2.0 : drivers of globalisation Flashcards
what are the drivers of globalisation?
1) movement of people
2) technology
3) english as a global language
4) MNCs
5) free trade and international trade
what is free trade and international trade?
int trade: import and exports ( buying and selling of goods and services across countries )
free trade: trade between more than 2 countries with minimal barriers and regulations like tariffs
free trade agreements: agreements between 2 countries that barriers will not be applied
trade liberisation: when a country opens economy by reducing govt tariffs and regulations on imports and exports
impact: By WTO in 2016, trade increased by 1000% since 1980
int. trade driving economic globalisation: through economic integration, 1978, leader of China, Deng Xiaoping and US President, Jimmy Carter, formed their first trade agreement, which led to China’s growth into becoming an economic giant
political + economic: trade establishes mutual interest which leads to peaceful and interdependent rs between states
cultural: foreign direct investment -> shanghai disneyland ( spreading west influence to east )
free trade driving economic impact: easier and cheaper to trade internationally since tariffs are removed
what are MNCs?
profit-making organisations that have several operations in multiple countries
cultural: more brands are being recognised and consumed globally, Starbucks in China introduced a nation of tea drinkers to coffee culture
economic: integrates manufacturing and sales worldwide since they operate in many locations. Apple designs its products in US, manufactures parts in countries like China, and assembles them in countries like India.
political: Abbott Nutrition contributed to Trump’s inauguration ceremony -> influenced US delegation to UN World Health Assembly to block the resolution supporting breastfeeding.
what is technology?
1) advancements in transportation technology
- size of planes increase, more people can travel per trip, makes transportation more cost-efficient and fuel-efficient
- shipping containers
economic: makes int trade more efficient and economical, goods and services can be transported quickly and cheaply with shipping containers. saves the time and cost for suppliers -> lower costs for consumers
2) ICT
eg: in 1930, 3 min phone call from NY to London was AU300, now it is free due to Whatsapp.
economic: electronic payment systems like Mastercard and Visa enables quick and easy money transfer, facilitating e-commerce
cultural: SM apps like FB and IG allows for cultural exchange of ideas and info
political: enables NGOs and social movements to spread global awareness about issues, able to organise global actions like protests -> influences govt decisions
eg: WWF Earth Hour became a global conservation movement that spread from Aus to 180 different countries
what is the movement of people?
- led by tech. advancements
- includes temp. and perm. migration
cultural: 1) birth of multicultural societies as migrants share their own cultures 2) the exchange of knowledge, skills and ideas when high-skilled workers move to a country to share their expertise
economic: 1) guest workers send money back home to their families while working in a more developed country (remittances), which forms a large part of their country’s economy and improves living standards 2) int students contribute to their host country’s economy when they study there, in 2018 more than half a million int students from over 190 different countries came to Aus. Education is Aus’ third top export and top service export.
what is english as the global language?
- most commonly studied foreign language with 1.5 billion learners
culture: many books, journals and webpages published in Eng. in unis, most of the research done is released in Eng. publishing companies like Penguin knows that this will reach a wider audience. pop music, Eng and Hollywood films spread cultural values and inclination towards consuming West. goods.
economic: lingua franca, allows people to conduct business internationally. essential for international trade and transport as all air traffic and shipping control throughout the world is carried out in Eng. MNCs use Eng to integrate and carry their business across borders -> MNCs mandate English as common corporate language -> Samsung and Microsoft require Beijing-based staff to speak Eng - allowed for the outsourcing of services across borders which leads to jobs in developing countries -> MNCs set up offshore call centres in countries like India and Philippines where they have Eng speakers
