Factors in Globalisation. Flashcards
What are the 6 factors of globalisation - helping to create a shrinking world?
Communication, financial, transport, security, management and information systems, trade agreements.
What is Time-Space-Convergence?
Places bought together as the time taken to travel and send messages between them decreases
What is meant by the ‘frictional effect of distance’?
Idea that geographically closer areas are more likely to interact and those further apart are less likely to do so.
Transport and tech (zoom) have decreased this.
Give an example of a major trade bloc:
USMCA- US, Mexico, Canada agreement.
Give an example of a minor trade bloc:
CARICOM - Caribbean community.
Define free trade areas (FTA)
Trade barriers between member countries removed. BUT. each member country still imposes tariffs on non member countries.
Give an example of an FTA country.
FTA = free trade areas
ASEAN
What is a customs Union?
Trade barriers between member countries are removed but common external tax on non member countries.
Give an example of a Customs Union.
CARICOM (Caribbean community)
Outline a Common Market
All members - trade barriers removed.
Common external tax to non member countries.
Free flow of goods, services, capital and labour (the four freedoms) - no restrictions.
Give an example of a Common Market:
The EU.
What is and Economic/Monetary Union?
Different forms.
Members operate as a common market with a common tax system or currency.
What are the pros of the EU?
Free trade (increased economic growth)
Increased FDI (because of access to free markets)
Business can branch out easily + flows of people.
What are the cons of the EU?
Lots of regulations.
Cost of contributions to the EU budget.
How does globalisation show itself in shops via JIT?
JIT = just in time ordering from suppliers.
Every time a barcode is scanned in M&S, there is an immediate change to their orders from their international suppliers!
