Globalisation Flashcards
Define Spatial division of labour
The common practice amount TNCs of moving low-skilled work abroad/offshore to place where cost are low. Imported skilled managerial roles tend to remain in the place of origin.
Define FDI
Foreign direct investment: a financial addition made by a TNC into a nations economy, either to build a new facilities or to acquire/merge with a firm already based there.
BRICs group
The four large(fast growing economies)-Brazil, Russia, India, China and more recently South Africa
Digital divide
A term that refers to the gap between people and regions that have access to modern information and communications technology, and those that don’t or restricted access. This technology can include the telephone, television and the internet.
Why are some global flows seen as a threat
- Imports can threaten a countries own industries
- migrants can bring cultural change with, not everyone well comes this
Economic globalisation
- Growth of TNCs accelerates
- Online purchases allow consumers to buy goods from further away
Social globalisation
- International immigration has created family networks that expand across borders
- Education has improved, higher literacy rates
Political Globalisation
Trade agreements have allowed TNCs to merge and make acquisitions of firms I’m neighbouring countries
Cultural globalisation
Western culture has dominated some territories in terms of taste and fashion choices
Local cultures start to merge with global influences
Benefits of container ships
Ships have high volumes allowing the economy of scale to reduce shipping prices to an all time low
Problems with container ships
The flow of high value products is usually one way
Benefits of E-Tailing
Allows consumers to have access to a larger quantity of goods from one place
Problems of e-tailing
The ease of buying products and getting them almost instantly creates a throw away society
How has technology sped up the process of globalisation?
- Allowed consumers to buy products from overseas more easily.
- Provided opportunities for outsourcing e.g. BT customer service
Define subsidies
Money a government gives out to stimulate the economy
Open door policy
Letting any company operate in a country
SEZ
Special economic zone- areas setup by national governments which after tax breaks to companies to attract investment
EPZ
Export processing zone- same as SEZ e.g. Hong Kong
Define IMF
International Monetary Fund:
- Lends money for development purposes
Define remittance
When a person sends money earned in one country back to another
Define transfer pricing
When a company channels profits through a subsidiary company in a low tax company
Define switched off
Somewhere that hasn’t been globalised due to physical ,social or economic reasons
Define global shift
The changing geographical location of manufacturing to Asia and the outsourcing of services to India.
What factors lead tot the global shift?
-Individual Asian countries such as India, began to allow overseas companies access to their markets,
with an open-door policy.
- TNCs began to seek new cheaper areas for manufacturing (e.g. factories in China) and for outsourcing
services (call centres and software development in India).
- FDI begin to flow into the emerging Asian economies.
Costs of the global shift
- loss of productive farmland
- An increase in unplanned settlements
- pollution and health problems
- land degradation
- over exploitation of resources
Define land degradation
When land becomes unusable due soil erosion or industrial emissions which turn the soil acidic.
Benefits of global shift
- investment in infrastructure
- reductions in poverty
- Increased urban incomes
- Better education and training
Define deindustrialisation
The decline of regionally important manufacturing industries. Th decline can be charted either in terms of workforce’s numbers, output and production measures and has significant impacts on inner cities such as Hull, Redcar , deroit and Baltimore
Where is the rust belt
North east USA
Impacts of deindustrialisation UK cities
- Dereliction and contamination
- Unemployment, depopulation and deprivation
What is a mega city
A city of over 10 million people
Internal migrant
someone who moves from place to place (usually rural to urban) within the borders of a country creating urbanisation. In developed countries counterurbanisation is happening
Urbanisation
increasing proportion of people living in urban areas
Economic migrant
a migrant whose primary motivation is to seek employment or an improved
job/pay/conditions/chance of promotion/new skills etc
Refugee
someone who is forced to leave their home due to persecution based on political, religious,
environmental or other problems
Natural Increase
the difference between a society’s birth and death rate. A migrant population found in
developing megacities often have a high natural inc. as there is a higher proportion of fertile young adults and less older people.
Problems with Mega cities
- Large amounts of poverty
- Poor air quality
- Increased housing prices
What is a global hub
A settlement or region that has become a focal point for activities with a global influence. Recognised by it’s influence rather than population size
What is an elite migrant
Highly skilled/ socially influential individuals. They encounter few obstacles to migration as they are welcomed by most governments
What are low wage migrants
Migrants that come to a country to escape poverty at home and do low wage jobs in other countries. Then find it hard to gain entry to other countries.
Benefits of migration for host countries
- Labour shortage are filled
- Political ties can become stronger
Costs to country that people are migrating from
- loss of high skilled workers
- more dependent population as young leave in search of better lives
Gross Domestic Product
final value of the outputs of goods and services incised a nation’s borders divided by the population to show the mean average income of a group of people to give a ‘typical’ figure. This includes foreign-owned businesses with their operations there.
Economic sector balance
shows the proportion of the country’s GDP across the four sectors of the economy: Primary (extractive/fishing); Secondary (manufacturing); Tertiary (services) and Quaternary (R&D and High-tech).
Human Development Index (HDI)
composite measure that ranks countries according to three indicators (social and economic) including: GDP/PPP, Life expectancy, Literacy rate. The three factors combine to give a score between 0-1. It has been used by the UNDP to identify development since 2010
Gender Inequality Index (GII)
another composite index devised by the UNDP. It measures gender inequalities related to three aspects of social and economic development:
• Reproductive health (maternal mortality and adolescent birth rates
• Empowerment (parliamentary seats occupied by female adults vs males at 25+ with same
education level
• Labour force participation rate of female and males over 15+ years.
Environmental quality (air pollution indices)
Measured by Yale University takes into account amount of pollution found outdoors and inside people’s homes. Many lower income countries score poorly on this index on the account of using wood burning stoves for cooking indoors.
The lorenz curve
The Lorenz curve is used to graphically represent the distribution of income. The percentage of households is plotted on the x-axis, the percentage of income is on the y-axis. The curve represents income distribution. The line of equality shows what equal distribution of wealth would be like. Perfect equality would be a linear line the further away a plot is from this line the less equality there is in that country.
Economic winners of globalisation
- people that work for TNCs tend to be higher paid than counterparts that work for local companies.
- The middle class has grown with incomes rising in places like China
Economic losers of globalisation
Workers in old industrial cities have lost there jobs
Workers in sweat shops in emerging countries experience exploitation
Environmental winners
Sweden has been able to increase its economic prosperity while still being able to keep its environmental footprint low
Environmental losers from globalisation
In China incomes have risen however there environmental footprint has increased
-air quality has decreased due to industrialisation and increased car use
Extremism
holding extreme views usually political or religious
Populist extremism
A political ideology that rejects the current political consensus. It is considered populism because of its appeal to the “common man” as opposed to the elites. In Europe right-wing populism is also an expression used to describe groups and political parties generally known for their opposition to immigration.
Post-accession migration
The flow of economic migrants after a country has joined the EU.
Diaspora
The dispersion or spread of a group of people from their original homeland.
Melting pot
a place where different peoples, styles, theories, etc. are mixed together in a homogenised culture.
What factors have led to a melting pot in London
Open borders-EU citizens are allowed to move freely around the EU with no restrictions
FDI- In 2015 alone 32000 we’re created in the UK from investment from overseas
Trade protectionism
Economic policy of limiting trade between countries through tariffs on imported goods, restrictive quotas and regulations that disadvantage foreign companies compared to domestic ones.
Attempts to control globalisation
- Censorship
- Limiting immigration
- trade protectionism
Costs of local sourcing
- Higher prices for goods
- less demand for overseas producers, slowing developing in places such as the Ivory Coast
- Greater use of resources to grow foods such as tomato’s which require high amounts of light and heat.
Food miles
The distance food travels from a farm to the consumer.
Transition town
A settlement where individuals and businesses have adopted ‘bottom up initiatives with the aim of making their community more sustainable and less reliant on global trade.
Ethical purchase
A financial exchange where the consumer has considered the social and environmental costs of production for food, goods or services purchased.
