient.

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16
Q

How are management and information systems improving and benefiting from ‘economies of scale’

A

They have become increasingly organised in global value chains by
1. Global marketing
2. Purchasing large assembly plants
3. Organise production to how it suits them (such as the JIT system)

17
Q

Give an example of an efficient management system and explain how it works

A

The JIT system means producing product only when there is demand for it.

Production pulled rather than pushed through , meaning NO STOCK BUILT UP goes to waste

18
Q

What are the advantages and disadvantages of JIT

A

Cost efficient
Consumers can customise
Faults spotted easily

If one part stops, whole production stops
Spatial seperation

19
Q

Give an example of a JIT system and how does it work

A

Toyota kanban. A kanban is a card containing product information required to start production

Consumer and sales rep discuss product, kanban card is made and sent to factory and is made

20
Q

How has trade contributed to globalisation

A

Every economy wants to achieve economic success, and the main way to do this is through trading systems

Trade integrates global economies

21
Q

Give some examples of trade blocs used to stimulate trade

A

Free trade areas - eliminate internal barriers

Customs Union - eliminate internal barriers and have same external barriers

Common Market - Customs Union but with labour aswell, such as the EU

22
Q

What are the global advantages of trade unions

A

Improve global PEACE and TRADE
DEVELOP economies

23
Q

What are the regional advantages of trade unions

A

Give countries good representation
Can compete on a global level
Particular sectors supported

24
Q

What are the disadvantages of trade unions

A

Loss of power and financial control
Pressure to adopt legalisation
Share resources

25
Q

What is the pattern of trade and how is it changing

A
  1. Trade agreements does not just happen regionally
  2. Trade agreements have lifted amount of duty free goods 20%, and the largest proportion has risen in NEE’s
26
Q

Give an example of a non-regional trading agreement

A

OPEC

27
Q

When was OPEC founded and by who

A

Founded in 1960 by 5 countries in the Middle East and South America. They are now in South America, Middle East, Asia and Africa

28
Q

Explain the story of OPEC

A

Demand for oil was growing, but the exporters were not getting paid enough , so they joined together to control the prices.

From the 1970’s-80’s they controlled 50% of global oil and adopted 4 new members across other continents

However due to renewable energy they now only control 1/3

29
Q

Give an example of a regional trade agreement

A

NAFTA (usmca)

30
Q

When was NAFTA founded and by who

A

Founded in 1994 by USA, Canada and Mexico

31
Q

Why was NAFTA created

A
  1. Complete with other trade blocs
  2. Revive Mexicos economy

They promised to eliminate all trade barriers to increase investment and corporation

32
Q

What were the advantages of NAFTA

A

Trade TRIPLED between the 3 countries

Manufacturing grew in USA
Mexico got more TNC investment
Mexicans got better wages

33
Q

What were the disadvantages of NAFTA

A
  1. Jobs lost to cheap Maquiladoras

2.Mexico exploited of natural resources
3.Food surplus dumped in Mexico, effects AGRICULTURE

34
Q

Bosman ruling ?

A

2.3 Global Governance (13 decks)

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