Globalisation Flashcards
Define Globalisation
the increasing connections between places and people across the planet, established through trade, politics and cultural exchanges, and helped by technology and transport
Define Containerisation
The standardisation of shipping containers and, consequently, port infrastructure around the world
What is shrinking world theory?
the idea that the rapid rate of globalisation has made the world feel smaller, that we are more connected to people on the other side of the world than ever before.
What are the financial impacts of globalisation?
Capitalism is spread through large TNCs.
Cheap labour supplies the developed world with cheap consumer goods.
Money is transferred electronically everyday.
What are the political impacts of globalisation?
Spread of ideas/ideology through news.
International political organisations have expanded to promote economic growth, e.g. the EU, G7
TNCs influence national governments.
Tariffs and quotas have been reduced or removed to follow through with economic liberalisation.
What are the impacts of globalisation on the population?
economic migration flows
What is the IMF?
A Bretton Woods institution established in 1944 that aims to maintain international financial stability.
How does the IMF promote economic liberalisation?
Through the use of SAPs which force countries to privatise many industries in order to get out of debt.
Why are SAPs sometimes viewed as controversial?
They can cause social unrest as seen in the Greek debt crisis in 2008.
What is the World Bank?
A Bretton Woods institution established in 1944. It was formed to finance economic development.
What else does the World Bank focus on?
It provides aid for humanitarian and natural disaster emergencies.
What is the World Trade Organisation?
It encourages national governments to remove tariffs and quotas to encourage economic globalisation and free trade.
What are subsidies?
grants given by governments to increase the profitability of key industries.
What is FDI?
Investment made by an overseas company or organisation into a company or organisation which is based in another country.
What was China’s Open Door Policy in 1978?
China opened up its borders for the first time to encourage trade with the Western World.
