A-Level Geography: Globalisation EQ1 Flashcards
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the many causes for accelerating globalisation and the apparent ‘shrinking’ of the modern world?
- Economic
- Political
- Social/Migration
- Cultural
- Flow of Commodities
- Technology
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the economic reasons behind the ‘shrinking world?’
- The volume and influence of transnational companies (TNCs) have increased - many TNCs have incomes higher than the GDPs of many countries.
- Online purchasing between countries is becoming increasingly common.
- Stocks are traded from across countries and countries invest in each other (Foreign Direct Investment). Some financial businesses (pension funds and investment banks) trade large amounts of currencies in order to make a profit
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the political reasons behind the ‘shrinking world?’
- Trade blocs (e.g. NAFTA, EU) have become more influential and have reduced tariffs and other protectionist measures.
- IGOs (e.g. IMF, WTO and the World Bank) work to harmonise economies, whilst promoting democratic ideology.
- Political views and ideology are expressed in worldwide media outlets e.g. BBC, Fox, CNN.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the social/migration reasons behind the ‘shrinking world?’
- International migration has led to extensive family networks living across the globe, leading to the spread of culture and finance (through remittance).
- International tourism has increased - more people can travel abroad for holidays due to lower transport costs.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the cultural reasons behind the ‘shrinking world?’
Americanisation and Westernisation of other (often developing) parts of the world.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How does the flow of commodities lead to the ‘shrinking world?’
- Goods can easily be imported, increasing countries interdependence on one another (some UK bottled water is imported from Fiji, which is 10,000 miles away)
- The volume of manufactured goods has increased rapidly due to low-cost countries such as Bangladesh and Vietnam
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How does technology lead to the ‘shrinking world?’
- The internet has rapidly allowed the spread of information and knowledge.
- Social networking sites have become very popular (Facebook had 1.5 billion users in 2015). Networks can allow the spread of culture, ideology and opportunities for migration and tourism.
- Enormous server farms exist currently (e.g. Microsoft’s data centre in Washington) that store substantial amounts of data.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the reasons behind rates of global flows of trade, capital, labour, and information between countries?
- Economic
- Political
- Environmental
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the economic reasons as to why global flows of trade, capital, labour, and information between countries can vary?
- LEDCs, with little finance extra, cannot afford to invest in ports, infrastructure, incentives for TNCs or education to improve the skills of its labour force.
- Countries with unstable markets or weak currencies will deter investment and businesses
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the political reasons as to why global flows of trade, capital, labour, and information between countries can vary?
- The political agenda and governance of a country may limit flows of people or culture (anti-migration policies, censorship, etc)
- Terrorism or active conflict within a region can be hugely detrimental to their global connectivity.
- Corruption within the government means money is lost rather than invested.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are the environmental reasons as to why global flows of trade, capital, labour, and information between countries can vary?
- Landlocked countries cannot be independent in trade (they must rely on their neighbours to travel through before participating in trade).
- Poor fertility of the land, mountainous or arid conditions, limited land space can all reduce a country’s ability to produce a commodity for trade.
- Some countries are vulnerable to Climate Change, and so the natural environment could change to unfavourable conditions (sea level rise, desertification, etc).
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How may global flow pose a threat to countries?
- Importing raw materials and commodities could hurt domestic suppliers and industries.
- Migrants from abroad could create tensions as they may not be wanted.
- Foreign information could be seen as a threat (e.g. China’s Great Firewall).
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How do IGOS like the IMF aim to enable switched off countries to become more globalised?
- IMF loans money to poorer developing nations. One of the key conditions for recipient nations is that the country opens up its markets and industries from government control, which in turn leads to privatisation. TNCs now have the opportunity to enter those markets more easily which would generate financial activity and tax, but mainly for their host country (which tends to be an MEDC).
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How do IGOS like the World Bank aim to enable switched off countries to become more globalised?
- World Bank loans money to developing nations with the aim of improving development, and so enabling globalisation. Like the IMF, The World Bank is also seen as controversial and many critics say both these organisations don’t benefit developing countries. Instead, they promote LEDCs to increase their debts and limit the government’s sovereignty.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How do IGOS like the WTO aim to enable switched off countries to become more globalised?
The WTO is headquartered in Geneva, Switzerland which aims to liberalise trade by removing tariffs, subsidies and quotas. The WTO has been criticised because it has failed to prevent the EU and USA from implementing protectionist measures like subsidies, and so it has been unsuccessful in creating equal opportunities for all countries to trade.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What has globalisation led to?
- The lengthening of connections - people can now travel further afield and goods are brought in further away.
- The deepening of connections where connections are penetrating more in-depth into most aspects of life.
- Faster speed of connections - people can now talk in real-time from different parts of the world and you can travel much faster than previously between different countries etc.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What is the important innovation in transport showcasing increasing globalisation throughout history?
- Steam power – In the 1800s, Britain was leading the world in the use of steam technology. This allowed the British to move their goods and armies very quickly into key areas, such as Asia and Africa.
- Jet aircraft – Newer and more efficient aircraft have allowed goods to be transported quickly between countries. Increasing competition between affordable airlines (e.g. EasyJet, RyanAir, Jet 2) has led to more people being able to travel abroad.
- Containerisation – There are more than 200 million container movements every year and this is extremely important to the global economy. All sorts of goods are transported across the world, lower costs of transport is beneficial for both businesses and consumers.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What is mean’t by space-time compression?
Space-time compression, where the cost (time or money) of communicating over distance has fallen rapidly, so people can communicate regardless of distance.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What is the rapid development in ICT and Mobile Communication?
- Internet
- Social Networks
- Mobile Phones
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How has the internet led to increased globalisation?
- Internet Internet access became common from the mid-1990s, followed by fast broadband. Close to 50% of the world’s population uses the internet.
- Broadband internet in the 1980s and 90s meant that large amounts of data could be moved quickly through cyberspace.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How have social networks led to increased globalisation?
- Social networks and Skype allow people to communicate instantly and without charge (with an internet connection).
- In 2014, 5 billion Facebook ‘likes’ were registered each day. The development of social media (Facebook 2006, Instagram 2010, WhatsApp 2010) enabled much cheaper communication between friends and family than a landline telephone.
- This has led to space-time compression, where the cost (time or money) of communicating over distance has fallen rapidly, so people can communicate regardless of distance.
- Since 2003 Skype has allowed cheap, direct, face-to-face communication, allowing migrants to maintain stronger bonds with their distant families.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How have mobile phones led to increased globalisation?
- Smartphones, smart tablets and smartwatches in the 2000s extended their information flows to locations beyond landline networks.
- Reduced mobile phone costs expanded usage from an expensive business tool to a ubiquitous consumer product.
- Used even in countries with a lack of communications infrastructure. By 2015, 70% of people in Africa owned a mobile phone.
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
How can ICT developments lead to cultural globalisation?
- Cassette recorders, MP3 players and iPhones enable a rapid global transfer of music and video. For example, South Korean K-pop and Psy’s 1.8 billion online views of ‘Gangnam Style’ in 2012.
- TNCs bring foreign styles and products, e.g. McDonald’s, Starbucks, possibly creating a global ‘culture’?
3.1 Globalisation is a long-standing process that has accelerated because of rapid developments in transport, communications and businesses.
What are important 21st-century transport and technology advancements?
- Broadband and fibre optics – Since the 1990s, large amounts of data can be transferred very quickly via cables laid out along the ocean floor. The introduction of fibre optic cabling for domestic abuse has accelerated telephone, internet and television speeds for the home.
- GPS – Satellites have allowed companies and people to track goods across the world. GPS has become an essential feature of modern cars and has led to the success of Google Maps.
- Internet – The internet is now extremely important - approximately 40% of the world’s population have access to it. Social media is extremely influential and, due to its large numbers of users, has led to the rapid spread of news, knowledge and opinions.
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
How has China’s national government accelerated urbanisation for its country?
- In 1978, the Chinese government adopted their Open Door Policy and opened up the country to investment from abroad.
- This led to the transformation of China with significant economic growth and urbanisation.
- In the 30 years since 1978, 300 million people have moved from rural areas to urban areas (rural-urban migration) in search of a better quality of life and increased income.
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
How has China’s national government accelerated TNC expansion for its country?
- China’s population (1.4bn people in 2017) was willing to work for low wages. China’s Open Door Policy saw it become the ‘work-shop of the world’- producing consumer goods to be exported all over the world.
- China’s government continues to remain open to globalisation and in 2001 they joined the WTO (World Trade Organisation).
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
How have SEZs helped to attract FDI into China?
- SEZs have been particularly important in new global regions- regions that weren’t previously a key part of the global economy.
- Southern China has lots of SEZs, which are also known as Export Processing Zones.
- China encourages TNCs to locate thereby offering low taxes and low labour costs (China’s population is very large).
- These SEZs have helped China’s economic growth and have helped it to become the ‘workshop of the world’.
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
How does China limit rates of globalisation?
- For example, social media TNCs such as Facebook and Google are censored with little or no access to the market of China.
- As of 2018, China only allowed 34 foreign films to be screened in cinemas each year.
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
What are examples of Free Trade Blocs?
Free trade blocs can increase the interconnections between countries by removing tariffs and quotas for trade in goods and services. The EU and NAFTA are examples of free trade blocs.
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
What are the benefits of Trade Blocs?
- Businesses have a larger potential market to sell to, and so larger potential revenue to make.
- As businesses cater for more demand by increasing their volume of production, many other businesses can benefit by providing raw materials, skilled workers or providing outsourcing opportunities. Hence increased business for one may, in turn, benefit many in a positive feedback loop.
- Trade of essential materials or services become more reliable within a trade bloc. There may be less economic risk and better pathways for essential imports (food, energy, etc).
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
What are the disadvantages of Trade Blocs?
- The interests of countries within major trade blocs are focussed upon themselves. Outside trading countries become excluded and find it very difficult to join in trading. Foreign industries and suppliers can be directly damaged as a result of competition or lack of opportunities due to trade blocs forming.
- Trade Blocs still don’t guarantee fair treatment within, for example, the relationship between Mexico and USA has not strengthened through trade bloc NAFTA.
3.2 Political and economic decision making are important factors in the acceleration of globalisation.
What are the types of foreign direct investment (FDI)?
- Offshoring – TNCs set up production facilities in developing countries, which have large, cheap workforces (e.g. Bangladesh).
- Foreign Mergers – TNCs from different countries join to form one larger company.
- Foreign Acquisitions – A TNC acquires another company from abroad, often in a hostile way (may involve local job loss, lack of interest in the local environment, etc)
- Transfer Pricing – TNCs sometimes channel their profits through subsidiaries in tax havens (e.g. Ireland).
