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
What does the KOF index and AT Kearney index measure?
Level of globalisation
Migration: benefits to host nations
-Fills skill shortages
-Migrants do work that locals won’t do
-Some migrants will start businesses
contributing to the economy
- 2013 14% of start ups owned by migrants uk
Migration: cost to host nations
-citizens may believe migrants are taking jobs/housing
-Political parties may reduce migration to appeal to people
-Migrants may bring over their culture causing tension
Migration: cost to source nations
-Loss of skilled workers
-Lack of consumption
-Lack of young people
-Urban services closed
-Loss of doctors
-urban decline - > Warsaw
Migration: benefits for source nations
-remittances contribute to economy
Eg 28% of Nepals GDP 2017
-Less unemployment
-Migrants return with skills
-Less spending on public health
Low wage migration: Qatar labour camps
-40 men share a kitchen
-Poor toilet/washing
-185 Nepalese workers died in 2013
450 Indian workers dead since 2012
-workers ignored
Global shift
The movement of manufacturing industries from developed countries to emerging and developing ones
Spiral of decline
Old factories close
Land derelict
Jobs lost
People leave inner city
Fewer shops needed
More jobs lost
More leave
Area run down
Crime
Poor quality of life
Positives of the global shift in deindustrialised regions
Reduced pollution
Focus on tertiary and quaternary
How has global shift affected developing countries
Economic: more employment
Social: Bangladesh child labour
Environmental: Togo 60% of forest lost
How does the global shift affect emerging countries (economic
600 million in China out of poverty. Indians earning middle class wages.
Purchasing power
Some workers exploited
More consumption
How does the global shift affect emerging countries (social)
-Better education
-8.2 million graduates in China 2019
-health investment
-air pollution reduced life by 5yrs
-Pm 2.5
How does the global shift affect emerging countries (environmental)
Pollution
Shell has polluted Nigerians delta region
-16 of 20 most polluted cities in china
How does the global shift affect developed countries?
-Deindustrialisation
-Detroit: 1700 buildings abandoned
-8% unemployment 2019l
Lost 1.1 million residents
Megacities
Cities with a pollution above 10 million
Urban pull factors
-Employment urban areas get HDI
-Professional roles
-Better services/education/health
Rural push factors
-Poverty lack of jobs
-Agricultural modernisation
-Resource scarcity
Environmental challenges for megacity growth.
-Water pollution from untreated waste
-Air pollution from industry
-Severity depends on economic and physical factors
Social challenges for megacity growth
-Housing/health/education provision
-Unemployment not enough good jobs for people
-Drive extremist political parties
Dharavi
1 square mile 1 million people
-No sewage. Cholera.
Reycyling: eg electric cables to water pipes
Cultural imperialism
Forced assimilation of culture. Achieved through coercion. Using legal or military tools
Americanisation
Specific cultural influence of USA
Westernisation
Joint role played by European and north american countries bringing about cultural change using soft power. Global media / entertainment
Elite migrants
Skilled/influential. Few obstacles. Welcomed by governments. Wealth form profession/inherited assets
Global hub
A highly globally connected city of region
Trade global hub example
Shanghai
Business global hub example
London
Governance global hub example
The Hague
Education/research global hub example
Cambridge
Cultural diffusion
The spread of one culture to another
Absolute poverty definition
When a person’s income is too low for basic human needs to be met potentially resulting in hunger and homelessness
Relative poverty definition
When a person’s income is too low to maintain the average standard of living in a particular society. Caused by asset growth for very rich people
Development definition
The ways in which a country seeks to progress economically and to improve the quality of life for it’s inhabitants
Post accession migration
The flow of economic migrants after a country joins the EU
Diaspora
The dispersion of a group of people from their original homeland
Nationalism
A political movement focused on national independance or the abandonmenr of policies that are a threat to sovereignty or national culture
Post colonial migrants
People who moved to European countries from former colonies during the 50s 60s and 70s
Cultural erosion
The change / disappearance of a culture due to the spread of another
Hyper globalisation
The idea that a largely westernised global culture is emerging as a result of cultural erosion
French reaction against globalisation
Protective of culture. Gov supports French filmmakers. 40% of TV must be French productions. French language prominent in music
China reaction to globalisation
Great “firewall” of China. No foreign social media. Only 34 foreign films a year.
Some western culture like Christmas
Nigerian opposition to globalisation
Oil spills from TNCs like she’ll. Environmental damage. Gov executed a protester
GDP
Total value of goods and services earned by a country (just domestic)
GNI
Value of goods and services earned by a country both at home and abroad
Limitations of GDP
People earning loads makes number higher
Informal sector jobs aren’t registered
PPP(purchasing power parity)
Where GDP is adjusted to reflect local cost of living
HDI
Composite measure including life expectancy GDP mean yrs in school and literacy rate. From 0 to 1
GII (Gender inequality index)
Reproductive health
Empowerment (positions of authority)
Education
Employment
What % of London is white
43%
What % of the UK is indian
1.5%
What processes have led to increased ethnic diversity in London
Open borders during EU: 2015 250 000 french in London
Freedom to invest in businesses and transfer capital
Fdi overseas companies no gov approval needed
Controlling flow of information example
Chinese government
Great firewall of china
Censorship no western media
Fear of American influence
Huawei UK 5g tensions
Controlling flow of resources example
First nations canada
Indigenous groups eg Sahtu region
200 million barrels of oil extracted since 1920
Death of fish
Drug and alcohol problems brought by oil workers
Shale gas
Controlling flow of goods example
Trumps trade wars against china
Tarrifs on foreign products eg chinese
Encourage buying local products
Protectionism
Sustainability
Meeting the needs of the present generation without compromising the needs of future generations
Environmental sustainability examples
-Protecting biodiversity
-climate protection
-Protecting resources
-Organic food
-No pesticides
Society sustainability examples
-Education
-equal rights
-fair trade
Economic sustainability exmaples6
Business/industry
Produce in season
Buying local
Carbon footprint
The amount of carbon dioxide produced by an individual or activity
Water footprint
A measure of the amount of water used in the production and transport to market of food and commodities
Ecological footprint
A crude measurement of the area of land or water required to provide a person or society with the energy food and resources needed to live and also absorb waste
Fiji water
Not sustainable. Bottled water containerised transport 20 000km to UK cheap labour
Example of local sourcing
Eden project. Provides 600 000 meals each year to visitors. 90% of produce is from Cornwall/Devon
Lewes pound
Lewes has its own currency that can be used in certain local businesses. Encourages visitors. Keeps money in the local economy. Money spent in chain stores leaves the town
Totnes
Transition town. Locals want to reduce energy costs/carbon emissions
What have Totnes done?
Saved 1.3 tonnes carbon emissions
Street share garage donate tools/toys
Bringing people together
Drop in work space reconomy centre
Community gardens grow food for locals - incredible edible scheme
Bangladesh Rana plaza
Factory collapsed in Dhaka
Over 1000 deaths
Mostly female garment workers
Fair trade
Agreed minimum price for product +social premium makes sure farmers are paid enough
Products like coffee bananas chocolate
Fair trade advantages
Improves pay for farmers
Social premium can pay for services like schools
Fair trade disadvantages
Most products aren’t fair trade
Makes up less than 1% of global trade
Expensive
Low income people won’t buy
Supply chain monitoring examples
Apple: iPhone screen supplier lianjian technology workers poisoned by chemical
Gap + Nike prohibit worker exploitation in they’re factories
NGO action
Oxfam. Amnesty international
NGO’s have limited financial resources
South African fruit pickers
Bangladesh accord
Legally binding agreement on worker safety. Ensures safety checks are carried out in factories. Signed by British TNCs
Boohoo
Anfislavery.org
Leicester factory
Unacceptable/dangerous working conditions
Lack of supply chain monitoring
M and s sustainability
Plan A. Protect planet help communities. Sourcing responsibly/reducing waste. 100 new commitments
Show info about suppliers on a map eg trade union/gender split
