Globalisation Flashcards
Global shift, migration, culture, development and responses
1
Q
What is a diaspora?
A
A scattered population caused by migration
2
Q
How could migration potentially affect a country’s services?
A
Large-scale migration can cause a sudden population increase and services like education, housing and healthcare cannot keep up.
3
Q
Example of a world leader who has been opposed to immigration
A
Donald Trump
One of his first executive orders was a so-called ‘Muslim ban’ and 60,000 visas were revoked
4
Q
UK political movement which wants to limit immigration
A
Rise of UKIP - received 12.2% of the vote in the UK general election 2015
Many voted for Brexit as they believed EU freedom of movement was allowing too much immigration
5
Q
Tension against globalisation example: First Nations
A
The First Nations are indigenous people in Canada, they resist the move to turn the Jumbo Valley into a ski resort
Ktunaxa Nation (indigenous people) oppose their land being developed and they want to preserve it to ensure sustainability
6
Q
Censorship definition
A
Limiting what media the population of a country is able to see or access
7
Q
How is censorship used in China?
A
The government has banned most western social media platforms and replaced them with their own ones, which they can track.
For example, instead of WhatsApp they have WeChat
8
Q
Why does China use censorship to limit globalisation?
A
They want to limit foreign culture that their citizens are exposed to, so they don’t become ‘westernised’ and are more loyal to China
9
Q
How many foreign films does the Chinese government allow to be shown in China each year?
A
34
as of 2012
10
Q
What is a tariff?
A
A tax that is paid on imports and exports into a country
11
Q
What is a quota?
A
A limit on the number of a good that can be exported into a country each year
12
Q
3 ways a country can control globalisation
A
- Censorship
- Limiting migration
- Trade protectionism
13
Q
What is sustainability?
A
The ability to meet the needs of a current generation without compromising the needs of future generations
14
Q
What is localism?
A
Buying food from local producers in order to reduce food miles and carbon emissions.
15
Q
What are transition towns?
A
Towns which have localism schemes in place in order to promote sustainability
16
Q
Example of a transition town and schemes they introduced
A
‘Totnes pound’ could only be spent in the town and encouraged economic sustainability through cumulative causation.
By buying local produce, food miles are reduced, being more environmentally sustainable.
17
Q
Drawbacks of localism
A
- Local produce is often more expensive than imported goods (due to less worker exploitation)
- Arguably more sustainable to import tropical fruits than using lots of electricity to create an artificial environment to grow them in the UK
18
Q
What is Fairtrade?
A
An NGO which aims to ensure that workers are paid a fair share for their work in developing countries.
19
Q
What is ethical consumption?
A
The practice of only buying sustainably/ethically sourced products
20
Q
How does the UK government enforce recycling?
A
By fining local councils who throw away too much waste
21
Q
What are some issues with recycling?
A
- Research shows 2/3 people are not sure whether they are using the correct bin for recycling
- It is up to people how much they recycle. While it can be encouraged, nobody can be forced to recycle.
- Recycling is a costly process which requires lots of energy (which may involve burning fossil fuels)
22
Q
NGO that encourages recycling
A
Keep Britain Tidy
They run campaigns, such as the ‘Great British Spring Clean’, where people across the country clear litter in their area. This aims to encourage people to reconsider how much they waste.
23
Q
3 aims of Fairtrade
A
- To reduce the inequalities of global trade
- Improving working conditions by ensuring a fair pay
- Reducing environmental degradation from trade
24
Q
What is the ‘global shift’?
A
Global shift is the movement of manufacturing and the outsourcing of services from the West to the East.
25
Why has India seen large growth in the services sector?
A large educated and English-speaking population has encouraged many TNCs to place their call centres here.
26
Worth of the outsourcing industry in India
$150bn
27
Example of a TNC based in India
In 2003, BT opened two call centres in India.
They employed 2,200 people.
BT benefit from lower labour costs as wages are lower in India.
28
How has the global shift caused urbanisation?
In countries like China, rural farmers are moving to the cities to get jobs in manufacturing.
29
Average rate of growth for China's economy each year 1978-2012
Average rate of 9.4% each year.
30
Example of the global shift impacting the environment
In China, 40% of their farmland was degraded because of pollution and increased building.
31
How has the global shift increased the number of squatter settlements?
People are moving to the cities to get jobs at a faster rate than houses are being built.
32
How bad is air pollution in China?
Air pollution levels in Beijing were over 20x the recommended level by the World Health Organisation.
Some predict in Northern China the pollution levels cut life expectancy by 3 years.
33
How bad is water pollution in China?
85% of the water in Shanghai's main river was undrinkable.
| Wealthier residents may have access to piped water, but those in squatter settlements likely rely on the river.
34
Example of poor working conditions making employees ill
In 2011, Chinese workers at Foxconn were made ill as they were exposed to Chemicals while making iPhones for Apple.
35
Consequences of land degradation?
Land that could once be used for farming is now in too bad condition to do so.
This may impact farmer's livelihoods or cause food shortages.
36
Examples of how has pollution and deforestation affected biodiversity?
- Nigeria lost 50% of its forested area.
- China has lost 50% of its vertebrates since 1970.
37
How has the global shift resulted in better transport infrastructure in China?
China has 22,000km of high speed rail. This is 60% of the world's total.
38
How has the global shift resulted in better transport infrastructure in India?
The international airport of Mumbai increased its passenger usage to up to 40 million passengers annually.
39
4 ways developing countries have benefitted from the global shift?
- Better transport infrastructure
- Higher wages
- More jobs available
- Better education and training available
40
How have developing countries suffered from the global shift?
- More air pollution has serious health effects
- More squatter settlements
- Unsustainable resource exploitation
- Worker exploitation
- Land degredation
41
How has the global shift reduced poverty?
1 billion people (mostly in China) have come out of absolute poverty since 1990.
42
What is absolute poverty?
Someone who earns less than $1.25 every day.
43
What is the spiral of decline?
When unemployment leads to depopulation because of a lack of jobs.
44
Effects of the spiral of decline
- Buildings and houses derelict
- Rise in crime and other social problems
- Businesses leave the area as there are no skilled workers
45
Health impact of the mine closures in the 1970s and 1980s in Northern England
Rise in mental health issues due to the mass unemployment
46
What companies used to operate in Detroit?
General Motors and Ford
47
What country did many car companies move to from Detroit?
Japan, where costs are cheaper
48
What year was Detroit declared bankrupt?
2013
49
Percentage of the population that leave Detroit every year?
-0.5% each year
50
How did Leicester suffer the spiral of decline?
City used to have a large textile industry with over 30,000 people working in mills.
In the 1970s and 1980s, most of the factories moved abroad, including Marks and Spencer.
51
How many people in a megacity?
10 million
52
Number of megacities in 1990
Number of estimated megacities in 2030
1990 - 10
2030 - 41
53
2 reasons why megacities grow
1. Natural increase - where the birth rate is higher than the death rate
2. Rural-urban migration - Push and pull factors encourage migration
54
Examples of push factors
- Lack of services (such as police, fire)
- High crime
- Crop failure
- Drought
- War
- Flooding
55
Examples of pull factors
- More employment
- Access to healthcare
- More education opportunities
- Political stability
- Safe, low crime
56
Why can megacities be problematic?
Shortage of homes and resources: urban planners cannot keep up with the rate of growth.
This causes many to live in slums, often with no water or sanitation.
This is a threat to health and wellbeing and quality of life decreases.
57
Where is Karachi?
Megacity in Pakistan
58
How quickly is Karachi growing?
5% each year
59
Karachi % of Pakistan's GDP
25% of Pakistan's GDP
60
% of people in Karachi who work in the informal sector
75% (this means they pay no tax to the government)
61
Why is tax avoidance an issue in Karachi?
With less tax, the government has less money to spend on services like healthcare and education. These services would improve QoL for those in the city.
62
Why is water loss a problem in Karachi?
There is a lack of good infrastructure to provide clean water.
Estimated 30% of water is lost through leaks in the system.
This can cause diseases like Cholera as people have to drink dirty water instead.
63
Asia's largest slum is...
Orangi Town in Karachi
| Home to estimated 2.4m people
64
% of people in Karachi who live in unplanned/squatter settlements
50%
65
Population of Mumbai, India
22m
| Doubled in size since 1970
66
Why is air pollution a problem in Mumbai?
4th most polluted city in the world
| Causes respiratory illnesses
67
What is urbanisation?
People moving from rural areas to cities in search of higher paying jobs
68
Name of largest slum in Mumbai
Dharavi
69
What are elite migrants?
Wealthy migrants who are welcomed to a country because of the investment they bring in
70
Why are elite migrants advantageous to countries?
- Boost their FDI, e.g. in London, estimated 82% of property is sold to international buyers
- They are often skilled migrants, e.g. doctors who could work for the NHS. This fills skill gaps.
71
Why might elite migrants cause issues for a country?
Increases the interdependence between two countries.
| E.g. in London the migration of Russian oligarchs increases interdependence between them.
72
What is FDI?
Foreign Direct Investment
73
Benefits of low-wage economic migration for the host country
- Cheap labour
- Often labour shortage in certain areas like agriculture can be filled by foreign workers
- Can increase working age population, reducing impact of an ageing population
- Increases tax base
74
Example of low-wage economic migration
In the UAE, foreign migrants make up 80% of the workforce in Dubai (mostly from India)
75
Benefits of low-wage economic migration for the source country
- Remittances (earned income) sent home from the migrants
76
Negative of low-wage economic migration
- Creates an interdependence between source and host country
- Can create a shortage of employees in source countries (called a skills gap or 'brain drain')
- Host country may not be able to keep up and experience housing shortages
77
Why is interdependence between countries an issue?
- If there is a recession in one country, it will have a knock on effect on the economy of the other
- For example, if the construction industry in the UK suffered, many economic migrants would return to their home country, causing employment issues as there are too many builders for jobs available.
78
Estimated amount of remittances sent from the UAE to India in 2016
$12.5bn
79
Which group of countries provided lots of European migrants to the UK after 2004?
A8
80
Globalisation definition
The ever-increasing interconnectedness between countries
81
Types of flow in globalisation
- Commodities (goods)
- Capital (finance)
- Information
- Migrants
- Tourists
82
How has the internet enhanced globalisation?
- Information can flow more freely between different countries
- Tourists can discover more places
- Capital and commodities can flow internationally easier
83
What is the name of the free-movement area in the EU?
Schengen Area
84
How have budget airlines enhanced globalisation?
Huge growth in tourism flows as people can travel abroad for a little cost.
85
What is a trade bloc?
A group of countries with an agreement to trade goods with few barriers (such as tariffs)
86
How has the EU promoted globalisation?
- Free movement of people encourages migration
| - Lack of trade restrictions
87
What year did China join the World Trade Organisation (WTO)?
2001
88
Population of China
1.4bn in 2017
89
What are Special Economic Zones (SEZs)?
Places with economic incentives or little economic regulation to encourage business investment
90
What does China offer in their SEZs?
- Low taxes
- Low labour costs
91
What year did China adopt their open-door policy?
1978
92
How many people moved from rural areas to urban ones following the open-door policy in China?
300m
93
What was the Chinese open-door policy?
China opened up to investment and trade from abroad
94
Why is China known as the 'workshop of the world'?
With low wages but a large population, China had lots of manufacturing companies based there
95
What year did China join the World Trade Organisation (WTO)?
2001
96
Why do tariffs limit globalisation?
They limit free trade and therefore reduce the flow of goods between countries. Removing tariffs allows TNCs to sell to a larger market.
97
Example of a trade bloc that allows the free movement of people
The EU (Schengen Area)
98
What is market liberalisation?
When you remove the influence of the state in an economy and allow the markets to act more freely
99
What are some advantages of market liberalisation?
Markets become more efficient and the country gets richer. It is then hoped some of this income trickles down to the poorest in society (but does this actually happen? no)
100
What is privitisation?
When state-owned businesses or infrastructure is sold to private TNCs.
101
Example of privitisation
Thatcher in the 1980s privitised companies like BT and British Airways
102
Example of a company which was recently privitised
Royal Mail in 2013
103
Why is privitisation introduced?
The belief that businesses are run more efficiently in the private sector because of the incentive to make profit
104
Why may governments offer to subsidise TNCs?
It will encourage more FDI into a country
105
What are some government economic policies that would increase globalisation?
- Privitisation
- Market liberalisation (neoliberalism)
- Subsidising TNCs
- Reducing tax rates for companies
106
What are IGOs?
Intergovernmental organisations
107
Examples of IGOs?
- World Trade Organisation (WTO)
- World Bank
- International Monetary Fund (IMF)
They are collectively referred to as the Bretton Woods institutions
108
BRIC refers to...
Brazil, Russia, India, China
| Countries moving from NEEs to HICs
109
What is the BRIC equivalent of the World Bank?
New Development Bank, established in 2015
110
How much did the New Development Bank give their members in 2017?
$1.5bn each towards renewable energy
111
What continent is China particularly influential in?
Africa, where they fund lots of infrastructure projects
112
What is the AT Kearney Index?
It uses four main indicators to publish a globalisation index
113
What four indicators are used in the AT Kearney index?
- Political engagement
- Technological connectivity
- Personal contact
- Economic integration
114
Why is the AT Kearney Index considered more holistic than the KOF index?
As an example - it looks at the number of web servers rather than just internet communications
115
What is the KOF index?
It is calculated annually based on three aspects of globalisation
116
What three aspects are used in the KOF index?
- Economic
- Social
- Political
117
What is an advantage of the KOF index?
Some indicators are given greater value than others. For example, amount of FDI is heavily weighted.
118
What are some indicators of globalisation?
- Flow of migrants (in vs out)
- Trade flows of FDI
- Membership of trade blocs
- Membership of IGOs
119
What is offshoring?
When a TNC moves part of their production process to another country, usually lower-income countries where production costs are lower
120
What is outsourcing?
When a TNC gives a contract to another company to complete part of their work
121
Outsourcing example
TNCs might outsource their call centres to parts of the world where labour costs are cheaper
122
What is the risk of outsourcing?
TNCs lose direct control over the production and quality of their goods
123
Example of outsourcing gone wrong
The horse-meat scandal of 2013. Supermarkets were unaware horse meat was being used in their dishes
124
Examples of outsourcing
- Apple produce their iPhones in Foxconn in China
- BT outsource their call centres to India
125
What is glocalisation?
When a global brand adapts their products for different cultures
126
Example of glocalisation
McDonalds adapt their menu for different countries, for example McSpicy and McVeggie use paneer in India
127
Example of glocalisation to adapt to different laws
BMW make both right-hand drive cars and left-hand drive cars to sell to both the UK and European market
128
What globalisation aspects do TNCs benefit from?
- Market liberalisation
- Development of new markets (i.e. countries becoming wealthier so they have more disposable income)
129
Example of a TNC bringing expertise
Anglo-Iranian Oil - a UK company - refined oil in Iran. In 1953 when Iran tried to nationalise their oil industry, they found they did not have enough skilled workers to run it themselves.
130
What are some economic reasons a country may be 'switched-off'?
- Excluded from trade blocs
- High levels of government debt
131
Why is it bad if a country has high levels of government debt?
- Not able to invest in infrastructure
- Discourages other TNCs from moving there
132
What are some environmental reasons a country may be 'switched-off'?
- If they lack resources for trade or use in manufacturing
| - They have to rely on other countries for their energy/water
133
What are some political reasons a country may be 'switched-off'?
- Their government pursuits isolationist policies
- High government corruption
- High presence of organised crime or terrorism
134
What are some social reasons a country may be 'switched-off'?
- Poorly educated, unskilled population
- Low health quality and poor life expectancy
135
What is the problem with being 'switched-off'?
It discourages FDI into the country so it remains poor
136
What are some physical reasons a country may be 'switched-off'?
- Landlocked, no ports
- Harsh climate so struggle to grow crops
137
Example of a region where crops cannot be grown
Sahel region (desert in Africa)
138
How is politics run in North Korea?
- Dictatorship
- Communist
139
Why is North Korea 'switched-off'?
Residents unable to:
- Access the internet
- Move abroad
- Benefit from cheap goods sold at the international level
140
Why is the Sahel region 'switched-off'?
- Dry and severe water scarcity = no crops = few exports
| - Mostly landlocked
141
Define culture
A system of shared meaning
142
What is cultural diffusion?
The spreading of one culture into another
143
What causes cultural diffusion?
TNCs, global media corporations, tourism, migration
144
Why can cultural diffusion cause issues?
They believe they may lose their own culture
145
Example of a place where cultural diffusion has caused a loss of their own culture?
Tribes in Papau New Guinea
146
Example of cultural diffusion caused by migration?
The rise of Indian cuisine in the UK
147
Why do some countries see cultural diffusion as good?
It can lead to increased FDI as TNCs establish themselves there
148
Example of 'Westernisation'?
Disney and Netflix spread American lifestyles and values around the world through their media
149
What has been an environmental impact of the growth of the middle class in China?
Increased demand for meat which has caused deforestation to clear up for cattle ranching
150
What has been a social advantage of cultural diffusion?
The spread of disability awareness such as the Paralympic movement has caused more global equality
151
What are the two most emissions-intensive foods?
Beef and lamb
152
What is cultural erosion?
Culture being worn away or even lost completely
153
How has cultural erosion impacted the environment?
Rising demand for resources = destruction of ecosystems
154
How many languages are estimated to be spoken in Papau New Guinea?
7,000
155
What percentage of languages in Papau New Guinea are at risk of going extinct?
25%
156
How has Papau New Guinea's culture been eroded?
- Tribal clothing been replaced by t-shirts and jeans
- Languages being lost
- Increases deforestation
157
Why do many people oppose TNCs for economic reasons?
Disapprove of their tax avoidance strategies, claim they don't bring benefit because they avoid paying tax and money returns to the source nation
158
What are some reasons people oppose TNCs?
- Tax avoidance
- Child labour
- Environmental polluting
159
Example of a company which uses tax avoidance strategies?
Apple pay as little as 0.005% tax in Ireland
160
How has Guyana suffered from cultural erosion?
Tribal communities becoming more westernised
161
Why has Australia been accused of encouraging cultural erosion?
In 2008, the government removed protection on sacred Aboriginal land, so now TNCs can mine/forest there.
162
Ways of measuring development
- GDP
- Life expectancy
- Composite indices (e.g. HDI)
163
What is GDP?
Gross Domestic Product - the total value of goods and services produced in a country in a year
164
Advantages and disadvantages of using GDP to measure development?
Advantages:
- Shows the economic growth over time
Disadvantages:
- Masks inequality
- Doesn't show what a country spends their money on
165
GDP of the USA
$20trn
166
GDP of China
$14trn
167
What country has the highest life expectancy?
Japan - 84.2
168
What is the life expectancy in the USA?
78.5
169
What is the HDI?
Human Development Index
170
What is the GII?
Gender Inequality Index
171
What are the top 3 countries for HDI?
Norway, Australia, Switzerland
172
What are some factors used in calculating the HDI?
- Life expectancy
- Education length
- Gross National Income
173
What is the EQI?
Environmental Quality Index
174
What is the Gini coefficient used to measure?
Inequality
175
What does a Gini coefficient of '0' mean?
The wealth is distributed 100% fairly with everyone in the country having an equal amount
176
What does a Gini coefficient of '1' mean?
The country is perfectly unequal and 100% of the wealth is owned by one person
177
Gini coefficient of South Africa
0.62
178
Gini coefficient of Iceland
0.25
179
How do people argue that globalisation increases inequality?
Enables the rich, often through TNCs, to accumulate wealth much faster than the poor do
180
What is the most unequal city in the UK?
London
181
How much did the top 1% in the US own in 1980, and then in 2014?
1980 - 11%
2014 - 20%
182
Example of a protest movement against inequality
Occupy movement
