Globalisation Flashcards
(35 cards)
What is globalisation?
Globalisation is the process by which the world is becoming increasingly interconnected and interdependent as a result of
increased technology, communication, trade and cultural exchange.
4 main strands of globalisation?
Economic, Cultural, Political, social
Main flows of globalisation?
commodities, capital, information, migrants and tourists
Developments in transport
Jet aircraft and containerisation
Developments in ICT
Mobile phones, internet, fibre optics and broadband
What is time-space compression?
Heightened connectivity changes our conception of time, distance and potential barriers to the migration of people, goods,
money and information.
What is the shrinking world effect?
Different places feel closer together than in the past due to transport and technology
What international political and economic organisations have contributed to globalisation?
World Trade Organisation, Word Bank, International Monetary fund
What do free trade policies involve?
The removal of barriers to trade (protectionism) such as tariffs, quotas and subsidies and the embracing of neo-liberal policies such as the free-market and privatisation.
What does the WTO do and failed to do?
Pushes for trade liberalisation but has failed to stop rich countries from subsidising their own farmers
What does the IMF do? (good and bad)
Maintains global financial stability and loans money to developing countries. However, imposes strict SAPS on them which leads
to TNCs exploiting them
What does the World Bank do? (good and bad)
Gives loans for development and imposes SAPs on developing countries; controlled by the USA
How do national governments increase globalisation?
Embracing neo-liberalism, privatisation and encouraging business start-ups but it can also do so by joining trade blocs.
Name 3 trade blocs and state which are integrated and which are not
EU (fully integrated) ASEAN (moving towards deeper integration) NAFTA (little integration)
Why do countries join trade blocs? (refer to free trade as well)
For trading purposes and they bring economic strength and security to nations. Free trade is encouraged by the removal of internal tariffs and can also protect members by establishing a common external tariff for foreign imports.
What government policies have led to the spread of globalisation in China?
1978 Open door policy, SEZ’s special economic zones
What is the purpose of China’s open door policy and SEZ’s?
Offer tax incentives and huge pools of cheaper labour in order to attract FDI.
How do TNC’s expand? (define)
Through acquisitions (buying and taking over other companies) and
mergers (joining with rival companies).
What is offshoring and outsourcing for TNC’s?
Offshoring -when TNCs move part of their production facilities overseas in order to reduce costs.
Outsourcing -when TNCs contract other companies to produce goods and services which can result in the growth of complex supply chains called global production networks.
What is glocalisation?
When TNC’s adapt their products to suit local tastes
What are the three reasons why some countries are switched off?
Physical Geography, Economic, Political
State why physical geography leads to a place being ‘switched off’
Landlocked countries, steep relief, prone to natural disasters such as
flooding and drought, and a lack of natural resources will deter TNC’s from investing
State why economyic reasons lead to a place being switched off?
Low levels of development lead to poor technology/connectivity and low levels of education causing TNC’s not to invest
State why political reasons lead to a place being switched off?
Ideologies such as communism in North Korea and dictatorships that control global flows, conflict, exclusion from
trade blocs
