Factors of Globalisation Flashcards
what are trade blocs?
groups of countries in specific regions that manage and promote trade activities to gain economic benefits
what are the 4 types of trade blocs?
free trade area
customs union
common market
economic union
Globalisation is influenced by the following factors
new technologies, communications and information systems global financial systems transport systems security trade agreements
factors that have combined yo accelerate the pace of globalisation since the 1990s
trade migration contanerisation travel global marketing capital/investment transnational corporations collapse of communism transport
how have new technologies, communication and information systems led to accelerated erosion?
- information can now be shared easily
- mobile phones are one of the most important technologies for LIC’S
how has government support led to increased globalisation
- want to increase exports from their country
- govs have trade departments whose function is to ease and facilitate exports
- support and advice is given to encourage businesses
how have transport systems led to accelerated globalisation?
the world has never been more accessible and a global transport network allows the movement of people and goods over vast distances
the following have contributed to easing international trade
increased aircraft size
growth of low-cost airlines
handling and distribution efficiencies
high-speed rail networks
what are international financial institutions
institutions that provide financial support and professional advice
loans to finance investment projects to help reduce poverty and encourage economic development
The world bank
- provides loans grants and technical assistance to countries to reduce poverty
- support a wide range of investment such as education and health
International monetary fund
- the organisation of 189 countries working together
- created in 1995
- provides loans to member countries that are experiencing financial instability
- provides support to LIC’S
international panel on climate change
- international body for assessing the science related to climate change
- set up in 1988
- provides policymakers with regular assessments of the scientific basis of climate change
united nations
- founded in 1945
- made up of 193 member states
- take action on the issues confronting humanity in the 21st century
World trade organisation
only global international organisation dealing with the rules of trades between nations
New technology
- allows effective and fast communication
- better transportation links
- improves the tech industry
security
Security relationships. …
Management systems. …
Financial systems`
Trade Agreements
- Trade blocs
- Free trade
- free movement e.g. EU
Transport
- increased globalisation over past 3 generations
- e.g. cargo ships, plans and improvements in trucks have allowed movement
Factors that have contributed to globalisation
internet
Containerisation. The costs of ocean shipping have come down, due to containerisation, bulk shipping, and other efficiencies. …
Technological change. …
Economies of scale. …
Differences in tax systems. …
Less protectionism. …
Growth Strategies of Transnational and Multinational Companies.
NIC
Newly Industrialised Country
Asian Tiger
Hong Kong, Singapore, South korea, Taiwan - rapid developing economies
BRIC
Brazil Russia India China - Containerisation. The costs of ocean shipping have come down, due to containerisation, bulk shipping, and other efficiencies. ... Technological change. ... Economies of scale. ... Differences in tax systems. ... Less protectionism. ... Growth Strategies of Transnational and Multinational Companies.
MINT
Mexico
Indonesia
Nigeria
Turkey - a group that they expected would show strong growth and provide high returns for investors over the coming decade
Production
in 1954, around 95% of manufacturing concentrated in Western Europe, N America and Japan.
global shift
global shift is the movement of economic activity from MEDCs initially to NICs and more recently to LEDCs (especially in Asia and Latin America). Initially in the 1960s this was a movement of manufacturing activity, but since the 1990s, service activity has been involved.
- this has meant that highly skilled workers would move to these zones of economic activity, leaving the areas they have come from to be a lot worse off
- unskilled workers work repetitive jobs - no skill or art - sense of achievement
Distribution and Consumption
NIC’s are becoming more developed, people become more affluent
what changes have been forecast
- people will get high paid jobs in HIC’s - LIC’s will continue to get wages they cannot live off of.
- the economy will thrive more - Unless a repatriation of profits becomes routine
- more TNC’s/businesses will invest
global village
The world has been transformed into a village by the almost instantaneous transmission of information, facilitated by improvements in ICT.
time-space convergence
the time taken to travel between places is getting shorter, so distant places are brought closer together to terms of the time taken to travel (and send messages) between them.
walmart example
- one of the world’s biggest retailers and largest company by revenue.
- became international in 1991
- owns 6000 stores outside the USA in 26 countries
- modified retailing to adapt to local communities
- 85% of products sold in 14 000 chinese supplies - unlike any other country
- China is an NEE - no Walmart in west of China
