Globalisation Flashcards
Describe shrinking world theory
Travel times decrease due to technological innovation, places feel closer together than they did in the past, reduced ‘friction of distance’ so increase in flows of goods and people between countries
What % of trade takes place via containerships?
95%
How has containerisation accelerated globalisation?
Intermodal containers means that containers are standardised which decreases cost and increases efficiency so increased sales and interdependency
What is the linked evaluation for containerisation accelerating globalisation?
Containerships are reliant on specific trade routes
Which containership became stuck in what canal, how many containerships were blocked, and how much did it cost a day?
March 2021 Evergreen ship in Suez Canal, 370 containerships blocked, cost $9 billion/day - severe disruption of global trade
How long did it take to travel around the globe in the 1700s compared to now?
1700s: 2 years
Now: 31 hours
How has air travel accelerated globalisation (includes app.)?
Decreased costs of air travel (e.g. EasyJet cheap package holidays) increased tourism and flows of people between countries
What % of CO2 emissions are produced by the aviation industry and what is an example of a pressure group that wants to limit air travel?
12%, Extinction Rebellion
What % of data is transferred via fibre optic cables and at what speed?
99%, at the speed of light
What is the linked evaluation for fibre optic cables accelerating globalisation?
Some countries are ‘shut off’ from globalisation e.g. North Korea
What are SEZs?
Areas within a country that have special economic conditions and are often coastal to benefit from the 95% of trade that happens via containership
What is the case study for SEZs?
Shenzhen, China
How large is Shenzhen’s economy and how many people have been alleviated from poverty in China since Shenzhen became an SEZ?
2nd largest in the world, 400 million
What is the linked evaluation for Shenzhen?
High rate of depression and suicide due to working conditions inside Foxconn factory where iPhones are produced, consumers are growing more aware of inequalities
What does the KOF Index measure?
How globalised COUNTRIES are in terms of economic (FDI), political (foreign embassies), and social (internet users) factors
Which country scores low on the KOF Index and which country scores high?
Low: US - high levels of internal trade
High: Switzerland - must embrace globalisation to survive
What is the evaluation for the KOF Index?
True size of informal economies cannot be known but trade of illegal goods increases integration of global economies
What does the AT Kearney Index measure?
How globalised CITIES are in terms of economic (FDI), personal (remittances), social (internet users), political (embassies), and cultural (museums)
What were the top 5 cities on the AT Kearney Index in 2021?
New York, London, Paris, Tokyo, LA
What is the evaluation for the AT Kearney Index?
Only 64 countries are included which may not be representative
What are global production networks?
When large corporations establish outsourcing partnerships and can avoid tariffs if source with the EU
What is the application for global production networks?
BMW has 2,500 suppliers who provide parts to assemble a BMW mini
What is the evaluation for global production networks?
Key contributors to climate change
How much carbon does the transportation of 1 T-shirt produce before departing Cambodia for the UK?
63g