Globalisation Flashcards
What factors cause accelerating globalisation?
Economic
Political
Migration
Cultural
Flow of commodities
Technology
How do economic factors accelerate globalisation?
- Volume and influence of TNC’s has increased
- Online purchasing between countries is more common
- Stocks are traded across countries, and countries invest in each other (FDI). Some financial businesses trade large amounts of currencies in order to make profit
What is the IMF’s definition of globalisation?
The increasing integration of economies around the world , particularly through the movement of goods, services and capital across borders.
There are also broader cultural, political and environmental dimensions of globalisation
How do political factors accelerate globalisation?
- Trade Blocs (NAFTA and EU) have become more influential and have reduced tariffs and other protectionist measures
- IGO’s (e.g IMF, WTO, and the World Bank) work to harmonise economies whilst promoting democratic ideology
- Political views and ideology are expressed in worldwide media outlets (e.g BBC)
How does migration accelerate globalisation?
- International migration has led to extensive family networks across the globe, leading to the spread of culture and finance (through remittance)
- International tourism has increased as more people can afford travel due to lower transport costs
How has culture accelerated globalisation?
- Americanisation and Westernisation of (often developing) parts of the world
How has flow of commodities accelerated globalisation?
- Goods can be easily imported, increasing countries’ interdependence on each other
- Volume of manufactured goods has increased rapidly due to low cost countries such as Bangladesh and Vietnam
How has technology accelerated globalisation?
- Internet has allowed for rapid spread of ideas and information
- Social networking sites have become very popular, and allow for spread of ideology, culture and opportunities for migration and tourism
- Enormous server farms exist which store large amounts of data
What are the 4 types of globalisation?
Economic
Political
Social
Cultural
Examples of economic globalisation?
- TNC’s trade products internationally and use international out sourcing and offshoring to lower costs
- Industries moved to developing countries to save money on labour, bringing economic growth there
- Trade blocs create economic integration between states and promote development
- Global transactions of money
Examples of political globalisation?
- Governments form connections to trade, such as trade deals and trade blocs
- Western democracies especially have had a global influence on political ideas, such as development of market economies in previous soviet states
- Deregulation policies (removing state regulations) allow markets to grow with an international reach
- International organisations exist to harmonise national economies and political relations, e.g the UN
Examples of cultural globalisation?
- Exposure to media sources such as television and social media allow for recognition and understanding of other cultures
- The ability to travel internationally allows people to experience other cultures
- People have a greater awareness and understanding of world events due to education and news sources
- Westernisation- domination of Western brands such as Starbucks across the world
Examples of social globalisation?
- International immigration is creating multicultural societies where people share and adopt cultures
- Social networking has revolutionised human connections, as tech platforms enable interactions with people in different countries and access to international information
- Global NGO’s and charities are involved in the global improvement of education and health, such as the World Health Organisation
What has globalisation led to?
- Lengthening of connections
- Deepening connections into more aspects of life
- Faster speeds of connection
Examples of political interdependence?
- International political issues require countries to work together, and issues raised must have a unanimous decision from the nations involved
- Countries rely on other countries to intervene if there’s political unrest
What’s an example of interdependence when a country relied on others intervention due to political unrest?
- Many nations intervened when there was Serbian state sponsored ethnic cleansing of Kosovo Albanians
- This eventually led to Kosovo’s independence
Examples of economic interdependence?
- Countries are dependent on the flow of labour, products and services entering the country in order for the economy to grow and for a country to develop.
Examples of social interdependence?
- Migration has caused social interdependence as there are diasporas all over the world that are dependent on the place they now live in
Examples of environmental interdependence?
- All nations are affected by other countries greenhouse gas emissions, nuclear waste emissions etc., meaning they all rely on each other to protect the environment
- E.g the Nuclear fallout from Chernobyl in Ukraine reached the UK and France
What transport and tech developments were there in the 19th and 20th centuries?
Steam power
Jet aircraft
Containerisation
Telegraph
Describe steam power:
- Britain was leading in the 1800s in terms of steam technology
- This allowed them to move their goods and armies very quickly
Describe telegraph:
- First telegraph cables were laid across Atalantic in 1860s, which allowed for almost instantaneous communication and revolutionised how businesses operated
What transport and tech developments were there in the 21st century?
Telephones
Broadband and fibre optics
GPS
Internet
What are the different flows in globalisation?
Capital
Labour
Products
Service
Information
Describe capital flow:
- Movement of money for the purpose of investment, trade, or business production
Describe labour flow:
- Movement of people to go and work in another country
Describe product flow:
- Flow of physical goods from one country to another
Describe service flow:
- Services are ‘footloose’ industries meaning they can locate anywhere without constraints from obstacles such as resources
- Services flow as they can be produced in a different country to where they’re received (e.g call centres)
Describe information flow:
- Any type of information can flow from one place to another via internet, phones, SMS etc.
What are the factors that cause a country to be detached?
Environmental
Political
Economic
What are the environmental reasons for countries being detached?
- Landlocked countries cannot be independent in trade
- Poor fertility of land, mountainous or arid conditions and limited land space can all reduce a country’s ability to produce a commodity for trade
- Some countries are vulnerable to climate change, so the natural environment could change to unfavourable conditions
What are the political reasons for countries being detached?
- The political agenda and governance of a country may limit flows of people or culture
- Terrorism or active conflict within a region can be detrimental to their global connectivity
- Government corruption results in money being wasted instead of invested
What are some urban pull factors?
Employment opportunities
- wider range of jobs
- better availability
- higher wages
Availability of services
- more likely to be specialised facilities in cities
Infrastructure
Transport links
- faster and more reliable
What are some rural push factors?
Poverty
- due to few job opportunities
Conflict
- scarcity of resources can cause conflict
Land reform
- In some regions, locals can’t prove their ownership of the land, so it gets taken over by TNCs- this is common in native indigenous communities
Agricultural modernisation
- Machinery means less people are needed to work on farms
Climate and natural disasters
- drought or crop failures can cause migration to find food and water
What are the challenges faced by growing cities?
Strain on services like education and healthcare
Overcrowding and the development of informal housing- slums and shanty towns
Rising crime rates
Poor sanitation due to open sewers
Lack of green space
High levels of congestion, which causes air pollution
Who are the two types of international migrants?
Elite international migrants
Economic international migrants
Who are elite international migrants?
- Generally skilled or very wealthy people, with the ability to move to global hubs such as London, Paris and New York
- An example would be Russian Oligarchs
What are Russian Oligarchs?
Extremely powerful and wealthy people in Russia, with social and political influence
Many gained their wealth rapidly during the 1990s when the Soviet Union collapsed
What are economic international migrants?
Cities such as RIyadh, Dubai, New York and London attract workers who will work for very little and are skilled in a certain profession (often construction)
Economic migration can fill skill gaps and advance a country’s development
However, it can also lead to escalating urban populations and a rise in illegal migrants
What are the benefits of migration for the host country?
- Can help fill skills gaps
- Working migrants contribute to the economy through paying taxes and buying goods and services
- Increase in cultural and demographic diversity
- Young migrants can help to balance an ageing population or increase a dwindling one
- Businesses have a larger pool of potential customers or employers
What are the benefits of migration for the source country?
- Migrants send back remittances which can aid in development and reduce poverty without government intervention
- Migrants become skilled and can come back to set up their own businesses, encouraging local economic growth and employment opportunities
- reduced service spending for the government as the population declines
What are the costs of migration for the host country?
- Rise of far-right organisations, hate crimes and racial tensions IF there’s a lack of understanding between migrants and the original population
- Could be strains on services
- House price inflation due to higher demand
What are the costs of migration for the source country?
- Brain drain due to skilled workers leaving
- Migrants tend to be young, so elderly family are left behind and can become isolated
- Decline in services due to low customer numbers, which can lead to the negative multiplier effect, in turn reducing other businesses and services
- Agricultural land not take care of
Why might global flows be seen as a threat in some countries?
Importing raw materials and commodities could negatively impact domestic suppliers and industries
Migrants from abroad could create tensions as they may not be wanted
Foreign information could be seen as a threat
What are some examples of IGO’s?
IMF (International Monetary Fund)
WTO (World Trade Organisation)
The World Bank
What is the IMF’s main function?
To loan money to poorer developing nations
What conditions does the IMF have for its recipient nations?
That the country opens up its markets and industries from government control, which in turn leads to privatisation
- TNC’s now have the opportunity to enter those markets more easily which would generate financial activity and tax, but mainly for their host country
How can the IMF be seen as a hindrance?
- LEDCs fall into debt with their industries privatised
- This could lead to profits leaving their country and potential environmental or workforce exploitation
- Countries which struggle to pay back their debts will have to cut back on key areas such as education and healthcare, which further damages the country’s economy and welfare
- In order to get the loan, poorer countries often have to sign up to deals that aren’t fair for them
- The voting system that sets out terms of agreement for the IMF is weighted based on which countries provide the most financial support- so countries like the USA have a much louder voice in terms of how deals are made
What does the World Bank do?
- Loans money to developing nations with the aim of improving development, and therefore aiding globalisation
Why can the World Bank be seen as controversial?
- Some critics say it promotes LEDCs to increase their debts and limits the governments sovereignity
What does the World Trade Organisation do?
- Aims to liberalise trade by removing tariffs, subsidies and quotas
Why has the WTO been criticised, and what are its downsides?
- It has failed to prevent the UK and USA from implementing protectionist measures like subsidies, so it has been unsuccessful in creating equal opportunities for all countries to trade
- Regulations set by the WTO can sometimes encourage poor countries to specialise , when in reality, they need to diversify
What is Free Market Liberalisation and who is it associated with?
A governance model
Strongly associated with the policies implemented by Ronald Reagan in the US and Margaret Thatcher in the UK
Explain the beliefs behind Free Market Liberalisation:
- Government interventions in markets would hinder economic growth and development in the long term.
- Its where you remove the influence of the state in the economy, and allow the markets to act more freely
Give an example of free market liberalisation and its impact?
- Banking and finance sectors were deregulated (remove government controls or rules) in the UK due to market liberalisation, which led to London becoming one of the worlds major financial centres
What happened to important assets in the UK in the 1980s?
Railways and utilities were originally run by the government
- Thatcher privatised these state-owned industries; private companies bought and ran these services.
What were the impacts of privatisation in the UK?
Allowed the government at the time to raise a lot of money
Some critics believe that privatisation compromises the quality of services
How do governments attract businesses?
Incentives (grants, tax breaks, infrastructure constructed) are provided by governments to attract businesses
What are the different kinds of FDI?
Offshoring
Foreign mergers
Foreign acquisitions
Transfer pricing
What is offshoring?
TNCs set up production facilties in developing countries, which have large, cheap workforces