Factors Affecting Globalisation Flashcards
What are the main factors affecting globalisation?
FLOWS/ FLUXES
Information , Capital, Services, Products, Labour
What does flows of information cause?
Rapid development of email, internet, and social media eg: facebook
Increases the ability of information to be exchanged, people learn more about different cultures
-time- space compression/ shrinking world theory- can cause fake media to arise conflict
What does flows of Capital mean?
Assets/ money used specifically for the production of goods and services.
Historically invested within a country (inward investment) now FDI
FDI has increased by 40% in the last decade
What does flows of products relate to?
MANUFACTURING AND DEINDUSTRIALISATION
Now less than 18% of the UK’s employment is based on manufacturing
LIC’s/ outsourcing can exploit lack of rules- if one country falls down product/ resource supply can be reduced
What does flows of services mean?
Relates to the TERTIARY sector
Low level services= customers
High level services= financial consultants
70% of FTSE( Financial Times Stock Exchange) in London centre.
+Helps HIC’s hold a purpose that have moved away from manufacturing
-requires good infrastructure and can go wrong eg: 2008 financial crash
What does flows of labour mean?
LABOUR= PEOPLE
eg: 26% of English NHS doctors aren’t English
+increase quality of life
-LIC’s= cycle of depression
What are global systems?
Can include environmental, political, legal, and cultural systems.
Fluxes of info, capital, services, labour and products affect the DYNAMIC EQUALIBRIUM
What’s global governance?
All management that relates to the rules, norms and legislations that regulate global systems
EU, UN, WTO
+provide stability and growth
-can amplify geographical inequalities and injustices
Name an example of a place where UNEQUAL flows of power, money and ideas have caused problems?
UGANDA= a landlocked country in East Africa that lies within the Nile Basin
Shouldn’t be poor as it is fertile and has cobalt and copper resources
BUT- 1/3 of the 35 million population live in poverty.
How has poverty/ unequal flows been exasperated within Uganda?
Fishing ( a staple industry) has been overfished- the introduction of the British predatory Nile Perch has lead towards near fish extinction.
After the British empire= less export of low value, service sector staples such as cotton and tea.
How have Global Systems affected Uganda?
Installation of antennae, fixed cables and “Village Phone” model that offers loans to people trying to start a mobile phone business.
Increases: INTERCONNECTIVITY
EXPORTS AND CAPITAL
REMITTENCE
How does inequality take place in Global Systems?
Unequal flows of power, money and people= unequal power regulations.
Developed countries with enough money control global systems to their own advantage.
Less developed cannot react eg: CC- created by richer countries, but poorer countries are affected the most- rising sea levels and can’t influence anyone to stop.
How do global institutions reinforce inequality?
International Monetary Fund and World Bank:
- Both BASED IN THE USA= less developed countries have less influence
- Loans can be CONDITIONAL= less developed countries may have to cut regulations they have in place to make foreign trade easier
- Normally for World Bank loans they have to show cuts in investment= can be in healthcare/ services.
Define Global Marketing?
Marketing on a worldwide scale, whereby a company views the world as the same market.
Ultimate Goal= SAME BRAND, SAME PRODUCT, SAME MARKET
Give an example of a TNC that uses Global Marketing to it’s advantage?
Coca- cola- 2015 rated by Interbrand the most successful brand.
200 countries recognise the brand and logo, economically they have a “comparable advantage”.
They have announced a new marketing strategy: “One brand strategy”= unity of product.
What advantages did Coca-Cola gain from the #tastethefeeling worldwide marketing campaign?
Dominance of market
Globalisation of brand and customer recognition of brand
Globalisation of culture (American drink in 200 countries)
What disadvantages happened from the Coca-Cola #tastethefeeling worldwide marketing campaign?
- homogenisation
- takes away individualised localism
- takes away sense of place in areas
Why does Coca-Colas base being in the USA give them an advantage?
- Developed
- Often put higher TARRIFS (taxes on goods)= harder for less developed countries to access the UK market
- As already developed have a lot of money to invest, allowing them to establish and invest into factories, reducing tariffs.
- Trade blocs created in developed countries have access to wealthy buyers and investors.
What does it mean if a country is “footloose”?
Don’t need to be near the production and manufacturing to make a sucessfull profit.
What is the “multiplier effect”?
Positive feedback within Human Geography
eg: FDI= jobs= taxes= shops and businesses grow= increased economic standing= NEE
Why do HIC’s outsource labour?
- Government support
- Cheap to install and operate factories
- Less rigid planning permissions and laws
- Low wages= low production costs
- Strong authorities, military governments.
Why do LIC’s/ NEE’s benefit from outsourcing?
- taxes to government
- reasonable infrastructure and equipment
- some profit remains BUT a lot sent back to HIC through remittance.
Suggest reasons why the international division of labour has changed?
Greater number of developing countries or newly industrialised countries
Decentralisation as a result of FDI
Manufacturing moving from MEDC’s to LEDC’s
In 2010 60% of manufacturing globally was conducted in LEDC’s
What does the term “global shift” relate to?
Manufacturing moving from MEDC’s to LEDC’s to create a greater profit for businesses and offer lower prices.
CASE STUDY of a TNC that has outsourced?
Wal-Mart- HQ in the USA = Arkansas
(ASDA in the UK)
Starting to expand into emerging economies eg: Indian company “Bharti Enterprises” and Wal-Mart together.
Donated 2 million dollars in 2015 to communities in West Africa
Created “green stores” that run on renewable energy.
