EQ1: 3.3 Flashcards by Isabelle Butcher

Describe political globalisation?

membership of international organisations
participation in international treaties
number of foreign embassies
being part of peace-keeping operations

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Describe economic globalisation

cross-border trade transactions

- volume of FDI

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Describe social globalisation

number of - telephone calls, foreign residents, tourists, McDonald’s branches

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What are the ways of measuring of globalisation?

AT Kearney Index

KOF Index

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The AT Kearney Index was published by….

Carneige Endowment

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What was this published for?

international peace think tank

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What are it’s uses?

for main indicators to calculate index e.g. political engagement, technological connectivity, personal contact, economic integration

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How is the country ranking worked out?

worked out using complex points & weighting system

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What are the problems with the AT Kearney Index?

doesn’t include illegal immigrants, limitations

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What is KOF and what does the index do?

a swiss economic think tank that releases a yearly globalisation index

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What 3 main dimensions does it measure?

economic e.g. volume of FDI
social e.g. cross-border contacts (telephone calls, letter, tourists etc.)
political e.g. country’s membership of different international organisations

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Give the process of the KOF Index

each set of indicators is scaled (weighted)
then each of the 3 sets are aggregated into one value
values are then ranked
average final rank is produced

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What is the most dominant globalisation?

economic globalisation

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What is the least dominant globalisation?

social globalisation

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What do the most globalised countries use?

all 3 (economic, social, political) globalisations equally - smaller countries, european, & colonisers

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What do the least globalised countries use?

most use economic globalisation & have a lot of missing data because of the way they record it - corrupt government

What is economic liberlisation?

a country ‘opening up’ to the rest of the world with regards to trade, regulations, taxation

What are the TNCs?

a company that has operations in more than one country

Give an example of primary sector TNCs

mining companies

Give an example of secodary sector TNCs

clothing or tech manufacturers

Give an example tertiary sector TNCs

supermarkets or financial services

What do TNCs play a crucial role in?

the development and spread of global business & trade

What are some examples of TNCs

McDonalds, Nike

Name one strategy that TNCs may use

engage in outsourcing & offshoring

What is outsourcing?

TNCs contact another company to produce the goods & services they need rather than doing it themselves which creates complex supply chains & so they're not responsible for the harm

What is offshoring?

a TNC shifts location of a service or production of a part to a location abroad

Name another strategy of TNCs

May use glocalisation as a strategy

What is glocalisation?

adapting goods and services of a business to increase consumer appeal in different local markets - necessary because tastes differ from place to place

Give an example of a TNC using the glocalisation strategy

coca cola hosts different websites in different countries so each site is culturally appropriate & engaging - while maintaining a strong brand identity

How are most manufacturing TNCs 'assembly industries'?

as they're making products as part of a supply chain

What are some reasons for global nature of TNCs?

- to operate where labour is cheap & less regulated - spread the risks e.g crop failure/industrial action/recession - operate inside local trade barriers to avoid tariffs & quotas

Name ways in which TNCs contribute to spread?

- closer to separate markets - which may need to be served differently depending on cultural needs - gain grants & other rewards from national governments who are trying to attract inward investment

ALL TAKE ADVANTAGE OF ECONOMIC LIBERALISATION

Why does Sahel remain switched off?

- physical - lack of water supply, dry - not many resources, natural hazards - droughts, landlocked - hard to export - human - low life expectancy - economic - 22% literacy rate, lack of infrastructure - not even capable to trade, debt

Why does North Korea remain switched off?

- politically - fear of cultural erosion, desire to retain heritage, banned social media - minimise population from other countries, dictatorship, government controlled, ran by 1 family the last 70 years