Globalisation Flashcards
What is globalisation?
The world becoming more interconnected as ideas spread across the world
What are 4 different types of globalisation?
Economic, political, environmental, culteral
What do developments in trade and transport lead to?
A time-space compression resulting in a ‘shrinking world’
What were created in the 19th century resulting in globalisation?
Telegraph lines
Steam ships
Steam trains
What were created in the 20th century resulting in globalisation?
Jet aircrafts
Containerisation
What were created in the 21st century resulting in globalisation?
Mobile phones
Internet
Social networking (Skype/Zoom)
Electronic banking
Fibre Optics
When was the telegraph line first used to directly communicate, and by when was there a telegraph line from the US to Europe
First used in 1844
US to Europe in 1866
For the Manchester railway, when did it open and what was special about it?
Opened in 1830 with timetabled railway service and scheduled frieght
By 1845, how many km of the railway was open?
Almost 4000km
What did steam trains replace and when and where?
Horse drawn carriages- Liverpool 1812
When were steam ships first rolled out, and how fast were they?
1822 at 5mph
By what year had reliable trans-Atlantic passenger service begun?
1938
What do telephones allow developing countries to do?
Technological leap-frogging
Finish the sentence- Jet aircraft revolutionised…
travel in the 1960s for the middle class
(reduced from days in ships to hours)
By what year had how many American’s flown?
By 1972, almost half
How many shipping containers are there globally? Give an example
17 million- Amazon
What is the size of a standard shipping container?
Length 10’ 20’ 30’
Width 8’
Height 8.6’
How many people use Skype and Zoom?
300 mil/ month for Skype
300 mil/ day for Zoom
What can GPS be used for in retail?
Tracking + managing orders, increasing the reliability of the company
How many km of ocean floor fibre optic cables exist?
Over 1 million km
What does IGO stand for and what do they aim to do?
Inter-governmental organisation, they aim to restabilise the world and promote economic growth via promoting free trade policies and FDI
Name 3 IGOs
World Bank
International monetary fund (IMF)
World trade organisation (WTO)
What principle does the international monetary fund work around?
Privatising government assets in return for loans
What does the world bank do?
Provide development loans to developing countries
In 1944, what 2 IGOs were created, and at which conference?
1944 Bretton Woods conference
IMF
World Bank
What does the world trade organisation do?
Promote the free flow of trade via removing barriers (quotas, tariffs, restrictions)
What are 3 aims of the trade bloc, the EU?
-free movement of capital/people
-have uniform labour/environmental regulations
-integrate economies so the interdependence prevents war
How many countries are part of the EU, and how many people does this represent?
27 countries
448 million people
Of the 27 countries part of the EU, how many use the €?
20
What are 4 aims of the trade bloc, ASEAN?
-uniform low tariff
-agreed for a single market (no restrictions) in 2015 but this failed
-seeks consensus (general agreement)
-pledged no nuclear weapons in 1995
How many countries are part of ASEAN and how many people does this represent?
10 countries
670 million people
In what year did ASEAN pledge no nuclear weapons?
1995
What 3 things do governments do to create economic liberalisation?
Free market liberalisation
Privitisation
Encouraging business start ups
Who introduced London’s deregulation, when, and what did this do?
Thatcher in 1986
Foreign competition increased the efficiency
Give an example of a privatised company, and when did they privatise?
British Gas in 1986
Give 4 ways that governments encourage business start ups
Low business taxes
Foreign restrictions removed
Loans
Regulations
What are 3 pros of free trade blocs?
- Larger market for more customers
- Greater choice + lower cost for customers
- Smaller countries have more say in global agreements
What are 3 cons of free trade blocs?
- Increased dependency
- Group descisions can be unliked
- Disruption in the block can have a knock on effect
What is a subsidy?
Direct (grants) or indirect (tax break) payments to firms from government
When was China’s open door policy created?
1978
What did China’s open door policy create?
Special economic zones (SEZs)
What can the creation of SEZs allow for?
Globalisation + urbanisation + poverty reduction
By the 1990s, what % of China’s GDP was generated in SEZs?
50%
In China, how many people left rural areas?
300 million over 30 years
In China, there is a mega region with how many people?
120 million
What is China’s first SEZ called, and what did the megacity use to be?
Shenzhen- used to be a small coastal fishing village (good location on port!)
In the SEZ, Shenzhen, how did income change when it underwent it’s transformation?
From $1/day to $30,000/year
Name 2 examples as to why China is still closed off
- Quota of 34 foreign films screened per year
- Google and Facebook have no access to China’s market
What are 4 examples of indicators which can show the degree of globalisation?
Flows, technology, movement, media
What are the 2 indicators/indices that can measure globalisation?
KOF index and AT Kearney index
When was the KOF index created?
1970
What are the 3 main categories in the KOF index?
Social, political, economic
When was the AT Kearney index created?
2008
What are the 4 main categories in the AT Kearney index?
Personal, technological, economic, political
What’s an advantage of the KOF index
It has few missing data
What’s an advantage of the AT Kearney index?
It has a high weighting to ICT (relevant in 21st century)
Which country was the most globalised in 2015 in the KOF index?
Ireland
Which country was the most globalised in 2015 in the AT Kearney index?
Singapore
What are 2 disadvantages of both the KOF and AT Kearney indexes?
- countries with small domestic markets always top the list due to reliance on other countries
- cultural bias in indicators (eg number of mcdonalds)
What 5 things to TNCs do which is important in their spread, and globalisation? What is the underlying reason why TNCs do this
- Horizontal integration
- Vertical integration
- Diversifying product range
- Developing new markets
- Economies of scale
- maximise profit
What is horizontal integration?
Company expands on one level in the production process
What is vertical integration?
Company controls every production stage
Why do TNCs diversify their product range?
To future-proof sales
How do TNCs develop new markets?
Expand to new customers or develop new models
How would TNCs create economies of scale?
Expand capacity and warehouse size to reduce unit cost (some companies like apple remove the warehouse stage altogether, and ship directly from manufacturer to consumer)
What does GPN stand for and what is an example of one?
Global production network- Apple
How many suppliers does Apple have, and where are they located?
200 suppliers- 85% in Asia, leading suppliers in China
What concept does the GPN Apple use to cut costs?
Just in time (JIT) - cut down on warehouses
What is glocalisation?
Company creates new markets as company restyles products to suit local taste/rules
Give 2 examples of when McDonalds has glocalised their products?
Kosher in Israel (1995) (Jews)
Vegetarian India (2013) (Hindus avoid beef)
Name 3 brands glocalisation isn’t relevant for
Louis Vuitton
Lego
Oil
What does outsourcing and offshoring lead to?
GPNs which reduce costs and increase profits
What is outsourcing?
Company contracts another company to produce goods or services
What is offshoring?
Company moves own production process to a different country
If a TNC is poorly managed, what does it result in?
Reshoring
Give 4 examples of when TNCs were poorly managed
-horsemeat in Tesco burgers 2013
-Rana Plaza textile factory collapsed and 1100 died
-natural hazard (Japan tsunami 2011) disrupts supply chain
-BooHoo slavery + human rights abuse claims 2020
What are the 4 main reasons as to why places may still be switched off from globalisation?
- Physical
- Environmental
- Political
- Economic
What are 4 physical reasons a place may be switched off from globalisation?
-long distance
-mountains
-resources
-landlocked
Why do long distances make places switched off from globalisation?
Costly communication/transport so less attractive to FDI investors such as TNCs. However, in developed nations this isn’t a huge issue due to ICT.
Why do mountainous regions make places switched off from globalisation?
It creates a physical barrier which slows trade as the infrastructure to connect is costly. However, in developed nations this isn’t a huge issue due to ICT.
Why does a lack of resources make places switched off from globalisation?
None to trade + export in order to develop industry however too much results in dependence on the low-paying, fluctuating primary sector.
What are 3 environmental reasons a place may be switched off from globalisation?
-natural hazards
-climate change/arid areas
-harsh biomes
Why do natural hazards make places switched off from globalisation, but why do they become switched on again?
TNCs won’t invest in high risk areas but after a natural hazard, AID flows in from the world bank and countries. Also, environmental refugees move and increase migrant flow.
Why does climate change make places switched off from globalisation, but why do they become switched on again?
Aridity and desertification reduces agricultural potential, but, agricultural dependence can be bad, and, there’s technology/fertilisers to help
Why do harsh biomes make places switched off from globalisation, but why do they become switched on again?
Limits transport, development is costly so trade is limited. But, tundra biomes are becoming more accessible.
What are 5 political reasons a place may be switched off from globalisation?
-corruption
-terrorism
-human rights
-conflict
-government choice
What is an example of why conflict and corruption has caused Africa to be switched off from globalisation?
‘Scramble for Africa’ has caused tribes to split and conflicting tribes to join, leaving a power vaccum with no stable democracy. The IMF has an anti-corruption policy. TNCs disuaded from investing.
Why does terrorism cause places to be switched off from globalisation?
World leaders don’t interact if terrorist run. Industry disruption + high costs.
Why does abuse of human rights cause places to be switched off from globalisation?
Leads to sanctions which limits the flow of capital and products. Eg: 2020 UK- Global Human Rights Sanction Regime
Why does government choice in North Korea cause it to be switched off from globalisation?
-Hereditary autocracy (inheritance, choice made by one person)
-One party communist system running on the ‘self-sufficiency policy’.
-No internet or social media
-Emigration + tourism prohibited
In what way is North Korea still slightly switched on to globalisation?
Trades with China
What are 3 economic reasons a place may be switched off from globalisation?
-dependence on resources
-debt
-poverty
Why does dependence on resources cause places to be switched off from globalisation?
If dependent on 1/few materials, there are fluctuations in income due to the boom-bust commodity cycle
Why does debt cause places to be switched off from globalisation?
Prevents money spent on transport infrastructure
Why does poverty cause places to be switched off from globalisation?
Too poor to buy imports, travel, technology
Why is the Sahel region (strip in Africa) switched off?
Physical- some countries are landlocked, little FDI
Environmental- semi-arid + desertification increases infrastructure cost
Economic- poverty limits customer market potential
How has the global economic centre of gravity shifted and why?
Europe (industrial revolution) → North America (capitalism + not affected by war) → Japan (cheap military production) → China (1978 open door)
What are 4 benefits of global shift in Asia and why?
Waged Work- reliable, regular, higher paying, less hours
Infrastructure investment- roads, ports, airports, power water
Poverty reduction- higher income
Education- invest from money generated, higher income so families pay, TNCs invest in transferable skills
What are 3 costs of global shift in Asia and why?
Loss of productive land- due to factories, homes, pollution
Unplanned settlements- for jobs, people move from rural to urban so more people than houses-> illegal settlements
Environmental/resource pressure- air + water pollution, high water and raw material demand, lack of regulation causes health issues
In terms of waged work, what % has urban income increased by and since when in China?
10% increase since 2005- however greater rural-urban divide
Out of the 10 busiest container ports, how many are located in China, in terms of infrastructure investment?
7
From 1980-2016, how has poverty reduced in China?
From 84% to 10%
In China, for what age is education free + compulsory?
6-15 years
In China, how many hectares have been polluted and with what, leading to loss of productive land?
Over 3 million hectares polluted with heavy metals
How many people in China don’t have safe drinking water?
360 million
What does air pollution in China do to the life expectancy?
Reduce it by 5 years
What % of India’s GDP is spent on infrastructure?
10%
In India, how many people were brought out of poverty in a decade, and in which area mostly?
271 million, more in urban
How is education in India improving?
Growing number of universities, over 1000
What % of India is under desertification?
30%
How many people live in slums in India?
101 million
What % of global coal does India consume?
10%
What % of India is above the WHO air pollution safe limit?
99%
What are the 4 major environmental problems in the DRC?
Air and water pollution
Land degradation
Resource over-exploitation
Loss of biodiversity
What are 3 reasons as to why air and water pollution are a major environmental problem in developing countries?
High demand for energy so more power stations releasing more pollution
Factories
Weak regulation
Why is land degradation a major environmental problem in developing countries?
Natural resources are exploited for the benefit of the economy
Why is resource over-exploitation a major environmental problem in developing countries?
TNCs are in emerging countries so developing countries are relied on for resources as more nations emerge
Why is loss of biodiversity a major environmental problem in developing countries?
Urban jobs pay better so urban sprawl occurs
What % of the world’s cobalt is in the DRC?
70%
What health issues occur in newborns when their parents are exposed to mines in the DRC and how much more likely are these to occur via exposure to mines?
Cleft palate, spina bifida (organs outside body)
3-4 X more likely
What is economic restructuring?
Widespread change in job type- eg: secondary to tertiary
In 1891 and 2011, what % of people in the UK work in the secondary industry?
1891- 55%
2011- 18%
In 1891 and 2011, what % of people in the UK work in the tertiary industry?
1891- 30%
2011- 57%
In 2011 in the UK, what % of people work in the quaternary sector?
24%
Complete the gaps…
Detroit was a major centre for ………. (eg Ford) but began deindustrialisation due to the ………. and ……….
Automotive manufacturing
Great depression (30s)
Competition from abroad
What are the 5 social and environmental issues faced by developed nations as a result of economic restructuring?
- Derelict land
- High unemployment
- Contamination
- Crime
- Depopulation
In Detroit, how much land is derelict, and how much is derelict in the city centre?
1/3 derelict and 50% in the city centre
In Detroit, what % of people were unemployed in 2021 and why?
20% because economic restructuring takes time and certain skills are needed
In Detroit, what % of people live below the poverty line?
36%
What 3 types of pollution is caused by contamination in Detroit?
Land air water