Global Development Flashcards
Define Globalisation?
Widening, deeping, speeding up global interconnections
What are the five dimensions of globalisation?
Economic, Cultural, Political, Social, Biological
What are examples of economic dimensions?
International trade and foregin direct investment
What are examples of cultural dimensions?
Universalisation of culture
What are examples of political dimensions?
Global governance
What are examples of social dimensions?
Social networks
What are examples of biological dimensions?
Globalised health risks
Outline the direction and nature of capital flows
HICs -> LICs
Outline the direction and nature of repatriation of profits
LICs -> HICs
Outline the direction and nature of aid
HICs -> LICs
Outline the direction and nature of remittances
HICs -> LICs
Outline the direction of raw materials
LICs - NICs/HICs
Outline the direction of product flow of low value manufactured products
NICs - HICs
Outline the direction of product flow of high value manufactured goods
HICs - LICs
What is the direction of flows of labour?
LICs/NICs - HICs
What is the direction of flows of services?
High level services: HICs - HICs
Low level services: NICs - HICs
What is the direction of flows of information?
HICs - NICs/LICs
What is the direction of flows of technology?
HICs - NICs/LICs
Define glocalisation
Products developed and distributed globally but adjusted to locals
Define global shift
Movement of manufacturing from developed to non-developed countries
What is interdependence?
Places become dependent on one another
What is economic interdependence?
Reliance of economic growth
What is social interdependence?
Education as foregin exchange
What is political interdependence?
UN as global governments
How have changes to the financial systems promoted globalisation?
Deregulation of financial market
Global exchange and connectivity
How has production promoted globalisation?
- Deindustrialisation
- OUtsourcing/ offshoring
- Economies of scale
How has changing technology promoted globalisation?
- Satelite communication
- Social media
- Development of internet
What is an argument for the importance of changing technology in promoting globalisation?
- Containerisation
> Reduced transport cost
What is an argument against the importance of changing technology in promoting globalisation?
Not everyone has access to the internet
- 40 percent of the world’s total population remains offline
What is an argument for the importance of trade blocs in promoting globalisation?
Example?
Common external tariffs
trade increases
What is an argument against the importance of trade blocs in promoting globalisation?
Example
Trade diversion
Define outsourcing
Other companies produce at a lower cost
What are the impacts of outsourcing?
- Deindustrialisation in HICs
- Race to the bottom in LICs
- Greater profits for TNCs
How have unequal flows of labour created inequality?
- Brain drain from LICs
- Confliect between migrants and locals
- Dependence on remittances
How have unequal flows of capital created inequality
- Foregin aid dependency
- Influence governments
- Profit repatriation
Why do HICs dominate world trade/ have a better market access?
- Infrastructure is similar and developed
- High value products
- High market volume
Economic impacts of poor market access
- Products are uncompetitive so cannot established new infant industries
- Dependent on low value primary products
Social impacts of poor market access
- Less employment
- Less money invested in health/ education
Define Race to the Bottom
Everyone compete to supply and to compete they must lower prices
Define comparative advantage
Products a country can produce at a lower opportunity cost
Define economic zone
Areas with different trade and investment rules to the test of a country
Define primary product dependency
Reliance on a raw material for export earnings
Three problems caused by primary product dependency
- Volatile prices
- Supplies finite
- Resource curse
How have trade patterns have changed since the 1980s?
- Increased ( x8 1990s)
- Triadic structure
- Slower growth of LICs
- Dominated by TNCs
- TRans pacific is now much faste
Ways world investment patterns have changed since 1980s
- Increased
- HIC -> HIC
- Increasingly HIC -> NIC/LICs - Increasing NIC investmet in NIC/LIC
Define free trade
No barrier to trade
Positive of free trade
- Lower prices for consumers
- Weaken domestic monopolies
Negatives of free trade
- Deindustrialisation
- Infant industries can’t develop
Define fair trade
- Minimum fair trade price
- Fair trade premium
- Environmental standards
What is a positive of fair trade
Reduce price volatility and poverty
What is a negative of fair trade
Reduce incentive to diversify
Define tariff
Tax on imports
Define import quotas
Physical limit on the amount of goods
Define subsidies
Grants given to domestic producers
Define embargoes
Complete ban on trade
What is the WTO and what does it do?
Sets global trade rules promotes free trade
What are positives of the WTO
- Promotes free trade
- Settles disputes
What are negative of free trade
- Favours TNCs
- Requires consensus
What are trade blocs?
A group of countries who have joined together to promote trade
What are two positives of trade blocs?
- Increase trade
- More negotiating power
What are two negatives of trade blocs?
- Trade diversions
- Loss of sovreignity
What is the IMF? What does it do?
Monitors global economy