EQ1- Causes of globalisation, why has it accelerated in recent years? Flashcards
What is globalisation?
Globalisation refers to the way people and places across the world have become closely linked together, deepening global connections and interdependence.
The widening and deepening of global relationships
What are the positive effects of globalisation?
Globalisation has increased the flow of information, commodities, capital and tourists and migrants, creating a global community.
What are the factors accelerating globalisation?
- TNCs
- IGOs
- Transport
- Technology
What role do TNCs play in globalisation?
TNCs influence global culture and improve local economies by providing job opportunities and appealing to local markets through glocalisation.
How have improvements in transport and communications affected globalisation?
They have allowed people to connect globally and produced cheap travel, causing time-space compression.
What is time-space compression?
Time-space compression refers to the phenomenon where transport is quicker than ever before, making the world feel smaller.
What impact has technology had on globalisation?
Technology has become more efficient and less reliant on human labour, saving time but causing job losses.
What role do international organisations play in globalisation?
They provide aid and assistance to countries in need, forming a global community.
What are some economic policies that promote globalisation?
- Free trade policies
- Foreign direct investment
- Free-market liberalisation
- Privatisation
- Encouragement of business start-ups
What is foreign direct investment (FDI)?
FDI involves investing in a country by establishing business operations or acquiring assets in that country.
How has FDI affected emerging economies?
FDI has contributed to the wealth of emerging economies such as India and China.
What indices measure the degree of globalisation?
- AT Kearney index
- KOF index
How does the AT Kearny index measure globalisation?
- Political engagement- participation in international treaties + meetings
- Technological connectivity- number of internet users or hosts + servers
- Personal contact- phone calls, travel, remittances
- Economic intergration- volume of international trade + FDI
Cons of AT Kearny
- Only includes 62 countries
- High weighting on technological connectivity
(this gives US high score despite low political engagement)
How does the KOF index measure globalisation?
- Economic globalisation- volume of FDI
- Social globalisation- Remittances
- Political globalisation- Involvement in UN and International treaties and meetings
Cons of the KOF index
- One of the measurements is the presence of an Ikea or McDonalds
What is glocalisation?
Glocalisation is the process where products are specially designed for the taste of the local consumer.
Give an example of glocalisation.
McDonald’s ‘Maharaja Burger’ and Marvel’s ‘Indian Spiderman’.
What are some reasons countries might be switched off from globalisation?
- Political corruption/ideology
- Location
- Poor infrastructure
- Unskilled workforce
- Crime
- Weak market
- Debt
- Unstable currencies
True or False: Globalisation creates both winners and losers.
True
