Globalisation Flashcards
5 types of flows
capital
commodities
migrants
information
tourists
How internet has aided globalisation
info can flow freely between countries
4 types of globalisation
social , economic , political, cultural
developments of transport in 1800s - steam power
Britain became leading power in steam power which moved goods quickly
developments of transport - jet aircrafts ( 1960s)
easy jets expansion enabled tourism to expand.
flights are cheaper and faster so culture spreaded
development of transport - container ships ( 1950s)
containers allowed a large amount of goods to be transported globally at a low price , resulting in a larger market and lower price for producers
developments in communication - telegraphs and telephones
cables installed beneath the ocean has sped up decision making and enabled companies to locate in other countries e.g. TNCs.
developments in technology - broadband and fibreoptic
information relayed by cables across the ocean allows transfer of information e.g. stock markets/email.
developments in technology - GIS and GPS
enables accurate location positioning and tracking of orders, vessels or lorries.
developments in technology - the internet and social media
increased connectivity between people so migrants can call home and families can connect
developments of transport in 1800s - railway
rail expanded globally
shrinking world effect
the world feeling like its closer due to globalisation and space - time compression
6 features of switched off regions
landlocked
harsh climate
no trade bloc
lack of energy resources
dictatorship
poor education
Sahel region - switched off region
very dry - poor crop yields
landlocked - no exports
TNCs won’t invest there
North Korea - switched off region
dictatorship - no internet access
no imported/exported goods
AT Kearney index 4 factors
political engagement
personal contact
technological connectivity
economic integration
KOF Index
calculated anually to find economic/social/political globalisation
Indicators of globalisation
flow of people/ flow of FDI
IGO’s - WTO
Reduces tariffs on manufactured goods for members
allow interaction of economies
IGO’s- IMF
encourages expansion of trade and growth
members work together
IGO’s- World Bank
provides grants and loans to LIC’s so they can develop
3 features of free trade blocs
removal of tarrifs - taxes
removal of quotas - limit
free movement ( EU)
Free trade blocs
increase interconnections between countries ( EU and NAFTA)
government policies - Free market liberalisation
removes state influence in economy
government policies - privatization
state owned business sold to TNCs - idea is they will run more efficently
government policies - encouraging business start ups
to boost certain industries that are globally important
government policies - SEZ’s
industrial zones often by the coats , used to attract TNC’s
they offer lower tarriffs and taxes to TNC
and reduced rent price
TNC’s role in globalization - global connection networks
- where interconnected links extend across national boundaries and integrate parts of national and sub-national territories.
- They provide a framework that encompasses all members in the production systems.
TNC’s role in globalization - Glocalisation
- where goods and services are adapted to increase appeal in other markets
- It is a marketing technique that combines cultural respect and self-interest e.g. McDonald’s vegetarian restaurants in India for Sikhs and Hindus.
TNC’s role in globalization - outsourcing/offshoring
- outsourcing is when work is contracted to another company
- offshoring is when a company does work overseas. It creates jobs and provides incomes. People then invest in the local economy and attract investment.
subsidies to TNC’s
government offer TNC’s subsidies to attract FDI
Megacities
city with pop of over 10 million
1990 - 10 megacities
2030- predicted 41 megacities
pull factors
better employment/education/qol
push factors
lack of education/healthcare/sanitation
Karachi - Pakistan Megacity
grows 5% a year , generates 25% of Pakistan GDP
problems with Karachi
50% live in slums - biggest slum home to 2.4mil
government receives little taxes
Global shift
movement of global economic centre of gravity via shift of manufacturing from west to east
India - Global shift
seen increase in services as TNC locate there because good spoken english
increased economy by $150 million
3 positives of global shift
higher wages - more disposable income
improved infrastructure
education and training
4 negatives of global shift
loss of productive land
unplanned settlements
pollution
poor working conditions
eg of unplanned settlements
rio - poor sanitation
eg of poor working conditions
China - workers ill from chemicals
eg of loss of biodiversity
Nigeria - lost 50% of forested area
protectionism - limiting globalisation
adding higher tarriffs to imported goods to increase sale of local goods
censorship - limiting globalisation
controlling what can be accessed online
localism
increasing sutainability by reducing food miles