Globalisation Flashcards
What is Globalisation?
The growing economic interdependence of country’s world wide through the increasing volume and variety of cross border transactions in goods and services, freer international capital flows, and more rapid and widespread diffusion of technology.
What is Interdependence?
The mutual dependence of two or more countries, in which there is a reciprocal relationship
What are TNC’s?
TRANS NATIONAL CORPORATIONS
Companies that operate in more than one country
What is Westernisation?
The promotion of European and north American cultural values
List and Define each flows…
Goods- products, companies and services
Capital- money between people, banks, businesses, and governments
People- migrants and tourists
Ideas- information, both political and cultral
What are the 5 forms of globalisation?
Economic Political Social Cultural Environmental
What are some contributions towards economic globalisation?
The growth of transnational corporations which have a global brand image (Disney)
The spread of investment around the globe and rapid growth in world trade
What are some contributions towards political globalisation?
the dominance of western democratises in political decision making
The view that democratic consumerist society’s are the most successful
What are some contributions towards social globalisation?
Occurs as migration and tourism increases
Population become more mobile and mixed
What are some contributions towards cultural globalisation?
People increasingly eating similar food, wearing similar cloths, listening to similar music, and sharing similar values (westernisation)
What are some contributions towards environmental globalisation?
An awareness of global environmental concerns, such as climate change and threats to America, and the need to address them at a global scale
What technological advancements have caused the shrinking world?
Development of containers Growth of logistics industry Developments In ICT used by - businesses - social networking - cyber security based industry's
What is the shrinking world?
The notion that the world feels smaller over time, because places are closer in terms of travel or contact time.
What is time/space compression?
The cost of communicating over distance has fallen rapidly.
What is free trade?
An agreement between a group of country’s to remove all barriers to trade, such as taxes, tariffs and quotas.
What is the FDI?
FOREIGHN DIRECT INVESTMENT
money invested into a country by TNCs or by other national governments
What is the WTO?
WORLD TRADE ORGANISTAION
reduces trade barriers between country’s
facilities free trade through a series of global agreements
The latest found of talks began in Doha in 2001 but has not yet been agreed
What is the IMF?
INTERNATIONAL MONOUTREY FUND
Promotes global economic and financial stability
Encourages developing country’s to accept FDI and open up their economies to free trade
Criticised for promoting a ‘western’ model of economic development that works in the interests of developed country’s and TNC’s
What is the World Bank?
Lends money to the developing world to fund economic development and reduce poverty
Has helped developing country’s develop link to the global economy
Criticised for policies that put economic development before social development
What is Free market liberalisation?
Ending monopoly provision of some industries and services such as telephone, gas and electricity. so people can chose a supplier base on quality and price.
What are SEZ’s?
SPECIAL ECONOMIC ZONES
features of emerging economies eg. china, India and Mexico
What the EU?
EUROPEAN UNION
Consist of 28members
Established under the treaty of Rome, and removed all trade barriers between member states
Created by a desire to form a political and economic union that would prevent the possibility of another war in Europe
What is the ASEAN?
the ASSOCIATION of SOUTHEAST ASIAN NATIONS
Consists of 10 south Asian country’s
Aims to include accelerating economic growth and social progress, and promoting regional peace and stability.
What are the key characteristics of SEZ’s?
Tariff- and quota-free, allowing manufactured goods to be exported at no cost
Excellent infrastructure, e.g. port facilities, road, power and water, is provided by the national government
Taxes are low, frequently with a tax-free period of up to 10years after investment
Unions are often banned- strikes are illegal
Environmental regulations are limited
What does the KOF index measure?
Measures the economic, social and political dimensions of globalisations over time
Economic globalisation- cross border trade, investment, and money flows
Social globalisation- international telephone calls, tourist flows, resident foreign population and access to foreign internet, television, media and brands
Political globalisation- the number of foreign embassies and international organisations the country is a member of, and trade and other agreements with foreign country’s
What does the AT Kearney Index measure?
It measures the economic success of global cities
It states that London, New York and Paris are the most successful
What is the global production network (GPN)?
A system whereby a TNC manages a series of suppliers and subcontracted partnerships while building its global businesses
What is offshoring?
The manufacture or assembly of a product in a developing country using components produced in a developed county
What is Glocalisation?
Changing the design of products to meet local tastes or laws- an increasingly common strategy used by TNCs to conquer new markets
What is outsourcing?
A TNC subcontracts an ‘overseas’ company to produce goods or services on its behalf
Why are some places in the world still switched off?
Political (north Korea), physical (Bhutan and Nepal), and economic (Sahel country’s of Africa) isolation
What are TNCs responsible for?
Developing global supply chains through investment in factories and businesses in emerging country’s e.g. India and china
What case study would I use for globalisation, TNCs and cultural globalisation?
Disney
What case study would I use for the outcomes of globalisation in the emergence of a global culture?
Cuba
What case study would I use for Cultural diversity?
London’s melting pot
What case study would I use for rising tension?
Immigration and extreme political party’s
What case study would I use for social political and environmental tensions?
The Mekong river (trans-border water conflict)
What case study would I use for hyper-urbanisation?
New Delhi
What case study would I use for a place being switched on or off?
Zambia and Tanzania (Africa)
What case study would I use for a rapidly growing economy?
China
