GEOGRAPHY(GLOBALISIATION) Flashcards
what is globalisation?
process of the worlds economy, political systems and cultures becoming more strongly connected and interdependent.
what are the 5 flows that promote globalisation?
> FLOW OF LABOUR = movement of people that participate in the workforce. more movement of people overseas, international migration has increased by 40% between 2000 and 2015. people bring their cultures with them
> FLOW OF INFORMATION = info can be spread across the world quickly and easily. development of the internet and social media means large amounts of information can be exchanged across the globe instantly. makes the world more interconnected as people can learn about other cultures and countries without of ever being there
> FLOW OF SERVICES = economic activities that aren’t based around the production of material goods. eg banking. improvements to ICT means services can be located anywhere and still be able to serve customers across the globe. countries are now connected just by having a bak card
> FLOW OF PRODUCTS = manufacturing has recently increased in less developed countries due to lower labour costs. companies relocate production side of their business to less developed countries and import the goods to where they’re sold. for example, disowns manufacturing is in Malaysia but they still sell in the uk. increases international trade.
> FLOW OF CAPITAL = money that is invested to produce an income or increased profit. more FDI. world is more interconnected as a lot of countries economies now rely on the flows of investment to and from other countries
what 4 systems have enabled globalisation?
> GLOBAL FINANCIAL SYSTEMS (flow of capital)
GLOBAL TRADE SYSTEM
TRANSPORT AND COMMUNICATION SYSTEMS
MANAGEMENT AND INFORMATION SYSTEMS
how do financial systems promote globalisation?
the global financial system governs the flow of capital.
based on companies called investment banks, who help companies increase their capital by selling their shares. people who buy shares are called investors.
financial deregulation = relaxed rules on what banks were allowed to do and removed barriers on capital coming in and out of a country
what is the global trade system and how to trade agreements remove barriers to trade?
the global trade system is governed by flows of products. trade is primarily regulated by countries governments who control what gets let in and at what price. the global trade system is governed by the WTO, who can stop countries imposing unfair rules on each others companies and settle trade disputes.
controls on trade include :
>TARIFFS = taxes on product coming in
>NON TARIFF BARRIERS = rules on quality of product.
controls make it more expensive for companies to sell their products and consumers to buy.
TRADE AGREEMENTS act like contracts, one country agrees to removed controls in exchange for the other doing so.
trade agreements between two countries is called bilateral TA
between several countries - multilateral
what is global marketing?
treats the world as a singular market, can create global brand awareness. eg consumers relate a name or logo to particular product or service.
how do transport and communication systems increase companies efficiency?
find new ways of working which means they can make the same product for cheaper. company supply chains have become global (eg the supplier may be in a different country to the factory) which minimises costs. outsourcing means paying another company to do work to save costs of doing it yourself.
how does globalisation create economic interdependence?
countries rely on each other for economic growth and development. eg, oil is produced and consumed in different areas
how does globalisation create environmental interdependence?
every country relies on the rest of the world to look after the environment, as impacts can affect everyone. eg, Chernobyl explosion in Ukraine increased cancer in Ukraine, Russia, and possible further
how has globalisation created political interdependence?
countries rely on each other to help solve issues. eg the 2015-2016 European migrant crisis, countries in Europe worked together to support the refugees.
what are the unequal flows?
interdependence can create inequalities as countries and between people in the same country. brings more benefits to developed countries and richer people
> UNEQUAL FLOWS OF PEOPLE
UNEQUAL FLOWS OF MONEY
what is the general unequal flow of people?
people tend to move from areas with few jobs to areas with plenty (non developed to developed).
people may leave to escape war. refugees generally try to move to the nearest safe country.
what are the benefits of unequal flows of people?
immigrants can increase the economy, as they bring skills and do jobs that others won’t do or can’t do.
remittance = migrants send money back to home communities where there families are. this can benefit the economy of less developed countries.
what are the problems of unequal flows of people?
> INEQUALITIES = less developed countries suffer from “brain drain”, as skilled people leave and take their knowledge with them
> INJUSTICE = migrant workers are made to do dangerous jobs for little money. eg, in Qatar, thousands of migrants died when building facilities for the 2022 Fifa World Cup
what are some examples of flows of money?
remittance, money from trade, FDI, foreign aid (money given to less developed countries to increase development in help in a crisis)
how is flow of money unequal?
money flows from developed to less developed countries to invest in their infrastructure/extraction of minerals. less developed countries don’t have the capital to exploit developed countries.
what are the benefits of unequal flows of money?
prompt - talk about FDI and foreign aid
FDI = foreign countries investing into host country can take advantage of low labour costs and cheap raw materials, whilst the host country can benefit from the investment.
FOREIGN AID = improve living standard
what are the negative impacts of unequal flows of money?
> INJUSTICE = companies pressure less developed governments to pass laws so it is cheaper for the developed country to invest there. eg pressured to cut environmental regulations.
> INEQUALITIES = foreign aid can result in dependency
FDI can force out local businesses as the foreign country has superior technology and capital to make products more efficiently
> CONFLICT = FDI into agriculture can evict peasant farmers for larger plantations
what is Neo-liberalism?
in the 1980s, developed countries thought that the economy would work best without state intervention. maximum economic growth would only happen if barriers to trade were removed and state owned companies were privatised
what are some benefits of Neo-liberal ideas?
increased free trade, so enabled increased development
impacts of Neo-liberal ideas
> INEQUALITIES = neoliberalism concentrates wealth into the hands of few, such as large, wealthy companies in developed countries
> INJUSTICE = governments and TNCs argue that free trade and privatisation are the best way to help a country develop, which justifies poor working conditions and environmental degradation.
unequal flows of technology problems
technology usually flows from developed to less developed.
> INEQUALITIES = developed countries can afford the latest technology. countries with the latest tech can make products cheaper and have better access to information/services.
EG in 2016, 97% of Netherland citizens had access the the internet compared to 20% in Myanmar
how can unequal flows create power imbalance?
the unequal flows have left some countries with more power. for example, developed and emerging countries can drive global systems, due to them having more advanced technology and capital etc
they drive global systems to their own advantage and control a lot of the global economy.
many of the biggest contributors to climate change are also the richest countries. they can be reluctant to agree to proposals to limit climate change as they think it might harm their economy. EG USA PULLING OUT OF PARIS AGREEMENT IN 2017
what are 2 global financial institutions?
> IMF = INTERNATIONAL MONETARY FUND
-monitors global economies and advises government on how they could increase their economic situation. give loans to countries with economic problems.
> WORLD BANK
-provides loans for less developed countries. money comes from subscriptions from member countries, only less developed countries can take from it but they are expected to pay it back
what are problems with the IMF and WORLD BANK?
both led and ran by the USA and other developed countries. less developed countries who are likely to require a loan, also have the less influence over the decisions made by the organisations. REINFORCES POWER IMBALANCE
what is protectionism?
countries limit trade by tariffs and non tariff barriers shield industries from foreign competitors
what is free trade?
removing protectionism barriers
what are 2 global rules set by WTO?
> countries can’t give another country special access to their market without doing the same for every other country
countries should promote free trade
what does OPEC stand for?
Organisation of the Petroleum Exporting Countries
what are trading blocs?
associations between different governments that promote and manage trade. remove their barriers between members, but keep common barriers up for countries not apart of the bloc. the bloc may be based around a specific industry = eg Saudi Arabia oil exportation, members of OPEC
how has globalisation affected the volume and pattern of trade?
dramatic increase of global trade
developed countries are the biggest global traders but emerging economies are slowly catching up, eg CHINA is now the biggest exporter of goods since an increase in their manufacturing sector.
rise in fair trade supports people in less developed countries who export their products to a developed country
how has globalisation affected the volume and pattern of investment?
FDI = person, company or other group sends money into another country to generate profit. eg, by opening a new branch of their business
foreign investors are attracted to size of market (how many people they can sell to), stability (not in war zone)
how do trading relationships differ between developed, less developed and emerging economies?
DEVELOPED
most trade between developed countries. eg in 2013, imports and exports between US and EU accounted for over 30% of global product trade, as the products require a lot of money and expertise
EMERGING
eg china and India, becoming increasingly important in trade. eg chinas manufacturing sector rapidly increasing and Indias highly educated population increases service sector
LESS DEVELOPED
trade mainly with emerging and developed. eg BANGLADESH exports most product to US and EU and imports most from CHINA and INDIA
what is market access?
access is about how easy it is for companies and countries to trade with one another. this is determined by the extent of import and export barriers between two countries.
how do developed countries have better access?
access is affected by wealth, which developed have a lot of. EG developed countries have the money to invest, and can avoid high tariffs from other developed countries by opening business with them
also, developed countries put higher tariffs on goods imported, making it hard for less developed countries to trade with them.
how has the WTO helped increase market access for less developed countries?
SPECIAL AND DIFFERENTIAL TREATMENT (SDT) agreements give less developed countries access by allowing the least developed countries to bypass developed countries tariffs.
EG 2001 EUs “everything but arms (EBA)” meant least developed countries could export some of their products into the EU