Globalisation Flashcards
Connection
Links between people and places
TNCs
Trans-national corporations. Businesses that operate in more than one country
ICT
Informations and communications technology
Spatial division of labour
TNCs moving low skilled work abroad to places where labour costs are low. Skilled management jobs are in TNCs headquarters in its country of origin
Immigration
The international movement of people in order to settle as residents
Colonialism
Political and economic domination involving the control of a country by a foreign power
Trading bloc
Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to nations that join
BRICS
An association of emerging economies (Brazil, Russia, India, China, South Africa) established the New Development Bank
Glocalisation
The idea that products are changed to meet local tastes. TNCs use it to sell to new markets
Sovereign wealth funds
Government-owned investment funds and banks, typically associated with China and countries that have large revenues from oil (Qatar)
Tariff
Taxes that are paid when importing or exporting goods and services between countries
Privatisation
The transfer of assets from the public (government) to the private sector
Special export/economic zones
An industrial, often coastal area where favourable conditions are created to attract foreign TNCs e.g. exemption from tariffs, fewer labour laws
KOF index of globalisation
A composite index of globalisation. Ranks countries
A.T Kearney World cities index
An index of globalisation. Ranks 62 cities
Global production network
A chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of consumer goods for a TNC
FDI
Cross-border investment. A financial injection made by a TNC into a nation’s economy to build new facilities or to acquire an existing firm there
Emerging economy
Countries that have begun to experience high rates of economic growth, due to factory expansion and industrialisation
Outsourcing
TNCs contract another company to produce the goods and services. This results in a global supply chain
Hyperglobal
The dramatic change in the length, depth and speed of globalisation that happened from the late 1990s to the beginning of the 21st century
Hukou
A system of household registration in mainland China, connected to social programs which assign benefits based on agricultural and non-agricultural residency. A source of rural urban inequality. Prevented rural villages from emptying completely during China’s 1978 open door policy
Offshoring
TNCs move part of their own production process to reduce costs
Globalisation
Increasing global connections between people and places
Trade
The transfer of goods or services from one person or entity to another
Interconnectivity
The state or quality of being interconnected (linked)
Hybridisation
The creation of hybrids, mixing two things together
Free trade
A trade policy that does not restrict imports and exports
Recession
A period of time when the economic activity of a country declines and conditions for business is bad
Cultural homogeneity
An aspect of cultural globalisation, reduction in cultural diversity
Goods, services and capital
The production, distribution and consumption of goods, services and capital makes up the world’s economic activity
Commodity
A basic economic good used in commerce that can be traded, bought or sold
Network and flow
A movement of something from one place to another, through a large system
GDP
Gross domestic product. A measure of the financial value of goods and services produced within a territory, often divided by population size to produce per capita for comparisons
Migrant
A person who moves from one country to another
Remittance
Money sent home to a migrant’s family
Interdependency
Two or more things being dependent or mutually reliant on each other
Feedback loop
An effect where an amount or level produced by a process, system etc increases or decreases the amount produced by the same process, system etc at a later time (positive or negative)
Intermodal containers
Transport containers that can be used on different modes of transport without having to take the product out of its container
Time-space compression
The set of processes that cause the relative distances as measured in travel time, cost etc to decrease
Shrinking world
The result of time-space compression, distant places feel closer than in the past
Digital divide
The gap between demographics and regions that have access to modern ICT, and the economic, education and social inequalities it causes
Weighting of factors
The percentage of the final value different factors are given in measuring indexes e.g KOF index for globalisation is 38% social globalisation
Bretton Woods
Institutions established after WW2 to stabilise the world’s economy after the Great Depression when free trade was replaced by protectionism e.g. WTO, IMF, world bank
Global financial crisis
A financial crisis that affects many countries at the same time when the value of assets drops considerably
Geopolitics
The study of the effects of the earth’s human and physical geography on politics and international relations
Protectionism
The economic policy of restricting imports from other countries through tariffs with the intent of protecting local businesses
Financial deregulation
Removing government rules that control the way that banks and other financial organisations operate
Transfer pricing
TNCs channeling profits through a subsidiary company in a low-tax country e.g. Ireland
Free market liberalisation
A government model used by Margaret Thatcher. The belief that government intervention in in markets impedes economic development, and trickle down will occur as overall wealth increases. Restrictions are lifted on the way companies and banks operate
Trickle-down
The positive impacts on peripheral regions/ poorer people caused by the creation of wealth in core regions/ among richer people
Infrastructure
The basic physical systems of a place.
Economic infrastructure = highways, energy distribution, water, sewerage facilities, telecommunication networks
Social infrastructure = public housing, hospitals, schools, universities
Comparative advantage
An economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners
Economies of scale
Cost advantages companies experience when production becomes efficient, as costs can be spread over a large amount of goods. Economies of scale can be achieved by increasing production and lowering costs
ASEAN
Trade bloc. Association of South East Asian Nations. 10 member states including Singapore, Indonesia, Malaysia and the Philippines. Have eliminated tariffs in favour of free trade, expected to grow into a single market. Also promotes peace and stability, members have pledged to not have nuclear weapons
European Union
A trade bloc. Multi- governmental organisation with its own currency and some shared political legislation. Gives funds and subsidies to agricultural producers. The only group of nations that grants all citizens of member states freedom of movement
1978 open door policy
Allowed China to embrace globalisation while remaining under one-party authoritarian rule. Rural urban migration and industrialisation allowed low-wage factories to grow and TNCs were quick to establish branches in China. Also opened up coastal SEZs
Switched-off
Places, nations, regions or cities that are poorly connected and isolated from global networks due to physical, environmental, economic or political factors e.g. North Korea
Rare earth materials
17 chemically similar elements crucial to the manufacture of many hi-tech products. Most are abundant in nature but hazardous so extract out the ground. e.g. lanthanum
International organisations
Organisations such as the IMF, world bank and WTO that act as ‘brokers’ of globalisation, striving to build a free trade consensus internationally
IMF
International Monetary fund. An international organisation that channels loans from rich nations to countries that apply for help. In return, the countries must agree to run free-market economies open to outside investment and TNCs can enter more easily
WTO
World Trade Organisation. International organisation that advocates trade liberalisation especially for manufactured goods. Asks countries to abandon protectionist attitudes in favour of untaxed trade.
World Bank
International organisation that lends money on a global scale. Gives grants to developing countries, imposes strict conditions on its loans
UN
United Nations. Intergovernmental organisation established after WW2, aiming to maintain peace and security and develop friendly relations among nations
LIC
Low income country. Countries with a GNI per capita of $1045 or less
Landlocked
A place entirely surrounded by land, with no coastline.
Extreme environmental conditions
A habitat that is considered very hard to survive due to its environmental conditions such as high or low temperature. e.g. very arid deserts
GNI (Gross national income)
Value of total income. Includes overseas trade from TNCs
Wealth
total value of posessions
Income
money received from work or investments
Sustainable development index
Alternative to HDI, measures development taking into account the ecological impact.
development index / ecological impact index
Gender inequality index
Measures gender inequalities relating to social and economic development
- reproductive health
- labour force
- empowerment
Cultural erosion
The loss of a country’s indigenous culture
Environmental racism
The placement of people of colour into environmentally hazardous areas or the placement of hazards into areas with a high number of minority groups.
Economic restructuring
western urban areas shifting from a manufacturing to a service sector economic base
Dereliction
Result of combination of manufacturing industry closures, falling house prices and rising crime. Vandalism is tolerated and buildings are empty e.g. Detroit
Depopulation
the decline of regionally important manufacturing industries
Deprivation
The state of being kept away from/ an absence of resources
Deindustrialisation, social and environmental problems
contamination - from old industries and dereliction. High lead levels in blood in Detroit may be linked to brain damage and high crime rates
crime - when areas are ‘switched off’ to global flows, crime may become the basis of an informal economy
Manufacturing
creating products/goods from raw materials
Internal migrant
moving inside a contry
Economic migrant
moving for work
Refugee
forced to migrate due to war etc
Urbanisation
An increase in the proportion of people living in cities and towns
Natural increase
Population increase due to birth rate being higher than death rate
Push factor
something that makes a person want to leave an area
Pull factor
something that makes a person want to move to/stay in an area
Megacity
a city with a population of over 10million
Enclosure
the transfer of land from public/community ownership to private ownership - loss of community resources and no land for people to grow their own food to survive
Sovereignty
control over the land inside your country
Consumption
using goods and services
Neo-liberalism
political approach that favours free market liberalisation, deregulation and reducing government spending
Hyperglobalism
The ides that a largely Western global culture is emerging due to cultural erosion. An optimistic hyper-globalist would see merit in the emergence of a global culture that arguably values equality
World’s economic centre of gravity
represents the average location of global GDP
Colonialism
the policy of acquiring political control over another country, occupying it with settlers and exploiting it economically
Extremism
The vocal or active opposition to fundamental values, including democracy, the rule of law, individual liberty, and respect and tolerance for different faiths and beliefs.
Diaspora
a scattered population who maintain close ties to their homeland
Gini coefficient
A number between 0 and 100 that shows how wealth varies between and within several nations. 0 = everyone has the same income, 100 = a single person receives all the country’s income
Absolute poverty
a person’s income is too low for basic human needs to be met, resulting in hunger, homelessness
Relative poverty
a persons income is too low to maintain the average standard of living in a particular society
Human development index (HDI)
Overall measure of development. Composite measurement that ranks countries between 0 and 1.
Takes into account
- life expectancy
- income
- education
Cultural diffusion
the spread of powerful civilisations bringing cultural change
How can globalisation benefit the environment
- can help spread environmentally friendly technologies and practices from developed to developing countries. This can reduce pollution in developing countries through, for example, importing greener technologies or developing better environmental regulations and standards
- creating public awareness about labour and environmental standards through the platforms of international activities such as fair trade and eco labels
Different levels of trade blocs
Preferential trade area:
- lowers but doesn’t eliminate barriers between members
Free trade area:
- eliminates internal barriers but maintains independent external barriers e.g. NAFTA
Customs union:
- eliminates internal barriers, agree on common external barriers e.g. EU/Turkey
Common market:
- eliminate internal barriers, adopt common external barriers, allows free movement of resources e.g. African Common Market
Economic Union:
- eliminates internal barriers, adopt common external barriers, free movement of resources and a uniform set of economic policies e.g. EU
(then full integration e.g. US)
