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Globalisation Flashcards

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1
Q

What is economic globalisation?

A
  • Growth of trans-national corporations
  • Online purchasing from other countries
  • Cross border trading
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2
Q

What is social globalisation?

A
  • International immigration
  • Global improvement in public services such as healthcare, education etc.
  • Interconnectivity such as emails and mobile phones
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3
Q

What is cultural globalisation?

A
  • The circulation of ideas and values thanks to 24 coverage and social media
  • Successful western culture has begun to affect other parts of the world
  • Glocalisation, local needs met by international corporations.
  • Hybridisation, mixing or blending multiple cultures
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4
Q

What is political globalisation?

A
  • Growth of trading blocs allowing TNCs to merge with others and reduce tariffs and trade restrictions to increase trade
  • Global affairs such as response to natural response, free trade and credit crunch
  • Corporations include WTO, IMF and the world bank.
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5
Q

What is lengthening of connections?

A
  • Connecting with people or companies further away from your location
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6
Q

What is the deepening of connections?

A
  • To become more connected to other countries and cultures, the food you eat, the clothes you eat etc.
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7
Q

What is the speed of connections?

A
  • People are more able to to speak to others further away in real time through things like skype.
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8
Q

What has globalisation increased the flow of?

A
  • Capital, the flow of money increased. (2013, 5 trillion dollars flowed through international trade)
  • Commodities, raw materials, fossil fuels and food. (global GDP valued at 80 trillion dollars in 2015)
  • Information, Facebook in 2015 had 1.5 billion users.
  • Tourists, China 120 million outward trips in 2014
  • Migrants, combined number of economic immigrants reached 250 million in 2013 and 500 billion dollars in remittances in 2013.
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9
Q

What are some important transport developments that have increased trade in the 1900s?

A
  • Britain was leading in steam power in the 1800’s moving goods to Asia and Africa
  • Railways in the 1800’s expanded globally and the 9000km trans Siberian railway was finished. HS2 railway halves journey times.
  • Jet aircraft, Boeing 747 in the 1960’s saw the expansion of tourism
  • Container shipping, 200 million containers move each year, Chinese boat Cosco carries 13,000 containers

(EasyJet case study)

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10
Q

What are some important developments in ICT that increased the rate of globalisation?

A

Telephone and Telegraph - First telegraph cable laid in 1860’s, people are leapfrogging straight to phones

Broadband and fibre optics - Arrived in 80’s and 90’s, 1 million kms of fibreoptic cable on sea floor

GIS and GPS - Launched by satellite in 1970’s

The internet and social media - 2014 5 billion Facebook likes registered daily, computer network ARPNET founded in 1960’s

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11
Q

How has the IMF influenced globalisation?

A
  • Based in Washington DC
  • Channels money from rich nations to those who apply for it but those who receive it have to run free markets so TNCs can easily access countries.
    -Strict rules hold back countries from investing education and healthcare.
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12
Q

How has the world bank influenced globalisation?

A
  • Based in Washington DC
  • Lends money to developing countries, lent Philippines $470 million to reduce poverty
  • Gave the DMC a direct grant to kickstart the mega dam project
  • Gave $65 billion in loans in 2014 but is restrictive and all presidents have been American.
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13
Q

How has the WTO influenced globalisation?

A
  • Took over control of tariffs and trade in 1995
  • Based in Switzerland
  • Asks countries to abandon protectionist policies in favour of untaxed trade
  • Convinced China to lift export restrictions on rare Earth materials
  • Failed to stop the world’s richest countries from subsidising there own food producers harming farmers in developing countries
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14
Q

What are the Bretton Wood institutions and how have they impacted globalisation?

A
  • Created a global legal and economic framework to help free trade and foreign direct investment helping TNCs thrive
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15
Q

What are the different types of Foreign direct investment?

A

Offshoring - building factories in less developed countries because of their low wage economies.

Foreign mergers - Two firms from different countries join forces such as Shell having its headquarters in the UK and the Netherlands

Foreign acquisition - A TNC takes over another business in another country, Cadbury was taken over by US food giant Kraft in 2010.

Transfer trading - When companies transfer money through smaller companies in tax havens such as Ireland.

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16
Q

How has the development of Trade blocs increased globalisation?

A
  • Removing restrictions on inside trade markets grow, when ten countries joined the EU in 2004 Tesco gained 75 million customers
  • Countries that produce superior product gain access to a massive market such as wine makers in France
  • More demand means higher volume of production meaning less cost for manufacturing
  • Smaller companies can merge to create bigger businesses

(ASEAN and EU case study)

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17
Q

What is an SEZ and some examples?

A
  • Countries develop SEZ’s which attract foreign investment due to economic benefits
  • Indonesia, 1960s became a popular offshoring location for GAP and Levis with world bank financing development of infrastructure, Human rights activists became concerned because of the area becoming a sweat shop haven
  • India 1991, Tata and Bharti Airtel becase global. Until 2013 Foreign TNCs could only start in India if they partnered with local Indian businesses leaving 90% of businesses in India being family owned

(Open door policy case study)

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18
Q

What are some ways globalisation is measured?

A
  • The KOF produces an annual index of globalisation. in 2014 Ireland and Belgium were the world’s most globalised countries . Use complex criteria involving amount of TV licenses to participation in UN meetings. Validity can be argued.
  • The A.T Kearney index ranks cities like Tokyo, London and Paris among the ‘alpha cities for commerce’. Factors such as amount of TNCs, museums and foreign embassies.
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19
Q

How reliable are the KOF index and the AT Kearney index?

A
  • Not very reliable or valid due to statistical gaps and crude averaging
  • Poor proxies for globalisation such as hours spent watching TV.
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20
Q

Why have some places benefited more from FDI and TNCs?

A
  • Not all places are fit for production because of governmental, educational and accesibility factors.
  • Not all places have the market potential to attract retailers.
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21
Q

What is outsourcing and some examples?

A
  • Cannot offshore so instead rely on another company to supply goods in exchange for capital.
  • This results in a global production network, a chain of connected suppliers of parts and materials.
  • Kraft and IBM both have 30,000 suppliers
  • 2500 suppliers provide parts to assemble a Mini cooper with the windscreen made in Belgium and the bonnet in the Netherlands.
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22
Q

What is glocalisation and some example?

A

Changing the design of a product to meet local demand based on Taste, Religion and culture, Laws, Local interest and Lack of availability.

  • 2009, Walt Disney gained right to Marvel and glocalised spiderman India. Pavitr Prabhakar is given powers by a mystical being.
  • 2012, McDonalds opened 35 thousand restaurants in India that catered for Sikhs, Hindus and Muslims by providing chicken, veggie and paneer burgers.
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23
Q

What is global shift?

A
  • International relocation of industrial activity from developed countries to Africa, South America and Asia
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24
Q

What are the benefits of global shift for Asia?

A
  • 500 million people in Asia escaped poverty
  • By 2030 it is predicted China will have 3 billion ‘global middle class’
  • China awarded 30,000 PhDs in 2012 and around 2500 universities in China, India and South Korea
  • Increased development of infrastructure

(China service and labour case study)

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25
Q

What are the negatives of the global shift in Asia?

A
  • Since 1990, Togo lost 60% of its forested areas to make way for urbanisation, logging and cash cropping.
  • Unplanned settlements form such as slums because of employment hotspots, the Dhavari slum in Mumbai with people living on £200 a month but it is also home to a £700 million a year recycling industry.

(China service and labour case study)

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26
Q

What are the environmental impacts of developing countries?

A
  • China, Workers for wintek were poisoned by a chemical used to treat the glass for iphones.
  • Ivory coast, Tens of thousands of Ivorians poisoned by toxic waste dumped by a European TNC leading to a £28 million cash settlement
  • Indonesia, land degradation and biodiversity, 100,000 football pitches of forest lost every year to make way for palm oil and mining industries
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27
Q

What are the social negatives of deindustrialised areas?

A
  • Mass unemployment in Detroit due to prior reliance on the secondary industry
  • Crrime, in some US urban districts life expectancy is 30 years lower than affluent districts
  • Depopulation in places like Baltimore which lost a third of its population leaving 30,000 abandoned properties. This lead to a decline in house prices with some places being sold for a dollar. Many trapped in negative equity. This has caused ‘white flight’ reigniting racial tensions.
  • Dereliction, from graffiti to arson
28
Q

What is a megacity and some factors that cause them?

A
  • A megacity is a city with 10 million or more people
  • Can be caused by natural increase, when the birth rate is higher than the death rate
  • Rural to urban migration, people moving from the countryside to the city.
29
Q

What are some causes of rural to urban migration?

A
  • Employment, FDI from foreign investment in poor areas creates employment opportunities
  • Public services such as education and healthcare likely to be better in cities
  • Poverty in rural areas made worse by overpopulation and land reforms
  • Introduction of farming machinery means less jobs in rural areas
  • Resource scarcity in rural areas may cause conflict
  • The rise in use of technology means people in rural areas are beginning to get clued up on the advantages of the ‘outside world’
30
Q

What are some negatives of rural to urban migration?

A
  • The formation of megacities means higher population density in cities, this can lead to the formation of informal housing in unsafe condition such as floodplains in Sao Paulo and municipal dumps in Lagos

(Mumbai and Karachi case study)

31
Q

What are the social challenges of the development of megacities?

A
  • Providing public services, such as healthcare and education, and housing is always a major problem in places such as the DMC and Nigeria
  • Social sustainability becomes a problem, in Tunis and Cairo youth unemployment exceeds 24%
32
Q

What are the environmental challenges of the development of megacities?

A
  • Water pollution from untreated sewage
  • Air pollution form industry and exhausts
  • Mediterranean cities such as Greece and Athens suffer from smog
  • India and Pakistan suffer from high rainfall and flooding due to failing sewer systems
33
Q

What is a global hub?

A
  • Area that becomes a popular area for business, education, global governance etc.
  • Such as Washington DC being home to world bank, IMF, the white house and the Pentagon
34
Q

What are the different types of migrants?

A

Elite international - Highly skilled, might live in multiple countries, welcomed by most governments due to high influence

Low waged international - Drawn towards global hubs in large numbers, work in kitchen construction sites and gardens illegal or legal.

Internal migration - Main driver of city growth in developing countries but less so in North America and Europe

35
Q

What are the benefits of migration for the host country?

A
  • Fills particular skill shortages
  • Economic migrants willing to do work others wont
  • Migrants pay rent and tax
  • Some are ambitious entrepreneurs and will set up successful companies 14% of businesses in 2013 were migrant owned
36
Q

What are the negatives of migration for the host country?

A
  • Social tensions rise due to natives believing the migrants are taking all the jobs
  • Some parties may pledge to reduce migration in order to meet social needs
  • Local shortages of primary school places due to natural increase
  • New markets develop for ethnic food bringing visible change to the urban environment
37
Q

What are the positives for the source region?

A
  • Remittances can make up a large portion of national earnings (2014 25% of Nepals earnings were remittances
  • Less public spending on housing and health and the funds cam be spent elsewhere
  • Migrants and their children may return bringing skilled people back to their home country
  • Some government spending costs are transferred to the home region
38
Q

What are the negatives for the source region?

A
  • People are schooled as a government expense and don’t use those skills in their home countries (brain drain)
  • Reduced economic growth due to falling consumption
  • Increase in the proportion of aged dependants and the cost that comes with it
  • Closure of some university courses due to lack of students aged 19-21
  • Closure of services with a young adult market due to lack of target market.
39
Q

What is cultural imperialism?

A
  • When a more affluent country advertises their culture in a less affluent one.
40
Q

What is soft power?

A
  • The process of a country becoming influential through its culture rather than having to use force such as the British and Roman Empires.
41
Q

What influence do TNCs have over culture?

A
  • Shape common culture through TNCs, Corporations such as Nike and Apple roll out universal products forming common global interests.
  • This causes glocalisation which could be argued is a less harsh form of cultural imperialism
42
Q

What influence does Global media have over culture?

A
  • Media giants such as Disney form global culture through rolling out global stories such as marvel superheroes such as spiderman which is glocalised in places like India
  • Western media only provides a window into what British and American culture is like and there are many non-western factors influencing global culture
43
Q

What influence does Migration and tourism have over culture?

A
  • People over time have introduced their culture into places other than their native countries. For example Benidorm in Spain which has one of the highest immigrant population in Europe
  • Change can only be partial, English people shared their love for cricket across the world but has no major effect on religion or cultural traits.
44
Q

How has globalisation affected poverty and global distribution of wealth?

A
  • Oxfam calculated that the top 1%’s share of global capital was 44% in 2009 and increased to 99% in 2016 meaning relative poverty has risen a big amount
  • 1 billion people still live on less $1,25 a day
  • The rich are in a better position to invest in new schemes in the developing world.
  • Global poverty has halved since 2000 millennium development goals particularly in Asia
45
Q

What is income per capita and GDP and how can they be used to measure development?

A
  • Income per capita is the average income of a particular group of people, calculated by dividing the aggregate income of a country by the population
  • Estimating GDP is not a good way to measure development because of the amount of people in informal work so their earnings aren’t declared.
  • All of the countries earnings are exchanged into dollars to be measured but due to erratic exhange rates the amount could soon change
  • GDP is also manipulated to account for average cost of living in different countries. Low cost economies will have a larger economy
46
Q

What is economic sector balance and how can it be used to measure development?

A
  • Every country calculates how much each sector contributed to GDP
  • If a developed country based their annual GDP off of primary sector they wouldn’t be worth much but if they based it off of the tertiary sector they’d be worth much more.
47
Q

What is the human development index and how can it be used to measure development?

A
  • Ranks countries due to economic and social criteria such as education, Income and life expectancy
  • Devised by the united nations
  • Three factors are used to devise a number 0 through 1.
    -In 2014, Norway was ranked number 1 with 0.944 and Niger was ranked last with 0.337
48
Q

f What is the gender inequality index and how can it be used to measure development?

A
  • Devised by the united nations
  • Measures gender inequalities through 3 aspects of social and economic development
  • Reproductive health
  • Empowerment
  • Employment participation rates of men and women over 15
49
Q

What is environmental quality and how can it be used to measure development?

A
  • Environmental quality is usually bad in developing or low income economies due to industrialisation
  • The environmental performance index ranked Bangladesh the worst with a score of 9 whereas Ireland was ranked first with a sore of 98.3
50
Q

What global economic effects has industrialization caused?

A
  • Average incomes has risen in all continents since 1950 most slowly in Africa
  • Widening of average income between the richest and poorest countries
  • Absolute poverty has fallen worldwide
  • Three speed world development because of middle class development.
  • Bigger wealth divide within nations, the gini coefficient can help to measure this
51
Q

What impact has open borders had on migration?

A
  • Open EU borders increased cultural change due to post accession migration such as the arrival of 1 million Eastern Europeans to the UK.
  • Uk’s population increased roughly by 5 million in 11 years since 2004
  • Polish migration has increased and now there are places such as polish supermarkets to accommodate Polish culture
  • British people have spread across Europe but due to English youth the culture has been somewhat stained
52
Q

Why do English based TNCs worry about restrictions on migration?

A
  • They threaten competitiveness and the UK’s role as a global hub
  • Many TNCs have hired skilled people from overseas
  • Chinese and Brazilian TNCs wanting a European base are less likely to choose London
53
Q

Why are many Londoners worrying about restrictions on migration?

A
  • believe migration has progressed too far
  • Many people voted for UKIP in the 2015 election
  • 30% of London’s population were born in another country
54
Q

How can governments try to control economic, human and informational flows globally?

A
  • Laws can be strengthened to lower the number of economic migrants but illegal immigration is still apparent and it is a fundamental human right to avoid persecution by seeking asylum in other countries
  • 40 world governments limit their citizens from accessing some information such as violent or sexual imagery however the dark web makes this hard
  • Trade protectionism is still apparent despite the bretton woods institutions
55
Q

What are some environmental insecurities caused by globalisation and the symptoms?

A

Food - By 2050 global food is estimated to double and middle class diets have larger ecological footprint

Water - Food production depletes water supply, chocolate, coffee and wine have high ecological footprint. Every household’s water usage increases the more developed a country gets

Energy - 50% increase in energy usage by 2035, increased use of fossil fuels inevitable

Climate - In 2013, global concentration of carbon dioxide reached 400 parts per million global temperature rise of 2C seems inevitable

56
Q

What is local sourcing and how can it solve environmental problems caused by globalisation?

A
  • Environmental costs should be taken into account during cost-benefit analysis.
  • It is better to shop locally in order to limit food miles and an example of this is the eden project in cornwall which provides 600,000 meals for its participants and 90% of its produce is bought from Cornwall and Devon
57
Q

What are the costs for consumers when local sourcing?

A
  • Local sourcing for meat and vegetables can be very expensive
58
Q

What are the benefits for consumers when local sourcing?

A
  • Crops are grown with less pesticides and this could have health benefits
59
Q

What are the costs for producers when local sourcing?

A
  • Less demand from UK consumers means less business for people like the Ivorians
60
Q

What are the benefits for producers when local sourcing?

A
  • Uk farmers moved up the value chains by manufacturing locally sourced items such as jam and wine
61
Q

What are the costs for the environment when local sources?

A
  • Fruits needing a lot of heat are grown in greenhouses and polytunnels producing more carbon footprint than imported goods
62
Q

What are the benefits for the environment when local sourcing?

A
  • Local sourcing sometimes helps people minimise carbon footprints lowering environmental impacts of globalisation
63
Q

What is ethical consumption?

A
  • People becoming more aware of what they are purchasing to avoid supporting the exploitation of workers in low wage economies
64
Q

What is Fair trade and how do they contribute to environmental change?

A
  • The fairtrade foundation’s certification offers guaranteed higher income to farmers even if the market value changes.
  • Not all shoppers will pay the higher prices of the goods but they know the extra price will go into the pockets of the farmers
  • It becomes harder to distribute the money correctly as the scheme grows.
  • Not possible for all the farmers of the world to join fair trade due to rising prices affecting inflation
65
Q

What is supply chain monitoring and how does it contribute to environmental change?

A
  • Large businesses accept the need for corporate social responsibility
  • Largest TNCs have thousands of suppliers increasing the risk of workers being exploited and this needs to be monitored
  • Apple investigated its iphone touchscreen supplier because its cleaning chemical was poisoning workers
  • Nike and GAP prohibit worker exploitation but it is hard to pay for the workforce for every single supplier and is even harder to pay for the suppliers supplier.
66
Q

What is NGO action and how does it contribute to environmental change?

A
  • Charity,, war on want, South African fruit pickers and flew a woman to London for a tesco shareholder meeting
  • The woman said there was no female toilet on the farm she worked at and Tesco threatened to find another suppier if conditions did not improve.
  • Unfortunately they have limited financing.

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