Globalisation Flashcards

1
Q

define globalisation

A

widening and deepening of global connections, interdependence and flows (goods/services, capital, information, people etc).

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2
Q

define time-space compression

A

shrinking world effect due to improvements of communications and travel tech

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3
Q

define remittance

A

economic migrants sending money earnt abroad back to families in home country

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4
Q

what is the WTO

A

-world trade organisation
-oversee world trade and reduce trade barriers to create free trade

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5
Q

what is the IMF

A

-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

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6
Q

what is the world bank

A

-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

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7
Q

what is FDI

A

-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

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8
Q

4 types of globalisation

A
  1. 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
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9
Q

what is trade protectionism

A

practice of shielding a country’s domestic industries from foreign competition by taxing imports eg. Trump imposing tariffs on steel from China

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10
Q

what is a quota

A

gov-imposed restriction that limits the number/value of goods that can be imported/exported during a period of time

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11
Q

definition of trade deficit

A

the amount/value by which a countries imports exceeds the amount/values of its exports (more imports than exports)

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12
Q

what is a subsidy

A

a grant from the state to help keep the price of a commodity low or help a critical industry survive

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13
Q

what is a tariff

A

a tax on goods entering or leaving a country

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14
Q

definition of free trade

A

trade left to its natural course without restrictions eg quotas, tariffs

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15
Q

what is a trading bloc and give examples

A

-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

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15
Q

advantages of trading blocs

A

-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

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16
Q

disadvantages of trading blocs

A

-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

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17
Q

how has the UK promoted economic growth

A

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

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18
Q

features of China’s open door policy

A

-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

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19
Q

result of Chinas open door policy

A

-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

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20
Q

what are the 2 measures of globalisation

A

-KOF index
-AT Kearney index

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21
Q

what does the KOF index measure

A

-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

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22
Q

what does the AT Kearney index measure

A

-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

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23
Q

Human reasons for being ‘switched-off’ to globalisation

A

-lack of skills and literacy deter inward investment
-politically isolated
-ethnic clashes and civil war
-corrupt govs
-debt
-poor hygiene and disease

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24
Q

Physical reasons for being ‘switched-off’ to globalisation

A

-Landlocked - deters investors seeking import/export base
-highly vulnerable to climate change and natural hazards
-extreme climates
-poor resources for agriculture

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25
Q

Reasons for lack of globalisation in N Korea

A

-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

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26
Q

Role of TNCs in globalisation

A

1.Global production networks
2.Offshoring
3.Outsourcing
4.Glocalisation

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27
Q

what is a global production network + an issue w them

A

-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

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28
Q

what is offshoring + an example

A

-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

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29
Q

what is outsourcing + an example

A

-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

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30
Q

what is glocalisation + example

A
  • TNCs adapting products to increase consumer appeal in different local markets
    -Includes cultural and religious considerations eg. Mcdonalds not selling beef products in India
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31
Q

definition of global shift

A

relocation of industries to developing regions and NEEs

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32
Q

why is the global shift occurring

A

-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

33
Q

benefits of global shift for China

A
  • investment in infrastructure - motorways, high-speed railways, airports
    -reduction in poverty - 500 million escaped poverty
34
Q

costs of global shift for China

A
  • 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

35
Q

environmental impacts of globalisation - Tar Sands, Canada

A

-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

36
Q

environmental impacts of globalisation - Citarum River, Indonesia

A

-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

37
Q

environmental impacts of globalisation - air pollution in China

A
  • 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
38
Q

what is a megacity, why do they grow + examples

A

-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

39
Q

rural-urban migration in Mumbai

A

-1 person migrates per minute
-average age is 20/21 and mostly male
-majority economic migrants - want employment so they can send remittances

40
Q

challenges of urban growth in Mumbai

A

-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

41
Q

what is a global hub + examples

A

-highly globally connected cities where many flows converge eg. London, NY, Tokyo

42
Q

what is elite migration + example

A

-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

43
Q

what is low wage migration + example

A

-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

44
Q

what is internal migration + example

A

-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

45
Q

benefits for host country

A
  • 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
46
Q

costs for host country

A

-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

47
Q

benefits for source country

A

-reduced pressure on welfare services
-migrant remittances contribute to national earnings
-returning migrants bring knowledge and skills

48
Q

costs for source country

A

-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

49
Q

what is cultural diffusion + why does it occur

A

-cultures spreading between countries - can include beliefs, social activities, food, fashion, lifestyle, family dynamics
-occurs as result of TNCs, global media, tourism and migration

50
Q

example of cultural diffusion - Cuba

A

-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)

51
Q

impacts of cultural diffusion (brief)

A

-changing diets in India
-representation for disadvantaged groups

52
Q

changing diets in Asia

A

-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

53
Q

representation for disadvantaged groups

A

-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

54
Q

what is cultural erosion

A

-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

55
Q

example of cultural erosion - Korowai tribe

A

-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

56
Q

what do oppositional groups argue globalisation has caused

A
  1. increased resource consumption and environmental exploitation
  2. exploited workers
  3. political and economic power passed to TNCs and uncaring govs
    4.increased inequality (small group of rich and powerful)
  4. cultural erosion
57
Q

2 examples of groups opposing globalisation

A
  1. global justice movement - promote equal distribution of all resources and access to advances in tech
  2. 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)
58
Q

4 economic indicators of development (brief)

A
  1. GNI - gross national income
  2. GDP - gross domestic product
  3. PPP - purchasing power parity
  4. Economic sector balance
59
Q

what is GNI

A

-economic indicator of dev
-total amount of money earned by ppl and businesses ACROSS THE WORLD flowing back into country

60
Q

what is GDP

A

-economic indicator of dev
-total value of goods and services produced by residents and businesses WITHIN a country

61
Q

what is PPP (purchasing power parity)

A

-economic indicator of dev
-how much goods would cost if all countries used same currency - cost of living in diff countries

62
Q

what is economic sector balance

A

-economic indicator of dev
-estimation of the contribution of each economic sector to total national income

63
Q

2 social indicators of development (brief)

A
  1. HDI - human development index
  2. GII - gender inequality index
64
Q

what is HDI

A

-social indicator of dev
-composite indicator measuring life expectancy, GNI and literacy rate in countries
-ranks countries against each other

65
Q

what is GII (gender inequality index)

A

-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

66
Q

what do Lorenz curves show

A

-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

67
Q

2 indicators of income inequality (brief)

A
  1. lorenz curve
  2. gini coefficient
68
Q

what is the gini coefficient

A

-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

69
Q

how is international migration encouraged by govs

A
  1. open borders eg. large nos of post-accession migrants moved to UK following EU adding 8 eastern European countries
  2. deregulation - freedom to invest in businesses or transfer capital - removal of barriers to invest money
  3. FDI - attracts TNCs and TNC workers to move abroad
70
Q

what is a migrant diaspora

A

-spread of people from their home country around the world, creating culturally mixed societies

71
Q

3 methods of limiting globalisation

A
  1. censorship - eg. N Korea completely ban internet, China ban apps such as Fbook and twitter to avoid western influence
  2. limiting migration - reduces mixing of cultures eg. requiring more visa points to be granted access
  3. trade protectionism - eg. Trump banned steel imports from China
72
Q

what is localism

A

-idea that foods and goods should be grown/produces locally, supporting local jobs and reducing transport
-therefore becoming more sustainable

73
Q

what is a transition town + example

A

-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

74
Q

what is an ecological footprint

A

-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

75
Q

ethical consumption strategies - NGOs (brief)

A

1.Fair trade
2. FSC
3. Rainforest alliance

76
Q

what is fair trade + challenges

A

-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

77
Q

what is the FSC (forest stewardship council)

A

-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

78
Q

what is the rainforest alliance

A

-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

79
Q
A