Globalisation Flashcards
What is globalisation?
The variety of ways that places and people are becoming ever more close and connected.
What are the 4 strands of globalisation?
Economic, Social, Political, goods
How have flows of capital caused globalisation?
Money flows through banks/stock market. Profits are made from trading currencies.
How does trading cause globalisation?
Raw materials eg fossil fuels are traded between nations. Now there are more manufactured goods flowing. 1/3 of GBP from agriculture/industrial.
What is shrinking world?
Countries are now better connected giving the impression that the world is shrinking as its easier to get around. Improved transport eg planes/high speed rail
TNC definition
Businesses whose operations are spread across the world.
Spatial division of labour definition
Where TNCs move low skilled work abroad where labour costs are low. Skilled management are kept at HQ in HIC
Technological leap frogging definition
The adoption of new technology by a developing economy without using the basic tech first
What motivates TNCs?
Profit motivates TNCs to expand across the globe
What allows TNCs to expand?
Banking/free flow of capital
Mobility for TNCs
Faster/cheaper transport
Global production networks
Rapid communication
Intermodal containers definition
Large capacity storage units which can be transported long distances using multiple types of transport.
Time space compression
The perceptual change of time, distance and potential barriers to the migration of people, goods, money and information through heightened connectivity
Examples of aircraft innovations
Easyjet: cheap flights. £40. 337 planes 2020
Improves economies of flight destinations through tourism
Boeing 747
allows international travel
Rail innovations
Eurostar
Trans siberian 1904
How has tech allowed economic globalisation?
Manage people in other countries
Better communications
How has tech allowed social globalisation?
Skype- migrants can speak to family
How has tech allowed cultural globalisation?
cultural traits shared around the world.
Eg music/language
Tiktok 150 countries
How has tech allowed political globalisation?
Can raise awareness online
ISIS use the internet to recruit
Broadband/fibre optics
1980s/90s
fibre optic cables ocean floor connecting countries
1.2 million km of cables
Search/email/text
Trade Blocs
An agreement between a regional group of countries for free trade
FDI(Foreign direct investment)
Investment made by an overseas company or organisation into a company or organisation in another country
Free market liberalisation
The belief that reduced government intervention in the economy leads to more economic growth
Privatisation
Selling government assets eg water/rail to private companies to run for profit
UK government tax break example
UK gov gave tax breaks to companies investing in certain areas eg London dockyards
Encourages FDI
Encourages foreign companies to come to London
UK government grants/subsidies
Toyota factory Burniston
Nissan
Japanese car companies
Glocalisation
Changing a standard product to appeal to locals. For example McDonald’s maharaja mac
Glocalisation
Changing a standard product to appeal to locals. Eg dominos is vegetarian in hindu communities
Tariffs
Taxes paid when importing or exporting goods and services between countries
Subsidies
Grants given by governments to increase profits of key industries
Trade liberalisation
Removing barriers so free trade can occur
World trade organisation
Am organisation which believes in trade liberalisation, encourages trade between countries free of of tarrifs, quotas or restrictions on trade
International monetary fund
Organisation. Primary role to increase financial stability by stabilising currencies and granting loans to countries that can’t pay debts
World bank
Organisation that aims to tackle poverty by providing low interest loans for development in countries. Countries agree to certain conditions for repayment and economic growth
IMF negative impact
Governments may have to reduce spending in housing and health
World Bank negative impact
US influence
Off shoring
Outsourcing overseas
Outsourcing
When work is contracted out to another company
Horizontal integration
When a company expands at one level of the production process eg apple buying logic pro
Vertical integration
When a company controls / owns every stage of production
Negatives of call centres in phillipines (case study)
-Antisocial hours
-Health risks: diabetes/heart/obesity
-Night shifts can cause health issues
Benefits of call centres in the phillipines (case study)
-higher wages for citizens
-They understand Americans due to colonial link
-Fdi leads to economic growth
-Employee benefits eg gyms
Global production network
A chain of connected suppliers of parts and materials to the manufacturing or assembly of consumer goods
What does KOF index measure
-Economic globalisation (eg Fdi)
-Social globalisation (eg calls)
-Political globalisation (eg embassies)
KOF index limitations
-Complex calculation
-Gaps in data
-ignores internal markets
What does the AT Kearney index measure?
-Economic integration
-Personal contact through calls/remittances
-Political engagement
-Tech connectivity
AT Kearney index limitations
-Complex calculation
-Gaps in data
-Some indicators skew outcomes
-Trade bloc countries will have higher scores
Advantages of factories in Bangladesh
-80% of exports
-Provide work
Disadvantages of factories in Bangladesh
Poor conditions
380 died when a factory collapsed
Few rights
Staff threatened if they complain