Flashcards
What is globalisation?
The process of transferring money, people, goods, services and products between countries
What are the four strands of globalisation?
Social, economic, cultural and political
What is meant by the time space compression?
The set of processes which causes relative distances between places to contract, effectively making places grow closer
What is the length and depth of globalisation in low income countries?
Shallow and near
What is the length and depth of globalisation in middle income countries?
Further and deeper
What is the length and depth of globalisation in high income countries?
Far and deep
What are the three inter-governmental organisations (IGOs) involved in globalisation?
The international monetary fund, the world bank and the world trade organisation
What is an advantages of the international monetary fund?
Lends money for development purposes and to sustain international finance stability
What is a disadvantages of the international monetary fund?
It forces countries to privatise government assets in order to increase the size of the private sector
What is is an advantage of the world bank?
It uses bank deposits placed by the world’s richest countries to lend to countries for development purposes
What is a disadvantage of the world bank?
All of its presidents have been american
What is an advantage of the world trade organisation?
They advocate trade liberalisation and trade without tariffs
What is a disadvantage of the world trade organisation?
They failed to stop the world’s richest countries from subsidising their own food production
What are trade blocs?
Where countries group together to freely trade between other countries within their trade bloc.
What are two advantages of trade blocs?
Countries can trade between other countries within the same trade bloc for free
The easing of access to trade means that trade between members is more likely to occur
What are two disadvantages of trade blocs?
Food miles are increased as the cheapest product is most to be traded
As the border controls are relaxed, it is easier for immigrants to access countries, causing political tensions
How have trade blocs contributed to globalisation?
- Increased integration between countries
- Global negotiations are made easier
How do national governments contributed to globalisation?
- They follow policies to help TNCs to grow in size and influences
- Joining a trade bloc
- Influencing people to start up businesses
- Free market liberalisation
What are special economic zones?
An industrial area, often near a coastline, which has characteristics which attracts TNCs
What are the favourable conditions of SEZs?
- Low tax rates
- Exemptions from tariffs and export duties
What is China’s open door policy 1978?
China opened up its market to foreign TNCs to increase globalisation in the country. They required advanced western technology. In 2001, they joined the wto
Does globalisation occur evenly?
No, because not all countries host TNCs
What are global hubs?
These demonstrate a number of connections to the rest of the world. Most hubs have major TNCs and increasing diverse populations. The hubs always try and attract foreign businesses towards them.
Which two measurements do we use to measure globalisation?
The KOF globalisation index
AT Kearney
