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Geography Topic 3 - Globalisation > EQ1 - What Are The Causes Of Globalisation And Why Has It Accelerated In Recent Decades > Flashcards

EQ1 - What Are The Causes Of Globalisation And Why Has It Accelerated In Recent Decades Flashcards

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1
Q

Define Globalisation

A

Is used to describe a variety of ways in which places and people are now more connected with one another than they used to be

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2
Q

State the 4 types of Globalisation

A

Economic globalisation
Social globalisation
Political globalisation
Cultural globalisation

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3
Q

Explain the factors Economic globalisation

A

Growth of TNC’s accelerates cross border exchanges of raw materials, manufactured goods and shares

ICT supports a more international economy and spatial division of labour

Online purchasing using sites like Amazon

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4
Q

Explain the factors of social globalisation

A

International immigration has created extensive family networks with more multi-ethnic world city societies

Global improvements in education and health have seen rising life expectancy and literacy levels

Social interconnectivity has grown due to mobile phones , internet and email

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5
Q

Explain the factors of Political globalisation

A

Growth of trading blocs allows TNC’s to acquire firms in other countries

Reduced trade restrictions and tariffs help markets to grow

World bank, IMF and WTO work internationally to harmonise national economies

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6
Q

Explain the factors of cultural globalisation

A

Western cultural traits dominate some territories

Old local cultures merge with globalising influences, hybridisation

Ideas and information have accelerated thanks to virtual spaces and 24 hour reporting

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7
Q

What is the impact of globalisation on finance

A

Global capitalism spread by large TNC’s are larger than many countries GDP

Cheaper labour in developing countries supplies goods to wealthier nations

Trillion of dollars are exchanged electronically every day

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8
Q

What is the political impact of globalisation

A

Some TNC’s seek to influence how people think

Many trade barriers have been removed to liberalise world trade

TNC’s and political organisations can influence national governments

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9
Q

What is the impact of globalisation on population

A

Employees with skills in management, finance and IT move around the world to where they are most in demand

Migrant labour flows to areas with higher incomes

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10
Q

What is the impact of globalisation on communication and information

A

Lower transport costs allow long distance tourism

Increased mobile phone usage and fast broadband allow information to be communicated easier

Emerging global village of sport , music and films

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11
Q

What is the impact of technology on globalisation

A

Improves economic globalisation as exchanges and trade are able to be made quicker, allows new markets of e-commerce.

Significant part of social globalisation (allows social interconnectivity) and cultural globalisation (acceleration of information around the world)

Important role in political globalisation as it is used to communicate internationally to harmonise national economies

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12
Q

What are the benefits and drawbacks of container ships as part of transport developments affecting globalisation

A

B
Freights can be transported cheaply
Container ships are able to carry a large capacity
Dominate global trade
Have shifted the balance of economic power from Europe to Asia

D
Production of goods in China is due to low labour costs
Return journey back to Asia consists of plastic waste for recycling and incinerating, take back low value waste
High cost to transport goods

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13
Q

What are the benefits and drawbacks of e- tailing as part of transport developments affecting globalisation

A 
B
Reshaped the retail industry
Have low storage costs 
Offers manufacturing firms a global market for their goods 
24 hour access around the world

D
Operate in many countries, hard to calculate tax rates
Sell products that people throw away quickly
Environmental impacts and human rights cost

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14
Q

What are the social costs of e-tailing companies like Amazon

A

A lot of workers manufacturing goods work in sweatshops, human rights issue
Factory workers inhale carcinogenic chemicals, health issues
Exploits lower paid workers

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15
Q

What are the economic costs of e-tailing companies like Amazon

A

Operates in many countries, Amazon registers sales in low tax countries
People pay less for goods than they should cost to make , exploit developing countries

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16
Q

What are the environmental costs of e-tailing companies like Amazon

A

Over 30% of whats purchased is thrown away within a year
Pollution involved in manufacturing and transporting goods
Uses finite resources , depleting natural resources

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17
Q

How has developments in ICT and communication given new opportunities to businesses and created a time space compression

A

Development of ICT has led to heightened connectivity and has changed our conception of time and distance, making us feel closer than in the past

ICT has Improved economic globalisation. It allows managers to communicate easier, helping TNC’s outsource and encourages the movement of skilled migrants

Has allowed the development and growth of e-commerce. Allows smaller businesses to compete and access global markets without having physical stores, decreases storage costs and allows quick deliveries, increasing brand loyalty

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18
Q

Define Transnational corporations (TNC)

A

Are businesses whose operations are spread across the world in many nations as both makers and sellers of goods

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19
Q

Define Gross Domestic Product (GDP)

A

Is a measure of the financial value of goods and services produced within a territory

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20
Q

Define emerging economies

A

Are countries that have begun to experience high rates of economic growth, the BRICS group

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21
Q

Define spatial division of labour

A

Is the common practice of TNC’s moving low skilled work abroad to places where labour costs are low

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22
Q

Define Shrinking world

A

Means that due to developments in technology , distant places start to feel closer and take less time to reach

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23
Q

How did the WTO affect fishing in Pakistan

A

Previously Pakistan had an exclusion zone around its coast, so only Pakistani fishing boats could fish there.

Joining the WTO meant Pakistan had to open up its fishing grounds to foreign competition, trawlers from TNC’s and India take most of the catch whilst Pakistani’s fishing communities are left in poverty and fishing stocks are at dangerously low levels

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24
Q

Who are the IMF, what do they try to do and how and how have they enabled globalisation

A

The International Monetary Fund lends money for development, maintains financial stability and stabilises currencies.
Tries to force countries to privatise assets to increase the size of the private sector and generate wealth.
Accelerates cross border trade of materials and information

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25
Q

Who are the WTO, what do they aim to do and how , how have they enabled globalisation

A

The WTO believes in free trade and removing trade barriers, trade liberalisation.
Advocates for trade without subsidies or tariffs and encourage all trade between countries without restrictions.
Helps accelerate the exchanges of goods between countries, contributing to the success of e-commerce

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26
Q

Who are the world bank , what do they do and how, how have they enabled globalisation

A

Finance economic development by using bank deposits from the wealthiest countries to provide loans for countries in need
Contributes towards economic development, potentially improves quality of workforce in developing countries

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27
Q

What is a trading bloc

Give an example

Why have some been critical of trading blocs

A

Is an intergovernmental agreement where barriers to trade are reduced or eliminated among the participating countries.

An example is the NAFTA trading bloc between USA, Canada and Mexico

Non- members are excluded which prevents their development

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28
Q

How has the UK promoted globalisation

What are the issues with their strategy

A

Gives subsidies to firms investing into areas like London Docklands. Encourages overseas firms to locate in the country, by giving grants to allow foreign direct investment.

Restricts smaller UK companies from competing

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29
Q

How have China promoted globalisation

Are there any issues with their strategy

A

Chinese government opened the door to international businesses , allowing firms from the UK and USA to relocate and outsource to gain advantages of tax incentives and cheaper labour. Large recipient of FDI but also invests into EU, USA and sub saharan Africa.

Exploits cheap labour, human rights issues

30
Q

Define subsidies

A

Grants given by the government to increase profitability of key industries

31
Q

Define FDI

A

Foreign direct investment made by an overseas firm into another firm based in another country

32
Q

Define open door policy

A

When a country allows international business and FDI into the country

33
Q

Define special economic zones (SEZ)

A

Set up by government to offer tax incentives to attract FDI, which differs from incentives usually offered by a country

34
Q

Define Export Processing Zones (EPZ)

A

Another name given by China for a SEZ, where there is high economic activity

35
Q

Why do countries make deals with other countries , outside of trading blocs

A

Occurs so a country can make global connections and do not miss out on global trade, accelerating economic development.

36
Q

Why does China have strong links with Africa , in terms of FDI

Who benefits

A

Africa is a big receiver of FDI from China due to the value of resources (oil, gas, resources) on the continent.

Africa benefits from economic development and China has benefitted from cheaper raw materials

37
Q

Who is OPEC, why are they powerful and will there power remain

A

Is a regulator of the global oil market , made up of the worlds largest oil producers, who control the price and quantity of oil distributed.

Power is shifting away from OPEC, due to the growth of non-opec countries like USA

38
Q

What have been the benefits and drawbacks for Ghana of their global connections due to Cocoa beans

A

B
Cocoa is in high demand from large TNC’s

D
Ghana could gain extra income by processing Cocoa into chocolate or powder, but tariffs force them to export raw cocoa
Other cocoa producers (ivory coast) supply TNC’s putting a downward pressure on prices
WTO enforced that Ghanian farmers should not be subsidised , cannot compete with UK and US producers

39
Q

What have been the benefits and drawbacks for Vietnam of their global connections due to manufacture goods

A

B
All import duties and quotas were removed for trade between Europe and Vietnam
Vietnam exports manufactured goods (telephones, electronic goods and clothing) in return for machinery , vehicles and pharmaceuticals

D
Cheap labour is exploited , human rights issues

40
Q

What have been the benefits and drawbacks for Guatemala of their global connections due to cotton

A

D
Only 1% of land used for cotton production would have been needed to generate the same income from manufacturing cotton into manufactured goods
WTO policies tie Guatemala to only exporting raw cotton
TNC’s export cotton into Guatemala to make t-shirts for cheap labour

41
Q

Distinguish the difference between colonialism and globalisation

A

Globalisation is the expansion of communication whereas colonialism is the expansion of power and territory

42
Q

Distinguish the difference between trade liberalisation and subsidies

A

TL is the removal of trade barriers whereas subsidies are funds given to firms

43
Q

Distinguish the difference between quotas and tariffs

A

Quotas restrict quantity traded whereas Tariffs control prices of goods traded

44
Q

Distinguish the difference between FDI and investment

A

Investment is the purchase of land, assets or buildings whereas FDI is an investment into a project

45
Q

What measures can be used to measure globalisation (4)

As a country becomes more globalised what happens to these measures

A

Flows - higher volume of international trade, more FDI and more migration

Technologies- increased internet usage and flows of information

Movements- increased international air traffic

Media- spread of global advertising, music, TV and film

46
Q

What are the 2 measures for globalisation

A

KOF index

AT Kearney Index

47
Q

How does the KOF index measure globalisation (3)

Give specific measures

How do they work out the average rank

A

Economic - cross border transactions and volume of FDI

Social- cross border contacts, information flows and presence of global brands within the country (mcdonalds and Ikea)

Political - number of foreign embassies in the country, country’s membership of different international organisations and participation in UN peacekeeping activity

Each set of different indicators in each group is scaled as some are more important than others

48
Q

Why are 13 of the top 15 countries on the KOF index in Europe

A

The index measures international interactions. European countries are small compared to China and USA, so every country has embassies, its own internet systems and investments. USA and China has more domestic economic markets which do not count in KOF values

49
Q

What are the advantages and disadvantages of the KOF Index

A

A
Used since 197
Allows for comparisons between countries
A wide range of globalisation data is available
Uses a weighting system, taking into account missing data and rebalances discrepancies

D
The internet skews data
Bias, smaller countries are over- represented at the top
Informal economies are discounted and illegal migrants are not included

50
Q

What are the four main indicators for the Kearney Indicators of measuring globalisation

Give examples

A

Political engagement - participation in international treaties and organisations

Technological connectivity - number of internet users

Personal contact- telephone calls and remittances paid

Economic integration- volumes of international trade and FDI

51
Q

What are the advantages and disadvantages of using the Kearney Index to measure globalisation

A 
A
Covers 84% of the worlds population
Covers 96% of the world’s GDP
Allows for comparison between countries 
Allows for comparison over time

D
Weightings- who decides
Only 64 countries are included in the Index
Hard to measure cultural trends

52
Q

Define Global production networks (GPN)

A

A chain of connected suppliers of materials that contribute to manufacturing a good

53
Q

Define outsourcing

A

When work is contracted out to another company

54
Q

Define offshoring

A

When a company does work overseas , either itself or using another company

55
Q

How do TNC’s contribute towards the spread of globalisation and take advantage of economic liberalisation

(3)

A

Motive - economies of scale, developing new markets, integration with other companies, outsourcing and offshoring

Means - global digital movement of money has made it possible, FDI, reverse colonialism where India and China invest in the UK and US

Mobility- faster and cheaper transport, ICT and instant communication, JIT and other global production networks

56
Q

Define switched on

A

Those who believe globalisation and increased connectedness improves countries economic development, leading to a higher standard of living

57
Q

Define switched off

A

Those who believe globalisation leads to corrupt practices and that some countries and people are left behind

58
Q

Explain the physical and human reasons why some countries are switched off

Give examples

A

Physical:
Vulnerable to climate change and natural hazards (Philippines)
Poor resources for agriculture (Eritrea)
Physical isolation and land locked deters FDI and TNC’s (Niger)

Human
Lack of skills and literacy deters TNC’s and FDI (Somalia)
Ethnic clashes and civil war (DR Congo)
Low prices for exports due to overproduction and trade rules (Ethiopia)
Controlled by TNC’s due to old trade agreements (Sierra Leone)

59
Q

Why are large parts of Africa bypassed by globalisation

A

Its location, not being close to any wealthier countries to have natural customers, prevents globalisation.
The history of colonisation has prevented African countries from developing, behind

60
Q

Why did Zambia and Tanzania find it difficult to switch on

A

In Tanzania there main export is cotton, the price fluctuates frequently. There is no guarantee of income and GDP fluctuates, meaning Tanzania struggled to switch on

In Zambia the country is land locked meaning it was hard to attract FDI and export goods

61
Q

How has Zambia and Tanzania switched on

A

In Tanzania they are switching on, the heavily indebted poor countries initiative led to the cancellation of many debts, allowing income gained from cotton exports to be invested into development indicators

In Zambia, Chinese investment has taken place into railways into Angola and Tanzania to export copper, clearing the country’s debt and increasing income

62
Q

State and explain the important innovations in transport to allow globalisation (4)

A

Steam power- steams ships and trains moved goods quickly along trade routes in the 1800’s into Asia and Africa

Railways- in 1904 railways connected Moscow with Japan and China along a 9000km route, still used today

Jet aircrafts- the arrival of the Boeing 747 in the 1960’s made quick international travel possible

Container shipping- starting from the 1950’s, now 200 million individual container movements take place each year, allowing cheap and efficient transport

63
Q

Define Glocalisation

A

Occurs when a TNC tailors its product to specific market areas and local laws and preferences

64
Q

State and explain the different types of FDI

A

Offshoring - some TNC’s build new production facilities in offshore low wage countries

Foreign mergers - Two firms in different countries join forces to create a single entity

Foreign takeovers- when a TNC acquires a business in another country

Transfer pricing - some TNC’s (Starbucks and Amazon) have channeled profits through a subsidiary company in low tax countries

65
Q

Define Free market liberalisation

A

Is the belief that government intervention impedes economic development and as wealth increases , trickle down will take place from the richest to the poorest members of society

66
Q

Define privatisation

A

Is the sale of government owned assets to the private sector

67
Q

Explain the advantages and disadvantages of joining a trade bloc

A

A
Access to larger markets (gives firms in a country a larger potential customer base)
National firms can merge to form TNC’s (achieve EOS and increased market share)
Protection from foreign competition (an idea to limit the import of cheap goods to protect domestic manufacturers)

D
Loss of sovereignty (countries lose some power)
Interdependence (a disruption in the trading bloc will have severe economic impacts on the countries)
Compromise (countries in a trade bloc must allow foreign firms to gai n domestic market share, at the expense of local communities)

68
Q

Explain the advantages and disadvantages of TNC’s on host countries

A

A
Raised living standards (increases the productivity of the labour force, higher wages)
Technology transfer (TNC’s transfer tech to branch countries, accelerating economic development)
Political stability (TNC’s have helped reduced conflict and provided work for the floating population)
Higher environmental standards (TNC’s have global brands to protect and set high environmental standards to maintain a good reputation)

D
Tax avoidance- TNC’s pay tax in the lowest tax regimes they can
Growing global inequalities- TNC’s cluster in specific areas of a country leading to regional inequalities
Environmental degradation- TNC’s can move production out of the EU to avoid carbon taxes
Unemployment- offshoring can lead to unemployment in developed countries

69
Q

State the physical, political and economic reasons why some regions are isolated from FDI and globalisation

A 
Physical
Distance from market discourages FDI
Wilderness (desert, tundra)
Low agricultural potential (short growing season)
Lack of energy and mineral deposits

Political
Corruption and presence of organised crime groups
Weak commitment of government to development
Civil or tribal conflict
Exclusion from trade blocs

Economic
High level of government debt
Weak education levels and poor workforce
Poor transport and telecommunication infrastructure

70
Q

Define Heavily indebted poor countries (HIPC)

A

Consists of 38 of the least developed countries with the biggest debts. Since 1996 the debts have been made eligible to be cancelled or rescheduled, due to the IMF and World Bank

Geography Topic 3 - Globalisation (3 decks)

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