globalisation Flashcards
IGO
role of IGO - bring free trade and foreign trade into countries
1)WTO
-negociate trade deals
-lower tarrifs-aim for free trade
-161 members
-provide framework for countries negociating trade deals
- participants much adhere to WTO agreements
2)IMF
-oversee fixed exchange rates
- gives short term loans
-funded by quotas - which is subscription by countries which is then used for financial projects
- aims to promote international economic coopertation, trade and employment
- grant loan to member countries
3) world bank:
- financial assistance to counties
- focussed on development and reduce poverty
- 2 aims : end extreme poverty as well as fostering income growth for bottom 40% for every country
-work in partnership with govt and comercial banks
- provide low interst rate loans
Trade blocs
trade blocs- voluntary international organizations that exist for trading purposes bringing greater economic strength and security to the nation that joins.
they encourage protectionism by: tariffs, quotas and embargos to non-member countries.
EU:
-an economic and political partnership between 28 European countries
- free trade and no barrier migration
-single currency
-human rights and equality
ASEAN:
-1967
-10 members states
- a combination of developed, emerging, and developing nations
-help compete with china by promoting trade and manufacturing internally.
SEZ(special economic zone)
- introduced 1978, open door policy- embrace globalization
- lower cooperation tax and better transport links to the seaports - favorable for TNCs
-As a result:
1) increase in development, economic growth
2) exponential growth of FDI investment
things which fueled this growth were abundance of workers, no strict labour laws. As a result china was known as the workshop of the world.
impact:
- 400 million people were lifted out of poverty
- more younger people migrating to the cities
-300 million people left rural area to move and work in urban areas - making new instant cities.
But china is not all open:
- google and Facebook has little to no market share in china
- great firewall in china
- strict controls over foreign owned TNC in some sectors in china.
switched off places
- very poor nations
- lack global hubs or strong flows of trade and investment
- conditions are poor for most people in rural and urban areas such as Somalia and Chad.
North Korea:
- no undersea cable
- 1 tv channel
- almost no tourist
- wont share economic data- denied entry to China new investment bank - as a result cannot sort any infrastructure problems.
-nuclear weapon program - so world bank and Asian development bank wont aid
- lack of education
Physical/environmental, political and economic issues affect whether a country is switched off or not.
switched off places continued:
The Gambia:
Economic factors:
1) financial leakages, money generated by TNCs doesn’t stay inside the economy
2) GNP per capita 1995: $320 2005:$290
3) only small scale manufacturing - processing of fish
4) ONE OF THE 48 LDCs
Social factors:
1) 1.7 million population
2) 160th highest HDI
3) 40% adult literacy rates
Political/environmental factors:
1)Barely any coastline - no ports
2)reliant on international aid
3)smallest country on the African mainland
4) gained independence from uk in 1965
switched off places continued:
The Gambia:
Economic factors:
1) financial leakages, money generated by TNCs doesn’t stay inside the economy
2) GNP per capita 1995: $320 2005:$290
3) only small scale manufacturing - processing of fish
4) ONE OF THE 48 LDCs
Social factors:
1) 1.7 million population
2) 160th highest HDI
3) 40% adult literacy rates
Political/environmental factors:
1)Barely any coastline - no ports
2)reliant on international aid
3)smallest country on the African mainland
4) gained independence from uk in 1965
outsourcing in india
India:
-india host the outsorucing of services - good english skills
COSTS:
- call centre workers complain that they are exploited
- long hours at different time zone due to client location
PROS:
-higher salaries - 3500 rupees a day
- high purchasing power for workers
outsourcing in china
Outsourcing of manufacturing sue to cheap labour
PROS:
- extreme poverty falling 60%-1990 to 16%-2005
-hi tech manufacturing is booming, bringing improved pay of skilled workers
-more disposable income of people
-increasing technology development - Xiaomi
CONS:
-workers suffering in factoy conditions
- in early years many workers were exploited - around 2500 metal workers in Yongkang lost a limb or finger each year due to unsafe conditions
-air pollution and high levels of particulates.
China’s pollution
-750,000 Chinese die prematurly - 350 to 400 k from outdoor pollution
- 16/20 most polluted rivers
- china emits most so4
-3.05% of GDP lost due to enviromental degradation
- rise in water bourne dieases
water pollution:
- 75% of major lakes and 25% of coastal rivers are classified as “highly polluted”
- biggest pollutants of the pacific oceann
-2 million people suffer from diseases as a result of water contamination
- communites destroyed - cancer village - cancer resonsible for 80% of death as a result of mining metals
rustbelt
rustbelt - runs through the east of America, New York , Pennsylvania, Ohio, Indiana, Michigan, Illinois. Former economic industrial area in the USA.
Detroit:
- long term decay - as a result of the global shift of the automobile industry to Asia and Mexico.
- 60% decrease in population from 1950 -2012
- 12.1% of households have someone with a bachelor’s degree.
-poorest economy in Michigan
- 350-400 murders every year
resisting and reacting to cultural and enviromental change:
cultural erosion refers to the weakening or damaging of certain values, traditions, and practices of a community
- North Korea - all change is rejected
- UNESCO world heritage sites - preserve cultures
France :
-40% of tv output must be in French
- fiercely protective over its culture
-supportive to French filmmakers and subsidizes their work.
China:
-“great firewall” - prevent global websites
- quota of 34 foreign films a year
- But as a result of hyper-globalization, Chinese people now celebrate Christmas.
Nigeria:
-degradation of Nigeria’s Ogoniland due to oil spills by shell
- all protesters who stood against the oil extraction we often executed by the Nigerian government
- Oil TNC was accused of bringing environmental damage to Nigeria.
TNC encourage land degradation in Asia:
- between 1990 and 2005 Vietnam lost a staggering 78% of its primary forests - cleared for commercial export agriculture.
- coastal areas have had mangrove swamp cleared for prawn and aquaculture since 1980- as a result of a 700% increase in production to supply global demand
- In the Philippines island of Negros reduction of forest cover from over 90% to 4%
Conflict in the Mekong delta river
Rural to urban migration to megacities:
-by 2050 3/4 world population will be city dwellers
- global urbanization passed the threshold of 50% in 2008.
Mumbai;
- west of India- a coastal city
-26 million population in 2018, doubled from 1970 - people migrate from impoverished states such as Bihar.
-big retail industry
-high demand for housing - extremely high prices- social challenge
-slums - low-income workers - 5000 people employed in Dharavi plastic industry.
- air pollution problems as a result of increasing populations
- untreated sewage.
Lagos:
- Nigeria coast - west Africa
-1 million population in 1970 but in 2018, 21 million
- 300000 yearly rural to urban migrants
- major port
-60 % of inhabitants live in slums - lack of water and sanitation
-parts of the city not connected to the grid, diesel generator to create electricity - air pollution
- waste disposal and sewage problems
