Enquiry Question 1: What are the causes of globalisation and why has it accelerated in recent decades? Flashcards
Globalisation
Increasing integration of economies around the world, particularly through the movement of goods, services and capital across borders. There are also broader cultural, political and environmental dimensions of this process. (World Bank)
Interdependence
mutual reliance between two or more groups/countries
Flows
Capital, goods, information, migrants and tourists
Developments in transport
19th century - railways and steam-ships.
20th century - jet aircraft and containerisation.
Developments in technology
Rapid development of ICT and mobile communications.
Social media/networking.
Websites and applications that enable users to create and share content or to participate in social networking spreading the cultural strand of globalisation.
Electronic and internet banking.
A method of banking in which transactions are conducted electronically via the Internet.
Fibre optics
Glass fibres that are used to transmit data using pulses of light.
Most submarine communications cables use fibre optics to transmit information (i.e. internet).
Shrinking world
Distant places seem closer and take less time to reach.
Time-space compression
the increasing sense of connectivity that seems to be bringing people closer together even though their distances are the same
Spatial division of labour
Use of labour abroad - i.e. TNCs outsourcing/offshoring work to other countries.
WTO
World Trade Organisation - regulate international trade and disputes.
IMF
An international organisation which consists of 189 countries working to secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world through giving loans for development.
World Bank
An international financial institution that provides loans to countries of the world for capital projects and recovery from natural disasters.
Trade Bloc
International organisations which exist for trading purposes, promoting economic strength and security as a group
EU
a political and economic union of 27 member states that are located primarily in Europe. It allows free movement of people, capital and goods (i.e. no tariffs).
ASEAN
The Association of Southeast Asian Nations is a regional grouping that promotes economic, political, and security cooperation among its ten members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
free-market liberalisation
Also known as neoliberalisism - which promotes minimal intervention from the government in economic processes. The use of tariffs and quotas is discouraged, as it reduces competition
Free trade
Trade without government intervention, or the use of tariffs.
Privatisation
The transfer of a business, industry, or service from public to private ownership and control. Selling off government assets.
Business start-ups
New businesses encouraged and supported by government initiatives, such as low business taxes. e.g. Sunday trading laws in the UK (1994) attracted more foreign businesses to the UK, such as Burger King and the Disney Store.
Special Economic Zone (SEZ)
An area (within a country’s national borders) in which business/trade laws are different from the rest of the country. They aim to increase trade, increase investment (FDI) and consequently job creation. Incentives are used to attract businesses which include reduced taxation or tax holidays.
FDI
Financial investment by a TNC in to a country’s economy.
AT Kearny Index
Ranking of world cities based on business activity, cultural experience and political engagement.
KOF Index
An annual index based on data reading economic globalisation (trade, FDI), political globalisation (foreign embassies, UN Peace keeping missions), social and cultural globalisation (international ICT traffic, tourist flows, imports/exports of books).
TNC
Transnational Corporation - a business which operates across national borders to take advantage of new markets/consumers, raw materials, incentives and cheaper labour.
New markets
new source of consumers/trade
Global production network
A chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of consumer goods. Usually serves the needs of TNCs, such as Apple or Tesco.
Outsourcing
Where a TNC contracts work to another company (outside of the home country) on their behalf
Offshoring
Where a TNC starts their own operations outside of the home country.
Protectionism
Promotes government intervention in economic processes, and uses tariffs and quotas to protect the economy and producers from foreign competition.
Division of Labour (Adam Smith)
“An economic concept which states that dividing the production process into different stages enables workers to focus on specific tasks. If workers can concentrate on one small aspect of production, this increases overall efficiency - so long as there are sufficient volume and quantity produced.”
CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)
The new trading bloc the UK joined in 2021 comprising of mostly Pacific countries such as Japan, Malaysia and Brunei.
The 5 Strands of Globalisation
Globalisation split into 5 strands: Economic, Social, Political, Cultural and Environmental
