Globalisation Flashcards by laura hevesy

define globalisation

the process by which people, culture, good or money and information can be transferred between countries with little or no barriers - the world coming more interconnected..

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What are the four flows of globalisation?

Capital, commodities, info, people.

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four flows stats

2019 the volume of foreign transactions reached $6.6 trillion per day.
low production costs in china
facebook had 2.9 billion users in 2021
2019 tourism contributed $2.9 trillion to global GDP

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4 factors accelerating globalisation

TNCs, IGOs, transport, ICT.

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Containerisation

by 1970 it was 20x cheaper to transport goods than in 1965

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easy jet 2014

in 2014 easyjet carried 65million people to their . destinations

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ICT

There are currently more than a dozen undersea cables between america and europe. Facebook and microsoft funding cable.

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Role of IGOs

(trade)

promoting free trade policies and encouraging FDI. reducing protectionism.

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World trade org

ensuring economic tensions are kept low.
advocated for trade liberalisation.
however works in the interest of the wealthy and failed to stop worlds richest from subsiding their food products which is harmful to poorer nations.

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World Bank

provides funding for developing countries/ temporary loans, helping to end extreme poverty.
HOWEVER strict conditions on loans and grants and lack of success on getting all members to agree

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International monetary fund

stabilises currencies, providing advice to ciuntries in need.
HOWEVER usa holds a lot of influence and imf forces poor countries to sell their assets to TNCs

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3 ways national govs contributes

Free market liberalisation - encourages FDI
Privatisation - increasing efficiency. - more likely to get more money.
Encouraging business start ups. - grants to important new businesses.
joining trade blocs such as

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chinas open door policy

in 1978 created special economic zones , giving foreign investors more control over their operations, reducing tarrifs.

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Why are SEZs attractive to FDI?

tariff free, NO UNIONS (strikes banned), infrastructure provided by governments.

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ASEAN

Promoting peace and stability
10 member states
enlarging markets.

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multigovernmental organisation
own curreny
freedom of movement
political unity.

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How do TNCs contribute to globalisation? (4)

Outsourcing
Offshoring
Developing new markets
Glocalisation

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APPLE

shares worth 1.9 trillion in 2020
800 production facilities globally, 380 in china

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apple imacts on people and env

workers make $2 an hour , high suicide rates
spikes in air pollution, 137 workers injured by toxic chemicals in 2011.

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Costs of TNCs

cost to host country to attract TNC
loss to local firms and multiplier effect
growing global wealth divide
environmental degredation

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Benefits of TNCs

Political stability eg china
Raising env awareness - using renewables
rasing living standards - investing through FDI
Multiplier effect (theory of cumulative causation)
Transfer of technonogy and creating a more skilled workforce.

How has glocalisation accelerated globalisation?

Spreads products from the west in a way that is easily consumed by other cultures, gives large TNCs advantages over local businesses.

What three indicators are used to calculate the KOF index?

economic - volume of FDI
social - information flows
and political globalisation - eg. number of foreign embassies in the country

Four indicators used to calculate the AT kearney index?

Political engagement
technological connectivity
personal contact
economic intergration

What makes a place switched off from globalisation?

- poor transport and communication (unnattractive to FDI) - lack of natural resources - governement debt - corruption or terrorism

Costs and Benefits of isolation

- no access to modern medicine - lack of global awareness - Sustainable lifestyle - preventing cultural erosion

Examples of switched off places

North Korea - no undersea cables dictatorship, banned most imports Sahel - landlocked, difficult to grow crops. political instability.

3 factors accelerating global shift

asian open door policies TNCs seeking areas for manufacturing FDI coming into emerging asian countries.

How have TNCs helped global shift?

Multiploer effect, and building housing, training centres, and improving communications.

How has china become switched on?

53% of its exports are produced by foreign owned companies. China has overtaken the USA as the world biggest consumer Chinas has over half a billion mobile phones users.

Costs to china

20% of people still live on $2 a day most degraded marine areas on earth 60% of groundwater is poor quality.

Why is india switched on

outsourcing of services - call centre in 2006 indias economic output rose by 8.5%

4 Ds

Deindustrialsation dereliction depopulation deprivation

Detroit

4th largest city in US in 1920s cheaper to manufacture cars in japan detroit became bankrupt in 2013. highest murder rates

Why do megacities grow ?

advancements in medicine, better quality of life, more job opportunities, escaping conflict.

impacts of rural-urban migration

less primary sec, ageing pop in rural, pollution, diease

India rural-urban migration

1/3 of worlds poor live in india double wages in cities consequences: growth of slums pollution, overcrowding, env affected.

Russian Oligarchs to london

global property hotspot, inflating property prices, housing pressure.

low wage migrants

india to uae - make up 30% of population grows economy but loss of workers from source.

How do TNCs, media and migration contribute to global culture?

tncs - dispersal of goods media - disney movies migration - new languages and foods

Coca cola in Kerala

employs 6000 local people directly wells dried up high levels of lead found 1 million litres of water used per day

Changing diets in Asia

increasing meat consumption methane emissons china biggest market for processed food.

france, china and iran against globalisation

france - excluding culture from trade agreements China - imprisoning people who break internet use rules. Iran - banning facebook and twitter

kuznets curve

env degredation/ income

Env deg

40% of earths surface used for agriculture

lorenz curve

shows a line of equality

gini coeffiecent

measures income inequality 0=

how can globalisation increase income inequality

bigger tncs grow and gather larger proportions of money

political tenions

increased migration 13% of uk residents born outside the uk 2010 target cutting net migration to 100,000 people/ year not met

is globalisation sustainable?

growing consumer society exploitation resource use (transport) 50% increase in global energy use by 2035

strategies to tackle globalisation

transition towns (totnes) fair trade helps to regulate prices ethical shopping (patagonia)

recycling costs and benefits

costs - plastic waste exported , toxic fumes 222.9 tons of waste made in uk in 2016