Globalisation Flashcards

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1
Q

How has Containerisation increased globalisation

A

Container ships are fuel efficient

Carry more good which means more trade can occur increasing connection between nations

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2
Q

Why do TNC’s Outsource

A

Labour is cheaper

Cuts production costs

Increases profits

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3
Q

What is an e-tailer

A

an online retailer (e.g Amazon)

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4
Q

How do Global relationships benefit Amazon

A

Strong interconnections are what allow Amazon to deliver to nearly anywhere in Europe and America in 1 day, despite most of their products being made in China

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5
Q

What are economies of Scale

A

The process of Low operating costs and Bulk buying that result in a very low manufacturing cost.

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6
Q

What is meant by the term ‘A throw away society’

A

People in the 21st century tend to buy more things because they are so cheap however more than 30% of it is thrown away before a year.

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7
Q

What 2 terms refer to how the transfer of goods and information has become quicker

A

A shrinking World

Time-Space Compression

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8
Q

What are the economic impacts of globalisation

A

Spread of global Capitalism by TNC’s

Cheaper labour aboard supplies cheaper goods in richer countries

Trillions of $ exchanges electronically everyday

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9
Q

Why is the IMF often thought of as controversial

A

In return for loans it forces countries to privatise their government assets

Often these assets are sold to foreign TNC’s

Many believe that they are selling to TNC’s who then send the wealth back to their original country and not the country who needs it.

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10
Q

What Negative impacts did Pakistan joining the WTO have

A

They opened up their fishing waters to foreign competition

Before this they had an exclusion zone so only local fisher men could fish

Now huge Trawlers from India etc, take most the catch

Many fishermen now cant afford to feed their family

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11
Q

What is a Trade Bloc? (give examples)

A

Where countries group together and reduce tariffs on trade from said countries

This promoted trade between these countries and increases global relationships

E.g EU, NAFTA and potentially CANZUK in the future

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12
Q

What were the two strategies used by the conservative government in the 80’s to promote international growth?

A

Tax breaks (subsidies) - Have encouraged large TNCs to relocate to London

Grants and subsidies - Have encouraged TNCs to set up manufacturing plants in the UK e.g Nissan, Sunderland

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13
Q

What policy did the Chinese government introduce to improve economic relations, and when?

A

Open door policy of 1978

Western TNCs saw advantages of outsourcing to China

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14
Q

What areas does China use to encourage investment?

A

Special Economic Zones

they offer tax incentives and cheap labour

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15
Q

How have flows of FDI changed globally?

A

China is the largest recipient of FDI

BRICS countries receive a majority of FDI

The BRICS redirect FDI to nations in South America and Africa

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16
Q

How has where top TNCs are based changed in recent years?

A

In 2006, 6/10 of the the top 10 TNCs were based in USA

By 2015, only 2/10 were based in USA

More are now based in China

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17
Q

Why are TNCs so crucial in the spread of globalisation?

A

Their expansion involves the free flow of capital, labour, goods and services.

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18
Q

Why is mobility crucial for TNC expansion?

A

Faster and cheaper transport make shipping cheaper

Rapid communication systems allow businesses to operate on a global scale for a fraction of the cost

New production technology makes manufacturing cheaper

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19
Q

What the potential issues with outsourcing?

A

Workers work for low wages

Work long-hours

Products could be made using toxic substances that are illegal in developed countries

Could lead to human rights violations

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20
Q

What is Glocalisation?

A

Glocalisation is where a company alters its product to be more suited to a different demographic

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21
Q

What is meant by the term ‘a two-speed world’? What are the two speeds?

A

Some say that being more connected improved economic development. They are said to be ‘Switched on’

Others say that globalisation leads to corrupt policies. They are known as ‘Switched off’

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22
Q

What are the 4 mechanisms of globalisation?

A

Flows (trade and migration)

Technologies

Movements

Media

These indicators help to improve connections which is crucial for globalisation

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23
Q

What two indexes can be used to measure globalisation?

A

KOF index

Kearney Index

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24
Q

What 3 factors are measured in the KOF index?

A

Economic globalisation - volume of global trade

Social globalisation - information flows

Political globalisation - number of foreign embassies

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25
Q

Why do the US and China not score as well on the KOF index as one might expect in relation to their GDP?

A

Because the KOF index measures international trade, though these countries do have international trade they have very large domestic markets which are not taken into account in the KOF index

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26
Q

What are the 4 factors measured in the Kearney index

A

Political engagement - participation in IGO’s

Technological connectivity - number of servers

Personal Contact - telephone calls, remittances

Economic Integration - Volume of international trade and FDI

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27
Q

What are the advantages of the Kearney index over the KOF index?

A

Uses more holistic indicators and also volumes of trade as well as FDI

Means countries like USA score better on this index than the KOF index

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28
Q

How many of the top 15 most globalised countries on the KOF index were European?

A

13 out of 15

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29
Q

Why might countries struggle to ‘switch on’?

A

Geographical location

Unstable economy

High debt

Corrupt government

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30
Q

Why is Zambia struggling to ‘switch on’?

A

It is landlocked so unable to easily ship goods

Heavily in debt to countries such as China

Produces lots of copper but copper price is falling

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31
Q

Why is Tanzania struggling to ‘switch on’?

A

80% of population are employed in agriculture (mostly cotton farming)

Due to overproduction cotton prices regularly fall

GDP fluctuates

However, some of their debts are being cancelled allowing them to invest in schools and healthcare

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32
Q

What is the global shift?

A

The shift of manufacturing from Europe and the USA to Asian countries like China

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33
Q

What 3 factors accelerated the global shift?

A

Many Asian countries welcomed FDI from TNCs

TNCs sought for areas to outsource cheap labour to

FDI began to flow into emerging Asian markets

34
Q

Why was India a good location to outsource call centers to?

A

Close political links to UK

Large English speaking populations

Good technical universities

35
Q

What have been the benefits of the global shift and economic growth in China?

A

Investment in infrastructure

Reductions in poverty - 680 million less people in poverty since 1980

Increased income - Income has risen by 10% per year

Better education and training - creates a skilled workforce

36
Q

What have been the costs of the global shift and economic growth in China?

A

Loss of farmland - 3 million hectares of farmland is polluted

Increase in unplanned settlements - people develop housing on farmland without permission

Pollution and Health problems - estimated 4400 people die of pollution-related disease per day in China

Land degradation - soil erosion due to acidification from industrial emissions

Over-exploitation of resources - now exploiting other countries for their resources, like Ecuador and Venezuela

Loss of Biodiversity - China’s biodiversity reduced by 50%, due to loss of habitat from resource exploitation

37
Q

How has the global shift impacted western countries? (give a named example)

A

Areas, such as Leicester that were industrial centres underwent deindustrialisation

Many of the textile factories were forced to close which led to dereliction. Derelict buildings are often contaminated and as such can’t be developed

Inner city areas in Leicester saw massive unemployment and deprivation

38
Q

What is a World city?

A

A city with major global influence

They are where major political and economic decisions are made

Attract many economic migrants as well as capital

e.g London or New York

39
Q

Give an example of city that is undergoing ‘Hyper-urbanisation’

A

New Delhi, India

40
Q

What are the main causes of hyper-urbanisation in New Delhi?

A

High birth rate and low death rate (high rate of natural increase

High rates of rural to urban migration

These migrants consist of poor people with limited opportunity in their villages and the rich who who want a better standard of living

41
Q

What is a pull factor?

A

Something that ‘pulls’ someone towards an area

42
Q

What is a push factor?

A

Something that ‘pushes’ someone away from an area and into another

43
Q

What are the social challenges that arise from hyper-urbanisation?

A

Governments struggle to provide services such as housing and education

Private companies provide these services but only the rich can afford

Rise of Shanty towns

Accommodation becomes more unaffordable and the number of homeless rise

44
Q

What are the environmental challenges that arise from hyper-urbanisation?

A

Air quality - New Delhi has the worst in the world, Air pollution is India’s 5th largest killer

Sewage pollution - slums and shanty towns don’t have proper pluming so waste flows in open sewers and pollutes rivers

45
Q

Describe the relationship between globalisation and international migration

A

As a country becomes more gloablised they have an increase in the number of migrants working in their cities

They also have an increase in number of people working in foreign countries from there

This is increased by a countries participation in certain IGO’s such as the EU as well as developments in transport

46
Q

What is an elite migrant?

A

It is a foreign migrant that provides a considerable service be it through a highly skilled job or wealth.

For example a football player or CEO of a large TNC

47
Q

Give examples of elite migrants in London

A

Qatari investment has bought into the Shard and Harrods

1/3 of all residential property purchases in London were by wealthy Russians

48
Q

Describe migrant trends in the UAE

A

UAE has labour shortages

They employ migrant workers from countries that have a surplus of workers e.g India or Pakistan

90% of the UAE’s workforce is from overseas

This is referred to as mass low-wage economic migrations

49
Q

What are benefits of economic migration?

A

Host nation receives workers

Migrant workers will often work undesirable jobs

Can often balance an ageing population with young workers

Source country can reduce unemployment as people travel to find work

Source country can earn remittance payments, boosting economy

50
Q

What are the negatives of economic migration?

A

Host country can experience social pressures (housing, education, healthcare)

These can cause social tensions between right wing groups and the migrant groups

Source country may loose lots of skilled workers (brain-drain)

Source country can suffer an imbalanced population as many young people leave.

51
Q

What is cultural erosion?

A

The loss of traditional cultures such as a loss of language or traditional food

52
Q

How is globalisation causing cultural erosion in Cuba?

A

They have become more globalised in recent years and as such have had an increase in tourism

This has caused certain areas to loose traditional cultures

The coast is changing as small villages are being replaced by tourist resorts

53
Q

How has cultural diffusion impacted Cuba?

A

Cuba has been a communist state for many years

Globalisation has increased communication with Cuba

This has allowed wester values to spread here which has led to a relaxation of the communist regime here

This is known as cultural diffusion

54
Q

What is global homogenisation of culture?

A

Where all cultures are merging into one very similar ‘global culture’

This global culture is heavily based on western cultures more so than Eastern cultures

55
Q

Why do some refer to globalisation as ‘cultural imperialism’?

A

Because a small group of companies dominate global culture and are diluting world culture to a western-style one

5 companies own 90% of music market

56
Q

How might globalisation improve the human rights of minority groups? give an example

A

Disabled people in China are still marginalised and abused

However, since the Paralympics were held there in 2012, the attitude towards disabled people has started to change

57
Q

Give 2 examples of countries who have opposed a global culture

A

Iran - Barbie dolls were banned because they were showing skin in an un-Islamic fashion

France - Limited how much foreign culture could be broadcast on TV because they felt it was diluting French culture

58
Q

How has globalisation led to an increase in inequalities?

A

Asian countries’ GDP has increased rapidly

China’s richest 1% own 1/3 of the property and Industrial wealth

Every global region’s GDP has increased but the development gap has widened

59
Q

What economic measures can you use to measure development?

A

GNI (Gross National Income) - value of goods and services earned by a country (includes overseas earning)

GDP (Gross Domestic Product) - Doesn’t include foreign earnings

PPP (Purchasing Power Parity) - Relates average earnings to local price

60
Q

What factors does the HDI measure?

A

Life Expectancy

Education (literacy rate, years in education)

GDP per capita (with PPP)

61
Q

What does the Gender Inequality Index (GII) measure?

A

Reproductive Health - as women become more equal the number of children they have decreases

Empowerment - More women in politics

Education and Employment - More women attend university as they become more equal

62
Q

What index measures inequality?

A

Gini Index

63
Q

What would a high Gini coefficient and a low Gini coefficient represent?

A

Low Gini coefficient suggests a more equal income distribution

High Gini Index suggests a unequal income distribution

64
Q

How has globalisation contributed to the formation of a ‘melting pot society’ in London?

A

Open Borders - EU members had free movement of people

Freedom to invest in business or transfer capital - Anyone can trade in shares without using London Stock Exchange

FDI - UK attracted 32,000 jobs from overseas owned companies investing in software and financial services

65
Q

What conflicts are being caused by globalisation? (2 main types)

A

Immigration conflicts

Trans-border Water Conflicts

66
Q

Why are there conflicts over immigration as a result of globalisation?

A

People feel that migrants are taking up jobs and houses when they shouldn’t be

Extreme right-wing movements (like the EDL) are gaining popularity

Since 2014, these issues have been exacerbated by the Syrian refugee crisis

67
Q

Why are trans-border water conflicts occurring as a result of globalisation? Give an example

A

The Mekong River is a major river in South East-Asia

Countries like China want to build HEP dams but damming the river would cause huge effects downstream

So poorer countries like Laos and Cambodia content this as they rely on the river for agriculture

68
Q

What is Neo-liberalism?

A

The belief in free flows of people, capital, finance and resources to lead to development

69
Q

Why is Neo-liberalism often hindered by a country’s policies? Give examples

A

Censorship - In China, the free flow of ideas is seen as a threat to the communist party. So the government censor the media to protect against this

Limiting Immigration - US president Donald Trump wanted to build a wall across the Mexican border to prevent free movement of people

Trade Protectionism - Cheap steel from China was being ‘dumped’ onto global market. Tata steel threatened to close UK steel plants. A solution was to increase tariffs (as the US did) but this was against WTO rules

70
Q

Give an example of where resource exploitation has led to conflicts from indigenous communities

A

In Canada there has been extensive Oil and Gas exploitation

in 2013, 6/21 of the ongoing projects nearly collapsed due to protests from traditional communities

This was done because they felt the sites were threatening their cultural identity

71
Q

How are HIC’s impacting environmental sustainability?

A

The rising middle class in HICs have more money to spend

They get used to having what they want and so use more resources such as energy, hot water and eat foods that are out of season (thus imported)

This is making the world increasingly unsustainable and globalisation means more countries are becoming like this e.g China

72
Q

What is a Transition Town? give an example

A

A Town that aims to have sustainable development

This is done by:
Reducing consumption by reusing items
Reducing waste and pollution
Meeting local needs through local production where possible

e.g Totnes Devon

73
Q

Give an Advantage of a Transition Town?

A

Every £10 spent in local economy is worth £23 to the local economy (multiplier effect)

Therefore, local people gain employment as well as investment in local economy

74
Q

Give Disadvantages of Transition Towns?

A

Threaten global trade as they reduce demand for overseas goods

Developed countries rely on a ‘throw away’ culture for economic growth

Some services, e.g transport, are controlled centrally so can’t be sourced locally

Difficult to achieve in a large scale city e.g London

75
Q

What is Fair-trade?

A

WTO trade liberalisation can mean that growers are exploited and receive a fraction of the value of the product

Fair-trade aims to give them a bigger cut

76
Q

Give an example of a brand/business who claims to help overseas farmers

A

Starbucks Coffee

Uses fair-trade coffee beans from Guatemala, Costa Rica and Peru

However, in 2014, only 8.5% of their coffee was fair-trade

77
Q

What is Ethical Shopping?

A

Where you try to only buy things that are more ethical e.g

Buying from local farmers market or food that is in season

Buying fair-trade goods

78
Q

Give examples of where UK retailers have introduced ethical shopping

A

More local farmers markets, especially in rural areas

M&S now only sell Fair-trade tea and coffee

79
Q

What are the downsides of Ethical Shopping?

A

Buying organic destroys more forests because with no fertilisers more land is required to produce the same amount

Fair-trade increases overproduction, causing prices to fall which leaves farmers no better off

80
Q

Describe the trends in the percentage of waste recycled in the UK over the last 20 years

A

In 2004, only 23% of waste was recycled
Now that is 45%

In 2000, 79% of waste went to landfill
by 2014, that was only 30%