Globalisation Flashcards
Globalisation
The process whereby the world is becoming increasingly interconnected and interdependent through trade and travel
Thomas Friedman “The world is flat”
1492-1820: Driven by countries
1820-2000: Driven by companies
2000-present Driven by individuals
Free Trade Blocs
Groups of countries that allow free flow of goods and money, eg the EU
Offshoring
TNCs producing in low wage economies and shipping to HICs
Foreign mergers
2 firms from different countries merge
Foreign aquisitions
A TNC taking over a foreign company, often hostile
KOF index
Measure of globalisation, compares countries (mainly by economic factors)
AT Kearney Index
Measures globalisation of cities by business activity, information exchange, cultural experience, political engagement and human capital
Outsourcing
A TNC pays a foreign country to fulfill a job for them (production)
Global Production Networks
Chains of production through multiple countries
Glocalisation
When a TNC adapts its product to suit local culture
IMF (International Monetary Fund)
-Loans to nations if they accept free market economics
-Can mean cuts on education, healthcare etc
World Bank
-$470m to Philippines for poverty reduction 2014
-All presidents have been American
WTO (World Trade Org)
-Advocates for trade liberalisation
- China removed restrictions on rare earth minerals 2014
Switched on
-Large labour force
-Good infrastructure
-Govt support of TNCs
-Political stability
-Coastal
-Natural resources
Switched off
-Corruption
-Censorship
-Natural disasters
-Debt
-Poor infrastructure
-Landlocked
Rural-urban migration in Dharavi (Mumbai slum)
-People migrate for jobs, better education, healthcare etc
-700k people
-500 people per toilet
-Mass plastic pollution
Cultural diffusion
The spread of one culture into another
Cultural homogenisation
How cultures are becoming increasingly similar.
eg Americanisation with music, movies, TNCs
Diaspora
Community who share a national/ethnic identity living away from their homeland
Censorship
Restricting information from being exposed to the public. Restricts political, social and cultural globalisation.
Localism
Prioritising local success rather than regional or global.
-Wapping Wharf with only local independent businesses (CARGO 56 shops)
Containerisation
Use of steel containers and ships to transport huge quantities goods
Upward and Downward Transition Zones
Areas that are expected to see an increase/decrease in economic/ industrial prosperity. Having been switched on/off to globalisation
