Globalisation Flashcards
define globalisation
widening and deepening of global connections, interdependence and flows (goods/services, capital, information, people etc).
define time-space compression
shrinking world effect due to improvements of communications and travel tech
define remittance
economic migrants sending money earnt abroad back to families in home country
what is the WTO
-world trade organisation
-oversee world trade and reduce trade barriers to create free trade
what is the IMF
-international monetary fund
-provides loans to countries in economic crisis (eg. greece in 2008 - unable to pay debts)
- acts as a business and expects money back w interest
what is the world bank
-aims to reduce poverty by providing grants to developing world to fund infrastructure projects /eradicate disease etc.
-acts as a business and expects money back w interest
what is FDI
-foreign direct investment
-financial capital flow from one country to another for the purpose of constructing physical capital eg. building a factory in another country
4 types of globalisation
- Economic - growth of TNCs, info and communication tech supporting spatial division of labour (eg. working from home, international conferencing), growth of world trade and investment
2.Cultural - ‘Westernisation’ of food, clothes, music, values eg. by social media
3.Political - growth of trading blocs, world organisations
4.Social - social interconnectivity due to communication tech, growth of diverse communities due to int migration
what is trade protectionism
practice of shielding a country’s domestic industries from foreign competition by taxing imports eg. Trump imposing tariffs on steel from China
what is a quota
gov-imposed restriction that limits the number/value of goods that can be imported/exported during a period of time
definition of trade deficit
the amount/value by which a countries imports exceeds the amount/values of its exports (more imports than exports)
what is a subsidy
a grant from the state to help keep the price of a commodity low or help a critical industry survive
what is a tariff
a tax on goods entering or leaving a country
definition of free trade
trade left to its natural course without restrictions eg quotas, tariffs
what is a trading bloc and give examples
-groups that encourage free trade
-can have simple agreements to reduce tariffs on a small number of goods, or complex agreements that involve common regulations and creation of economic policies
-EU -european union
-NAFTA- north american free trade agreement
-ASEAN - association of south east asian nations
advantages of trading blocs
-peace encouraged between members
-opens up trade to bigger markets
-freedom of movement and common currencies make trade easier eg EU
-common policies eg. working conditions/human rights
disadvantages of trading blocs
-interdependence
-loss of some financial controls
-pressure to adopt centralised policies eg. migration
-some countries pay in more than they receive leading to separatist movements eg. Brexit
how has the UK promoted economic growth
1.Gave life-long tax breaks to companies if they located in Canary Wharf, London
2. Encouraging business startups - gave grants and subsidies to locate manufacturing plants in UK eg. Toyota, Derby
3. Privatisation - selling public services to companies (eg. train service) to make more profits and attract TNCs as they would gain a stake in vital services
features of China’s open door policy
-introduced in 1978
-4 SEZs (special economic zones) with separate financial and tax rules to encourage businesses and TNCs to set up there
-joined the WTO and became more involved in western and international marketsre
result of Chinas open door policy
-before 1978, china was an isolated dictatorship suffering from famine and a poor economy
-increased chinas exports dramatically, improving their economy and creating jobs for locals
-increased living standards and wages, reducing poverty
-projected to overtake USA as biggest economy in the world by 2025
what are the 2 measures of globalisation
-KOF index
-AT Kearney index
what does the KOF index measure
-social, economic and political aspects of globalisation
-shows how interconnected countries are
-measures:
1.FDI
2.Tariff rates
3.Tourist flows
4. TV ownership
5.No. of UN peacekeeping missions participated in
6. Trade w other countries
what does the AT Kearney index measure
-investor confidence and potential for FDI in a country
-measures:
1.FDI flows
2.No. of internet users
3.Membership of int organisations and treaties
4.Int travel and tourism
Human reasons for being ‘switched-off’ to globalisation
-lack of skills and literacy deter inward investment
-politically isolated
-ethnic clashes and civil war
-corrupt govs
-debt
-poor hygiene and disease
Physical reasons for being ‘switched-off’ to globalisation
-Landlocked - deters investors seeking import/export base
-highly vulnerable to climate change and natural hazards
-extreme climates
-poor resources for agriculture
Reasons for lack of globalisation in N Korea
-corrupt gov
-censorship - restricting what can be viewed by the public
-political and economic isolation - not part of any int orgs and have very little trade w others
-illegal for citizens to leave and very few are allowed in on organised tours
Role of TNCs in globalisation
1.Global production networks
2.Offshoring
3.Outsourcing
4.Glocalisation
what is a global production network + an issue w them
-chains of connected suppliers of materials and services in separate countries contributing to the manufacturing, assembly or distribution of goods
-eg. car parts being made in diff places around the world, assembled in another country while company headquarters are in another
-can be disrupted by natural disasters/pandemics
-enabled by improved communications tech
what is offshoring + an example
-TNCs moving part of the production process to another country
-can reduce labour costs, taxes and import tariffs due to closer proximity to raw materials, less env regs and transport costs
-eg. Whatsapp (american) offshore service to developers in Russia/TNCs building new factories in China for cheaper labour
what is outsourcing + an example
-TNCs contracting another country to produce goods and services they need
-reduces labour costs and can use more skilled workforce eg. IT services in India
-Eg. Amazon outsource call centre services to the Philippines and S Africa
what is glocalisation + example
- TNCs adapting products to increase consumer appeal in different local markets
-Includes cultural and religious considerations eg. Mcdonalds not selling beef products in India
definition of global shift
relocation of industries to developing regions and NEEs
why is the global shift occurring
-TNCs offshoring, outsourcing to emerging economies
-Asian countries allowing overseas companies to access their markets eg. China open door policy
-FDI flow into emerging countries
benefits of global shift for China
- investment in infrastructure - motorways, high-speed railways, airports
-reduction in poverty - 500 million escaped poverty
costs of global shift for China
- pollution and habitat reduction - 70% of lakes and rivers polluted, loss of forested land due to urbanisation and farming, increased C emissions from congestion and industry
-loss of productive land - overuse leads to soil erosion and infertility
-over-exploitation of natural resources - clearing of Amazon rainforest and oil fields developed in Venezuela to meet Chinas demand
environmental impacts of globalisation - Tar Sands, Canada
-open cast oil mine over an area larger than England (1.2 billion acres)
-largest emitter of co2 in world w production set to double
environmental impacts of globalisation - Citarum River, Indonesia
-most polluted river - chemicals, sewage, dead animals, heavy metals
-caused by unregulated disposal by textile industries, pop explosion and corruption of environmental/health inspectors
-is in process of being cleaned up
environmental impacts of globalisation - air pollution in China
- over-reliance on coal power causing extreme air pollution
-caused by rapid industrialisation and pop explosion
-responsible for around 2 mill deaths in China per yr - respiratory diseases
what is a megacity, why do they grow + examples
-city w pop of 10 million or more
-grow as result of rural-urban migration and natural increase
-eg. London, NY, New Delhi, Mumbai, Tokyo
rural-urban migration in Mumbai
-1 person migrates per minute
-average age is 20/21 and mostly male
-majority economic migrants - want employment so they can send remittances
challenges of urban growth in Mumbai
-pollution and environment -
1. very little open space - less that 0.03 acres per 1000
2. air pollution - vehicle ownership increased 60% in 8 yrs
-housing and homelessness -
1. Dharavi slums - 1 million ppl in 1 square mile
2. 150,000 homeless - result of govs removing shanty towns
-unemployment and crime -
1. limited job opps - esp unskilled w no qualifications
2. low wages = high crime and inescapable poverty cycles = having to steal for necessities
what is a global hub + examples
-highly globally connected cities where many flows converge eg. London, NY, Tokyo
what is elite migration + example
-highly skilled, wealthy, influential ppl
-eg. Russian Oligarchs - purchased over £1.5 billion in property in London eg. homes/Chelsea FC, giving access to local markets/economy, schools and influence in govs/politics
what is low wage migration + example
-cheap, labour workers who migrate to fill manual/unskilled labour shortages often in global hubs
-eg. large no of migrants moved to Qatar to build world cup stadiums
what is internal migration + example
-ppl moving from one place in a country to another (often rural-urban)
-main reason for growth in global hubs and emerging economies
-eg. 1 person migrates to mumbai per minute
benefits for host country
- migrants can fill labour shortages
-economic migrants willing to do labouring work
-migrants pay taxes and spend money on rent and in shops
-skilled migrants bring professional experience eg. NHS gains doctors/nurses
costs for host country
-strain on welfare services
-extra costs for translation services and strain on education - 2nd lang, pp
-pressure on rented housing sector
-social tension - ppl in host country believe migration = less jobs/houses
benefits for source country
-reduced pressure on welfare services
-migrant remittances contribute to national earnings
-returning migrants bring knowledge and skills
costs for source country
-brain drain
-reduction in workforce = less taxes paid
-reduced economic growth as consumption decreases
-higher dependency ratio - more elderly, reduction in birth rates
-depopulation leads to dereliction
what is cultural diffusion + why does it occur
-cultures spreading between countries - can include beliefs, social activities, food, fashion, lifestyle, family dynamics
-occurs as result of TNCs, global media, tourism and migration
example of cultural diffusion - Cuba
-previously communist country
-now become more capitalist after opening doors to global media, trade and tourism/migration
-now has many diff religions, influx of tourism and migration, media and diets
-Cubans can now own and sell houses and cars, take out loans and set up private businesses (previously werent allowed to)
impacts of cultural diffusion (brief)
-changing diets in India
-representation for disadvantaged groups
changing diets in Asia
-impact of cultural diffusion
-meat consumption increasing - due to growing middle class as more ppl escape poverty and move away from trad diets
-spread of Western diet (high fat, sugar, fast food) - linked to rising obesity and diabetes in emerging economies
representation for disadvantaged groups
-impact of cultural diffusion
-spread of Western culture = more opportunities for disadvantaged groups eg. women, disabled, LGBT
-eg. global media coverage of paralympics, gay pride, high-profile cases of sex discrimination - may erode sexism and prejudice in emerging economies
what is cultural erosion
-when a local culture is lost/suppressed due to introduction of another
-traditional music, food, language and social dynamics eroded or made into ‘show’ for tourists
example of cultural erosion - Korowai tribe
-tribe in Papua New Guinea that has remained isolated and in same area of forest for centuries
-traditionally value forest/ecosystem
-members become more aware of Western culture and lifestyle
-now moving out of forests into gov built homes in village, valuing money and goods eg. clothes, foods
what do oppositional groups argue globalisation has caused
- increased resource consumption and environmental exploitation
- exploited workers
- political and economic power passed to TNCs and uncaring govs
4.increased inequality (small group of rich and powerful) - cultural erosion
2 examples of groups opposing globalisation
- global justice movement - promote equal distribution of all resources and access to advances in tech
- countries such as N Korea (who resist almost all change) and China (become selective over how much change is accepted eg. only 34 foreign films available but xmas is celebrated by many)
4 economic indicators of development (brief)
- GNI - gross national income
- GDP - gross domestic product
- PPP - purchasing power parity
- Economic sector balance
what is GNI
-economic indicator of dev
-total amount of money earned by ppl and businesses ACROSS THE WORLD flowing back into country
what is GDP
-economic indicator of dev
-total value of goods and services produced by residents and businesses WITHIN a country
what is PPP (purchasing power parity)
-economic indicator of dev
-how much goods would cost if all countries used same currency - cost of living in diff countries
what is economic sector balance
-economic indicator of dev
-estimation of the contribution of each economic sector to total national income
2 social indicators of development (brief)
- HDI - human development index
- GII - gender inequality index
what is HDI
-social indicator of dev
-composite indicator measuring life expectancy, GNI and literacy rate in countries
-ranks countries against each other
what is GII (gender inequality index)
-social indicator of dev
-composite indicator that measures women’s reproductive health, empowerment, labour force participation rate
-countries scored between 0 and 1 and higher the score, greater the inequality
what do Lorenz curves show
-income inequality in a country by distribution of wealthy by % of pop
-eg. 80% of pop could share 30% of income, w remaining 20% sharing 70% of national income
2 indicators of income inequality (brief)
- lorenz curve
- gini coefficient
what is the gini coefficient
-measure of inequality in distribution of household income
-coefficient of 1 = 1 person gets everything and everyone else shares nothing
-coefficient of 0 = everyone gets exactly the same
-higher the number, the more inequality
-worked out using lorenz curve
how is international migration encouraged by govs
- open borders eg. large nos of post-accession migrants moved to UK following EU adding 8 eastern European countries
- deregulation - freedom to invest in businesses or transfer capital - removal of barriers to invest money
- FDI - attracts TNCs and TNC workers to move abroad
what is a migrant diaspora
-spread of people from their home country around the world, creating culturally mixed societies
3 methods of limiting globalisation
- censorship - eg. N Korea completely ban internet, China ban apps such as Fbook and twitter to avoid western influence
- limiting migration - reduces mixing of cultures eg. requiring more visa points to be granted access
- trade protectionism - eg. Trump banned steel imports from China
what is localism
-idea that foods and goods should be grown/produces locally, supporting local jobs and reducing transport
-therefore becoming more sustainable
what is a transition town + example
-towns that encourage sustainability by:
1. growing own food
2. reducing waste, energy usage and pollution
3. meeting local needs through local production
eg. Totnes, Devon - has schemes such as garden sharing, e-bikes, seed swaps and co-housing
what is an ecological footprint
-improved carbon footprint
-indicated amount of pressure humans put on natural resources
-measures renewable and non-renewable resources to support a specific way of life or business
ethical consumption strategies - NGOs (brief)
1.Fair trade
2. FSC
3. Rainforest alliance
what is fair trade + challenges
-NGO that offers guaranteed higher income to farmers so they can improve living standards, invest in community and protect the environment
-lobbies govs, creates ‘Womens schools of Leadership’, drives public awareness
-products: coffee, bananas, choc, clothes
-Challenges: products often more expensive so not all consumers will buy them, not all farmers can join
what is the FSC (forest stewardship council)
-NGO that promotes sustainable management of world’s forests
-covers 160 million hectares
-enables businesses and consumers to choose wood, paper and other forest products made w responsibly sourced materials
what is the rainforest alliance
-NGO that works to solve urgent environmental and social challenges for rural ppl eg. fight deforestation and climate change, building economic opps and better working conditions
-conserve and restore nature, biodiversity and help ppl become more resilient to climate change
