Globalisation Flashcards
3.1a - What is globalisation?
A process which involves widening and deepening global connections, independence and flows (of commodities, capital, info, migrants etc)
- driven by international trade and investment and aided by transport and info tech
- affects the enviro, cultures, politics and economic development
3.1a - What is some evidence to support the idea that globalisation is not a very recent phenomenon?
1870-1913 - Huge increase in GDP due to the invention of the steamship/boat
1950-1973 - Invention of aircraft lead to an increase in trade
1974-2007 - Invention of the internet lead to the connection of people
3.1a - What evidence is there for increasing interdependence?
International trade - Global trade has quadrupled since 1950/has experienced exponential increase/growth
Flows of information - Risen from 0 since 2003/ tripled since 2005 - exponential growth
FDI - ultimately increased to $1.10 trillion - highest at $3.10 tril
Migrant numbers - slight increase over the years - Europe has the highest no. international migrant numbers
3.1a - What is time-space compression?
Used to describe the decreasing space between people and ideas
Idea that the world is becoming more interconnected and is shrinking because of interconnectedness which has been caused by developments in technology
3.1b - What are the drivers of globalisation?
Transportation and communication
- Steamship - decreased 14 days to under 4 to travel from Liverpool to New York
- Railways - connected most of America/during the 19th century the world becomes interconnected due to railways
- Telegraph - first telegraph cables laid across the Atlantic in 1860s - connected people live for miles - helped connect faraway places
- No. of passengers increased to 3550mil/nearly doubled
- Average airline rev decreased to £132 in 16 years/-37%
- Jet aircraft - newer more efficient aircraft allows goods and people to be transported quickly between countries
- Containerisation - more than 200 mil container movements each year
3.1b - What is the concept of the shrinking world?
The phenomenon whereby the world appears to be getting smaller and space shrinks as a consequence of the revolution in transport and communication technologies reducing the frictional effect of distance on movement
3.1b - What is containerisation?
The global use of standardised containers to ship commodities
3.1c - What is the concept of time-space compression?
A phrase used to describe the decreasing space between people and ideas
Or
The idea that the world is becoming more interconnected and is shrinking because of interconnectedness which has been caused by developments in technology
3.1c - What are some technical drivers of globalisation (ICT)?
- Phone calls - transatlantic telephone service began in 1972 - 1 call was $75 for 3 mins - now unlimited free calls via platforms such as Skype and Whatsapp
- Since 1988 the invention of fibre optic has brought the capacity up which has lowered the cost
- Memory and hard drives have gone down from $1mil to basically $0
- Internet - approx 40% of the worlds pop has access to it
3.1c - What is enterprise resource planning (ERP) software?
- Purchasing
- Customer web portal
- CRM & sales
- Distriubtion
- Time and projects
- Dashboards
- Finance
- Manufacturing
3.2a - What are the benefits of trade blocs?
- Larger potential market
- Other business can benefit by providing raw materials
- Trade of essentials becomes more reliable
3.2a - What are the costs of trade blocs?
- Outside trading countries can be excluded/find it difficult to join
- Don’t guarantee fair treatment within
- Foreign industries and suppliers can be directly damaged as a result of competition or lack of opportunities due to trade blocs forming
3.2a - What is the IMF (International Monetary Fund)?
IMF loans money to poorer developing nations
- Key condition for recipient nations is that the country opens up its markets and industries from gov control which in turn leads to privatisation
- can be seen as more of a hindrance - LICS fall in debt- profits leave the country and potential enviro or workforce exploitation
3.2a - What is the World Bank?
WB loans money to developing nations with aim of improving development
- also seen as controversial and many critics say both these organisations don’t benefit developing countries
- Instead they promote LICs to increase their debts and limit the government’s sovereignty
3.2a - What is WTO (World Trade Organisation)?
The WTO aims to liberalise trade by removing tariffs, subsidies and quotas
- criticised as it has failed to prevent the EU and USA implementing protectionist measures eg subsidies - unsuccessful from creating equal opportunities for all countries to trade
