Dimensions of globalisation Flashcards
Different types of flows (6)
Capital Labour Products Services Information Global marketing
Flows of capital
All flows of money between countries that’s used for investment, trade and production
Deregulation of world financial markets meant hay financial markets weren’t restricted to one nation
Whose model demonstrates movement of capital between core and periphery regions
Frank and Wallerstein
IMF
International Monetary Fund
Secures financial stability, facilitates trade, sustainable growth etc
World Bank
Source of financial and technical assistance
Low interest loans
Example of the World bank helping
Niger Basin
Low levels of water, desertification, and poverty
Helped invest in HEP, reservoirs and irrigation
Tiger economy
S. Korea
Taiwan
Hong Kong
Singapore
MINT countries
Mexico
Indonesia
Nigeria
Turkey
BRIC nations
Brazil
Russia
India
China
Leakages
Diversion of funds from an institution going elsewhere
E.g. of leakages
Coca Cola
Opened production company in BRIC nations
all profits go to Atlanta, USA
FDI
Foreign Direct Investment
Investment from one country to another
Might set up a subsidery company
Repatriation of profits
Companies that earn profits in one country
Send it back to a home country
Aid
Given for humanitarian purposes or can be through a donor to strengthen an allies economy
Remittences
Transfer of money from foreign workers back home
$436 billion from HICs to LICs in 2014
40% Somalians rely on it
Concern it was falling into terrorist groups
Flows of labour
People move less easier than money
Immigration restrictions
For opportunities
From S.E Asia, Africa, Latin America to HICs
Usually to neighbouring countries
MIgrants tend to be wealthy
Economic migrants help the economy of the host country
Flows of products
Facilitated by reduction in cost of trade
Reduction allowed by improvement to flows of data
Transport and time reduced
WTO reduced global trade tariffs and restrictions
Protectionism
Policy by governments to impose certain trade restrictions on goods to protect home based industry from foreign competition
Flows of services
Economic activities traded without production of goods
HICs developed finance, advertising etc
Low level services - banking tourism
Footloose
Companies can relocate anywhere and still reach customers
Flows of information
Shown by spread of data
Development of email, internet and social media
Interconnectivity
Important to research and development industry
Global marketing
Promoting, advertising and selling products
Views world as single market
Fit regional marketplace
e.g. coca cola
