Global Organisation Flashcards
What are the Bretton Woods institutions, and how do they influence globalisation?
IMF (International Monetary Fund), World Bank, and WTO (World Trade Organisation) promote free trade and investment. They remove tariffs and trade barriers, encouraging economic globalisation.
Example: China joined the WTO in 2001, boosting its global trade.
What is the BRICs New Development Bank, and how does it rival Bretton Woods institutions?
Founded in 2015 by Brazil, Russia, India, and China as an alternative to the World Bank. $1.5 billion in loans granted by 2017, mainly for renewable energy projects.
What are the two main indices used to measure globalisation?
- AT Kearney Index: Measures political engagement, technology, personal contact, and economic integration. 2. KOF Index: Focuses on economic, social, and political globalisation, giving more weight to FDI and trade.
What indicators can be used to measure globalisation?
Migration patterns and trade flows. Membership in trade blocs (e.g., EU, NAFTA). FDI (Foreign Direct Investment) levels.
What is the global shift, and why has it occurred?
The movement of manufacturing and services from developed to developing nations. Driven by cheaper labour, lower taxes, and economic liberalisation.
What are the effects of the global shift on developed nations?
Deindustrialisation causes unemployment and urban decline.
Example: Detroit (USA) went bankrupt in 2013 after car manufacturing moved abroad. Example: Leicester’s textile industry collapsed in the 1970s due to outsourcing.
What are the effects of the global shift on developing nations?
Higher employment and rapid economic growth (e.g., China’s economy grew 9.4% annually from 1978 to 2012). Environmental damage and pollution (e.g., 85% of Shanghai’s river water undrinkable in 2015). Unplanned settlements and poor working conditions (e.g., Dharavi slum in Mumbai).
How do TNCs spread globalisation?
Offshoring: Moving production to lower-cost countries (e.g., Apple assembles iPhones in China). Outsourcing: Contracting work to other companies (e.g., BT call centres in India). Glocalisation: Adapting products to local markets (e.g., McDonald’s vegetarian menu in India).
What are the risks of outsourcing for TNCs?
Loss of direct control over supply chains. Ethical scandals (e.g., horse meat scandal in UK supermarkets, 2013).
How do TNCs exploit natural resources in developing countries?
Anglo-Iranian Oil (British) controlled Iran’s oil industry in the early 1900s. Aramco (USA-Saudi partnership) helped extract Saudi oil but profited more than the local economy.
How is world trade dominated by TNCs?
Car exports: $720 billion industry (2016), led by Germany, Japan, and the USA. Banana trade: Controlled by US-based TNCs like Chiquita and Del Monte.
How do free trade blocs influence globalisation?
EU (European Union): Free movement of goods and people. NAFTA (North American Free Trade Agreement): Boosted trade between USA, Mexico, and Canada. Removal of tariffs and quotas encourages trade between member states.
