globalisation Flashcards
transport case study
easyjet
most of europs major are now interconnectd via Easyjets cheap flight network
300 flight routes within EU
by 2014 200 aeroplanes
65 million people to their destinations revenue of £4 billion
how has the growth of air travel led to a shrinking world
- the world feels smaller places are closer and cheaper in terms of travel time
anywhere anytime encouraging people to travel
globalisation definition
the process by wich people , their cultures , money, good and information can be transferred between countries with few or no barriers
the word becoming deeper conected and connections beween places lengthening
increasing flow of
goods - products and commodities we all buy in shops , grownn and made in distant countries
capital - flows of money between people , banks , bussinesses and governments
info- data transfered between bussinesses and people - internet
people - flows of migrants and tourists
4 strands of globbalisation
economic - growth on tncs , ict, online puchasing
social - international migration global improvements in education
social interconectivity
political - growth of trading blocs
global concerne eg free trade
world bank , imf wto
cultural - western culture traits , glocalisation, circulation of ideas and info accelerated 24 hour reporting
factors accelerating globalisation
trade
igos
information satalite media
transportation
trade accelerating globalisation
counties inport and export goods
rely on other countries to supply good s
consuming the same things acreoss the eorld wto world trade organistation
international moetry fund attempt to referee global trade loans from richest countries in return governments that receivethem must run free market economies that are open to investmen from the outside
IGOs
world bank IMF
free trade
connecting countries so we can seek cheapest products
information sattalite media
allows people across the globe to trade
better real time communication
faster and more inclusive
growth of global coporations
transport
tourists - more affordable , mor accesible
migrants container ships
arrival of the boeing 747 in 1960s international travel
cheap flights - easyjet
growth of containerism 200 million container movements per year
shrinking world
how does ict role in globalisation
allows connections acroos the globe
faster and more inclusive
increses amount of globals available info
social networks
keeping in touch - maintain relationships
info sharing -
growth of global coporations - eg supplies maintaining ordering
language , music, adopted
donatins
mobile technology
moblie phones - 1990sn
landline 1900
intenet acess mid 1990s
satalite based tv
social networkig inst , facebook skype wharsapp
ICT case study
facebook and microsoft to build private internet highway underwater
coast of the us to spain to speed up global internet services
facebook - broadcast live video and virtual reality
tech companies assuming the roles of governments
wireless internet to africa
will have their own provate internet highway between 2 major
highest cacity undersea cable yet across atlantic
increasing the bandwith so that more places can be conected and more info can be shared in the form of vr and live video
IGOs role in globalisation
promotion of free trade policies and FDI
demanding payment of yaxes and tarriffs
limit inports ad exports
banning foreign firms from opperating in services lik banking
protectionism - reduce toatal trade volue
free trade increases it
world bank role in globalisation
reconstruction and develoents
loans to LICs
i89 members us voting power 15.8% - largest
has leant over a trillion dollars
funded more than 12000 projects
IMF role in globalisation
promote financial stability solid economic foundation
grants loans
working together
less liley to resort to protectionism
in return for oans they force countries to privatise in order to increase the private sector and generate wealth
ensure stability in internation monator sytem
greek debt crisis 2008 finanial crach forced to cut back on governments expendature
world trade organisation role in globalisation
talk negociate
hold accountablem
trade liberation free trade and fair debts
162 members failed largels due to groups such as EU having significant finaial power over other economies
new development bank role in globalisation
BRICS
developing countries
1/3 world
1.5 m loans
obtain a bigger voice for counties around the world
gives developing countries a biggger roal in global governance
free market liberalisation
reduces and removes rules restricting economic activity
involves removing barriers to trade ag tariffs and taxes
ancouraging competition - motivation encouraging trade and foreign investment
privatisation
transfering bussines agancy or services from governmant to private company eg gas steel water in uk
increased economic growth as profit motive minimised loss
encourages foreing invest and trade
encouraging business startups
grants and loans especially in globally important areas such as ict and renewble energy
inovation and competition
joining trade blocs
EU and ASEAN
trade berrier free betweenmembers
eu free movement of people
special economic zones
China - open door policy towards FDI
SEZ- subject to different econoic regulations
attract fdi
tariff and quota free allowing manufactured good to be transported at low cost
unios banned - workers cannot strike or complain
infastructure eg post facilitues , roads power provided by govenrment - subsidy for investors and lowering their costs
taxes very low - tax free period 10 years for business stat up
environmental regulation limited
uk role of national gov contributing to globalisation
privitisation
by 2014 - uk largest recipient of FDI
role of national governments china
open door policy to international businesses
welcomed forign
special economic zones
tax insentives cheap labour
trade blocs
a type of international agreemen where barriers to trade in a world region are reduced or eliminated amoung paricipats
bigger markets but no extra taxes - uk companies have been expanding into eu countries sourcing goods at best price eg tesco
national firm can merge to form transitional copanies - tns need large domestic markets so higher sales lower production costs more profit and more investment
ASEAN
10 members 600 million people
high income eg singapore
developing indonesia
eliminate tarrif in favour of free trade
help indonesia manufacturing industries
philipeenes call centres
promotes peace and stability
the eu
group of nations that grants all citizens of members freedom of ovement
multigovernmental organisation own currency and shared legislation
eu structual funds to help develop their economies
role of TNCs on globalisation
outsourcing - some parts of their bussiness usually admin and data processing eg bangalore location of tnc call centres
offshoring - some parts of their bussiness to cheaper foreign loations - economic zones in asian countries
developing new markets - many tncs initially set up factories in asia
glocalisation - adapting brands and products to suit local market tastes eg mcdonalds not using beef in india
but expoiting workers - low wages outsourcing can lead to job loss in developing countries local cultures eroded by western
global production network
a chain of connected suppliers that contribute to the manufacturing of goods eg apple or tesco
developing countries benefit as outsourcing
natural hazzards cn dirupt supply chains japan tsunami 2013
uk supermarkets founf horsemeet
collapse of rana plaza textile factory killed 1100 people
case study apple
apples shares worth 1.9 trillion in 2020
800 production facilities half in china
18 workers jumped rom buildings mostly teenage workers
low pay
exhased falling asleep at work
more than 60 hours a week
27 supplier in 2011 nt sisposing of waste properly workers injured by toxic chemicals
benefits of tncs
political stability
raising environmental awareness - upholding image
raising living standards - helping to spread wealth throughout the world
multiplier effect - attract more bussinesses - cumulative causation
transfer of technology -
costs of tncs
cost to host country - money to attract tncs
environmental degradation-
growing global wealth divide - selectively investing in certain areas
glocalisation
when products or services are adapted to fit the customs laws or preferences of a loal market
tns try to appeal to local markets
eg mcdonals , ‘indian spiderman”
cadburry makes its chineese chocolate sweeter
kof
North korea - case study
low rainfall - bad harvest
FDI non existent
isolationist autocracy
2017 imposed sanctions on industrial machinery - no supplies no xrays iron steel
no globalisation
sahel africa case study
rainfall - short period
dry and barren 80% land degraded
in 1968 stopped raining 260000 died edge of sahara has moved
desertification arid conditions
8/10 earn $1 a day
landlocked
global shift
the movement of manufacturing from europe and the usa to asian countries in the 1960s
because of open door policies
tncs seeking new areas for manufacturing
FDI began to flow into the emerging asian countries
role of tncs in global shirt
case study china
