Globalisation Flashcards
What is Globalisation?
Globalisation is the process where countries become more linked and connected with each other
What is cultural globalisation?
The merging and linking of different cultures
How was cultural globalisation achieved?
It was achieved by the improvement of transport and media
What is economic globalisation?
The movements of goods, services and technology
How was economic globalisation achieved?
-Through trade organisations (like the EU)
-Through the development of TNCs
What is political globalisation?
The growing political influence around the world
What are the United Nations?
A peacekeeping organisation that was made after WW2. It helps to reduce the risk of political fights and war
What is the World Health Organisation?
An organisation that supports and coordinates responses against national or international pandemics and epidemics, i.e malaria or COVID
What is the World Bank? and what does it do?
An organisation that provides loans for countries. Countries give money to the bank and the bank provides low-interest loans to developing countries that may need the finance, for example, to build schools. It also helps countries join the global trading system
What is environmental globalisation?
Environmental globalisation refers to the internationally coordinated practices and regulations (often in the form of international treaties) regarding environmental protection. e.g. COP26 and the Kyoto Protocol
Why do we have environmental globalisation?
Due to an increase in awareness of global environmental issues and the actions needed to help
Name 5 causes of globalisation
Any 5 from:
Technology
Transport
Media
TNC
Trade
International organisations
Environmental issues
Name 4 positives of globalisation
Any 4 from:
-Greater cultural understanding
-Advanced technology for communication
-Increase in trade = increase in living standards
-increased transport
-more jobs for people in LIC
Name 4 negatives of globalisation
Any 4 from:
-Cultures are getting lost
-Native language may be getting lost (due to many languages becoming more dominant in the world i.e. English)
-TNC exploitation
-Fake news
-environmental issues (i.e. from more transport)
What are globalisation indicies?
A measure of globalisation
What are the 3 globalisation indicies?
- The kof index
- The EY globalisation index
- The new globalisation index
What is the kof index?
The KOF index is a score each country is given out of 100, the higher the number the more Globalised the country is considered to be. The KOF Index of globalization measures the three main dimensions of globalization: economic, social, and political
How is the political dimension measured?
It counts the number of embassies in a country, and the number of national organisations they are in (e.g. the UN)
What are the three sections of the social dimension?
- Personal contacts
- Information flows
- Cultural proximity
How is the personal contacts section measured?
It counts international calls (e.g. business or family)
How is the information flow section measured?
It counts the number of internet users, tv or international newspaper subscriptions and so on
How is the cultural proximity section measured?
It counts the number of McDonalds and IKEA per person in a country
What is the EY index?
It measures a country’s GDP
What is the new globalisation index?
It measures the distance of traded goods. The further goods are traded, the more globalised a country is.
What is a global superpower?
A nation that influences other nations
What is hard power?
Influencing nations with coercion
What is soft power?
Influencing nations with persuasion
What is the highest-ranked global superpower?
The USA
What are 3 examples of hard power?
- strong military
- large population
- large land mass
What are 3 examples of soft power?
- right to vote
- free education
- good healthcare
How does a strong military help a country to become a superpower?
Enough physical power to deter countries and go against them if need be
How does a large population help a country to become a superpower?
A large population means that the country has a larger workforce, leading to an increase in economic growth
How does a large land area help a country to become a superpower?
More space for people means more industries and more areas for resources that can be exploited. This allows for economic growth
How does a free education help a country to become a superpower?
- pull factor (brings in talent)
- skilled and larger workforce = economic growth
How does good healthcare help a country to become a superpower?
- pull factor
- longer life expectancy
- better quality of life
How does a right to vote help a country become a superpower?
- democracy = makes people more pleased with the governments
Why is the USA the most globalised country?
- It has the Atlantic and Pacific oceans on both sides -> access to many trade routes
- Oceans - large fishing industry
- A large number of resources = coal (do not have to rely on other countries for resources/ can sell to other countries for profit)
- a large number of forests - wood for fuel and construction/ can export to other countries
- strong military
When was the term ‘superpower’ first introduced?
1944
What 3 nations used to be superpowers?
USA, Britain and the Soviet Union
Why was Britain originally a dominant superpower?
The British Empire held 1/4 of the world’s land under rule, demanding taxes and resources from its colonies
What happened to make Britain lose power?
The colonies demanded independence from the British Empire. Slowly, more and more colonies gained independence and Britain lost power
Why did the USA suffer less damage from WW2?
- it was not the place where the war was mainly taking place
- it joined the war later on, so suffered less damage
Why did the USSR have more power after the war than other countries?
It had more money left over because it had more countries in the USSR, adding wealth, and had an equal pay communist approach
How were the USSR and the USA different in terms of their politics?
The USA had a more right-wing, capitalist approach, whereas, the USSR had a more left-wing communist approach
What countries were the USA and the USSR connected with?
USSR - Russia + Eastern Europe
USA - Western Europe, Latin America, The Commonwealth and some parts of Asia
What did the USA do to try and reduce the spread of communism?
Support right-wing countries
What soft power does the USA have?
It had a very popular culture: TV shows, films, songs and was a very popular place for overseas students
Why did the culture of the USSR prevent it from becoming a superpower?
The USSR’s culture was not as popular as the USA, making it less influential
What are some similarities between the USA and the USSR? (5 things)
- a large land mass
- a large population
- a strong military
- a large economy
- lots of valuable resources
What happened to Russia that made it lose some of its power?
The USSR broke up in 1991
What happened to America to lose some of its power?
It lost a lot of economic power due to the 2008 financial crisis and its military involvement in Afghanistan and Iraq did not hold a desired effect
Who are the emerging superpowers and why?
OPEC oil-rich countries - UAE - possess expensive natural resources wanted by many countries
BRICS - Brazil, Russia, India, China, S. Africa - identified as rising economic powers
What is the ‘Military Industrial Complex’?
Military industrial complex refers to the armed forces and all the businesses and government agencies that support them
What war occurred after WW2?
The cold war
Why is it called the cold war?
Because there was no physical fighting
After WW2, what happened to the US military and what did they spend their money on?
Their military grew and they spent their money on technological advancements for their military (e.g. jets, missiles and tanks)
What was the nuclear arms race?
A race for the first country to develop nuclear bombs
What did people do after WW2, and what did it cause?
People started ‘celebrating’, causing a post-war baby boom
What things does the modern US military have that allows it to display influence around the world? (3)
- World’s largest and most technologically advanced fleet of ships, planes and tanks
- Overseas bases with nuclear missiles that allow the US to apply force to any part of the world
- supplies weapons and military training for a wide range of countries
Why does the US want a large military?
- to go against terrorism, cyberattacks and other global threats
- to deter other countries from starting conflict
- To maintain global security - one of NATOs priorities
How much does the US spend on its military and military research compared to its health, energy and environmental sector?
The US exceeds spending of $100 billion on its military. It spends $40 billion on its military research. This is more than its health, energy and environmental sector combined
What things is Brazil doing to become a superpower?
- great producers of ores of niobium, manganese, iron, copper and aluminium
- Is an agricultural powerhouse - main producers of grain, meat and coffee - plays an essential role in global food security
- legal taxpayer law - makes people pay higher taxes to improve their economy
What things are stopping Brazil becoming a superpower?
- Many unnavigable rivers = high transport costs, therefore more goods have to be transported by road which is more expensive to build
- corruption (Corruption diverts public funds from essential sectors (education, healthcare, infrastructure) into the hands of elites, slowing development)
- lack of infrastructure (favelas) (Weak public services and inadequate housing conditions contribute to social instability -> less schools/ sanitation = smaller work force) (also reduces FDI going into that country, cos not a lot of foreign businesses want to set up in that country due to its instability, i.e. crime in the favelas)
What is the ‘open door policy’? when was it created?
Created in 1978. It means that countries can buy and sell goods without too many barriers or restrictions. This helps countries grow their economies, create jobs, and improve the lives of their people.
Who did China trade with previously? why did it stop?
USSR - was no longer a good trading partner after WW2 and the cold war
What is foreign direct investment? and why did china need it?
Direct investment into the production systems in another country by a foreign company. China needed it for economic growth. FDI brought new technologies, 1000s of jobs and increases china’s ability to hold more political influence around the world (i.e. in international organistaions)
How did China attract foreign investment?
By offering lower tax rates
Why does China want the South China sea?
- trading connections
- to exert force over other countries
- for valuable resources (oil and fisheries)
Why does China believe the South China sea belong to them?
due to naval expeditions and historical relevance
What is the cabbage strategy?
When China uses ships to surround a piece of land and stop it from accessing resources and therefore, aiming to claim it as there own
What has China enforced (in the air) to exert force on other contries?
It has established air restriction zones. Stop the access of resources
Why is the USA getting involved with disputes over the south china sea?
The USA and the Philippines are allies against communist country China
What is the naval rule given to all countries about their territory?
All countries are in ownership of all land within 200 miles of their shore
What impact do China’s actions have on other countries? Why can’t these countries go against China?
Other countries are losing rightfully owned land, to China, that may have contained valuable resources. However, China has a strong military, therefore many countries cannot do much to combat its violence
Why were they originally called the G8?
This is because they were joined by Russia in 1998, but Russia was suspended due to its activities in Ukraine
What is the G7/G8?
A group of powerful HICs (USA, France, Germany, UK, Japan) that meet annually to discuss global matters
What was the G7 originally established for?
It was originally established as a group of non-communist countries that were concerned about increasing oil prices, following OPEC’s decision to exert greater control over the world’s oil.
Give 2 positives and 2 negatives of the G7/G8
+
- Leaders can discuss international security issues and coordinate responses, i.e. condemning Russia’s desire to take Crimea (country)
- Member countries can share information, research and practices to promote global cooperation and progress
-
- The G7 is quite exclusive and can lead to accusations about elitism and favouritism as it concentrates the majority of the world’s power in the hands of a select group of countries
- Primarily focuses on economic and political issues, and may not be addressing global challenges like climate change and migration
How has the G7/8 allowed countries to become more interconnected?
- Countries are working together on international security issues
- countries work together to create economic policies
- they can share info and resources of global issues
- respond together on global health emergencies
What is the G20?
An international group consisting of 19 countries and the EU
What type of countries does the G20 bring together? Give a few examples
Brings together major advanced and emerging countries to discuss a wide range of global economic and financial issues - Argentina, Australia, Brazil, UK, USA, India, Indonesia, S. Korea, S. Africa
What projects has the G20 been involved in?
-Coordinating responses to the 2008-9 financial crisis
-Covid -19
Why might some of G20’s projects not have been carried out?
Decisions consist of informal, non-binding forums - not legally binding. Therefore, ideas are not forced by the law but simply acknowledged
How has the G20 reached global connectivity?
- Share ideas and resources on a global level
- Larger network of countries than the G7/8
Give 2 positives and negatives on the G20.
+
- a wider range of countries, so there is less elitism
- Provides a platform for international cooperation during crises allowing for faster and more coordinated responses
-
- Many argue that G20 meetings lack transparency, as many discussions occur behind closed doors, limiting public awareness and input
- Among 20 diverse countries with varying interests, priorities can be challenging and it may be harder for responses to be coordinated, leading to slow progress
What is OPEC? Examples of OPEC countries. How many countries are there in total?
An organisation established to control the world’s oil markets. Examples (oil-rich countries): Saudi Arabia, Venezuela, Qatar, Kuwait - there are 13 countries in total.
State 1 pros and 1 cons of OPEC
+
- Stabilises the oil prices to minimise fluctuations to benefit producer and consumer
-
- OPEC is heavily dependent on oil revenue, which can make economies more vunerable
What is the World Bank? When was it established?
An organisation that provides financial assistance to developing countries worldwide (1944)
How many member countries are in the world bank?
186
What was the World Bank’s purpose through the years?
To initially reconstruct post-war Europe -> to developing schools and hospitals -> to reach the Millennium Development Goals
How does the World bank increase connectivity? (5)
- shared resources and knowledge
- working and aiding LICs to meet the MDGs
- international communication
- disaster support (e.g. Gorkha, Nepal)
- infrastructure development
Name 2 pros and 2 cons of the World Bank?
+
- provides low interest loans for LIC countries
- Involved in global health initiatives to help combat HIV/AIDS, malaria and tuberculosis in affected regions
-
- Although it represents 186 countries, it is run by a smaller number of rich countries (China, USA, Japan)
- It is sometimes criticised for having policies that prioritise economic development over social development.
What is the International Monetary Fund (IMF)?
A financial organisation that helps countries manage their money. They provide loans and financial advice to countries in need, especially when they are facing financial struggles.
What is the IMF’s main goal?
The main goal is to promote economic stability by assisting countries in managing their finances, balancing budgets and addressing financial crises.
What does the IMF monitor?
They monitor the global economy
when was the IMF created? How many member countries did it have initially? And how many member countries does it have now?
The IMF was created in 1994 and had 45 initial members now it has 186 member countries
Name two pros and two cons of the IMF
pros
- countries contribute to a funding pool which other countries can borrow on a temporary basis
- stabilises the global economy
cons
- many may argue that the IMF are unconcerned about democracy, human rights and labour rights
- the IMF is mostly controlled by major Western countries therefore some argue that other areas are underrepresented
Who are the new development bank?
A financial organisation including the BRICS countries
Who are the BRICS countries?
Brazil, Russia, India, China, South Africa
What is the new development banks main goal?
Their main goal is to promote economic development and infrastructure projects in these member countries and other emerging/developing countries
When was the new development bank founded? And where are their bank headquarters located?
They were founded in 2014 and the banks headquarters are in Shanghai
How much do the BRICS contribute to the fund and what are their plans for each member?
The BRICS contributed $10 billion to their fund and their plans are to fund one project for each member of the organisation
Name two examples of the projects that the new development bank has funded
-The NWB hydroelectric project in Brazil
-the Rural Road project in India
Name one pro and one con of the new development bank.
Pros
-they provide funding for a range of projects for example sustainable development, and renewable energy to nonmember countries to stimulate economic growth and reduce poverty
cons
- it is still a new organisation with a small number of countries therefore they will have insufficient funds to meet infrastructural needs of countries
What is merchandise trade?
Merchandise trade is the trading of physical products such as electronics and clothing
What is trading in commercial services
This is the trade of services such as banking education and software development
What has happened to the world’s merchandise trade from 2005 to 2015 and why?
Overall trade has almost doubled. This is because of an increase in economic growth in India/China which causes an increase in demand for goods and materials. Furthermore, an increase in trade agreements between countries in transportation makes trade more effective
What’s happened to the world merchandise trade in 2008/9
In 2008/9 global trade decreased due to the 2008/9 financial crisis
What happened in 2015 in relation to the world merchandise trade and why? China
In 2015 there was a decrease in global trade due to China having poor pollution. The cause of this poor pollution is because of factories and manufacturing. However the environmental restrictions posed on factories caused less goods to be made
What happened in 2015 in relation to the world merchandise trade and why? Brazil
In 2015 Brazil had excess in oil production which meant the prices of oil decreased in order to get rid of oil fast
Why is there an increase in merchandise trade rather than commercial service trade? (3)
- commercial services are often more subjected to legal and security issues which makes it more difficult to transport them
- services are often tailored to specific needs which may require language/cultural adaptations
- many services depend on human expertise/labour which may be less portable than physical trade. This is due to immigration and labour regulations
How has manufacturing changed from 2005 to 2015
In 2005 many high-income countries manufactured goods however in 2015 many developed countries depended on developing countries like China or India to import goods from as it was cheaper than making their own. Therefore manufacturing saw a decrease in developed countries than in developing countries as developed countries now focus their sights on Tertiary/quaternary sectors for example research development and the service sector
What are the four types of aid
-Emergency relief
-development aid
-short/long term aid
-top-down and bottom-up aid
What is emergency relief
This is immediate assistance provided to individuals or communities facing sudden crises like natural disasters or pandemics. This can include getting food and medication
What is development aid
Usually given the form of money or technology to promote economic social and human development. This can be funding or equipment to improve health care and education
What is short term aid
Essentially this is emergency aid as it provides immediate assistance
It’s long-term aid
Essentially this is developmental aid as it provides support that is long-lasting
What is top-down aid
And that has been organised by governments or international organisations
What Is bottom-up AID
Decisions are formulated by local communities and then assisted from by governments
Give 4 examples of people who give aid
-International organisations
-wealthier countries
-allied countries
-charities
Name one pro of each type of aid (4)
Bottom up aid:
- directly addresses specific needs
top down aid:
- address widespread issues for better outcomes
short-term aid:
- provides immediate relief to save lives
long term aid:
- addresses social and economic issues over time
Name for cons of each type of aid? (4)
Bottom up aid:
- project may lack resources and money to continue development
top down aid:
- does not address specific needs
short-term aid:
- is not effective in the long term
long term aid:
projects may be slow depending on the scale of them
What is a loan
A loan is an example of a global flow. It is usually in the form of money that is given from a high-income country to a lower-income country
What are 2 pros of a loan?
One benefit is that it can help fund development projects education healthcare
it can strengthen relations with countries
Name four disadvantages of loans
-It has to be paid back usually with interest
-countries may end up in debt
-they provide a small financial burden on the high-income country of money loss
-countries may be unlikely to invest if the project may fail
What are structural adjustment programs
They aimed to help countries facing economic challenges by providing financial assistance but often came with conditions like reducing government spending. The goal was to improve economic stability and growth
What are remittances?
This refers to the transfer of money typically by foreign workers to the home countries
Give 1 benefit of remittances
It decreases poverty because lower-income country individuals get food and water from the money
Give one disadvantage of remittances
Migration of skilled workers result in a lack of skilled workers in home countries this is called brain drain and it may impact local development
What is a Tariff
This is when taxes placed against exports
What are quotas
It is a limit on the number of products that can be exported
What are illegal flows
Illegal movement of goods and people across borders/inside the same country
Name three examples of illegal flows
-Human trafficking
-counterfeit goods
-narcotics
Give three reasons why human trafficking occurs
-For forced marriage
-for forced criminal activity
-for child soldiers
Which demographic of people are most affected by illegal flows
-Children
-impoverished people
-minority groups
-displaced people
Why are illegal flows so common in Africa
- Due to poverty, many people face economic challenges and therefore are more vulnerable to trafficking
- there is a lack of awareness
-there is gender inequality: more girls and women are affected by trafficking
-Africa has a weak legal system and law-enforcement systems which are less capable of combating human trafficking
Why is illegal flows to Europe so common
Europe tends to be the destination for migrants and refugees that were vulnerable to illegal flows which are promised economic opportunities
What are counterfeit goods
Counterfeit goods are fraudulent/fake goods
Three things counterfeit goods are responsible for
-Health implications
-environmental damage (for example fake dies in water supplies)-
Labour exploitation (child labour- Unsafe working conditions)
How are fake goods usually moved
Through shipping containers
What is drug-trafficking
A major global trade involving the cultivation, manufacturing, distribution and sale of illegal substances
Why is it harder to detect smugglers using drug trafficking
Due to globalisation, more borders and trade routes are open so it’s harder to detect smugglers
What is aid for trade
Aid for trade refers to financial and technical assistance provided to help developing countries improve their trade infrastructure
Give two positives of aid for trade
- improves economic performance in lower-income countries
-it supports projects relating to infrastructure, health, agriculture and education
Give two negatives of aid for trade
-It is difficult to make sure that the aid is effectively used and reaches the intended sectors
-it may create a dependency on aid
Name two contrasting examples of TNCs and their global strategies and supply chains
-Starbucks
-Apple
What is foreign direct investment
FDI is the investment by a company into the structures, equipment or organisations of a foreign country
What is offshoring
This refers to the practice of moving business operations/services to another country. For example when a country set up a call centre in a different country to save costs
What is outsourcing
When a company hires another company in a different location to do certain tasks/provide services. For example when a company hires a graphic designer from a different country to create their logo
Briefly explain how Apple offshores
Apple manufactures products in countries with lower production costs: China. This is because it is more cost-efficient, and increases global production. However, it is mundane and repetitive work
Briefly explain how Apple outsources
Apple outsources tasks like software development/customer support as it is more cost-efficient due to decreased labour costs
Briefly explain apples supply chain
-Apple has suppliers in six continents sourcing raw materials
-Apple heavily relies on logistics and transportation
Why isn’t Apple big in India
-India is cost-sensitive and Apple is a very expensive brand in relation to other phone companies
-Apple has a lack of Indian-customised apps to other phone companies
How does Starbucks use glocalisation to expand into international markets
-They change the menu to fit the region (China: Matcha green tea to appeal to the local drinking culture)
-incorporates local ingredients (red bean green tea frappuccino: Asian countries)
-designs of stores may be changed to match local architecture to connect with the local community, to provide a more personalised experience
Briefly describe Starbuck’s supply chain
Starbucks sources coffee from around the world and insures fair trade with farmers
Why did Starbucks fail in Australia
-Australia already had a well-established coffee culture with a strong coffee market (due to the influx of Italian migrants into Australia)
-Starbuck’s American-style coffee did not appeal to them
-Starbucks has a higher price than local stores
-local coffee chains had already built a loyal customer base
How does the IMF use loans to exert global power?
The IMF provides loans but imposes conditions, forcing countries to adopt specific economic policies. Failure to comply can lead to economic instability.
How does the IMF reinforce Western economic power?
- Countries borrowing from the IMF must repay in USD, increasing reliance on the US economy. (During the Asian Financial Crisis, IMF bailouts required countries
to ensure that repayments were in USD. This reinforced the dominance of the US dollar and Western financial institutions in the region.) - The US has the largest voting power (16.5%) and can block major decisions.
What Are Austerity Measures? + examples
Austerity measures are government policies aimed at reducing public spending and debt. They are often implemented during economic crises,
- Cuts to Public Services
- Higher Taxes
- Wage Freezes & Job Cut
(Greece (2010-2018): IMF bailout required pension cuts and tax hikes, leading to protests.)
2 pros and 2 cons of austerity measures
Pros:
- Helps reduce government debt.
- Restores investor confidence in a country’s economy.
Cons:
- Increases poverty and unemployment.
- Can lead to protests and political instability.
