Globalisation Flashcards
How have financial systems affected globalisation
Fiancial sytems is the relationship between those who borrow, invest and the institutions that hold give out and take this money. These banks have become interconnected globally and means everybody money is stored in these banks. These banks invest/gives out this money abroad and you get interest in return . Countries can borrow money from other countries. People can buy and sell stock/share.
How has financial technologies impacted globalisation
People are more likely to invest as they have access to stock market trends through communication technology. Ability to store money in offshore banks due to the internet where regional banks can communicate with national/international banks.
Allowed for remittances and cyprtocurrency
How has transport technologies impacted globalisation
Innovations in trssports has made it faster and easier to transport large quantities of goods. Such as large planes, high speed rail and boats. This has reduced travelling times. Cargo aircraft especially as they are built for it. Making the world smaller so to speak
How has containerisation impacted globalisation
Containerisation is the process by using large shipping containers to transport goods. These have become internationally standard for shipping so makes it cheaper and quicker off load etc. And efficient uasge of space.
What affect has globalisation had on threats
Countries face increased threats from other countries as its more straightforward to access them and affect them in different ways. For example its easier to transport guns and other weapons that pose a risk to people. They use x-ray to compact
How how communication technology impacted Globalisation
its accelerated it as its easier to communicate to people and act efficiently. It allows people to access call centres and websites to new companies.
Allows relationships to be maintained and increase flows of people as people are more likely to move if they can still contact family
What are free trade agreements and how do they impact globalisation
They accelerate globalisation as it makes transporting goods more straightforward and cheaper, as it removes tariffs and large amounts of paper work.
Example Of free trade agrement (america)
NAFTA - Agreement between USA, Canada and Mexico.
How did NAFTA affect Canada, Mexico and USA
Quadrupled trade from $297 billion to $1.14 trillion. It helped reduce USA reliance from less friendly regimes
What are unequal flows of people
In general migration follows the pattern of low-income country to high-income country as there more employment a freedom. This creates an unequal flow of people
What are the benefits of unequal flows of people
It mainly benefits the workforce, as they mostly take up ‘unwanted’ jobs such as cleaning
Increases Geopolitical ties
People fleeing will get a better quality of life
Problems associatied with unequal flows of people
Disproportianatly large flows of people can have negative effects on host country as they may become dependant on migrant workers. (why Brexit was so devastating)
Can cause over population and put pressure on services such as healthcare and social services and general ranger over migreants ‘taking’ jovbs.
Increaed remittances so more money exciting the circular flow of the economy
What are unequal flows of money
Majourity of money flows are into low income countries through remittances, aid and foreign direct investment
What benefits do countries receive from unequal flows of money
Improved quality of life, from aid, remittance and foreign direct investment
Richer countries in return get cheaper labour
What are the issues from unequal flows of money
Higher likelyhood of sweatshops
What are unequal flows of ideas
High income countries usually dictate ideas of how countries should be run and how trade should be carried out as the high incomes countries have more money and thus more power over less developed countries
What are the benefits of unequal flows of ideas
High income countries introduce ideas of deregulation to developing countries and NEEs . Reducing state ownership, as it reduces prices due to competition. Free trade (created by HIC deregulation). Countries with proven and successful strategies can education low income countries on how to create economic growth and how to remove social injustice etc.
