Globalisation Flashcards
What is globalization
The increasing interdependence and interconnectedness of a country through trade,capital,agreements/politics
Negatives of globalization (environmental)
Landlocked countries cannot participate as they can’t be independent in trade and would have to travel through other countries in order to trade.
Some countries are vulnerable to climate change (lots of FDI -lots of factories-lots of carbon emissions)
Negatives of globalization (political)
Political agenda and governance of a country may limit the flow of people /culture e.g.anti-migration,censorship
Corruption between the Gov means that money is lost rather than invested
Unstable governments, frequent policy changed discourages business seeking stable environments and long term investment
Negatives of globalization (economic)
Countries with unstable markets/weak currencies will deter investment therefore no fdi
Advantages of IMF -INTERNATIONAL MONETARY FUND
Loans money to developing nations to help open up their markets and industries from gov control (privatization )
Now TNCs can enter those markets more easily to generate financial activity mainly for their OWN country which is mainly more developed
Disadvantage of IMF
Can be seen as a hindrance as those domestic businesses in developing countries fall in debt and workforce exploitation due to TNCs coming into the country
Promotes less economically developed countries (LEDCs) to increase in debt and limits the GOVs sovereignty/autonomy
What is a free market
Unregulated system in which tax,quotas,tariffs impose by GOV don’t exist
Negatives of having a free market
Poor working conditions
Environmental degradation
Economic disparities within a country - TNCs and small businesses
Advantages of having a free market
Increase in productivity
More innovation as businesses compete with each other
Increase in competition-greater quantity of products produced,increase quality,decrease in price
Why do countries interdepend on each other (Politically,economically ,socially)
Political- countries rely on each other to intervene if there’s political unrest
Economically-dependent on flows of labour,products,and services entering the country in order to grow as globalization provides a WORKFORCE.
Social -migration causes social interdependence as there are now diasporas (groups of migrants of the same origin living in another country ) = they are dependent n the place they live in
How does technology accelerate globalization socially
Fuels faster spreading and dispersion of news/media
This rapid spread of information vacillated by the increasing dependence on technology could foster a sense of interconnected socially
How does technology accelerate globalisation economically
Contributes to the idea of having a digital economy
It helps markets expand their reach past domestic realms as technology supersedes national barriers e.g.amazon is a global economic hub
Topic sentence for how technology accelerates globalisation socially and economically
Technology plays a pivotal role in fuelling globalization by facilitating social connectivity and economic integration
Thatchers view on trade blocs
Thatcher supported trade blocs insofar (to an extent) as it promoted free trade which was part of her plan to modernise and liberalise the British economy especially after the winter of discontent which contributed to to a significant amount of economic strain
