Globalisation Flashcards

1
Q

Define globalisation.

A

The increased interdependency and interconnectedess between nations represented by an increase in the cross border flows.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Give the five cross border flows.

A

People, information, goods, services and capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the depth of globalisation?

A

The degree to which the flows impact the lives of people within a nation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are cargo ship containers called

A

Standardised intermodal containers (20ft long)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What was containerisation?

A

The shift of global trade from classical freight ships to container ships holding many containers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Give an example of how containerisation makes trade easier.

A

iPads can be shipped from China to the UK for $1 per item

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What percentage of goods are carried by container ships?

A

80%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What trading choke points are there that limit container ships?

A

Panama Canal- 15000 TEU limit (15000 containers per ship limit)

Straight of Malarca (s.China sea + Indian Ocean) has significant waiting times
Suez Canal can be blocked, 2021—blocked for 6 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Why may some nations not benefit from containerisation?

A

42 landlocked countries— no access to sea trade e.g. Chad

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How do fibre optic cables increase the flow of goods

A

Online shopping — Amazon
Better advertisements over media
Digital money transfers allow you to pay for goods to foreign nations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How do fibre optic cables increase the flow of services?

A

Teams/Skype/Zoom— allow home working / work with other nations

Increased customer services/ foreign call centres/ enquiries delivered online through website service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How do fibre optic cables contribute to the increasing flow of capital?

A

Online banking— money moved digitally
Stock investment or crypto currency
FDI is facilitated by moneys movement through fibre optic cables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How do fibre optic cables increase the flow of people?

A

Tourists can see holiday adds and make bookings online— increased tourism
Asylum seekers (MENA nations) exposed to safer locations images and stories— encourages movement to Europe
Economic migrants— job adverts application + interviews can all be done online

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How do fibre optic cables increase the flow of information?

A

Facilitates information sharing via social media — Tik tok instagram Facebook

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How fast and how much data is transferred through fibre optic cables?

A

99% of the worlds data travels across the 1 million km+ network of fibre optic cables at the speed of light

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is an example of how fibre optic cables facilitate the movement of people?

A

refugeeswelcome in European nations saw an increase in Syrian refugees moving across the Mediterranean.

In 2015 more than 1 million migrants made the journey across the Mediterranean

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How do fibre optic cables not help down nations

A

Most cables are undersea so landlocked nations not helped

18
Q

How does increasing mobile phone ownership increase fibre optic cables globalising effect?

A

African nations: mobile phone ownership 6%—2005 to 20%—2015
Facilitates access to social media 2021 530000 Facebook users in Lesotho

Safari com launched M-Pesa in 2007, allows money transfer through phones
Third of lesothos GDP transferred through this system

19
Q

How does mobile phone ownership further depth of globalisation?

A

Facilitates access to social media, Lesotho had 530,000 Facebook users in 2021

20
Q

How does jet aircraft contribute to globalisation?

A

Increased flow of people, allows people to travel much faster

21
Q

How had jet aircraft reduced travel times?

A

Travel at 600-700kPh now takes 31 hours to travel around the globe whereas took 2 years in the 1700’s

22
Q

What theoretical phenomenon did jet aircraft lead to?

A

The space-time convergence, the feeling that the world is becoming smaller due to reduced friction of distance

23
Q

What is the friction of distance?

A

As distance increases the difficulty in travel increases due to increasing obstacles to travel.

24
Q

Give an example of a jet airline that has reduced the costs of travel.

A

Easy jet - budget airline with cheap flights across Europe
2004 (started) — 30,000 passengers
2014 — 66 million passengers

25
Q

How do global pandemics affect jet airlines?

A

COVID-19
Restrictions on travel
Gradual release by testing needed
Reduced flows of people between nations

26
Q

How do global climate agreements affect jet airlines?

A

Rules used to reduce aircraft emissions
E.G. carbon taxations increasing costs
Decreased affordability results in a reduced flow of people

27
Q

How do online communications platforms reduce jet aircraft’s effect on globalisation?

A

Reduced need to travel for work (teams etc) — reduced flow of people

28
Q

What are the Breton woods institutes and what is their purpose?

A

The world bank, the IMF and the world trade organisation
Purpose is to promote economic stability and growth on the rational that economic dependence and integration promotes peace

29
Q

What does the IMF do?

A

Lends money to nations in economic crisis to stop them decreasing in development
These loans have structural adjustment programs (SAPs)

30
Q

What do SAPs include?

A

Austerity measures — reduce spend in areas that contributed to crises, e.g. inflated public spending
Open up borders to FDI — raise capital flows into nation

31
Q

What IMF loan did ghana receive and why?

A

2015– $918million loan due to
Overspending on the civil services
Debt from high interest lenders
Fall in price of exports (Gold)

32
Q

How did the IMF loan to Ghana help?

A

Increased FDI + flows of goods and services, increasing incomes etc
2016 Ghana received 28/600 FDI projects in Africa

33
Q

What is an example of how SAPs can negatively affect globalisation?

A

Jamaica —
Decreased spend on education to pay IMF loan caused drop of 60% in registered nurses
Could result in decreased health and less income in Q/T
May lead to in migration to fill roles or out migration to find work which could allow remittances

34
Q

How much of jamaicas GDP was remittances in 2022 compared to the world average?

A

2022– 22%
World average 5%

35
Q

How does the world bank assist globalisation?

A

Gives loans for infrastructural investment or education in order to alleviate poverty in developing nations

36
Q

Give the details of the world bank loan to the Philippines.

A

2014– $417million loan for reducing poverty in rural areas (infrastructure)
Helped create farm to market roads
Project benefitted with $2 million,
led to 5%increase in annual incomes + 7% increase in value of goods sold at market

37
Q

What is a large potential negative consequence of world bank loans? Give an example.

A

Structural adjustment programs are also applied to these loans— often involves privatisation of public sectors

Example: Tanzania required to privatise the water industry— sold water industry to city water UK— invested in infrastructure so raised prices— many couldn’t pay so had to look for alternative sources led to decreased education, school attendance and therefore productivity
UK city water forced to give back water industry— deterred other investors

38
Q

What is the purpose of the world trade organisation?

A

Promotes trade liberalisation and the removal of protectionist measures such as tariffs and subsidies.

39
Q

What are tariffs and why are they used?

A

Tariffs are taxation placed on trade imports designed to make foreign imports more expensive in order to support domestic industries and for governments to get more money from trade

40
Q

What are subsidies and why are they used?

A

Government grants made to certain domestic sectors (E.G. agriculture)
Supports internal industry to prevent job loss inside the country

41
Q

Why does the world trade organisation try to get rid of protectionists measures?

A

This would decrease the costs of imports or exports, increasing the flows of goods and capital between countries from increased affordability
Allows developing nations to use competitive advantage of lower labour costs to increase their market share

42
Q

What we’re the Doha negotiations and how did they limit the world trade organisations success?

A

Negotiation in 2001 that proposed developing nations reduce agricultural subsidies to 2.5% and developed nations to 6.7% of the value of production
Agri-business lobby’s in the EU and US pressured governments to subsidise more (E.G. EU-common agriculture policy) — decreased WTOs success