Globalisation Flashcards
What is globalisation?
Globalisation involves widening and deepening global
connections, interdependence and flows (commodities,
capital, information, migrants and tourists).
What are the four main strands of globalisation and give examples?
- Economic (TNCs, global division of labour, online shopping)
- Cultural (Westernisation, McDonaldisation, globalisation and hybridization, global media)
- Political (Trade blocs, free trade, IGOs)
- Social (International immigration, global improvements in education and health which increase life expectancy and literacy worldwide, social media)
What are the main flows of globalisation?
Commodities, capital, information, migrants and tourists
Define subsidy
Financial assistance to a business by government to make it competitive and prevent collapse
Define Neoliberalism
Is a political philosophy of free markets , free trade, privatisation and increasing the role of business in society. It is thought that by making trade easier there will be more of it, meaning wealth and a reduction of poverty
Developments in Steam power
Britain became the leading world power in the 1800s using steam technology. Steamships (and trains) moved goods and armies quickly along trade routes into Asia and Africa.
Developments in Jet aircraft
The arrival of the intercontinental Boeing 747 in the 1960s made international travel more commonplace, while recent expansion of the cheap flights sector, including EasyJet, has brought it to the masses in richer nations.
Developments in railways
In the 1800s, railway networks expanded globally. By 1904, the 9000 km Trans-Siberian Railway connected Moscow with China and Japan. Today, railway building remains a priority for governments across the world. The proposed High Speed 2 railway (linking London and northern England) will halve some journey times.
Developments in container shipping
Around 200 million individual container movements take place each year. Some commentators describe shipping as the ‘backbone’ of the global economy since the 1950s. Everything from chicken drumsticks to patio heaters can be transported efficiently across the planet using intermodal containers. The Chinese vessel Cosco is 366 m long, 48 m wide and can carry 13,000 containers.
Developments in Telegraphs in the 19th century
Developed in the 1830s and 1840s by Samuel Morse and other inventors, the telegraph revolutionized long-distance communication. It worked by transmitting electrical signals over a wire laid between stations.
What is time-space compression?
Heightened connectivity and interdependence change our conception of time, distance and potential barriers to the migration of people, goods, money and information.
Where is the IMF based?
Washington D.C
IMF
Channels loans from rich nations to countries that apply for help in return the recipients must agree to run free market economies. The US exerts significant influence despite always having a European president
Where is the World Bank based?
Washington DC
The World Bank
Lends money on a global scale in 2014 in total distributed US $65 billion in 2014
Where is the WTO based?
Switzerland
WTO
Advocates trade liberalisation, especially to manufactured goods and asks countries to abandon protectionist measures
Evaluation of the IMF (IGO)
Rules and regulations can be controversial especially the strict financial conditions on borrowing governments who may be required to cut back on healthcare and education etc
Evaluation of the World Bank (IGO)
Like the IMF imposes strict conditions but controversially all World Bank presidents have been American
Evaluation of the WTO (IGO)
The WTO has failed to stop the world’s richest countries from using protectionist measures and subsidising their own producers. This protectionism is harmful to farmers in developing countries who want to trade on a level playing field.
Pakistan’s fishermen CASE STUDY
In 1995 Pakistan joined the WTO until then it had enforced a 200 mile exclusion zone. This was opened at the WTO request however, this resulted in large crawlers from TNCs and India taking all the fish leaving the local fishermen without employment or food to feed their families.
Advantages of trade bloc membership
Bigger markets, National firms can merge to form transnational companies and GPNs and protection from foreign competitors and political competition.
Disadvantages of trade bloc membership
Loss of sovereignty, interdependence and compromise and concession.
ASEAN
Established in 1967. Over time they have worked to eliminate tarrifs in favour of free trade. ASEAN market has helped Indonesia’s manufacturing industry to thrive while the Philippines has gained a global reputation for its call centres.
ASEAN (AEC)
ASEAN is now expected to develop into a single market called ASEAN economic community (AEC) this will operate along similar lines to the EU and ultimately allow free movement of labour and capital. The agreement also promotes peace and stability its member have pledged not to have nuclear weapon.
European Union
Is an example of a fully integrated, has its own currency (euro). Member states are eligble for EU structural funds to help develop their economies while agricultural producers in the region all benefit from farm subsidies issued under the common agricultural policy (CAP)
NAFTA impacts USA (Benefits)
Free trade with mexico will mean US firms can set up factories there and benefit and benefit from cheap labour. Environmental laws are not as strict so companies do not have to clear up. TNCs gain higher profits as costs are lower.
NAFTA impacts USA (Drawbacks)
American manufacturing jobs are lost to Mexicans leading to higher employment. Mexican trucks are allowed full access to US roads but are not limited by driving hour limits more accidents.
