EQ1 Flashcards
What does being a part of asean do?
link their production and markets to create equal economic development and a competitive region integrated with the global economy
What is the role of the IMF?
-gives loans from rich nations in return of running free market economies open to outside investment (TNCS)
What are economic reasons why regions are isolated from globalisation?
High levels of government debt
Weak education levels and poor workforce skills
Poor transport and telecommunications infrastructure
Define FDI
An financial injection from TNCS into a nations economy to build new facilities or merge with an existing firm.
What is the role of the World trade organisation?
-intends to encourage, supervise and liberalise international trade.
-asks countrys to follow free trade (removing tariffs, giving subsidies to domestic products)
-Gives countrys loans which agree to WTO rules
What is the privatisation policy in the UK
Since the 1980s, the government has sold many industries which they once owned.
What is the story of the open door policy?
1980 - Four SEZs were set up (shenzhen)
Mid 1980s - Coastal cities were chosen to be SEZs to link with global capital, technology and talent.
1990s- economic growth, new zones created created with FDI
21st century - became the worlds top trading nation. Created regional disparities.
2017 - 3rd Largest recipient of global FDI
Explain why sahel is switched off economically?
-poor infrastructure and low literacy rates (unattractive for offshoring)
-low income levels (doesnt attract retail outlet FDI)
-poor, farming communitys which only eat their food.
What are physical/environmental reasons why regions are isolated from globalisation?
Distance from market, discouraging FDI
Wilderness (desert, tundra)
Low agricultural potential
Lack of energy and mineral deposits
What does Free market liberalisation help to do.
Removes price controls, breaks monopolies and encouraging FDI
What is the AT kearney index?
contains 4 catagories
-Economic integration (Trade and FDI flows)
-Technological connectivity (Number of internet users, internet hosts and secure servers)
Political engagement (membership of IGO and treaties, contribution to UN peacekeeping)
-Personal contact (international travel and tourism, international telephone traffic)
What are the stats of SEZs according to the World bank.
45% of total FDI
60% of exports
30 million jobs
Whenand how much $ did the WB give the phillepines a loan for a poverty reduction programme
In 2014 and 470$ million
What is glocalisation?
Adapting the goods and services of a business to increase the consumer appeal to different local markets.
How much FDI has china recieved
135$ billion mostly from singapore, south korea, USA and Japan. 43% from manufaturing
Define a TNC
Transnational corporations (TNCs) are firms with operations in more than one country.
What is the role of the World bank?
-lends money on a global scale
-trying to achieve the millenium development goals by trying to eliminate poverty and implement sustainable development
-gives direct grants to developing countries
-distributed 25$ billion dollars in loans and imposes conditions on it
Give facts about the EU
-composed of 28 members and a population of 512 million
-the euro
-Schengen area countries (26) have removed barrier controls.
-original political aim was to integrate economies, so that interdependence prevents war.
What is the two speed world?
A term indicating the difference between switched on and switched off countries.
What are the 4 types of FDI?
Offshoring
Foreign Mergers
Foreign Acquisitions
Transfer pricing.
What is foreign acquisition FDI?
TNC forces a takeover of a country in a different country
Why is sahel switched off physically?
The sahel regions are landlocked, poor quality roads and freedom of passage through neighbouring countries to access coastal ports.
-Resulting high transport costs (unattractive for FDI)
What is part of the asean agreement
Part of the agreement is for easy flows of people goods and finance between the countries.
What is the open door policy
In 1978, deng xiaoping introduced economic reforms for a more open market economy
What is a switched off place?
A place which is not interconnected globally by globalisation
What are political reasons why regions are isolated from globalisation?
Corruption or presence of terrorist groups
weak commitment of government to development
Civil or tribal conflict
Exclusion from trade blocs or disadvantaged by trade rules
Define what a Global city is.
A city with a major international influence based on financial, political, legal and technological strength. Global cities are key hubs in the global economic system. The concept comes from the idea that globalisation is created and furthered in strategic geographic locales according to a hierarchy of importance to the operation of the global system of trade and finance.
What are positives of the privatisation policy.
-It increases efficiency on the profit motive as it minimilises cost
-allowing foreign ownership allows FDI
What is offeshoring FDI
TNCs set up production facilities in developing countries, which have large, cheap workforces (e.g. Bangladesh
What is foreign merger FDI?
TNCs from different countries join to form one larger company
How do governments subsidise?
Tax incentives, tax exemptions, no tariffs on imports and exports.
How many countries are apart of ASEAN
10 SE asian countries
What are government subsidies
subsidise the cost so businesses locate in certain places in the country.
What is the bretton wood agreement (1944)
- allied powers agreed to set up WB, IMF and WTO
- wanted to rebuild the economy
-political objective in promoting free-trade democracy and prevent communism
What is Free market liberalisation?
-Known as neoliberalism.
- No government intervention.Governments do not give subsidies or bail out failing domestic industries
-created competition in once restricted markets
give facts about ASEAN
A free trade area with 10 members with a population of 625 million
A uniform low tariff is applied between members for specified goods
ASEAN pledged to remain nuclear weapons free in 1995.
What do national governments exempt in SEZs
Businesses to pay tax
Who are attracted for SEZs and why is it good for the economy
TNCs are attracted to locate subsidiaries - boosting the local economy by employing and providing them with skills.
What is the KOF index
Measures 3 categories
- Economic globalisation (Trade, FDI, Tariff rates and money flows)
-Social (telephone calls, tourist, households with tv, international mail)
Political (foreign embassies in a country, membership of international organisations, UN peacekeeping missions participated in.
What is the encouraging business start-up policy?
Methods range from low business taxes to a change in the law allowing both local and foreign owned business’ to make more profit.
Describe how north korea is politically switched off?
-hereditary autocracy ruled by kim jong un
-communist
-policy of self sufficiency (minimising trade)
-citizens have no access to social media/internet
-NK has a GNI per capita of 4400
-trades with china
What does a switched on place mean?
A place that is interconnected with other regions through the production and consumption of goods and services.
What are Special economic zones
Large areas of land reserved for economic purposes near major transport hubs
What zone was created with FDI in China
China-singapore cooperation park.
What is transfer pricing FDI
– TNCs sometimes channel their profits through subsidiaries in tax havens (e.g. Ireland)
How has Flow of commodities reasons lead to the acceleration of globalisation?
▪Goods can easily be imported, increasing countries interdependence upon eachother
▪Volume of manufactured goods has increased rapidly due to low cost countries ( Bangladest, Vietnam etc )
How has GPS and GIS accelerated globalisation?
Track goods. Location services allow growth of global networks
How has broadband and fibreoptics accelerated globalisation?
enormous flows of data across the ocean floor which has accelerated telephone, internet and tv speeds
What is the shrinking world
How new technology’s reduce the time taken to transport goods/people/communicate information
How has economic reasons lead to the acceleration of globalisation?
▪ Transnational corporations - Some TNCS have incomes higher than some countries
▪Online purchasing between countries is common.
▪Stocks and Foreign direct investment.
Give 4 advances in technology and transport during the 21st century.
▪ Telephones - global communication
▪ Broadband and fibreoptics - enormous flows of data across the ocean floor which has accelerated telephone, internet and tv speeds
▪GPS - track goods. Location services allow growth of global networks
▪Internet - Connectivity between people and places has grown exponentially as data sharing has became accessible.
How could the global flow of migrants be viewed as threats?
Migrants bring cultural changed and religious diversity which not everyone welcomes
What are the three aspects which boost globalisation
▪Connections are deepening: more peoples lives connect with far away places
▪ Connections are faster: technology/jets makes connections faster
▪ conections are lengthening: New links between places are greater distances apart.
How has Migration reasons lead to the acceleration of globalisation?
▪International migration has lead to extensive family networks leading to the spread of culture and finance ( remitances)
▪Tourism
Give 3 innovations in transport and an innovation in technology during the 19th and 20th century
▪Steam power - moved goods and armies into key areas
▪Jet Aircraft - transported good.
▪Containerisation - goods transported at lower costs.
▪Telegraph - instantanious communication
How has Technological reasons lead to the acceleration of globalisation?
▪Social networking sites have become very popular allowing the spread of culture, ideology etc
▪Server farms which store substantial amounts of data
How has the Internet accelerated globalisation?
Connectivity between people and places has grown exponentially as data sharing has became accessible.
What is space-time compression
Effect of increased connectivity with very distant places creating a shrinking world
Definition of protectionism
Policies to protect business and workers in a country by restricting/regulating trade with foreign nations
How did the development of containerisation and jet aircrafts increase globalisation
By reducing transport costs per unit of output
Give 5 reasons why globalisation has accelerated.
▪ Economic
▪Political
▪Migration
▪Flow of commodities
▪Technology
What are features of containerisation
Standardised metal boxes quickly transferable to from a ship to a lorry and are inter-modal
Easily mechanised - containers are loaded by crane
How could the global flow of information be viewed as threats?
Provide citizens with knowledge that their governments find threatening
How has political reasons lead to the acceleration of globalisation?
▪Trade blocks ( EU and NAFTA) which reduces tariffs and protectionist measures
▪IGOs ( International Inter-governmental governments)
▪Political views expressed on worldwide media outlets
Definition of subsidy
Financial assistance to a business by government to make it more competitive or prevent collapse
How could the global flow of imports be viewed as threats?
Can threaten domestic industries
Definition of free trade
A policy where a government does not interfere with imports or exports by applying tariffs, subsidies or quotas
Definition of privatisation
Transferring ownership of a public service/agency/property into private ownership run for profit
What is the definition of globalisation?
Globalisation is the increasing interdependence between countries through flows of capital, trade, goods and services as well as culture and ideas.
How could the global flow of trafficking be viewed as threats?
Threats to security
Definition of a free market economy
A market economy based on supply and demand with little or no government control or intervention
Definition of a tariff
A tax imposed on imports
Definition of a quota
A limit on a quantity of goods a country allows into the country
