Globalisation Flashcards
what is globalisation
growing independence of countries, people and cultures worldwide through increasing connections including trade In goods and services and flows of money, technology and ideas
what factors have influenced and accelerated globalisation
advances in transport,
alliances easy to travel to country to country
tarifs and trade, tariffs being removed
technology - phones, internet, fibre optics
glocalisation - changing products to suit an area
trade blocs
how has financial impacted gloablisation
global capitalism is spread by large tncs ➡️
cheaper labour In developing economies ➡️ help supply wealthier nations with goods
Trillions of dollars are extended globally ➡️
how have people and migration impacted globalisation
people with management finance and it skills more to meet demand ➡️
Economic migrant labour flows to areas with higher incomes ➡️
how has political impacted globalisation
some tncs seek to influence how people think
tncs and international political organisation influence national government ➡️
many trade barriers have been reduced or removed
how have communication and information impacted globalisation
lower transport costs allow increasing long distance tourism
cheaper global phone networks and fast fibre optic connection are available
exchanges of people information and ideas become commonplace
two ways changes in transport has accelerated globalisation
Cheaper Airlines eg EasyJet ➡️ more affordable accessible to more people, movement of people is easier
Containerisation ➡️ easier trade, cheaper trade ➡️ encourages trade to increase
how has technology has contributed to the process of globalisation
Internet. smart phones, electronic banking
IMF - International Monetary Fund
Aim - Maintain financial stability
In return for loan it tries to force countries to privatise government assets. in order to increase size of private sector and generate wealth
This could mean poorer countries to sell of their assets. to TNCs which is believed
Stabilises currencies in order to maintain economic growth
World Bank -
Founded - 1944
Lends money to developing and emerging economies to promote economic development
This is done within Western capitalist model
The money originates from developed countries
It also focuses on natural disasters and humanitarian emergencies
WTO - World Trade Organisation
1955 (replaced CATT rounds from (1948)
Works to remove a barriers to international trade
Has negotiated a sequence of global free trade agreements that have gradually removed trade taxers and quotas
Individual nations governments - UK
Tax breaks - encouraged larger overseas financial institutions to relocate to London
Grants, Subsides - encouraged foreign companies to locate new manufacturing plants in the UK (Toyota in Derbyshire)
Individual nations governments - China
Open door policy 1978 - before decades of economic and political isolation
- USA, European companies saw the advantages into China 4 special economic zones - Export Processing Zones
Zones offered tax incentives and huge pools of cheap labour. China have grown rapidly since
Examples of International Trade Blocs
EU, NAFTA, ASEAN
What is a trade bloc
Removing tariffs between member states to promote free trade
Placing tarffs on imports and non member states to protect member states industries
