globalisation Flashcards
what is the role of the WTO in globalisation (a player)
-believes in free trade without subsidies
- removes barriers to trade= “trade liberalisation”
-trade to be free of tariffs and quotas
what is the role of the IMF in globalisation (a player)
-lends money for development
-primary role= maintain international and financial stability, SAPs
what is the role of the World Bank in globalisation (a player)
-to finance economic development
-provides loans
-SAPs
National governments are key players in terms of promoting free trade blocs through free-market liberalisation, privatisation, encouraging business start ups.
describe the player, the EU (trade bloc)
-28 members
-guarantees the free movement of goods, capital
and people
-main political aim was to integrate economies so that interdependence prevents war
National governments are key players in terms of promoting free trade blocs through free-market liberalisation, privatisation, encouraging business start ups.
describe the player, ASEAN (trade bloc)
-a free trade area with 10 members
- a uniform low tariff is applied between members for specified goods
-its aim is to create a single market by 2015 but this was not acheived
players: what are the role of governments in promoting economic liberalisation: (3)
players promote:
- free market liberalisation: reduces government intervention in the economy. Competition between firms brings innovation and lowest cost production. Involves removing price controls, breaking monopolies and encouraging competition.
-privatisation: selling of government owned businesses, permitting foreign ownership allows for an injection of foreign capital through FDI
-encouraging business start ups: grants and loans are often made to new businesses especially in areas important to growth such as ICT development, pharmaceuticals or renewable energy
players, what is the role of the government in attracting foreign FDI (3)
govs attract FDI by:
-subsidies- payments by a gov to a company to promote a particular economic activity. It attracts FDI (it covers relocation costs)
-SEZs- investors receive special tax, tariff and regulatory incentives. Used to spread out FDI and spread globalisation to new regions. Tariff and quota free so no extra costs on exports. Environmental regulations are limited
-Chinas Open Door policy- By 2006, China was receiving $60 billion in FDI per year. It introduced economic liberalisation and FDI
players: what are the role of TNCs in spreading globalisation
-offshoring
-outsourcing-( when part of a company is contracted out to be done by another country, wage rate is lower however less direct control over production process)
-developing new markets: opening new outlets in another country increases revenue for TNCs
-glocalization
point: TNCs have been accused of exploiting workers and cultural erosion has occurred
what are the role of TNCs in cultural diffusion and what opportunities has this led to:
TNCs spread an idea of a westernised culture (meat consumption has risen in china by 99%)
TNCs have also led to opportunities such as LGBTQ+, Paralympics and erosion of sexism
what are the attitudes of anti- globalisation groups
attitudes:
-groups such as occupy wall street and the global justice movement argue that globalisation has:
-increased resource consumption leading to deforestation, water pollution, global warming and biodiversity loss.
-exploited workers and lax safety conditions
-passes political and economic power to TNCs and uncaring governments
-created increased inequality
-caused cultural erosion
what are the role of governments in limiting globalisation and what are the attitudes of pro- and anti- immigration groups
some govs have tried to limit globalisation through government policy:
-the internet is banned in North Korea to reduce the spread of western ideas
-the internet is censored in china
-the UK has sought to reduce immigration by using a point system
-Australia uses a point based immigration system to match immigrants to actual economic needs and job vacancies - also account for attitudes
what are the actions of local pressure groups
actions:
-there has been movement towards localism (foods being grown locally)- this is promoted by local groups and NGOs
-transition towns such as Totness created “grow your own”= sustainable development
what are the actions of NGOs and pressure groups
Actions:
-due to ethical and environmental concerns of globalisation, there have been two main responses:
fairtrade:
-pays farmers guaranteed prices to reduce inequality- to make income sustainable
ethical consumption schemes:
-e.g. forest stewardship council= FSC= respect land right of indigenous people and that forestry workers are well treated and paid
what are the futures of the environment due to the different patterns of resource consumption
futures:
recycling decreases the amount of waste sent to landfill. Recycling does reduce waste but different countries have different schemes and results to reduce packaging may be the way forward.
-keep Britain tidy encourages recycling
