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.