EQ1 Globalisation Flashcards
Globalisation
Increasing integration of economies, ppl+places around world thru movement gds, services+ capital across borders. There are also broader cultural,pol +environ dimensions of globalisation
Econ globalisation
- growth TNCs accelerates cross-border exchange gds
- ICT supports growth complex spatial divisions of labour for firms+ more int econ
- online purchasing using Amazon on smartphones
Pol globalisation
- growth trading blocs (EU) allows TNCs merge+ firms neighbouring counties while reduce trade restrictions+ tariffs help market grow
- global concerns e.g. free trade, credit crunch+ natural disasters
- World Bank, IMF+ WTO work int harmonise Nat econ
Soc globalisation
- int immigration->extensive fam networks
- global improvements education+ health over time
- inter connectivity grown from spread ‘universal’ connections e.g. mobile phones, internet+e-Mail
Culture globalisation
- ‘Successful’ W culture traits come to dominate some territories
- glocalisation+ hybridisation more complex as old local cultures merge globalising influence
- circulation ideas+info accelerated due 24hr reporting+ ppl keep in touch Facebook+ Twitter virtual
Other impacts of globalisation financially, pol etc
- financial some lrg TNCs incomes>many countries, cheaper labour developing countries supply gds+ trillions$ exchanged daily electronically
- pol some TNCs e.g, News Corp (Sun+Sky)seek influence how think+ UK pol seek support, promotion econ growth EU, G8+G20, TNCs influence govts+ many trade barriers reduced
- pop skilled workers management, finance+IT a move where demand+ econ migrants move higher incomes+rewards
- commun lower transport costs-increase long-distance tourism+ ‘global village’ emerging interests universal sport, music+films W/no pol/soc boundaries
Interdependent
2 places become reliant/ pol countries e.g. econ recession affects host country for worst it will also impact migrant workers-econ source may shrink too due reduced remittances
Idea of a ‘shrinking world’
- transportation much quicker+connected
- circumnavigating world/travelling different countries used take weeks/ months
- tech changed 1500-1840 best avg horse drawn coaches+ sailing ships 10mph
- 1850-1930 steam trains avg 65mph+ steam ships 36mph
- 1950s propeller aircraft 300-400mph+ 1955 onwards containerisation keeps getting larger+reduced cost+increased efficiency int shipping
- 1960s onwards jet passenger aircraft 500-700mph+ 1990s onwards cyberspace info in space
Idea of ‘time space’ compression
=perception time+distance changed as increasingly connected+ can ship+buy gds worldwide
- developments ICT+communications reshaped shopping
- WWW 1989 e-commerce+business->/smart phones 2000s, email 1995+soc media changing communications
- online retailers extending from books, films+ music- consumer electronics+ clothes+ market places online food+ groceries e.g. Amazon 11 global market places+ buying customers 180countries
- est online marketplaces give small businesses access global customer base
Container ships benefits
- most made China/ elsewhere Asia by EU/US cos outsourcing exploit cheaper labour costs
- bring high-value gds EU+ take back low-value waste return
- getting bigger->less fuel consumption 1990 avg 4,000 containers now largest Oscar 19,224+ largest route EU-Asia huge distances so size important/ keep costs down
Problems container ships
-fewer but larger shipping co’s dominate global trade, shifted balance econ power EU-Asia huge amounts fuel consumers more than most countries
E-tailing benefits
- choices, quick delivery ‘prime’+ Amazon exploit global connections reduce costs storing lrg no. items warehouses long periods
- Amazon uses tech+ internet open up+exploit new markets
Problems E-tailing
- Nat govts find hard track sales each country+ calc lvl business tax owes each location+can easily register sales country lower tax rates
- items purchased cheaper than shops cos bulk buying+ lower operations costs
- environ more energy, running out resources, 1/3 natural resources space gone, 40%water ways contaminated, US 5% pop 35%resources+ 75% fisheries fished capacity+ mix toxins W/natural resources
- soc 30% purchased thrown away within yr not including packaging, externalised cost real cost not in products absorbed co/workers
Spatial division labour
Common practice TNCs move low-skilled work abroad low cost but managerial roles remain place origin
Mobile phones changing life better
-2005 6% Africans- 2015 70%as falling prices+growth provider co’s
M-Pesa:-1/3 Kenya GDP sent thru M-Pesa annually
-ppl towns+cities use payment utility bills+skl fees
-fishermen+farmers rural check prices before+ women rural show gd credit bills payed M-Pesa secure micro loans lifting them out poverty
BRICS Group
4 lrg(fast growing) econ-Brazil, Russia, India, China+ recently SA
Digital divide
Refers gap between ppl+regions that have access modern info+ commun tech+ those don’t/restricted access can include telephone, TV, personal computers+internet
Some global flows seen threat
- imports raw materials+ commodities can threaten a nation’s own industries
- migrants can bring cultural change+ religious diversity not welcomed by every1
- info can provide citizens W/knowledge govts find threatening-> many examples Nat govts authoritarian(strict)+ democratic(independent) attempting isolate/ protect themselves from global financial+ trade flows including FDI org e.g. World Bank hard persuade different approach
The IMF (International Monetary Fund)
- Development purposes primarily maintain int financial stability, stabilise currencies maintain growth(aim)
- lends money in return tries force countries privatise govt assets to increase size private sector+ generate wealth e.g. Greek debt crisis 2008 forced cut back expenditure
- USA significant influence over IMF policy despite always EU pres, rules+ regulations can be controversial may require cut back health, education, sanitation+ housing progress