factors effecting globalisation Flashcards
what is global shift
filtering down of manufactoring industry to lower wage economies from HICs
example of a company in the uk experiencing global shift
Cadbury
- moved some staff to switzerland to avoid taxes
- stopped working with fairtrade
- closure of factories in the uk to move overseas
how does financial systems effect globalisation
- accelerates globalisation
- relationship between investors bank and borrowers
- multinational coorporations invest their profits for more interest
- people buy and sell shares in stocks
- countries borrow lend and invest in other countries which builds relationships
how does financial technology effect globalisation
- global communications technology- stock market trends are easily accessable
-offshore bank accounts create more personal wealth - global banks can communicate with national and regional branches
-TNCs can function - people can buy and sell things globally
- remittances - money sent back to home countries with ease
- cryto currency and online trading
how does innovations in transport effect globalisation
high speed rail, and faster planes have allowed the world to become more connected
how does larger and faster aircraft effect globalisation
- increases capacity
- reduced travel time
- planes built for transporting goods such as cargo aircraft
how does containerisation effect globalisation
- changes how products can be produced in bulk and traded internationally
- large shipping containers transport goods
- makes global transportation faster as there are less trips needed for transportation of the same goods
how does transporting people effect globalisation
- allows for more flows of labour
- high speed rail accelerates rural to urban migration
- cross border trains (eurotunnel)
regulations in place to combat threat to globalisation
- stricter regulations such as xrays in airports
- cybersecurity- technology designed to track cyber attacks
- global systems to limit dissagreements and wars such as the un
- CCTV, search histories and financial purchases are tracked to prevent crimes such as terrorist attacks
What are global supply chains
Network of supply chain, could be based all over the world that work together to produce a product
What is outsourcing
To obtain goods or services from an outside supplier
- third party provide services
What is offshoring
- raising some of the companies processes or services overseas so as to take advatantage of lower costs ( tax energy and labour costs)
What is a tarriff in international trade
Tax for importing and exporting goods
What is a quota in international trade
A limit/ fixed number of goods or requirements
What are restrictions of international trade
- tariffs
- quotas
- bans of products or country imports/ exports
What can be done to lower costs of trade
Trade agreements which benefit all parties involved
- certain restrictions can be removed
What is NAFTA
World trading blocks
North American free trade agreement
What is ASEAN
world trading blocks
- association of south East Asian nations
What is the EU
World trading block
- European Union
How has NAFTA impacted trade between the USA, Mexico and Canada
- single free trade zone
- USA, Mexico and Canada can trade products across borders tax free
Advantages of NAFTA
- creates jobs in Mexico
- decreases number of illegal immigrants from Mexico to USA
- factories set up in Mexico
- cheaper products sent north to the USA
Disadvantages of NAFTA
- Americas trade surplus with Mexico turned into a big deficit
- Mexican to USA emigrants doubled
- disruption to USA trading with Mexico would disrupt Mexico economy- causing more migrants
What are the causes of inequality linked to globalisation
- unequal flows of trade and labour (lack of infrastructure, planes, cargo ships, landlocked countries are cut off by sea born trade
- tax avoidance and evasion- wealthy individuals and corporations can exploit globalisation to evade taxes by shifting income and assets to low tax jurisdictions further contributing to wealth inequality
