Globalisation Flashcards
What is globalisation?
The increasing interconnectedness and interdependance of countries on one another due to developments in technology and transport
3 ways global connections have existed
- trade
- colonialism
- cooperation (ww1 international organisations)
What is westernisation?
The increasing influence of western culture in other countries
How are connections changing in modern globalisation
Widening - across greater distances
deepening - more people involved in many aspects of faraway places
faster - quickly get to other places
How might the width and depth of global connections be stunted?
- difficult visas
- income - imp ability to consume global products/services
4 flows
Capital
commodities
Information
People (Tourists and Migrants) 
How does capital flow between countries?
World stock market
investment - FDI
banks 
 Remittances
How do commodities flow across countries? 
trades
 Primary goods from developing countries
Manufactured goods from developed countries
Trade imbalance
Fossil fuels, food, minerals, traded between nations, 

Global shift and manufacturing
How information flow across countries
The Internet, real-time communication and social media
 Companies can communicate across countries 
How do people lead to flows? 
Migrants - permanent move to another country - economic social political environmental - move for better quality of life.
More disposable income = afford travel = tourists
Forms of globalisation
Economic, political, social, cultural, environmental 
Examples of economic globalisation (3)
TNC
ICT - growth of complex spatial division’s
E-commerce
Political globalisation (5)
Growth of trading blocs
Tariffs and quotas 
free trade
credit crunch - sudden reduction of money available for borrowing
global response to natural disasters 
Social globalisation (3)
International migrants - world city societies, multiethnic, and pluralistic
Improved education and health
Social interconnectivity due to mobiles and Internet  
Cultural globalisation (2)
westernisation, cultural traits of the ‘west’ dominate some territories
Circulation of ideas due to social media. Quick access and circulationto information. 
Environmental globalisation
Increasing concern for global environment
What is meant by interdependence?
An increase reliance on one another countries
Advantage (2) and disadvantage (1) of remittances
More money to support Family and people
Multiplier effect
Increase reliance causes insecurity 
What is isochronic distances? 
The time spent to travel a certain distance 
How has isochronic distances changed over a century
Increase accessibility due to flights and more airports fly straight there - time reduced
Not reliant on ports or going across landmass - landlocked countries connected
Faster efficient rails  
What are barriers to transport infrastructure?
Climates - impacts ability to reach there and ppl living - less developed in hostile climates environments - les d’infrastructure
Environment - harder to build
What is the shrinking world idea?
Times space compression 
Places are perceptually closer to each other, as it is more accessible -
more connectivity changes, preconceptions of time, distance, and potential barriers leads to time space compression
How does transport improve trade?
comm and transport improve = ppl can communicate across long distances better = companies can empty, sell and buy across wider places = more trade = more capital = more invested back into transport to grow bigger
3 key transport innovations
- Steam Power: steam ships quick armies and trade links btw Africa and Asia. Trains quickly link cities and countries e.g. Trans-Siberian Railway
- Containerism: Shipping enables large quantity of stock to be transported over long distances using intermodal containers e.g. Cosco chines vessel
- jet / Planes: travel time shortened considerably - tourism and business trips. Fruit and short life produce transport quick enough.
How has IT impacted globalisation
E-commerce stores
instant businesses and social communication - incr TNCs
CAD (computer aided design) incr flexibility of manufacturing - less reliant on humans - footloose
AI - does repetitive tasks incr creative tasks to be done by humans
What is privatisation and its impacts
state-owned assets being sold for private ownership
- incr competition = should be better quality or prices
- less gov borrowing
- less political interference
- monopoly abuse - possible increase prices so unaffordable to people
- incr foreign ownership and power
Meaning of Free-trade and its impacts
Trade btw countries without barriers to trade like tariffs or quotas
- ppl get lower -priced good
- exporters protected - products no added costs = more competitive
- prices lower for importers
- national businesses that face more competition
- ppl’s jobs put at risk
what is the Bretton Woods Agreement
1945 - start of IMF, World Bank and later WTO. After ww2 way to regulate international monetary systems to protect global trade, encourage free trade instead of protectionism
International Monetary Fund Aims
promote econ stability - regulating econ policies to ensure global trade is not harm
allows gov borrowing in return for following their rules
preventing the spread of communism
IMF Pros
enables gov borrowing
checks over financial policies
global trade and econ stabilised
IMF Drawbacks
austerity programmes or having to follow inspection
hard to protect national interest - no tariffs or quotas
power and benefits mainly with Europe and America
World Bank Aims
developmenf - aims to reduce num of ppl living under $1.90 per day (poverty) to less than 3%
Income growth of the bottom 40%
World Bank Pro
offers low interest loans, grants and tech assistance to low income
free trade - cheaper products for ppl
World Bank Drawbacks
conditions to grants (to join)
sm policies promote environ degradation
WTO Aims
trade liberalisation - ask countries to abandon protectionism - promote free trade and less tariffs and quotas
WTO Pro
free trade = cheaper products for pop
international trade - greater market
can get loans
operates on one country one vote system - to be fairer unlike IMF or World Bank
WTO Drawbacks
loans have conditions - developing countries need more so are more vulnerable to harsher or unfair trade regulations
lower prices on imported goods = local job loss
hasn’t stopped developed subsidising its farmers - CAP europe
bargaining with Europe and US - has more power
What is FDI?
Financial injection made by company into nations economy either to build new facilities or to acquire or merge with an existing firm already based there
What is protectionism
against free trade play some tariffs or quotas in place to restrict international trade to protect the nation‘s economy and businesses 
What is a trade bloc
A group of countries without barriers to trade
Examples of trade blocs
ASEAN
EU
Advantages of trade blocs
Cheaper to import products from inside the trade lock reduces price for businesses and people
help exporters - cheaper to sell in trade blocks so the products are more competitive.
Comparative advantage country can focus on producing what they are good at and trade for things they are not. For example, UK is good at finance
Disadvantage of trade blocs
Pay money to be part of the block to be invested into funds
Conditions to be part of the trade bloc
More competition which reduces domestic opportunities in business or jobs
Compromise and concession 
Interdependence - Greece, economic crash 2009, put the euro at
risk 
Loss of the sovereignty- hard to be independent on one’s own decisions 
How is trade supported in a trade bloc
Removal of tariffs
protection from foreign competition (outside trade bloc)
firms have a comparative advantage
big markets, increased demand reason the volume of production lowering manufacturing cost per unit due to econs of scale
Describe ASEAN 
Association of Southeast Asian Nations, 10 countries formed 1967 after colonialisation includes Singapore Malaysia, Philippines
combined population of 650 mil
Fifth largest economy in the world 
Original 4 Aims of ASEAN
Improve economic growth by greater integration of economy
encourage social progress through improvements in education and health
improve regional security
provide a mechanism for resolving regional disputes - after colonialism
New aims of ASEAN
protection of environment - e.g Philippines v vulnérable
acting as a counterbalance to neighbouring superpowers
a possible movement to a common currency
How does the EU help
EU structural funds to develop economies - e.g European regional development fund, and subsidies issued under CAP
Helps countries gained global reputation
political, unity and economic interdependency
only group of nations that grant or citizens of member states freedom of movement 
What is neoliberalism
developing countries remove obstacles to free market capitalism and allow capitalism to generate development
five key features of the neo liberalisation
Privatisation
encouraging business start-ups
cutting state spending - especially on welfare
cutting taxes - people have more money for spending
free trade
Integration into the global economy

What does special economic zones
Places with tax breaks, or subsidiaries to encourage businesses to invest 
In what ways is China open door?
TNCs are now allowed, invest in some sectors of China’s domestic market.
FDI from China, and its TNCs is predicted to total US$1.25 trillion between 2015 and 2025
2014 agreed to export more rare Earth minimals to other countries in line with WTO. 
In what ways is China still closed door?
Google and Facebook have little or no access to China market.
Chinese government has strict quota of only 34 foreign films to be screen in cinemas.
Still strict controls on foreign TNCs in some sectors. For example, Coca-Cola is acquisition of
Huiyan Juice blocked in 2008 
 What is an aerotropolis? 
Cities built around airports
Advantage of special economic zones
Attracts FDI + TNCs - produce jobs and business for domestic firms e.g supplies domestically bought
Transfer of skills + tech strengthens domestic firms allows them to grow globally
multiplier effect 
Foreign acquisition
TNC launches a takeover of a company in another country
foreign merger
Two firms in different countries joined forces to create a single entity
Off shoring
TNC move is part of their production processes to another country to reduce labour or other costs
Outsourcing
TNC contracts another company to produce the goods and services they need rather than doing it themselves. This result in the growth of complex supply chains.
GPN - Global production network
chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of consumer goods
Why do TNCs invest in GPN?
Foreign countries with lower environmental laws, and labour / land costs
How have GPNs been able to develop
Due to investment into transport and infrastructure, as well is communication and economic liberalisation
What is Just in time? 
time gap between production and delivery to customers is sharply reduced - production supply chains must be streamlined
What is meant by motive means and mobility
Spread of TNCs because they shared motive - profit, they have the means to move finances around the world and mobility to transport and communicate over long distances 
Why have new markets developed?
Increase disposable income in emerging countries
How many people have moved up from poverty to high income bracket since 1990s in Latin America, Asia and the Middle East and economies
2 billion
What is glocalisation?
global products that have been adapted to local taste - e.g McDonald’s
Positives of TNCs living standards
Raise living standards, (FDI increases productivity of labour force, higher wages and rising living standards ) multiplier effect
Positives of TNC - skills and businesses
Transfer of skills and technologies, more people in developing countries develop new skills and domestic suppliers get more orders
Positives of TNCs
Raise living standards
technology and skills transfer
political stability
higher environmental standards
How can TNCs, political stability
Investment from TNCs contribute to economic growth, providing work for the ‘floating population’ - which helps reduce conflict between rural and urban populations
How can TNCs improve environmental standards?
Have an international brand and therefore will try to develop more sustainable practices
Negative impact TNCs
Tax avoidance
growing global inequalities
environmental degradation, unemployment
Negatives TNCs, economic leakage
tax in headquarters in another country, avoid tax and profit goes elsewhere
Negative TNCs growing global inequalities
TNCs cluster in selected economies, concentrating FDI in favourite regions. GSEZ zone is, for example, more investment into east, China, rather than West China
Environmental degradation, TNCs negative
Developing countries, low, environmental regulations, therefore
environmentally unfriendly activities exported to those countries leads to pollution a
e.g. river Ganges, one of the most polluted in the world, due to factories
Unemployment, TNCs negative
Outsourcing and out shoring, leaves unemployment in developed economies
Leads to more government spending to provide benefits
Four steps, Taiwan took to develop due to government changes in policies
Land reforms - buying land from the elite and providing it to the rest allows to make a profit
push for industrialisation - manufacturing - cheap labour - competition by TNCs for labour - higher wages
Deregulated economy fewer regulations - cost of production decreases
ppl afford sch = increase education levels = access to tertiary and quaternary = higher pay
How has Nike in Vietnam influenced its people?
Secondary employment plays pays much higher than farming or other state jobs - multiplier affect and higher taxes to then be spent on the country
helps people out of the ‘subsidence trap’ they can gain more high skilled jobs
Vietnam and child labour
Outlaw child labour in 1988
children go to school in education can access higher paying to tertiary and quaternary jobs 
How has Kenya been reluctant to change
No land reform rights
Why is the Sahel region switched off?
Subsistence farmer and no land reforms - No Ownership no making profit low disposable income not an attractive market for TNCs
not a lot tax to be invested into transport infrastructure factories unattractive TNCs
Landlocked and remote difficult to access by travel or trade 
lacks raw materials as well as investment to process it - not attractive trade partner, restricts, economic flow
what historical factors might impact switched off areas?
Colonialisation a neo colonialisation
e.g. Gambia more regular flights to London then with Senegal its neighbour
 Why is North Korea switched off?
No access to Internet or social media switched off to social and cultural flows of globalisation
Why is global shift accelerated?
Individual in Asian countries, such as India, 1991, open the doors to oversea investment.
TNCs began to seek new areas of manufacturing like China, and for outsourcing services like cool centres in India,
FDI began to flow into the emerging and re-emerging Asian countries,
low cost of transport/containerisation
Infrastructure benefits of global shift to manufacturing to China
Maglev magnetic levitation train means 30 km journey between Shanghai airport and CBD takes eight minutes increase transport and communication
benefits of global shift to manufacturing to China wage to work
Higher disposable income = multiplier effect.
Car ownership has grown
Conditions have improved as companies have to be competitive for workers.
Benefits of global shift of manufacturing to China, poverty reduction
Middle-class, rising rapidly 300 million Chinese people are now considered middle class
Urban incomes have risen 10% a year since 2005
Benefits of global shift of manufacturing to China, education and training
Educators three, compulsory 94% of Chinese of 15 and literate can access to tertiary and quaternary jobs = higher pay
companies move up manufacturing value chain to 2010 gov strategic planning
Cost of global shift of manufacturing to China - environment
Air pollution, causes lung cancer and heart problems kills 1.6 million people a year
40% of China’s farmland and now suffering degradation
70% of Chinese, rivers and lakes enough polluted. 
Cost of the global shift to China - water
100 cities suffer from extreme water shortage
groundwater become increasingly polluted and 60% is of poor extremely poor quality
Cost of Global Shift China - unplanned housing
Land value increases and shortage of land. An increase in housing cost increase in squatter settlements.
Cost of global manufacturing China inequality
Real urban migration, large inequality between rural and urban areas, widening income gap
spiral of decline 
Why TNCs attracted to India for outsourcing
Large, skilled workforce, slow, labour cost, tax incentives, and world-class, infrastructure and technologies.
Companies outsource the IT requirements as it saves costs up to 40 to 50%.
Benefits of outsourcing to India
City Mumbai now technical 10 universities. Many research centres specialising in IT engineering.
Call centres workers and get middle of class.
Wages boom in service sector follow school because everyone coming to Mumbai has a good chance of finding work - due to multiplier effect
infrastructure has improved.
large Indian operators, conduct contract work
clusters of key industries Mumbai 
Costs of outsourcing services to India
13 of worlds top 20 polluted cities are in India
industrial waste and agricultural run-off lead to water pollution e.g. the Ganges ranked amongst worlds 10 most polluted rivers
exploitation of workers up to 10 hour shifts and six days, a week
widening income, gap - more billionaires than the UK, but still 500 million who live in homes without toilets
more demand for land leads to deforestation cause flooding, lost biodiversity land erosion and climate change,
overcrowding and shortage of land 60% of people live in slums.
How has air pollution increased?
Increased use of cause energy consumption due to high disposable income and secondary manufacturing
Air pol reduces life expectancy by 3.2 years - top 20 most polluted
In rural areas pollution from paraffin stove snake killed more than 1 million people a year
Water pollution
Less than one third sewage from urban areas are treated. Ganges ranked amongst worlds 10 most polluted rivers
factories use the River Mithi to dump untreated waste. 800 mil litres of sewage into the river every day.
Deforestation desertification
25% of India land experiencing desertification
commercial logging converting for forest to algricilture.
urbanisation and industrial expansion,
mining
construction of reservoir (Sardar Sarovar Dam)
Greenhouse gases
India is the worlds third largest emitter of carbon dioxide
main reason - It still uses coal as a main source of energy - wants to reduce reliance but still around 400 million people in the country without access to electricity.
Climate change
More than 60% of Indian farming relies on monsoon. Rain erratic monsoon. Rain pose is a huge threat to farming.
Kuznets Curve
The idea that environmental degradation occurs while developing, and after a country has developed can reinvest into the environment
