Globalisation Flashcards
How has Containerisation increased globalisation
Container ships are fuel efficient
Carry more good which means more trade can occur increasing connection between nations
Why do TNC’s Outsource
Labour is cheaper
Cuts production costs
Increases profits
What is an e-tailer
an online retailer (e.g Amazon)
How do Global relationships benefit Amazon
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
What are economies of Scale
The process of Low operating costs and Bulk buying that result in a very low manufacturing cost.
What is meant by the term ‘A throw away society’
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.
What 2 terms refer to how the transfer of goods and information has become quicker
A shrinking World
Time-Space Compression
What are the economic impacts of globalisation
Spread of global Capitalism by TNC’s
Cheaper labour aboard supplies cheaper goods in richer countries
Trillions of $ exchanges electronically everyday
Why is the IMF often thought of as controversial
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.
What Negative impacts did Pakistan joining the WTO have
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
What is a Trade Bloc? (give examples)
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
What were the two strategies used by the conservative government in the 80’s to promote international growth?
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
What policy did the Chinese government introduce to improve economic relations, and when?
Open door policy of 1978
Western TNCs saw advantages of outsourcing to China
What areas does China use to encourage investment?
Special Economic Zones
they offer tax incentives and cheap labour
How have flows of FDI changed globally?
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
How has where top TNCs are based changed in recent years?
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
Why are TNCs so crucial in the spread of globalisation?
Their expansion involves the free flow of capital, labour, goods and services.
Why is mobility crucial for TNC expansion?
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
What the potential issues with outsourcing?
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
What is Glocalisation?
Glocalisation is where a company alters its product to be more suited to a different demographic
What is meant by the term ‘a two-speed world’? What are the two speeds?
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’
What are the 4 mechanisms of globalisation?
Flows (trade and migration)
Technologies
Movements
Media
These indicators help to improve connections which is crucial for globalisation
What two indexes can be used to measure globalisation?
KOF index
Kearney Index
What 3 factors are measured in the KOF index?
Economic globalisation - volume of global trade
Social globalisation - information flows
Political globalisation - number of foreign embassies
Why do the US and China not score as well on the KOF index as one might expect in relation to their GDP?
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
What are the 4 factors measured in the Kearney index
Political engagement - participation in IGO’s
Technological connectivity - number of servers
Personal Contact - telephone calls, remittances
Economic Integration - Volume of international trade and FDI
What are the advantages of the Kearney index over the KOF index?
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
How many of the top 15 most globalised countries on the KOF index were European?
13 out of 15
Why might countries struggle to ‘switch on’?
Geographical location
Unstable economy
High debt
Corrupt government
Why is Zambia struggling to ‘switch on’?
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
Why is Tanzania struggling to ‘switch on’?
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
What is the global shift?
The shift of manufacturing from Europe and the USA to Asian countries like China
What 3 factors accelerated the global shift?
Many Asian countries welcomed FDI from TNCs
TNCs sought for areas to outsource cheap labour to
FDI began to flow into emerging Asian markets
Why was India a good location to outsource call centers to?
Close political links to UK
Large English speaking populations
Good technical universities
What have been the benefits of the global shift and economic growth in China?
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
What have been the costs of the global shift and economic growth in China?
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
How has the global shift impacted western countries? (give a named example)
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
What is a World city?
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
Give an example of city that is undergoing ‘Hyper-urbanisation’
New Delhi, India
What are the main causes of hyper-urbanisation in New Delhi?
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
What is a pull factor?
Something that ‘pulls’ someone towards an area
What is a push factor?
Something that ‘pushes’ someone away from an area and into another
What are the social challenges that arise from hyper-urbanisation?
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
What are the environmental challenges that arise from hyper-urbanisation?
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
Describe the relationship between globalisation and international migration
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
What is an elite migrant?
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
Give examples of elite migrants in London
Qatari investment has bought into the Shard and Harrods
1/3 of all residential property purchases in London were by wealthy Russians
Describe migrant trends in the UAE
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
What are benefits of economic migration?
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
What are the negatives of economic migration?
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.
What is cultural erosion?
The loss of traditional cultures such as a loss of language or traditional food
How is globalisation causing cultural erosion in Cuba?
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
How has cultural diffusion impacted Cuba?
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
What is global homogenisation of culture?
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
Why do some refer to globalisation as ‘cultural imperialism’?
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
How might globalisation improve the human rights of minority groups? give an example
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
Give 2 examples of countries who have opposed a global culture
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
How has globalisation led to an increase in inequalities?
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
What economic measures can you use to measure development?
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
What factors does the HDI measure?
Life Expectancy
Education (literacy rate, years in education)
GDP per capita (with PPP)
What does the Gender Inequality Index (GII) measure?
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
What index measures inequality?
Gini Index
What would a high Gini coefficient and a low Gini coefficient represent?
Low Gini coefficient suggests a more equal income distribution
High Gini Index suggests a unequal income distribution
How has globalisation contributed to the formation of a ‘melting pot society’ in London?
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
What conflicts are being caused by globalisation? (2 main types)
Immigration conflicts
Trans-border Water Conflicts
Why are there conflicts over immigration as a result of globalisation?
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
Why are trans-border water conflicts occurring as a result of globalisation? Give an example
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
What is Neo-liberalism?
The belief in free flows of people, capital, finance and resources to lead to development
Why is Neo-liberalism often hindered by a country’s policies? Give examples
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
Give an example of where resource exploitation has led to conflicts from indigenous communities
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
How are HIC’s impacting environmental sustainability?
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
What is a Transition Town? give an example
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
Give an Advantage of a Transition Town?
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
Give Disadvantages of Transition Towns?
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
What is Fair-trade?
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
Give an example of a brand/business who claims to help overseas farmers
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
What is Ethical Shopping?
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
Give examples of where UK retailers have introduced ethical shopping
More local farmers markets, especially in rural areas
M&S now only sell Fair-trade tea and coffee
What are the downsides of Ethical Shopping?
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
Describe the trends in the percentage of waste recycled in the UK over the last 20 years
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%
