Booket 1 - Globalisation Flashcards
Define the term Globalisation
Is defined as the increased integration of economies and societies around the world, Flow of services, goods and capital across borders
Explain how globalisation has led to space-time compression
In the 19th century, to get from one side of the world to the other, you’d travel by boat. From the UK to Australia, it would take you many months to do so. Now, you can take a commercial flight and be there within 24 hours. You can now call someone on the other side of the world in live time, rather than wait a week for a letter to find its way there. These are textbook examples of the geographical theory of time-space compression.
Outline and describe the 4 types of globalisation
- Economic: Online purchasing using amazon on a smart phone and growth of TNCs accelerates cross-border exchanges of raw materials.
- Social: extensive immigration has created extensive family networks thus multi ethnic societies, rising life expectancy and literacy rates due to better health and education systems.
- Political: Global concerns such as response to natural disasters, the world bank, IMF and the WTO work internationally to harmonies economies
- Cultural: succesful western cultures dominate e.g Americanisation and glocalisation
Give 3 examples of global flows
- Money
- Raw materials
- Immigrants
What are 3 factors that have accelerated the process of globalisation
1- Transnational corporations (TNCs) – they invest abroad (Foreign Direct Investment FDI) and build the links between the places that make products and the places that consume goods and services.
2- Lower transport costs – in the 19th century, railways, the telegraph and steamships reduced the costs of moving goods internationally. In the 20th century, containerisation further reduced transport and handling costs and international aviation made fast travel and airfreight more common and affordable.
3- Computer and internet technology – manufacturing in diverse locations can be coordinated using computer software (CASD/CAM) for the transfer of ideas. Global communication including social media has enabled the creation of recognisable global brands.
Define the term digital divide
refers to the gap between people and regions that have access to modern information and communication technology, and those who don’t or have restricted access
Outline 3 disadvantages of using free trade blocs
1- Unhealthy working conditions: Many countries lack labour protection laws, workers may be forced to operate in substandard environments
2- Lower tax revenue: Since member countries are no longer subject to import taxes, they must they must think of ways to compensate for the loss.
3- Interdependance: Higher dependence on the economies of member countries.
Outline 3 advantages of using free trade blocs
1- Increased economic globalisation: free trade blocs help integrate and liberalise economies by reducing trade barriers
2- Increased variety: with imports becoming more available at a lower cost, consumers are able to gain access to products that were in exclusive to them
3- Increased efficiency: competition is encouraged therefore to par with rivals a country must make its products higher in quality at a lower cost
What is meant by a free trade bloc
A trade bloc (not free trade) is a group of countries that agree to reduce trade barriers between them. They promote free trade between members, increasing economic globalisation.
3 ways of measuring globalisation
- AT Kearney Index: which uses a range of criteria to identify how globalised a country is e.g technological connectivity
- KOF index: compares variables which measure economic, social and political globalisation
- Measure amount of imports and exports, imply how reliant a country is on trade with other countries
What is meant by a TNC
TNCs are companies that operate in at least 2 countries, with their HQ based in a country of origin and business operations in host countries
Evaluate an advantage of TNCs in a HOST country
They allow for the consumption of cheaper goods and they also enable the country to specialise in high skilled and high paid work in financial services.
However, this is likely to cause damage to the manufacturing industry (deindustrialisation) thus leading to structural unemployment
Evaluate an advantage of TNCs in a HOST country
TNCs generate jobs and income while also transmitting skills while also bringing new technology, aiding in development
however, TNCs may lead to a poorer environment because they might rely on exploiting natural resources, worker are also subject to working in poor conditions
Define Glocalisation
Glocalisation means adapting the goods or services of a business to increase consumer appeal in different local markets.
Give 3 examples of Glocalisation
- McDonalds sell McVeggie Burgers in India because the majority of the population is Hindu and vegetarian, especially avoiding beef.
- BMW makes right-hand drive cars for the UK market, but left-hand drive cars for the German market because the countries drive on different sides of the road
- Tesco doesn’t wrap fruits and vegetables in plastic in Thailand because of the countries ‘wet market’ tradition where customers trust only produce selected by hand
