chap 11: geographies of globalization Flashcards
whats globalization?
A complex combination of economic, political and cultural changes that have long been evident but that have accelerated markedly since approx. 1980 bringing about a seemingly ever-increasing interconnectedness of people and places
what are the dominant economic sectors?
- primary (extractive –resource based)
- secondary (manufacturing= process of transforming raw materials or components into finished goods)
- tertiary (services)
- quaternary (professional services: services that require specialized knowledge, expertise, and skills.)
development increases as you have greater …. of jobs
variety / diversity
-“Underdevelopment” (poverty) can be solved through _____ of an economy
gr8ter diversification
what about the NIDL (new international division of labour)?
-core: mostly tertiary / quaternary (services)
-semi-periphery: mostly secondary manufacturing
-periphery: mostly primary production
whats the first law of geography?
Near things are more related than distant things
whats the principle of least effort?
Individuals seek to minimize effort in their interactions/ the most effective is least distance, so the least effort
Location decisions minimize the effort required to overcome the ___________ ?
friction of distance
Distance can be defined by ?
-time (mins pr un car tide par ex)
-cost (si c plus loin il faut payer plus)
-social status ()
-physical effort (ya allah c loin)
-energy (plus de benzin)
The drive to overcome the friction of distance is one way to understand …..
globalization
the tendency for distance to shrink over the past few centuries is??
time-space convergence
whats a cross-modal technology?
containerization
what are different systems of transportations?
-water
-railway
-road
-air
-containerization
Give me examples of time-space convergence, in another way, how to overcome distance?
-Transportation and communication technologies
-Transnational Corporations
-International Trade
The rise of social media:
-New way to overcome distance, interactive
-Use by individuals, groups,
businesses, government
-used for grassroots
planning, activism
-Manipulated for corporate and political control
-Highly concentrated in ownership
-Profit motive fosters control of information feeds
-Capitalizes on human behaviour patterns
most of Transnational
Corporations (TNCs) are located where? and expanding where?
-in MDCs
-LDCs
Transnational Corporations (TNCs) are able to engage in?
-large companies that operate in multiple countries
foreign direct investment to help other countries
what are the roles of TNCs? (Transnational Corporations)
- command and control economy
-TNC control from developed countries - Production in developing countries
- Benefit from an international division of labour (IDL)
international trading is helped by what?
innovations in transport and communication and transnational corporation
trade can take place if what?
the difference between the cost of production in one area and the market price in another will at least cover the cost of overcoming distance (when the profit from selling a product in a different location, considering the higher market price there, is enough to cover the costs of producing and transporting the goods.)
what are the factors affecting trade?
-distance
- resource base
- labour force size and quality
-available capital
while talking about the imbalances of world trade, developing countries often produce …. of …..
narrow range ; lower value goods (only a small variety of less expensive products.)
Developing countries often export goods to the
developed countries below/ above their value. why?
below; often inclined/coerced to specialize in a small number of
primary products or even a single staple product
Developed countries often export goods to
developing countries below/ above their value, why?
above; more inclined towards the production of manufactured
goods, or more recently information technologies
When was the Bretton Woods agreement?
1944 (post 2nd WW)
what was the aim of the bretton woods agreement?
help rebuild Europe and stabilize the world economy to avoid future disasters
what were the 3 institutions of the Bretton woods agreement?
- international monetary fund** (IMF)**
- international bank for reconstruction and development** (world bank)**
-general agreements on tariffs and trade (now WTO)
what are the 4 roles of the IMF (international monetary fund)?
- create economic stability (employment and domestic demand)
-oversee the system of fixed exchange rates (discourage devaluation of currency within nations)
- Promote currency convertability (makes global trade possible )
- acts as a lender of last resort (financial assistance to countries facing economic crises)
GATT rules (to govern global trade)
- reduce trade barriers
- reduce trade competition
- often countries to foreign direct investment
when was GATT replaced by WTO?
in 1994
when was the world economy booming?
from 1945 till 1970
when did occur the oil crisis?
1973
what were the results the oil crisis?
- oil prices skyrocket =hits poor countries the hardest –
need money for oil - OPEC countries, with high oil prices, provided loans in foreign currency to poorer nations through the World Bank and the IMF.
what was the end result of the oil crisis ?
an increase in borrowing by poorer nations
“Since the average citizen of a low-income
debtor country earns less than one fiftieth of the
average citizen of a high-income creditor
country, this process is like trying to extract blood
from a stone.” who said that, when?
Susan George, 1993
“There are 2 ways to conquer and enslave a
nation. One is by the sword. The other is by debt.” who said that? when?
Jhon G. adams, 1912- 2003
What are the solutions to the commodity dependence trap ( when a country relies too much on selling their raw materials so when their prices go down it might effect their economy )?
- raise prices for your exports
- create a new international economic order (NIEO): ensure that developing nations have a fairer say in international economic decisions
-import substitution ( a country tries to make more things within its own borders instead of buying them from other countries.)
what are the 3 aspects of globalization?
- global integration: Economic, social, environmental Communication and Transport technologies (multinational corporations using advanced communication and transport technologies in their supply chain networks)
- global governance: The creation of supra-national
bodies: UN, WTO, G-8, OPEC,
NAFTA, EU, …
- global inequity: Growing gap between the rich and the poor
what are the 5 levels of economic integration?
-free trade area: Lower/remove trade barriers between members; CUSMA is this type): easier for goods and services to move across borders
-customs union:
Lower/remove trade barriers between members + set of trade barriers against non-member countries.
-common market:
has reduced trade barriers; allow for free mobility of factors of production: land, labor, capital
-economic union (EU):
(Same aspects as common market + Common currency (euro) (e.g. European Union) and Common economic policies)
-common social policy with supranational body (UN) : countries coordinating on social issues+ creation of supranational body (UN)
what are the 3 positions on globalization?
-pro-globalization: more eco than social
-anti-globalization: not natural but rooted from economic policies + focuses on social rather than eco
-middle ground- alter globalization: open northern markets and protects sourthern assets
when was the Old international division of labour (OIDL) created?
period between 1800’s- 1970’s
the OIDL was created bc of a need for:
- raw materials
- labor- slave labor
-new markets for the export of surpluses (selling excess or extra goods or resources, usually beyond what is needed domestically, to other countries)
-new settlements
OIDL was dominated by?
European national gov (Britain, France, Germany, Netherlands)
in the OIDL, what are the two major groups of countries?
-core
-periphery
structural adjustment policies (SAPs)
new form of colonialism (economic dominance)
Neo-colonialism
informal political and economic domination of less developed countries by wealthy nations
The core regions can use debt to ?
Access cheap resources and cheap labour as
part of the NIDL
International Divisions of
Labour are guided by free market principles and a reduction in …
trade barrier
what are the 3 main barriers to trade? (obstacles that slows the flow of goods and services across national borders)
-tariffs (taxes or duties imposed on imported or exported goods)
-quotas (limits set on the quantity or value of specific goods that can be imported or exported)
-subsidies (support provided by the government)
who are the BRICS?
brazil, russia, india, china, south africa
