Globalisation

Question 1

Explain the role of WTO (4)

Answer 1

The world trade organisation based in Switzerland, which replaced the GATT in 1995, advocates for trade liberation. This is achieved by asking countries to abandon protectionist attitudes in favour of untaxed trade. For example, China has been persuaded to lift export restrictions on “rare earth” materials in 2014.

Question 2

Explain the role of IMF (4)

Answer 2

The International Monetary Fund, based in Washington, channels loans from rich countries to ones that apply for help. In return, countries agree to run free market economies that are open to outside investment,; allowing TNCs to enter these countries more easily.

Question 3

Explain the role of the World Bank (4)

Answer 3

The World Bank is based in Washington and lends money on a global scale, giving direct grants to developing countries. For example, in 2014 it provided Democratic Republic of Congo monetary aid to kick start a stalled mega dam project. The World Bank does however impose strict conditions on loans and grants, as well as controversially having only US citizens as presidents of it.

Question 4

Explain how SEZ have contributed to the spread of globalisation?

Answer 4

Special Economic Zones, an area in which business and trade laws are different from the rest of the country, aims to increase trade, investment, job creation and effective administration. This incentivises TNCs to be set up through tax breaks and investment in infrastructure. Such is the case in China’s SEZ Shenzhen, now the site of Foxconn Electronics, a Taiwanese TNC that assembles Apple products. China has seen enormous economic growth from its SEZs like Shenzhen following its Open Door Policy of 1978, causing its GDP to increase 10% annually throughout the 2000s as a consequence of FDI.

Question 5

Explain how government subsidies have contributed to the spread of globalisation?

Answer 5

Subsidies and grants can increase the competitive nature of industries, though this if often criticised by the WTO.

Question 6

Explain how attitudes to FDi have increased the spread of globalisation?

Answer 6

Government attitudes to Foreign Direct Investment through improvement in infrastructure which attracts TNCs. China’s building of the Zhengzhou “aerotropolis” is an example of this; the airport plans to include entertainment and homes, housing 2.5 million people by 2050. These improvements in transport and infrastructure are implemented by governments to attract TNC’s and accumulate FDI.

Question 7

Explain how the degree of globalisation can be measured using indicators such as the KOF index

Answer 7

The KOF Index measures economic, political and social globalisation. Economic globalisation is measured via the long-distance flow of goods, capital and services. Meanwhile political globalisation is determined through the diffusion of gov policies for example, the spread of capitalism, democracy, liberty and IGO’s. Social globalisation is measured by the spread of ideas, information, images and people.

Question 8

Explain how the degree of globalisation can be measured using indicators such as the AT Kearney Index

Answer 8

AT Kearney Global Cities Index examines a city’s current performance based on 5 dimensions; business activity, human capital, information exchange, cultural experience, political engagement. This gives a broad and detailed overview of country’s levels of globalisation. The rank is determined by totalling the weighted average of each of the 5 components to yield a score from 1 to 100.

Question 9

Explain the physical/political/economic/environmental reasons why some locations remain switched off from globalisation

Answer 9

Physical - Landlocked countries, low agricultural potential (sub-Saharan Africa?) extreme climate
Political - Government censorship - Following Korean War (1950-53) Korea split in half and soviet sponsored communist rule of North Korea. Citizens dont have access to internet/ social media and there are no deep sea cables connecting North Korea to anywhere else
Economic - Government debt - many sub-saharan countries weighed down by enormous debts taken on to fund infrastructure projects in 1970s. As such they cannot afford high trade tariffs imposed by trade blocs like EU on manufactured goods, so they are trapped in primary commodity sector, limits globalisation.

Question 10

Explain the reason for the growth of megacities?

Answer 10

Megacities are metropolitan areas with a total population in excess of 10 million. Through globalisation some places have developed reapidly, the urban core, while other areas have lagged behind (the periphery: rural areas). This has led to millions of people leaving rural areas and moving to cities. Natural increase resulting from high birth rate causes 60% of this growth, while internal migration (rural to urban) causes 30% of growth and international migration causes 10%. Such is the case in Mumbai where the population grew between 3.1 % between the 2001 and 2011 census

Question 11

Explain the push and pull factors causing the growth of megacities

Answer 11

A megacity has a population in excess of ten million, and this large pop can be attributed to the push factors of rural areas and the pull factor of the urban megacities. Rural push factors which make people want to leave these areas include a lack of employment, government investment, services, educational opportunities and entertainment. Meanwhile urban pull factors that attract people to megacities involve high paid, full time formal jobs and a greater variety of food, entertainment as well as high levels of acceptance and tolerance.

Question 12

Explain the social and environmental challenges that occur as a result of rapid urban growth

Answer 12

Rapid urban growth can result in many social challenges such as a spread of disease and inadequate, cramped housing. Such is the case in Mumbai, which had a population growth of 3.1% between 2001 and 2011, and half of the population live in slums. Dharvi, a slum housing 1 million people, has increased risk of catching infectious diseases, especially since doctors are limited to 1 per 200,000.
Environmental challenges involve inadequate and polluted water supply as well as pollution and litter. Dharavi, which houses 1 million people, does not have access to water. There is a poor sanitation with only 1 toilet per 1,440 residents (2006). In addition to this, Mumbai itself produces 500,000 tonnes of rubbish daily and only has 3 landfill sites which are at near capacity

Question 13

Explain how international migration in global hub cities has created interdependence between regions

Answer 13

Global hub cities have disproportionate influence on the world stage; economically and politically. As the most globalised places on the planet, they have substantial flows of capital and people. It is often the case that hub cities invite both elite migrants (such as very powerful Russian Oligarchs in London) or low waged international migrants (Indian workers in UAE). Interdependence is greated in global hubs as remittances are sent home to source nations which generate as much as 40% of the GDP of this nation while host nations much needed migrant workers make up more than 50% of some smaller countries population. For example, over 2 million Indian Migrants live in UAE, an estimated US$15 billion is returned to India annually as remittances.

Question 14

Explain the economic/social/political/environmental costs and benefits of migration for both host and source locations.

Answer 14

Environmental - huge increase in travel between countries. Most migrants concentrate in urban areas, particularly south east. Demand for housing means more building on Greenfield sites, more flooding, less wildlife.
Economically- can be seen to take jobs. 62% of Britons think immigrants make it harder for natives to get jobs.
Socially - put too much pressure on public services - 3/4 britons argue that immigrants put too much pressure on public services.

Question 15

Explain how cultural diffusion occurs?

Answer 15

Cultural diffusion is the spread of culture often by powerful civilisations and nations leading to cultural homogenisation. The spread of a new cultural can be achieved through coercion or persuasion. Coercion entails the forced assimilation of a culture called cultural imperialism, for example the Roman and British empires. Meanwhile persuasion is the use of soft power through TNCs and global media to shape global culture, such as with “Americanisation”.

Question 16

Explain the impacts of cultural diffusion on people and the environment?

Answer 16

People- westernisation can have bad environmental implications. Traditional Asian diet low in meat giving way to westernised diet of meat and fast food. During the 1990s China’s annual meat consumption per person increased tenfold from 5 to 50kg
Environemntal - livestock farming new focus of Asian agriculture, causing a steep rise in emissions of methane. Vast tracts of Amazonian rainforest have been cleared to make space for soya cultivation to feed Chinese cattle.

Question 17

Explain how the spread of global culture has led to awareness of and opportunity for disadvantaged groups?

Answer 17

Cultural attitudes to disabilities are changing on global scale. The UN convention on the Rights of Persons with Disabilities seeks to bring cultural change on a global scale. Also, Global media has helped turn the Paralympics Games into one of the world’s biggest sporting events, celebrating people with disabilities.

Question 18

Explain cultural erosion

Answer 18

Cultural erosion describes the process of a culture losing many of its core elements as the arrival of a new culture replaces it. Language, food, music, clothing, social relations, economic systems, religion and traditions are all under threat from cultural homogenisation. This can be seen in that 4 billion people in the world now speak “Globlish” - a form of basic English consisting of around 1500 words, English dominates because it is the language of the internet, global commerce, technology and education

Question 19

Explain how cultural erosion has resulted in changes to the built and natural environment?

Answer 19

Loss of cultural landscapes, which are under threat from cultural erosion e.g Stonehenge, the pyramids. Wealthy countries can protect their cultural landscape, e.g the UK has 400,000 listed buildings but poorer nations have limited capacity to protect their cultural landscapes so they remain vulnerable to cultural erosion

Question 20

Explain how concerns about globalisation has led to opposition from some groups?

Answer 20

There are many contrasting responses to cultural diversity and change, varying from progressive acceptance of immigrant cultures to resistance to increased cultural diversity (Right wing view). Anti-globalisation movements in North America and Europe, such as the WTO “Battle of Seattle” 1999 protests and the “Occupy =” Wall street and London movements in 2011. Many anti-globalisation activists dont oppose globalisation in general but call for forms of global integration that provide democratic representation, sustainable development, human rights advancements and fair trade.

Question 21

Explain how some nations have attempted to control the spread of globalisation?

Answer 21

Internet censorship. Since 1949 China been ruled by the communist party, who restrict international influences that may criticise their regime. Google withdrew its services from China in 2010 when China insisted search engine results should be censored to hide information about Tiananmen Square (1988 student demonstration against communism).

Question 22

Explain how local sourcing helps to reduce the impacts of globalisation?

Answer 22

Local groups like ‘Incredible Edible Todmorden’ establish agricultural gardens that promote the sourcing of food from nearby regions. NGOs can lobby governments and trade blocs like the EU to introduce subsidies for domestic agricultural products to reduce the need for long-distance imports

Question 23

Explain how ethical consumption can help to reduce the impacts of globalisation?

Answer 23

Manufacturing companies in developing countries often economically-exploit their workers such as Nike in Vietnam by paying low wages that maintain the cycle of poverty. Manufacturing companies in developing companies often dump chemical waste in rivers and lakes that can disrupt ecological processes and reduce biodiversity.

Question 24

Explain how recycling can help to reduce the impacts of globalisation?

Answer 24

Recycling reduces the rate at which new natural resources are used and the amount of land needed for landfil. EU countries are aiming to recycle half of their municipal waste by 2020.

Question 25

Explain how NGOs can help to reduce the impacts of globalisation?

Answer 25

1945 Keep Britain Tidy organisation was formed by the national federation of Women’s Institutes. They wanted to address the rising problem of litter in what they saw as an emerging ‘throw away society’.The organisation is much larger now and engaged in a range of environmental programmes including projects to reduce litter on beaches, in parks and in schools.

Question 26

Explain how fairtrade can help to reduce the impacts of globalisation?

Answer 26

Fair trade is a social movement whose stated goal is to help producers in developing countries achieve better trading conditions and to promote sustainable farming. Fair trade is a social movement whose stated goal is to help producers in developing countries achieve better trading conditions and to promote sustainable farming.