Enquiry Question 1 Flashcards
What is globalisation?
The process of global integration of economies, politics, products, ideas and other aspects of culture.
What is happening to global connections?
They are deepening, lengthening and getting faster.
What is a node in a network?
A place or hub where things come from and go to.
Like a stop on the tube.
What is a flow in a network?
A connection between nodes that products, goods, data, money or people move along.
What is time-space compression?
Heightened connectivity warps our conceptions of time, distance and potential migration of people, goods, money and information.
What is the shrinking world effect?
Where places feel/seem closer due to travel times falling.
Aided also by developments in:
Broadband and fibre optics.
The internet.
GIS and GPS.
What components of transport and trade accelerated globalisation?
Steam power. Railways. Telephone and telegraph. Container shipping. Jet aircraft.
How could global flows be viewed as threats?
Data corruption.
Rise in terror threats.
Cyber attacks.
Conflict from cultural differences.
Global businesses have large powers.
Migrants can bring unwanted cultural change.
Imports threaten a nations own industries.
Types of trade blocks.
Preferential trade area. Free trade area. Customs union. Common market. Economic union. Full intergration.
NAFTA
North American Free Trade Agreement
Case Study
What is a Special Economic Zone (SEZ)?
A special designated area in countries with special economic regulations that differ from other areas in the same country.
What is the KOF index?
An index that measures globalisation on economic, social and political dimensions.
What is the AT Kearney index?
An index that measures economic integration, personal contact, technological connectivity and political engagement.
What things can stifle development and globalisation?
Physical challenges.
Poor governance.
Political isolation.
What is a ‘switched on’ place?
A place that is most connected to the world network/economy through consumption and production of goods.
What is a ‘switched off’ place?
A place that is poorly connected to the global network/economy.
Only indigenous populations in wilderness locations are completely cut off.
Why do places remain ‘switched off’?
Physical:
Highly vulnerable to climate change and natural hazards.
Poor resources for agriculture.
Physical isolation and lack of ports (landlocked).
Human:
Lack of skills and literacy dryers inward investors.
Politically isolated.
Ethnicity clashes and civil war.
What are TNCs?
Trans National Corporations
They are important agents of global change.
Along with trade blocs, they can be described as ‘architects’ of globalisation, helping to ‘build bridges’ between nations.
What is a tariff?
A tax imposed on imports.
What is a quota?
A limit on the quantity of a good a country allows into the country.
What is privatisation?
Transferring ownership of a public service/agency/property into private ownership run for profit.
What is interdependence?
The success of one place depending on the success of other places.
Countries which rely on each other to trade goods and services.
What is trade?
The exchange of goods and services between people and companies, usually across borders.
What technology carries internet data across oceans?
Subsea fibre optic cables
What is free trade?
Trade that is free of taxes, tariffs and quotas
What is FDI?
Foreign Direct Investment
What does the World Trade Organisation (WTO) do?
It is an international organisation that works to reduce trade barriers and create free trade. A series of global agreements have gradually reduced trade barriers and increased free trade.
What does the International Monetary Fund (IMF) do?
The IMF promotes global economic and financial stability and encourages more open economies.
It has been criticised for promoting a ‘western’ model of development that works in the interest of developed countries and their TNC’s.
What does the World Bank do?
They lend money to the developing world to fund economic development and reduce poverty.
It has been criticised for having policies that put economic development before social development.
What is free market liberation?
It is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities.
What is offshoring?
Where a business moves part of its operations to another country due to lower labour costs or because the economic situation is more favourable for profit making.
What is outsourcing?
Were a businesses make contracts with other companies to complete some of the work rather than doing it themselves. Aims to reduce costs because another company can do the work at a lower cost.
