globalisation Flashcards
what are 3 example that
has accelerated globalisation and how
t , t , c
transport = transport accelerated in the 19th century.
It became cheaper to fly and the number of people flying grew by 4 billion from 1980-2012
containerisation transformed shipping. Cutting the time and costs for transportation of goods
trade = trade accelerated during the British empire
trade blocks such as the EU has reduced barriers to trade among countries
Communications = internet has heightened interactivity
easier to communicate with other countries
internet users has increased by 2 billion between 2000-2014
what does offshoring and outsourcing mean
offshoring = when a company moves it whole operations to a different countries but the people are employed by the company
outsourcing = when a company gets a company in another country to do their work for them however the company wont know who is making their products or where they are coming from.
what is FDI ( foreign direct investment ) and cumulative causation
FDI = investment from one company into another country
cumulative causation = when a particular area specialises in one industry
what are SEZs
special economic zones are where company’s are offered duty free importation, 100% income tax etc. So company’s want to invest.
What is the WTO
World trade organisation
what is the role of the WTO and when was it set up
It was set up in 1947
- promotes free trade without tariffs and restrictions
- promotes economic development in LIDCS
- Allows countries to invest on a global scale
- they currents have 164 members with a waiting list to join
what are positives of the WTO
- Trade disputes have declined by 400%
- Trade tariffs have declined to a tenth of what they used to be
- 500 million people lifted out of poverty since 1995
- massive increase in world trade
what are the criticisms of the WTO
- Huge inequality with the worlds poorest countries only being made up of 0.4% of the votes
- previous trade disputes are shown to favour rich nations ( USA owns 20% of votes due to their large membership fee )
- lower prices has led to poverty in LIDCs but benefits the AC consumers
what is a Commodity and what are the most traded commodity’s
A substance or natural product that can be traded, brought or sold
oil
coffee
gas
gold
What is a single export country
A country dependant on one product for more than half of their exports
What are the potential dangers of being a single export country
- They could have a bad harvest/ have crops fail
- Price of commodities can go up and down with demand
- finite products can be used up or go down/up in price
what is the spatial variation between coffee producers and consumers
The consumers aren’t producing coffee such as Finland, America etc and are mainly AC countries.
The biggest producers are around the equator where the coffee beans can grown and are predominantly LIDCs (except Brazil)
what are the main aims of the world bank
- fights poverty by offering developmental assistance to middle and low-income countries
- Eliminate poverty by helping people help themselves
- assists through loans, financial support and technical assistance
- 3% of the world population by 2030
what are the positives of World bank
- billions of dollars per year in development
- Lends money to LIDCS
- Many successful projects
- Global poverty has fallen since it was established
What are the negatives of the world bank
- Loans have strings attached - conditionality
- projects funded by world bank have has negative social and environmental impacts
what are the main aims of the international monetary fund
- monitors global economy
- lends money to members in difficulty
- provides advice to all members
- Tries to stabilise exchange rates
- promotes change between nations
what are the positives of the IMF
- Expert advice to all members states
- Loans and financial support when needed
- have helped prevent the bankruptcy of some members
- stabilise exchange rates to allow for future planning
what are the negatives of the IMF
- Dominated by wealthy members who usually attach conditions to assistance
- political interference
- Ten riches nations possess 60% of voting rights
what do you notice in regards to
- Tariffs
- Products
- Workers
- currencies
- Interest rates
in the starting point of the EU
Tariffs - Tariffs and taxes on almost every good
Products - Many countries specialise in 2/3 products
Workers - No free movement many worked in their birth country
Currencies - Every country had its own currency
Interest rates - Every country set its own interest rate
what happened to tariffs and workers when there was some co-operation when the EU was starting
Tariffs - No tariffs around member states
Workers - Free movement of workers around all member countries meaning people moved countries for work
what happened to protect countries in the trade bloc and the currencies when the EU was starting
Protection - complete freedom to trade inside the EU. Tariffs for countries not in the EU (common external tariffs)
Currencies - All countries in the EU apart from a few changed to the euro. EU controlled interest rates of that currency
describe the spatial expansion of the EU and the variations in their economic data
1957 - France, Germany, Italy ect. Started the EU for free trade. Then in 1973 the uk joined along with Ireland. In 1985 Spain, Portugal and Greece joined.
Lastly in 2004 the eastern european countires such as hungary, cyrus and latvia ect joined (Assession countries)
countries that joined the EU earlier on seem to have higher GDPS over 20,000 but later countries seem to have under 20,000 ( excluding sweden, finland and austria )
why did existing EU members want to expand to the west
What are the advantages for the car industries in Slovakia
- political reasons to try for relationships with the east so it would drive them away from Russia
- closer than sending industries to America/Asia
- lower tax rates for TNCS
- skilled but low paid workers - Employment rate of 18%
- labour costs ( $4/hr in Slovakia compared to $30/hr in the UK )
- company tax of 19%
- EU paid for infrastructure such a motorways
what are some positives and negatives of the impacts of industrial shift in the EU for the Slovakian car industry
positives- Huge number of jobs created 10,000 by Peugeot alone
-The EU has invested billions in improving Slovakia’s infrastructure
- Slovakia now produces around 400,000 cars a year
- contributes to an increase in Slovakia’s GDP
Negatives - criticisms of tax breaks, low wages ect
- All factories are foreign meaning they could be moved in the future
- negative environmental impacts
- Led to deindustrialisation in other parts if the EU
What so you notice about the top 10 TNCs ( Profit )
what are some of the most recognisable TNCs and why
Many are owned by Ac’s such as China and America. Also they are very technology and banking based
Apple, google, McDonald’s and coca cola
they are popular in the media and they have cheap products for consumer to buy and we can see/use them daily in our lives because they are everywhere
What are the links between
- Availability of cheap labour
- Fewer environmental restrictions
had on the growth of TNCs
- Availability of cheap labour - Has allowed TNCs to expand around the world. Low wages allow TNCs to maximise their profits
- Fewer environmental restrictions - Means companies can build factory’s but also oil, gold companies etc can mine/ drill with no restrictions or high costs
What is the link between
- A globalised transportation network
- The growth of market in EDCs
have on the growth of TNCs.
- A globalised transport network - more people will be traveling for work meaning more workers in different countries but also demand for planes/cars will go up and trade will be easier for TNCs
- Growth of EDC markets - TNCs move to EDCs to profit because as people get more wealthy demand for luxury’s grow
What is the link between
- Government incentives
- internet spread
have on the growth of TNCs
- Government incentives - SEZs attracting company’s along with LIDCS and EDCS dropping tax rates and tariffs for trade.
- internet spread - Tec company’s have thrived but also communication is easier and there is more technology so trade and mass production is quicker and easier
Describe some of the reasons TNCs such as McDonalds spread to countries
tourism
collapse of communism
cultures
What is glocalisation
Making little changes to meet the needs/ taste of the country they are in.
