globalisation Flashcards
globalisation
increasing interdependence between countries through flows of capita, goods and services as well as culture and ideas
containerisation
developed by Malcom mclean, means that goods can be transferred off and on lorries/ships quickly
advantages of jet craft
in 1914 took 40 days to reach Australia , now takes 1.5 days
advantages of computer technology
places more interconnected and communication better, better knowledge due to internet
social networking
allows for spread of cultures, ideology and opportunities for migration and tourism. Facebook had 1.5 billion users in 2015
dates for railways
railway - 1804, internation railway - 1843
first steam ship
1787
what is the Digital economy
introduced in 1995 aided by development of internet (1990) focus was to reshape businesses by computing networks and the sales of goods through the internet
disadvantages of Digital economy
traditional retailers (e.g. Woolworths) couldn’t complete due to companies such as amazon
advantages of digitial economy
small businesses have assess to global business trade due to websites
world banks contribution to globalisation
provides loans to help rebuild economies and alleviation poverty, its loans have low interests loans, grants and technical assistant to developing countries
what does the world bank aim to reduce
number of people in poverty so only 3% of worlds population is living on less than $1.25 a day by 2030
world trade organisation contribution to globalisation
reduce tariffs to allow the standardisation of products, reduction of trade barriers and the elimination of preferences, established in 1995
the International Monetary Fund contribution to globalisation
role is to help governments balance payments when suffering from economic difficulties, gives loans to member countries
privatisation
transferring ownership of businesses from public to private sector, could compromise quality of services, but makes more money for government
liberalisation
reduce and remove rules restricting economic activity and companies, governments do this as they believe that rules make businesses inefficient and reduce motivation
privatisation and liberalisation in the uk
target thatcher started a program of deregulation and privatisation after general election of 1979, including British telecom and British Gas
what is a trade bloc
type of intergovernmental agreement where barriers in a world region are reduced or eliminated among participating states. can e stand along agreements between serval states or part of a regional bloc
advantages of trade bloc - protection
-protection from foreign competitors and political stability for example in 2007 the EU blocked £50 million of Chinese made clothes entering uk as annual quota had been reached, this was to limit import of cheap goods to protect domestic manufacturers
advantages of trade bloc - bigger markets
bigger markets but no extra taxes, for example the uk has a population of 65 million and the EU has population of 508 million. uk companies like Tesco have benefited by expanding into EU countries and b sourcing goods at best price within 28 member states
disadvantage of trade blocs -inderpendance
due to trade blocs increasing trade amount participating countries the countries become increasingly dependant on each other, and a disruption of trade can have severe consequences for economies of all participating countries
disadvantage of trade blocs - loss of
loss of sovereignty (supreme power or authority) for example the EU deals not only with trade but with issues such as human rights, consumer protection, greenhouse gases and other issues marginally related to trade.
what is an special economic zone
area of land set aside by governments in locations well placed for international trade. companies can import raw materials and export finished products without incurring common domestic taxes
KOF globalisation index
created In 2002 it measures extent which countries are economically, socially and politically linked to others, the more globalised a country is the more links it will have
AT kearny
this produces a global cities index which uses measures of business activity, human capital, information and culture exchange to rank cities
IMF annual reports on exchange arrangements and exchange restrictions
records the existence of restrictions to trade to different countries, means that countries with more restrictions are more globalised
role of TNC in globalisation
TNCs are companies operating across multiple countries These companies usually work by having their headquarters, production, and sales all in different countries across the globe, meaning they are a crucial aspect of globalisation.
globalisation and development of new markets
marketing technique for TNC to combind cultural respect and self as well as regulatory or design restrictions e.g. side of steering wheel
environmental reasons for switched of places (North Korea) (2)
distance from market
lack of energy and mineral deposits
political reasons for switched of places (North Korea) (3)
corruption
weak commitments for devoplement
civil or tribal conflict
economic reasons for switched of places (North Korea) (3)
high levels of government debt
poor transport or telecommunication
weak education of workforce
what is global shift
changing location of products
agglomeration
locating near each other (e.g. car parts)
footloose
locating away from each other - can make specific parts in cheaper places
global shift to Asia
cheap labour, cheap costs, less regulations
benefits of outsourcing
workers receive wages increasing disposable income
negatives of outsourcing
many workers still be exploited, bigger inequality between rich and poor
water in china
corruption means that strict environmental regulations are often overlooked and 60% of water is polluted
problems with deindustrialisation in denvolped countries
employment struggles (those with 2nd skills can’t get Jobs in 3rd and high tech)
high crime rates
deralice buildings
pull factors of rural to urban migration (3)
- Fram jobs harder to find due to new machinery
- young people see farming as hard work and low pay
-eduaction and health standards
pull factors of rural to urban migration (3)
-better job prospects in cities
- better facilities
-quality of lives improved
informal economy
due to high unemployment many work in informal industries
migration benefits for source country (3)
- reduced pressure in well fair spending
-send money back to economy
-returning migrants bring professional, social and political experience
migrations cost for source country (3)
- skill shortage
-demographic imbalance
-depoipulasation
migration benefit for host country (3)
- filling skill shortage
- contribute to economy
- more tax paying workers
migration cost for host country (2)
- need for extra school and health service places (130,000 new primary school places needed)
-pressure on rented sector
cultural diffusion
Communities being exposed suddenly to a new culture can face sudden change or reduction to their own culture. Young people are especially vulnerable
what has globalisation meant for disadvantaged groups
more opitunities due to new global culture, attitudes have developed to prevent discrimination. for example race relative;ations act of 1948 created rights for all races
hyper globalists
globalisation is successful process, and culturally will become more integrated as economies become more integrated, work will move towards homologous culture
transformalist
cultures are dymamic in response to globalisation, all cultures will change but in different ways and new hybrid cultures may evolve
sceptics
globalisation is profound in core capital economies and reflects interdependence, beyond this core there is marginalisation not destruction of poorer groups (western dominance reduced)
gini coefficient
number between 0 and 1 that measures degree of inequality in distribution of wealth or income. 0 = each member of society received sam amount, 1 = one person has everything
concerns about consumer society
an increasing middle class and rise in population has led to changing consumer patterns.
rise in localism
the reduction of globally sourced goods instead purchasing locally-sourced, sustainable products to protect the environment and vulnerable individuals.
fair trade and ethical consumption
aims to secure better pay to producers and growers and includes coffee, cocoa and bananas. The Fairtrade certification provides consumer confidence that suppliers are being paid a fair price for what they produce.
recycling
EU countries aim to recycle half of waste by 2020, so less environmental costs
