G -> 1.5-2.2 Flashcards
Things that indicate to the level of globalisation
- amounts of imports and exports of goods and services
- Migration of people in and out of a country
- Ethnic and cultural diversity
- International air travel
- Data connections between areas
- Permanent migrants
KOF and Kearney?
2 companies that have made their respective indexes to measure degree of globalisation within a country
KOF globalisation index
Measured since 1970 for 158 countries
24 indicators through 3 main categories:
- economic globalisation
- social globalisation
- political globalisation
Each indicator is converted value, and it’s all averaged out
AT Kearney index
A US Management Consultancy - Look at only 62 countries
- economic integration: trade and FDI flows
- technological connectivity - internet users
- political engagement - UN + other IGO membership
- personal contact - international travel and tourism, etc
Index values from 0-1
define glocalisation
- adapt goods/ services to appeal to the customer, taste, religion(no topless A&F models in UAE), laws
- remember local regulation restrictions, eg - A&F joint venture with maid al futtaim fashion
- McDonald’s veggie in some India due to Hindu and Sikh
define outsourcing
outsourcing to another company, to avoid the cost of repeating something another part of the company is doing eg, A&F, A&F kids, Hollister all make use of sportswear made in bangladesh
define offshoring
moving operations to another country (cheaper)
- e,g building new factory in china due to lower wage rates
environmental description of the Sahel
- semi arid climate of 200-400mm, agriculture reliant on rainy season
- climate change = desertification
- harsh desert climates
political description of the Sahel
- landlocked, poor quality roads and freedom of passage through other countries to access coastal ports
- high transport costs therefore, = less FDI
- severe conflict with jihadist insurgency
economic description of the Sahel
- 64% below the poverty line
- poor infrastructure and low skinks of working population = discourage FDI
- low income levels lack market size to attract retail
- subsistence farming
social description of the Sahel
- food shortage encourage anger and extremism
- high rate of infant mortality
- 37k refugees fled into Burkina Faso
technological description of the Sahel
- little shelter/ water/ roads/ hospital in Mali
describe North Korea in terms of politics to me
- North Korea remains cut off from the rest of the world, as it wishes to be self sufficient under its heavily command economy
- have limited trade only with china, other than that they are switched off from the rest of the world
why do some places stay switched off from connectivity??
- tourism blocked
- low economic growth leading to low technological advances
- conflict zone (terrorism)
- lack of rain, arid environment
physical root cause of lack of investment into Sahel
- arid conditions + desertification mean that only possible integration likely to be shallow, like food aid for subsistence farmers
economic root cause of lack of investment into sahel
- cost of providing infrastructure
- wages will be low, so negligible spending power, so not viable markets, so no investment into creating consumer networks
chad government
earmarked 99% of funds that were meant to go to helping hospitals
what is global shift
relocation of the global economic centre of gravity to Asia from Europe and North America over he last 30 years
describe dhaka
- savar polluted suburb
- rana plaza collapsed in April 2013, killed 1100 and led to major structural, fire, electricity and safety reforms
positives of global shift
- movement of shift to Asia, has brought many benefits to host countries as millions have migrated for work opportunities in the secondary sector
- absolute poverty reduction - 1 billion since 1990
- TNC’s invest in training and skills development
- investment in infrastructure
negatives of global shift
- loss of productive land for manufacturing + pollution of air/water
- RUM - rapid urban pop. Growth outpaces formal housing prices construction = unplanned settlements
- large scale child labour
- corruption is a hindrance to meet emission targets
environmental problems caused by global shift
- there are high levels of pollution, and dumping of waste
- megacities generate a large amount of pollutants from traffic congestion
- overcrowded slums mean more disease from poor sanitation and water borne diseases
positives of globalisation for Dhaka
- 750 companies now on Dhaka stock exchange
- Dhaka now accounts for 35% of Bangla economy
- Dhaka now connected to longest routes of asian highway network
negatives of globalisation for dhaka
- very old, buried water pipes have been eroded with age
- worlds poorest air quality
- disasters such as Rana plaza collapse
- 100000 hectares of agricultural land lost per year due to rapid urbanisation
what is dereliction?
- combination of manufacturing industry closures, falling house prices and rising crime rates in a widespread environmental dereliction
what is depopulation?
- migrating out of falling neighbourhoods in large numbers
crime and unemployment as a result of economic restructuring
crime: rising crime reminds us that losers go globalisation can be found in all areas
high unemployment: less tax = less to reinvest = that neighbourhood fails unless government acts to stop market failure
free trade
ability to import/ export freely between countries, without tariff barriers
post industrial definition
- change from industrial to tertiary/quarternary/ quinary sector jobs
1.5 overall
Degree of globalisation varies by country and can be measured by different indicators and indices
1.7 overall
Physical, political, economic and environmental reasons why some locations remain largely switched off
Why remain switched off?
- physical isolation of some locations, e.g. Sahel i]with extreme climates and low pop mean infrastructure development unprofitable
- landlocked countries mean agreements with neighbours to trade
- unprofitable global Internet infrastructure like fibre optic cables
- political isolations like North Korea
- Trade restrictions in low income countries, like Zambian copper or oil from Sudan so complex trade networks fail to develop due to PPD
- basic education and literacy level
- lack of access to clean water and bad health is bad workforce
- lack of tech and infrastructure ops on FDI
2.1 overall
We’re seeing a global shift in the economic centre of gravity towards SE Asia away from the west
2.2 overall
Global shift has led to huge economic challenges for deindustrialised Britain, NE England
Scunthorpe
2200 jobs lost, owned by Tat.
Worries about ghost town
90% decline in U.K. iron.steel
Impact of deindustrialisation on Detroit
High unemployment - thousands of jobs lost when automobile industry collapsed
Crime - rising gun crime, 30 years lower LE than suburban affluent blocks
Depopulation. - richer white, affluent citizens white flighted, leaving poor Blake brudda sin the inner city
Negatives of KOF index
- tech advancements mean some of indicators like international mail look old
- trade flows will not include informal economy flows
- choice and weighting of indicators?
Kearney negatives
- only 62 countries
- first done in 2008
- weightings
Manufacturing in china
- 680 million Chinese out of extreme poverty since 1980
- bad working conditions - Foxconn suicides + low health safety standards
- reinvestment into social welfare by CCP = literacy rate rising from 20 - 84% + 7 million uni grads 2014
- infrastructure expansion - 3 gorges dam
Environmental problems in china
- severe air pollution - in northern China estimated to reduced life by 5 years
- coal burning power stations
- 50% of rivers and lakes polluted
- severe deforestation
- WWF reported half of chinas land based species have been lost
