Globalisation Flashcards

1
Q

What factors cause accelerating globalisation?

A

Economic
Political
Migration
Cultural
Flow of commodities
Technology

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2
Q

What is the IMF’s definition of globalisation?

A

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

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2
Q

What are the 4 types of globalisation?

A

Economic
Political
Social
Cultural

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3
Q

Examples of economic globalisation?

A

TNC Expansion
- TNCs like Apple and McDonald’s operate in multiple countries

Global supply chains
- Countries source materials and manufacture products in different countries creating interdependence between economies

FDI
- Countries and companies invest in businesses or infrastructure abroad

Trade agreements
- Reduce tariffs and trade barriers

Outsourcing and offshoring
- Production or services moved to countries with cheaper labour, reducing costs and increasing global economic links

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4
Q

Examples of political globalisation?

A

International Organisations
- UN, WTO and IMF promote global cooperation

Global Agreements
- Paris Agreement on climate change address global challenges through international cooperation

Political Alliances
- Promote political, economic and security cooperation among member states

Peacekeeping
- By the UN etc aim to maintain stability and resolve conflict

Global regulations
- The creation of global standards in areas like environmental protection, trade and human rights are enforced by international bodies- showing how politics operates on a global scale

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5
Q

Examples of cultural globalisation?

A

Spread of media
- Hollywood movies, global music trends like K-pop etc.

Diaspora communities
- migrant communities establish cultural landmakrs in different countries (e.g Little Italy, Chinatown) spreading their traditions

Global cuisine

Social media
- Global conection

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6
Q

Examples of social globalisation?

A
  • International immigration is creating multicultural societies where people share and adopt cultures

Global networks and connectivity
- Connect individuals across countries

Global Health & social issues
- Global NGO’s and charities are involved in the global improvement of education and health, such as the World Health Organisation

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7
Q

What has globalisation led to?

A
  • Lengthening of connections
  • Deepening connections into more aspects of life
  • Faster speeds of connection
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8
Q

Examples of political interdependence?

A

International treaties & agreements
- Countries agree to cooperate on global issues

European Union
- member states have political, economic and legal interdepence

Trade agreements

International conflict resolution
- Countries rely on organisations such as the UN to resolve conflicts, maintain peace and ensure regional stability

Global health cooperation
- Efforts like World Health Organisation and international responses to health crises

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9
Q

What’s an example of interdependence when a country relied on others intervention due to political unrest?

A
  • Many nations intervened when there was Serbian state sponsored ethnic cleansing of Kosovo Albanians
  • This eventually led to Kosovo’s independence
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10
Q

Examples of economic interdependence?

A

Global supply chains
- Countries depend on each other for the production of goods and services

FDI
- Investment in other countries economies

International Development Aid
- wealthier countries provide aid to developing countries

Outsourcing & Offshoring
- Companies rely on countries with lower labour costs for production

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11
Q

Examples of social interdependence?

A
  • Migration has caused social interdependence as there are diasporas all over the world that are dependent on the place they now live in
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12
Q

Examples of environmental interdependence?

A
  • 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

Sustainable Development Goals
- requires countries to collaborate

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13
Q

What transport and tech developments were there in the 19th and 20th centuries?

A

Steam power
Jet aircraft
Containerisation

Telegraph

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14
Q

Describe steam power:

A
  • Britain was leading in the 1800s in terms of steam technology
  • This allowed them to move their goods and armies very quickly
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15
Q

Describe telegraph:

A
  • First telegraph cables were laid across Atalantic in 1860s, which allowed for almost instantaneous communication and revolutionised how businesses operated
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16
Q

What transport and tech developments were there in the 21st century?

A

Telephones
Broadband and fibre optics
GPS
Internet

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17
Q

What are the different flows in globalisation?

A

Capital
Labour
Products
Service
Information

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18
Q

Describe capital flow:

A
  • Movement of money for the purpose of investment, trade, or business production
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19
Q

Describe labour flow:

A
  • Movement of people to go and work in another country
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20
Q

Describe product flow:

A
  • Flow of physical goods from one country to another
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21
Q

Describe service flow:

A
  • 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)
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22
Q

Describe information flow:

A
  • Any type of information can flow from one place to another via internet, phones, SMS etc.
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23
Q

What are the factors that cause a country to be detached?

A

Environmental
Political
Economic

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24
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
25
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
26
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
27
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
28
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
29
Who are the two types of international migrants?
Elite international migrants Economic international migrants
30
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
31
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
32
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
33
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
34
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
35
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
36
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
37
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
38
What are some examples of IGO's?
IMF (International Monetary Fund) WTO (World Trade Organisation) The World Bank
39
What is the IMF's main function?
To loan money to poorer developing nations
40
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
41
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
42
What does the World Bank do?
- Loans money to developing nations with the aim of improving development, and therefore aiding globalisation
43
Why can the World Bank be seen as controversial?
- Some critics say it promotes LEDCs to increase their debts and limits the governments sovereignity
44
What does the World Trade Organisation do?
- Aims to liberalise trade by removing tariffs, subsidies and quotas - Intends to supervise international trade
45
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
46
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
47
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
48
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
49
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.
50
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
51
How do governments attract businesses?
Incentives (grants, tax breaks, infrastructure constructed) are provided by governments to attract businesses
52
What are the different kinds of FDI?
Offshoring Foreign mergers Foreign acquisitions Transfer pricing
53
What is offshoring?
TNCs set up production facilties in developing countries, which have large, cheap workforces
54
What are foreign mergers?
TNCs from different countries join to form one larger company
55
What are foreign acquisitions?
A TNC acquires another company from abroad, often in a hostile way (may involve local job loss, lack of interest in the local environment etc.)
56
How can governments hinder or limit the effects of globalisation?
Censorship Limiting migration Trade protectionism
57
What is censorship?
- The Government restricts the flow of knowledge and information through state-controlled media outlets and internet restrictions - Censorship can be used to limit a population's knowledge of foreign culture and ideas (such as democracy)
58
How do countries limit migration?
- Most have some sort of border control and migration monitoring
59
What is trade protectionism?
Involves subsidies, tariffs and quotas which help a country to protect domestic industries Restricting imports from other countries through above methods
60
What are free trade blocs?
Governments may sign agreements with each other in order to reduce restrictions of the flow of capital and goods. It may also encourage the flow of people, culture and knowledge
61
What are the benefits of trade blocs?
- Businesses have a larger potential market to sell to, and so larger potential revenue to make - As businesses cater for more demand by increasing their production volume, other businesses will benefit by providing raw materials, skilled workers or providing outsourcing opportunities - Trade of essential materials or services becomes more reliable in trade blocs. There may be less economic risk and better pathways for essential imports.
62
What are the disadvantages of trade blocs?
- Outside trading countries become excluded and find it very difficult to join in trading (regionalism) - Foreign industries and suppliers can be damaged as a result of competition or lack of opportunities due to trade blocs forming - Trade blocs still don't guarantee fair treatment within- for example the relationship between Mexico and the USA has not strengthened through the trade bloc NAFTA - Loss of sovereignity - Any country that wants to join a trading bloc must be prepared to make concessions
63
What restrictions are placed on imports and exports?
Tariffs - A tax for importing and exporting goods Non-tariff barriers - Such as quotas (a fixed number of goods) or requirements Outright bans - On products or country imports/exports
64
What are Trade Agreements and how are they fair?
Certain restrictions being removed or lessened in return for another country doing the same All trade agreements are overlooked by the WTO to ensure they're fair
65
Whats an example of a trade agreement?
NAFTA - North American Free Trade Agreement -Lowered and removed taxes on imports and exports between Canada, the USA, and Mexico
66
What is the KOF Index of Globalisation?
Measures globalisation of countries through political, social and economic indicators
67
How is economic globalisation measured in the KOF Index?
- Measured by the actual flows of trade, foreign direct investment and portfolio investment, as well as the restrictions applying to these flows
68
How is social globalisation measured in the KOF Index?
- Expressed as the spread of ideas, information, images and people. - It is estimated by personal contact, information flows and cultural proximity.
69
What is included in personal contact?
International telephone traffic Transfers Tourism Foreign population International letters
70
What is included in information flows?
Internet users Television ownership Trade in newspapers
71
What is included in cultural proximity?
Number of McDonald's restaurants Number of Ikea shops Trade in books
72
How is political globalisation measured in the KOF Index?
- Characterised by the degree of political cooperation - It is measured by the number of embassies, membership of international organisations, participation in UN Security Council missions, and number of International Treaties signed
73
What are the advantages of the KOF Index?
Changes in globalisation can be compared over a large number of countries and over more than 30 years Available for 158 countries Calculated on the basis of 24 variables
74
What are the disadvantages of the KOF Index?
Results were sometimes driven by extreme outlying observations and missing values Cultural globalisation mostly refers to the cultural domination of U.S Cultural products Measures like International letters per capita are very dated, and most people now use technology instead Anything to do with trade can be hard to measure because most countries don't know the true size of their informal economy Measuring foreign populations can be hard because of inaccurate record keeping and illegal immigrants It's hard to calculate the true number of internet users, as not everyone uses their own device
75
What four categories does the T. Kearney index take into account?
Economic Personal contact Technological Connectivity Political Engagement
76
What is included in the T. Kearney Economic category?
Integration trade and Foreign Direct Investment
77
What is included in the T. Kearney Personal Contact category?
Telephone traffic Travel Remittances and personal transfer
78
What is included in the T. Kearney Technological Connectivity category?
Internet users Internet hosts Secure servers
79
What is included in the T. Kearney Political Engagement category?
International Organisations U.N Peacekeeping Treaties Government transfers
80
How is the T. Kearney index calculated?
- The lowest value is given a 0, the highest a 1 - FDI, Internet and Telephone Traffic are all weighted double - All scores are then summarised
81
What are the advantages of the T. Kearney Index?
It covers 96% of the worlds GDP It covers 84% of the worlds population Allows for comparisons between countries Allows for comparisons over time
82
What are the disadvantages of the T. Kearney Index?
- Only 64 countries are included - Who decides the weightings? - How are cultural trends measured? - Small countries tend to take the top places in the index due to higher importance / proportion of FDI- therefore suggesting an overimportance of the size of a country
83
What are simple measures?
Based upon one single factor, and are the most common statistical measures of wealth and productivity
84
What are examples of simple measures of globalisation?
GNI PPP Income per Capita GDP
85
GNI?
Gross National Income - Value of goods and services by a country - Similar to GDP, but it also takes into account overseas spending
86
PPP?
Purchasing Power Parity - The exchange rate that would make the purchasing power in one country equal to that of another country with a different currency. - It is calculated as the ratio between the prices in the different currencies of the same basket of goods
87
Income per capita?
- Mean average income per person (income of the country by population size) - This average can easily hide inequality, the few high earners have a large influence of GDP than a majority of low earners
88
GDP?
Gross Domestic Product - Total value of goods and services produced in a country - Using GDP as a single economic measure may be inaccurate as GDP doesn't include any informal earnings or black market economies - Measured in US Dollars, therefore can vary as exchange rates vary daily
89
What are composite measures?
Consider a range of factors, therefore are more reliable statistical measures of development
90
What are some composite measures?
Economic Sector Balance GII HDI
91
What is the Economic Sector Balance?
- Considers all four main economic sectors- Primary, Secondary, Tertiary and Quarternary - Describes the composition of a country's industry (often displayed as a bar chart) - As a country develops, primary industries usually decline and their earnings reduce whilst secondary and tertiary become more important (according to the Clarke-Fisher model)
92
What is GII?
Gender Inequality Index - Measures female participation and treatment within society and considers: Reproductive health - maternal mortality ratio - adolescent birth rates Empowerment - proportion of parliamentary seats held by women Employment - labour force participation rates of women
93
HDI?
Human Development Index - Measure of social development that considers: Life expectancy Wealth (GDP per Capita) Education (Literacy levels and average number of years in education)
94
What do TNC's do?
- Provide raw products, manufactured goods, services or information- they exist in different industries - Make products, produce jobs, invest in countries, and sometimes contribute to cultures. - Some TNC's can have political influence (e.g the pressuring of countries to reduce taxes and create SEZs so that the TNC will invest there)
95
TNCs economic activity?
In 2016, the top 200 TNCs accounted for 25% of the worlds economic activity but employed only 1% of the world's population
96
What do TNCs create between other countries?
Links - Linkages are created in order to benefit the TNC and often includes expanding the company
97
What type of links can TNCs create?
Links through Integration - Horizontal Integration - Vertical Integration Links through FDI
98
Explain TNCs links through FDI:
- TNCs create links with other countries by investing in them, which benefits the country as it creates jobs and contributes to the economy. - TNCs can be investments into a factory, but they may also take the form of mergers and acquisitions
99
Explain TNCs links through integration:
- TNCs often expand their company by creating links with other companies Horizontal Integration - Taking ownership of part of the supply chain, e.g buying a plantation Vertical Integration - Taking ownership of another company, often one that is in a similar industry - The food industry is a prime example of vertical integration- a lot of large companies control the majority of small countries
100
What is outsourcing?
- TNCs that provide tertiary industry products (services) will often outsource tasks to other companies in order to save money and time - TNCs like Apple outsource their manufacturing processes so that profits can be maximised
101
What is offshoring?
- Companies that make manufactured products will often have their factories in LICs due to lower labour costs, better taxes, weaker regulations for workers and weaker environmental regulations - This leads to much dispute about the ethical issues with TNCs exploiting poorer citizens in order to maximise profit
102
What is glocalisation?
The adaption of goods or services by a TNC to meet local needs or tastes, which would increase custom within a certain region
103
What are some examples of glocalisation?
- Grocery shops based in Bangladesh dont wrap their vegetables, because customers judge their purchases based on the feel of the food (called a wet market) - McDonalds have created a menu without any beef or pork in India, due to the large population of Muslims and Hindus - Car makers must change the orientation of the car to suit which side of the road a person must drive on
104
What does the global shift refer to?
How manufacturing and industrial activity has shifted from the West to the East - Prior to the 1960s, manufacturing industries were located in the West in Europe and the US - After the 1960s, industries relocated to the East in countries like India and China, due to their large, unskilled workforce
105
What are the benefits of outsourcing services to India?
- Workers receive middle class wages, which means their disposable income has increased - Other businesses have seen more customers and spending due to the positive multiplier effect - People running the companies where services are outsourced to have seen increasing profits
106
What are the costs of outsourcing services to India?
- Many workers believe they are exploited, with long shifts and still lower wages than MEDC workers - Employees have become demotivated due to the repetitive nature of their work - The inequality between the richest and the poorest is increasing, as the poorest are not well educated and cannot benefit from outsourcing jobs
107
Describe the outsourcing of services to India:
- Many Indian citizens can speak fluent English, and the Indian government have invested in infrastructure such as broadband capacity, which has attracted high tech companies
108
Describe the outsourcing of manufacturing to China:
- In the 1990s, cities such as Shenzhen and Dongguan offered investors a large pool of cheap labour for manufacturing and other secondary employment. Since then, the volume of TNCs outsourcing to China has massively increased - Sweatshops had previously accelerated China's globalised status but have now become less popular due to cheaper labour elsewhere- such as Bangladesh and Vietnam - Now, new technological outsourcing opportunities move into China
109
Benefits of outsourcing of manufacturing to China?
- New production methods and techniques brought by TNCs have now been adopted by local companies, causing local economic development - Locals, especially in rural areas who would otherwise be dependent on subsidence farming, now earn a wage
110
What are the costs of outsourcing manufacturing to China?
- Many employees have been exploited and the working conditions are dangerous- chemical contact, long hours, limited human rights, relaxed health and safety regulations - The environment has been degraded - Rivers and waterways become polluted with arsenic, lead, and other dangerous chemicals - The air becomes polluted with particulates, that increase asthma sufferers and pollution-related fatalities
111
What were the impacts of deindustrialisation?
Dereliction and Contamination Increasing unemployment rates
112
Describe dereliction and contamination as a result of deindustrialisation:
- Many textile companies based in UK Northern cities closed and so the buildings they previously occupied become derelict and abandoned - Other areas suffered from abandoned chemical and industrial waste, which has infiltrated the soil and local waterways
113
Describe unemployment rates as a result of deindustrialisation:
- Companies moving away leads to unemployment , which can lead to depopulation , as residents migrate away to find alternate employment - Deprivation of inner city areas will increase and crime rates may increase
114
What features is culture composed of?
Language Traditions Religion Food
115
What can culture be influenced by?
Media Migration TNCs Social media
116
What populations have experienced large change to culture and ideologies?
Developing and developed populations - As China has developed, the middle class population has grown and so people are starting to adapt their diet to Western preferences, causing a rise in meat consumption
117
How much has meat consumption grown in China and what are the impacts of this?
- From the 1990's to 2015, meat consumption per capita rose from 5kg to 50kg - Obesity has increased, especially within the middle class population - A rise in cattle rearing has led to an increase in methane emissions
118
Describe cultural erosion and its impact:
- Communities being exposed suddenly to a new culture can face sudden change or reduction to their own culture. - Young people are especially vulnerable to cultural diffusion or erosion. - Due to the sensitivity and value of culture in some communities, this can cause conflict
119
How does France resist cultural change?
- The French government has attempted to control globalisation by restricting foreign language media (40% of all broadcast must be French)
120
How does China resist cultural change?
- 'The Great Firewall of China' prevents information that's unfavourable of the government or of foreign media outlets. - Within China, you can't access the BBC, use facebook, or search for politically sensitive information
121
How does Iran resist cultural change?
- In the early 2000s, the government banned Barbie dolls and confiscated them from all stores as they weren't seen as appropriate for the Islamic state
122
Describe the widening inequality gap:
- Average incomes have risen in all continents since the 1950s but the poorest parts of Africa have seen very little and very slow growth - The increase in the wealth of Europe and North America has resulted in the widening gap between the richest and the poorest in the world - Absolute poverty has fallen but is still high
123
What is the Gini coefficient?
Measures the inequality of wealth shared across a population and scores a country from 0 to 1 0 represents perfect equality 100 represents perfect inequality
124
What parties and organisations have become more popular in Europe?
The far-right - Support for them has increased since the expansion of the EU in 2004, allowing for an increase in the flow of migrants.
125
What are some European far-right parties that have become popular?
- Germany has accepted the largest number of migrants of any EU country, but growing concerns about this has led to the rise of Pegida - In France, the National Front received 25% of the votes during a national election, suggesting the French view of migrants and cultural diversity is becoming less accepting
126
How has cultural identity been protected?
- Some countries attract tourists to experience their culture or witness their traditional lifestyle (e.g Papau New Guinea) - Indigenous or nomadic populations have grouped together, to support each other and maintain their traditional lifestyle
127
What has TNCs development of Global Production Networks resulted in, and how?
- Global production networks have been developed through cheap labour and low transport costs, which has helped TNCs minimise costs and maximise profit - However, there are many environmental costs of this (such as high carbon emissions)
128
What do critics of TNCs often adopt?
- 'Localism' as a way of life - This is the reduction of globally sourced goods, and instead purchasing locally-sourced, sustainable products to protect the environment and vulnerable individuals
129
What are the advantages of localism?
- Local suppliers can generate more revenue and they can provide more jobs for locals - Lower carbon emissions as produce is transported over shorter distances - Deliveries can be much quicker and may cost less
130
What are the disadvantages of localism?
- Foreign suppliers in developing countries may lose out, and jobs may be lost abroad - Overall cost is higher, due to higher wages and manufacturing costs - Low income families may not have the financial ability to afford local produce
131
What is a transition town and its goals?
Transition towns support local economies and they promote: - reducing consumption through reusing and recycling - reducing waste, pollution and environmental damage - meeting local needs through local production
132
Give an example of a transition town:
Totnes, in Devon, which has its own currency (the Totnes pound) - This encourages spending in independent stores , therefore benefitting the local economy rather than chain stores or TNCs
133
What is fairtrade?
A system of certification that sets standards in the production of goods
134
What is the aim of Fairtrade?
- To secure better pay to producers and growers, and includes coffee, cocoa and bananas - The Fairtrade certification provides consumer confidence that suppliers are being paid a fair price for what they produce
135
Are there any problems with Fairtrade?
As the scheme continues to grow, its increasingly difficult to ensure profits are distributed properly to the growers and producers.
136
What is time-space compression?
When heightened connectivity changes our conception of time, connectivity and potential barriers to the migration of people, goods, money and information
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What does time-space compression result in?
As travel times fall due to new inventions , different places approach each other in time-space - they begin to feel closer together than they did in the past. This is called the shrinking world effect.
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What are SAPs?
Structural Adjustment Programmes - Strict conditions imposed on countries receiving aid from the IMF or the World Bank - Receiving governments may be required to make cuts to healthcare, education, sanitation and housing. - This is to reduce the role of the government in a country, and open it up to private investment. It also cuts government spending so they can repay loans/
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Give an example of a SAP in a country:
- In Tanzania, water to shanty towns in the capital city was cut off when the country privatised its water services as a condition on $143 million of debt relief
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How could global flows be viewed as threats?
- information can provide citizens with knowledge that their government finds threatening - migrants can bring cultural change and diversity, not everyone welcomes this - imports of raw materials and commodities can threaten a nation's own businesses
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What are the Bretton Woods Institutions?
The Bretton Woods Institutions are the IMF and the World Bank. They were set up at a meeting of 43 countries in Bretton Woods, USA in July 1944 Their aims were to help rebuild the shattered postwar economy and to promote international economic cooperation
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What are the advantages of the WTO?
- Can help to reduce taxes and tariffs, which in theory, can help developing countries. - It can also help to ensure that food products are only traded if they are safe through its sanitary regulations.
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What are the advantages of the IMF?
LEDCs can get access to money needed to build up their economies
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What are some of the most significant trading blocs?
European Union- EU - A customs union, a single marker and now with a single currency ASEAN - Association of Southeast Asian Nations Pacific Alliance - A regional trade agreement between Chile, Colombia, Mexico and Peru
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What are the different types of trade bloc?
Preferential trade area Free trade area Customs union Common market Economic union Full integration
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What is a preferential trade area?
- Barriers are lowered but not eliminated among members
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What is a free trade area?
- Internal barriers eliminated, but independent external barriers are maintained (e.g NAFTA)
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What is a customs union?
- Internal barriers are eliminated, and common external barriers are agreed on (e.g EU)
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What is a common market?
- Internal barriers eliminated - Common external barriers adopted - Free movement of resources (such as labour) allowed among member countries (e.g East African Common Market)
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What is an economic union?
- Internal barriers are eliminated - Common external barriers adopted - Free movement of resources - A uniform set of economic policies (e.g European Union)
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Where does most urban growth take place?
Asian and Africa
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What is a megacity?
A metropolitan area with a total population in excess of 10 million people
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What are potential problems in megacities?
Disease epidemics Informal settlemts Increased vulnerability to hazards Traffic congestion Pressures on water supply / quality Pressure on waste management Overcrowding
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What are economic problems in megacities?
- high economic leakage from TNCs away from megacity to HICs - Low tax rates etc. used to attract TNCs means the government can't provide adequate infrastructure
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What is economic globalisation?
Companies making profit and being situated all over the world - Largely caused by the growth of MNCs / TNCs
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What is social globalisation?
Connecting with other people across the world without borders
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What is cultural globalisation?
Migrants sharing culture in their new countries -The impact of Western culture, art, media, sport and leisure pursuits on the world
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What is political globalisation?
Governments coming together to make agreements - The growth of Western democracies and their influence on poor countries, and the decline of centralised economies
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What is a TNC?
- A TNC is a company that has operations in more than one country - They have grown by buying up foreign firms in mergers and acquisitions - Much of their manufacturing is subcontracted to third parties, making it hard to regulate working conditions
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What is the development gap?
The social and economic disparity between the wealthy and the poor It occurs globally, and at more local scales
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What are the Millenium Development Goals?
- Established in 2000 - Probably the most significant major attempt to defeat poverty. - The UN set out eight development goals to reduce global poverty substantially by 2015
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What is the Lorenz Curve?
Used to show how much inequality exists in a situation
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How do you plot a Lorenz curve?
1. Raw data 2. Arrange in ascending order 3. Find total income 4. Find % of income 5. Find cumulative % of income 6. Lot the data
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What is post-accession migration?
The flow of economic migrants after a country has joined the EU
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What is localism?
A response to globalisation with the aim of increasing local sustainability
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What are the pros of localism?
Saves energy use (especially transport) Reduces size of eco-footprint Encourages eco-friendly farming and other production methods Provides alternatives for local people Improves social and cultural interchange and cooperation Supports local suppliers and businesses Keeps money within local area Self-sufficiency
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What are the cons of localism?
Emussions from long-distance transport are often offset by more efficient production methods Local products may be of lower quality Limited choice for local consumers Shortages of products at certain times due to local production cycles Local markets may be unreliable prices of local products may be higher
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How has containerisation resulted in globalisation?
- Containerisation made the expansion of global trade possible due to its efficiency and economies of scale (costs saved)
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What benefits did containerisation bring to trade?
- Fewer dockworkers needed, so not as many salaries to pay - Much cheaper to load up ships - Less stock stolen as containers were pre-sealed, which also reduced insurance costs - One standardised model reduced expense of international trade -
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Why is technology important in social globalisation?
- Maintaining long-distance social relationships through apps such as Skype - Long-distance learning, through accessing courses online
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Why is technology important economically?
- Supply chain monitoring and ordering from suppliers is aided by real time connectivity - Buying and selling of stocks, shares, bonds and currencies - Personal banking, such as through the banking system M-Pesa, which is popular in East Africa and India - A growing number of small business start-ups seek online pledges from the public to help get the funds they need
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Why is technology important culturally?
- Cultural traits such as language or music are adopted or hybridized due to cultural interactions - Small companies can achieve a digitally connected global fan base
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Why is technology important politically?
- Research and journalism networks that global offices of NGOs depend on are far better connected than they ever were in the past - Websites for MGOs such as the United Nations and World Bank contain lots of resources that aim to educate a global audience on a wide range of issues found across the world
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How does free trade increase globalisation?
- Governments take away barriers that make trade more difficult and costly - As costs are reduced, TNCs will see a profit and want to invest in nations - TNCs will bring new ideas, products, cultures etc. to a nation - The TNC will also generate wealth - This wealth and development will increase standard of life and demand for foreign products - As an economy has more TNCs, they become more interconnected and interdependent on each other.
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What is transfer pricing?
Some TNCs, such as Amazon or Starbucks sometimes channel profits through a subsidiary company in a low-tax country such as Ireland. The OECD is now trying to limit this practice
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What are ASEAN's goals?
- Increasing access to healthcare - Invest in sustainable agriculture - Support the rights of children in the digital space - Improve financial integration
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What are physical reasons a country might be detached?
- Highly vulnerable to climate change and natural hazards - Poor resources for agriculture - Physical isolation and lack of coastline deters inward investors seeking an import/export base (e.g Niger)
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What are human reasons a country might be detached?
- Lack of skills and literacy deters inward investors (e.g Somalia) - Politically isolated (e.g North Korea, Myanmar) - Ethnic clashes and civil war between tribes
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What issues with resources might make a country detached?
- Resurces are controlled by foreign TNCs due to old trade agreements that need renegotiating - Resources are controlled by a small elite - Infighting over resources
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Why has there been a global shift?
- Asian nations allow foreign TNCs in (Open Door Policy) - Cheaper labour and lots of workers. Land and natural resources are often also cheaper
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What is the transition initiative?
- Founded in 2006 by the NGO 'Transition Network' - They encourage towns to grow their own food in community gardens, and reduced energy used in transport and recycle materials
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What is sustainable development?
Meeting the needs of the current generation without compromising the ability of future generations to meet their own needs.
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What is the purpose of the transition initiative network?
- The transition initiative network grew as a way of preparing communities for the changes that will inevitably come due to climate change. - This initiative allows a community to transition from high dependence on fossil fuel energy and drawing in products worldwide to a low dependence on fossil fuels and with a focus on locally produced goods
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How do transition towns work?
- Creating local groups that take actions to achieve a sustainable lifestyle - Reducing dependence on fossil fuels - Promoting local foods, using local ways of paying for goods and services
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How does recycling work?
- Reduces amount of waste going into landfill - Provides raw material for production and consumption - Reduces industrial energy use, as some recycled materials use less energy in processing than original raw materials
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How can globalisation challenge values?
- Western countries are adopting more tolerant policies on ethical and moral issues, such as gay rights- Westernisation can encourage the spread of such values across the world. - Such as Paralympians being treated properly in London at the end of the 2012 games
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What can westernisation impact?
Language Eating habits Clothes How we view our systems of value and political governance