Globalisation Flashcards
What is globalization?
3.1a
Globalisation is the increasing interconectiveness and interdepence of countries worldwide through the increase in the volume and variety of cross boarder transactions and flows
what are the four main aspects of globalisation?
3.1a
Economic, Political, Social and cultural
What is involved in economic globalisation?
- free tade of goods and services
- free movement of labour between countries
- free movement of capital
- free interchange of technology and intellectual capital
what is involved in political globalisation
- the increasing importance of IGOs
- growing influence of trade blocs
- spreading of western democratic values
what is involved in social globalisation
3.1a
- tourism
- immigration
- social networking
what is involved in cultural globalisation
3.1a
- exposure to global media
- tourism exposing foreign cultures
- the process of westernisation
How much Turnover occurred per day in the foreign exchange markets in April 2022? (flows of capital)
7.7 trillion
what proportion of global GDP in 2019 was generated by the flows of industrial and agricultural products
1/3
What developments in transport occurred in the 19th and 20th century and how did this contribute to globalisation?
3.1b
- railways - the growth of railways in the 19th century created a network that could move people and goods across land at a rate not seen before. 61,000km of railroads were built across imperial India so goods can be transported to ports trade
- jet aircraft - In 2020, EasyJet flew 96 million passengers. This has meant tourism is now cheap and accessible to te global public, meaning cultures and traditions can be seen and spread around the world.
- containerisation - every year, roughly 200 million containers are shipped. Containerisation brings the unit cost of transportation down massively (through shipping on masse), which means countries can take advantage of offshoring to countries who have a comparitive advantage in manufacturing - the opportunity cost would be too great. Developments in transportation thereffore were the enabler which allowed the global economic restructuring of manufacturing to Asia to occurre (global shift)
Why is transportation important in the contributuion to globalisation?
transportation is the medium in which material flows can occure
what effect has developments in transport lead to?
3.1b
the shrinking world effect - while the physical distances of places remain unchanged, the reduction in transportation time makes them feel closer.
Why were developments in ICT in the 20th and 21st century important?
3.
While transportation has allowed for the mass movement of goods, ICt and communication allows for the flows of immaterial goods, and leads to greater intergration wordwide. The reason transportation has allowed for global intergration is because buisnesses have been able to communicate globally
What developments in ICT occurred in the 20th and 21th century?
- telegraph - first layed across the Atlantic in the 1860s, the telegraph made near instantaneous communication possible, creating closer ties between governments and businesses.
- The internet - invented in 1989, the internet has given buisnesses, both small and multinational, access to a global consumer base, bringing many countries closer together through mutual economic reliance and has advanced develoment in transportation.
- fibre optics - 1.2 million KM of undersea cables carry the worlds data through cyberspace.
- Social Media - in 2020, there were 500 million tweets being sent everyday. for the first time in human history, we can communicate easily with everyone throughout the globe, leading to a rapid spread of culture.
- mobile phones - relatively cheap way to access the internet and digital economy. By 2019, roughly 60% of Africans had a mobile phone.
How have IGOs contributed to the growth of Globalisation?
Globalisation is not an automatic result of the advancement of technology - global flows can only (and have only) take place if economic liberalisation is embraced by national governments.
How has the IMF contributed to globalisation?
- IMF - channels loans from HICs to LICs in return for the recipient adopting a free market economy, by privatising government assets meaning TNCs can enter the country more easily. The USA has 16.5% of voting rights within the bloc, meaing western culture is especially spread
How has the wolrd bank contributed to globalisation?
- World Bank - distrubted $64 billion to economic projects in 2018.
how has the WTO contributed to globalisation?
- the WTO encourages trade liberalisation and seeks the abandoment of protectionist policies. In 1995, Pakistan joined the WTO, forcing it to remove the 200 mile exclusion zone from it’s coast, meaning TNCS could now fish in it’s waters, fish stocks have fallen dangerously low, pushing some fishing villages into poverty. it had 162 members in 2016.
What are the ways in which national governments can contribute to globalisation?
Joining trade blocs and through policy
* A trade bloc is an agreement within a group of countries in which all barriers to trade are removed. The EU is a single market of 28 countries, and promises the free movement of goods, capital and people. The original objective was to prevent war through the economies becoming so well connected.that it prevents war. In 2015, the EU and Vietnam removed protectionist measures between them.
* market liberalisation - popularised by Thatcher and Reagen in the 80’s, they believed goverment restrictions hindered economic growth and so removed restrictions on the market, allowing for inward investment especally from the banking sector, making London a global financial asset
* privatisation - E.g British airways - Qatar owns 10%. Ownership of stocks has often gone overseas, encouraging the flows of capital
What is FDI?
Investment from one party in a country to a project, company or other party in a foreign company.
What was China’s open door policy?
In 1978, the new CCP leader, Deng Xiaoping adopted the open door policey, allowing TNC’s to invest in China. This created 7 main Special Economic zones, where traditional communist rules did not apply and where western companies could take advantage of minimal tax, cheap labour and little enviromental regulation. FDI flows into Chins has increased from $1.23 billion in 1984 to $189 billion in 2022.
Has the pattern in FDI stayed the same?
No - BRICS countries are increasingly investing in other parts of the world. they represent 19% of FDI outward investment.
What is the KOF index?
3.3a
An annual ranking produced by the Swiss Institute for Business Cycle Research, it is a composite index which includes 24 indicators spread over three catogries : Political (39% weighting), economic (37%) and social (24%) globalisation. Switzerland is the most globalized country (2023)
What is the AT Tearney Index?
An index of global cities produced by a US management firm of the same name. The index uses a variety of measures such as human capital, informatioan exchange and cultural diffusion. The top 3 cities are NY, London and paris.
How have TNCs contributed to the spread of globalisation?
TNCs can be referred to as the ‘architects of globalisation’. They build bridges between different countries and markets.
-TNCs, in order to remain productively efficient in a country, make significant investment in the form of FDI. This economically develops the recipient country, developing their markets and exacerbating increases in globalisation. In 2020, global FDI flows reached 1 trillion dollars.
- TNCs create a complex global supply chain network, which connects producers and encourages flows of goods. iPhones are designed in the USA, the chips are made in China, the screen in South Korea and are assembled in China. This creates a mutual economic interdependence through the fostering of international trade.
-The world bank estimates 80% of global trade involves TNCs
-TNCs cause global diffusion as the products they sell often represent the culture and customs of their host country - Coca Cola is accessible to Amazonian tribes. In addition, TNCs often adopt globalisation - adapting a good to match local cultures or preferences, like McDonald’s selling big Mac’s without cheese in Israel to make them Kosher. This leads to a blending of cultures
What are two examples of switched off regions? Why are they so?
1.North Korea - The North Korean government, ruled by the autocracy of a single family (currently ruled by Kim Jong-Un) since its split from South Korea following the Korean War ending in 1953, has been determined to resist globalisation and adopted a policy of self reliance, preventing all western influences from entering the country, as they are seen as a threat to the communist regime. For example, the population cannot access the internet and jeans are not allowed as they are too American.
2.The Sahel region - such as Chad, Mali and Burkina Faso. Mali is an arid region and being affected heavily from desertification, making the construction of necessary infrastructure incredibly difficult. Mali is also landlocked, meaning it has no access to global sea routes and thus containerisation, giving no incentive to TNCs to offshore there. 60% of Malians live in Rural regions, often living off subsistence farming, meaning they lack the education necessary to participate in the global supply networks.
What is the definition of global shift?
The movement of the global economic centre of gravity, mainly to Asia.
What happened in the global outsourcing of manufacturing to china?
China first gained its reputation as the workshop of the world in 1990, when cities such as Shenzen and Donggun offered TNCs a huge pool of cheap labour, relaxed regulation and little tax. Causing many companies, such as Toyota or Apple, to start to produce their goods in China. In 2024, China represented 31.6% of global manufacturing output.
What happened in the global outsourcing of services to India?
Many services, especially call centres and tech support, has moved to India and in particular Bangalore. This is because of the legacy of British colonial rule (most of the population speaks english). This has created an Indian middle class.
What have been the benefits of global shift for developing countries?
1.Poverty reduction - 1 billion people have escaped absolute poverty since 1990, 600 million being in China alone. Manufacturing jobs, while poorly paid, offer far more than subsistence farming and lead to higher standards of living.
2. Education and training - Economic growth in developing countries has given governments the tax revenues needed to invest in it. There were 8.2 million graduates in China in 2019, leading to a growing quaternary sector.
3. Infrastructure investment - increased infrastructure investment has occurred in major cities, modernising them and improving transportation. Mumbai international airport can now handle 40 million passengers, and the Indian government has pledged to spend 1.5 trillion dollars on infrastructure by 2025.
What have been the costs of global shift to developing countries?
Rising inequalities and poor working conditions - while wages have increased, inequality is far worse. The top 1% of the population owning 22% of national income. In addition, workers in manufacturing often work in poor conditions. 160 million children undertake in labour worldwide, leading to a cycle of poverty
2. Urbanisation and unplanned settlements - rapid rural - urban migration in developing countries has surpassed the capacity of the city to cope, leading to unplanned settlements with poor housing conditions. 60% of the population of Mumbai live in slums.
3. Environmental degradation - Togo has lost 60% of its forest, 70% of Chinese rivers are polluted. 2 million people die a year in China from air pollution. Short term economic growth may sacrifice the health of the population and the ability of the country to foster long term, sustainable growth.
What are the benefits of global shift for developed countries?
1.Movement of industries - a shift away from the secondary industry has meant that environmental pressures move away from the host country, reducing air pollution and other manufacturing related problems. The uk has halved its carbon emissions since 1990
2. Increased affordability of goods and services - the outsourcing of manufacturing has meant that goods can be produced for cheaper, due to lower labour costs. Therefore consumers experience an increase in their PDI, and therefore an increase in their welfare
What are the problems of global shift for developed countries?
1.deindustrialisation and a spiral of decline - old factories close, leading to a loss of jobs. Structural unemployment occurs as many wouldn’t have been educated apart from in that field. People leave the city, meaning economic activity reduces, so more jobs are lost etc… The population of Newcastle upon Tyne fell by 12% in the 1970s
2. Dereliction - a ‘broken windows’ scenario develops, where vandalism starts to be tolerated. Eg Leicester - textile industrial buildings left abandoned.
Facts about the impacts of deindustrialisation in Michigan:
-8.8% unemployment rate
-Detroit population has reduced by 1.1 million since 1950
-1 in 5 houses are left vacant
What is rural - urban migration?
the movement of people from countryside to city areas.
What are push factors of rural areas?
-Poverty - agricultural modernisation has reduced the need for labour in rural areas. What work remains is low paid and often subsistence.
- Climate change has exacerbated crop failures, creating resource scarcity.
-Conflict over land a problem, eg Dafur region in Sudan
-lack of access to services like education and healthcare
What are pull factors of urban areas?
-Employment - FDI from TNCs provides growth of a variety of industries and a high demand of labour
-access to healthcare and school
- Housing
What is urbanisation?
The increase in the proportion of people living in towns and cities
What is a mega city? How many are there?
A city with at least 10 million people. 45 in 2023
How many internal migrants lived in cities in 2018?
What is urbanisation expected to be by 2050?
800 million
3/4
How many internal migrants lived in cities in 2018?
What is urbanisation expected to be by 2050?
800 million
3/4
Describe the mega city growth of Lagos and Mumbai
- Mumbai - Mumbai was home to 26 million people in 2018, double what it was in 1970. Presence of TNCs like Starbucks provides employment.
- Lagos - population has gone from 1 million in 1970 to 13 - 21 million in 2018. Population increased by 300,000 people each year. 40% of the population is below 14. 60% of Lagosians live in Slums
Why do Remittances increase global interdependence? which country had the highest Remittances/GDP ratio in 2023?
The source country may become reliant on Remittances from international migrants who have left to find better paid work, increasing flows of capital and thus interdependence. Remittances made up 48.2% of Tajikistans GDP in 2023
What are social and environmental challenges of mega city growth?
- Overcrowding - 60% of Lagos live in Slums, high demand for houses drives up prices meaning many people are forced to live in poor quality slum housing. People in slums often work in the informal economy so will not contribute to the fiscal dividend of the country.
- Lack of access to services - Often times, rapid population growth exceeds the capacity of the city to install infrastructure such as healthcare or education. 5014 people per doctor in Lagos
- Environmental pollution - as more vehicles are used in a mega city (New Delhi is predicted to have 26 million on its roads by 2025), more conjestion and thus more air pollution especially as cars are likely to be old and more polluting. New Delhi has the worst air quality in the world, with 153 micrograms of particulates per cubic meter.
How many global migrants where there in 2020
281 million
What has occured with the elite migration to London?
During the collapse of the soviet union, soviet owned buisnessed were aquired by many Russian buisness people, providing them with great wealth and giving them the name ‘ oligrarch’. These oligarchs have brought many homes in London (1/3 of all foreign purchases in London ibetween 2004-2014). the combined value of bonds and loans raised by Russians in London between 2004-2013 was £250 billion.
What has occured in the low wage migration to gulf states?
Due to their small population, the gulf states rely on flows of labour to do low paid jobs. 90% of the UAEs labourforce is made up of international migrants, 95% in Qatar. These workers are often subjected to terrible working conditions- more than 6,500 migrant workers from South Asia had died in Qatar since they were named as the host of the 2022 world cup.
What are the benefits of migration for the host country?
Filling labour shortages - 54.3% of graders and sorters in Agriculture in the US were migrants. Immigration helps resolve skills imbalances within an economy and so can sustain economic growth
Fixes demographic problems - in the USA, net migration of immigrants plus births to immigrants was equal to 77 percent of population growth from 2016 to 2021. 27% of care workers in the USA are immigrants
What are the problems of migration for the host country?
Decreased wages - wage elasticity of immigration in the US is between -0.2-4, meaning a 10% increase in immigration will reduce wages by 2-4%. This is because immigration creates a surplus of labour.
increased demand for housing - a house would have to be built every 5 minutesin the UK to keep up with the rate of immigration. increasing demand for housing decreases affordability.
What are the benefits of migration for the source country?
The source country will recieve Remittances from international migrants who have left to find better paid work, increasing flows of capital and thus interdependence. Remittances made up 32% of Tajikistans GDP in 2022.
What are the negatives of migration for the source country?
Brain drain - In Guyana, over 70% of indivudals with a tertiary education have migrated to the USA. This reduces the workforce in key services such as healthcare and education, as well as stifling economic growth by reducing the number of high skilled workers.
Inbalanced population - emmigration is higher among young, fertile adults who contrbute to a demographic dividend. This can cause a problem for a country later on, in the form of a high dependency ratio.
What is cultural diffusion?
The spreading of one culture to another another, by various means.
What has caused cultural diffusion?
TNCs - Mcdonalds operates in 120 countries
Global Media - Rupert Murdoch owns news outlets in 5o countries
Migration - Nottinghill Carnival
Tourism
What is westernisation
the process by which societies adopt Western culture, practices, and ways of life.
What factors have lead to the rise in westernisation?
- TNCs
- global media corporations
- tourism
- migration
How have TNCs influenced westernisation
TNCs such as KFC central in spreading Western diets globally. By operating in multiple countries, these companies promote Western lifestyle, such as fast food (In Japan. there are 1200 stores of KFC in Japan, which since the 1970s with the advertising campaign of “Kentucky for Christmas “ has been the staple christmas food.
The spread of Nike (which footwear had revenue from Greater China of $5.5 billion) has spread the western fashion trends of Athlesiure
How have global Media outlets influenced globalisation?
The global spread of Western media, has facilitated the spread of Western digital culture and communication.
* Rupert Murdoch - while no longer owning them directly, Murdoch had significant influence accross many countries (south china morning post) through his ownership of News corp, leading to a western influence on news coverage.
* Netflix, which originated in the U.S., has expanded globally, reaching over 260 million subscribers by 2023. Through showing hollywood films, western lifestyle, languae and culture is easily accessible to many cpunntries formelly untouched by western infuences
How has tourism lead to cultural diffusion
In 2019, there were 1.5 billion international tourists. This leads to a mixing of people on a scale not yet seen in human history. Often, tourism provides a great incentive to developing countries to adopt westernised cultures to welcome tourists.
However, it could be said this is due to the spread of western TNCs
How has migration lead to cultural diffusion
nottinghill carnival in london, a celebration of carribian members of london, attracts 2 million people annually. It influence makes London residents experience carribian heritage.
Globally, 281 million international migrants are estimated.
What is 1 negative and 1 positve impact of westernisation
increased meat consumption in China - beef and veal consumption in China has increased by almost 130% since 2000, due to the rise in the middle class and global inflluence from TNCs. This produces large amount of methane (which is 23x more potent a greenhouse gas than carbon dioxide) but also increases rates of obseity - as of 2022, more than half of Chinese adults were overweight or obese.
however, westernisation has lead to an increase in the rights of disadvantaged groups. the United Nations Convention on the Rights of Persons with Disabilities (CRPD), adopted in 2006, was strongly influenced by Western countries. the paralympics has grown in importance, with China seeing it as a way too exert soft power, they have won every games since 2008 (previously in 2011, only 1/4 of disabled people found employment)
What is cultural eroision?
Cultural erosion refers to the gradual loss or destruction of a community’s unique cultural practices, beliefs, and traditions
What has occured in Papua New Guinea?
Papua New Guinea use to be home to a vibrant collection of tribes, speaking over 800 languages. The arrival of western culture and TNCs due to colonization from 1884.
As people moved to urban centers, capitalist economics was introduced. Traditional lifestyles in PNG are deeply connected to the environment. The use of local materials for food, clothing, and shelter is sustainable and based on a understanding of local ecosystems. However, as communities adopt Western technologies and food products (processed foods, imported goods), this knowledge is being lost, and the ecosystems practices are under threat.
What are some examples of a push back to a global culture?
France - Toubon Law (1994) states that 40% of all broadcasts must be in French
China - great internet firewall - blocks many western TNCs from operating - eg google and facebook
- What is GDP per capita? Give the highest and lowest
- What is economic sector balance? Give an example
- What is the difference between GDP and GNI?
- What is PPP?
- GDP per capita is the total value of goods and services produced in a country over a year, divided by the population. In 2023, Burendi had a GDP per capita of $200, while Monaco had $240,862
- Economic sector balance describes the distribution of the employment of a country in terms of primary, secondary, tertiary and quaternary
- GNI includes foreign earnings
- Where a currency is adjusted to account for the relative purchasing power in different countries, by comparing the cost of a standardised basket of goods
- What is HDI? Give examples
- What is the Gender inequality index? Give examples
- How many people die a year in China because of air pollution
- HDI is a composite measure of development, where life expectancy, literacy rates, years in education and GDP/ capita (PPP) are combined to give a sinigle index between 0-1. Switzerland had a HDI of 0.967, 0.940
- a measure of gender inequality. it measures this in 3 areas - reproductive health, empowerment and eoconomic activity. it measures it on a scale of 0-1, where 0 is perfect. Yemen is 0.82, Denmark has 0.009
- 2 million - there is a direct correlation between enviromental degregation and economic development
What is the gini-coefficient?
A value between 0-1, where 0 is absolute equality and 1 is absolute inequality. This is plotted using a lornze curve.
What political tensions arrive from migration?
Between 2011-2021, 2 million migrants arrived from the UK, fueled by globalisations open boarders and ease of transfering capital. This has lead to a rise in National Populism in the UK, where the reform party gained 14.3% of the vote. This is due to the scepticism many white, older citizens feel of cultural diversity as they feel it is a threat to their national identity.
What is the ideology globalisation is based upon
neo-liberalism
what 3 methods have governments used to limit the spread of globalisation?
- Censorship - In North Korea, since Kim Il Sung in 1948, the government has persued a policy Juche (self reliance). Global Internet is forbidden, jeans are banned and only 28 haircuts are allowed - fearing the spread of American influence
- Immigration control - In 2021, Japan’s foreign-born population was 2.2%, which is lower than the OECD average of 10.4%, this is done to reduce cultural erosion
- Protectionism - with the election of Donald Trump on the 5th of November, he has promised a 25% tarrif on Mexico and China, as he wants to protect American Industries from foreign competition.
What groups have attempted to preserve their cutural identity
The Canadian government created residential schools (from the 19th century to the 1990s), where indigenous children were forcibly removed from their families and communities and were forced to learn English or French, adopt Christianity, and abandon their native languages and cultural practices.
now they celebrate festivals such as the Powwow
What is a transition town?
grassroot community projects that aim to increase self-sufficiency to reduce the potential effects of peak oil, climate destruction, and economic instability through renewed localization strategies.
What was the first transition town? whats an example of them pushing back against globalisation?
The first Transition Town was Totnes, Devon, England in 2006
In 2012, 6000 people signed a petition petition to prevent costa from opening
What are the aims of a transition town?
They aim to become self sufficient, growing their own foods and recycling. Reduce material consumption and reduce the use of fossil fuels. They want to limit the amount they import and reduce the environmental degregation caused by a western consumerism culture driven by globalisation. reduce food miles for instance.
Why can tramsition towns not be effective in reducing the drawbacks of globalisation?
Currently, the cost of producing locally excludes many lower socio-economic groups from this ‘middle class luxury’. further more, as the name suggests, globalisation is a global issue with far reaching impacts, and a local town, while intentions may be right, fail to have the far reaching impacts required to make any noticeable impact.
What is fairtrade?
A scheme which guarantees farmers a fair, higher income for their produce, and provides a certification scheme so consumers are aware.
Why is it beneficial?
It shows that the food we consume has been produced in an ethical way. It helps communities who suffer from primary product dependency to break free from a cycle of poverty.
How many fair trade farmers are there?
more than 2 million
How can you evaluate the effectiveness of fairtrade?
As the number of schemes grows, it becomes harder to ensure that money has been correctly distributed. fair trade focusses on farmers and consumers, and mainly works with big brands therefore reinforcing longstanding power relationships rather than aiming to alter them.
Why can recycling reduce the negative impacts of globalisation?
It reduces the rate at which natural resources are used in manufacturing, and is a step towards the ‘circular economy’. If recycling develops, it will reach a stage where the circulation of natural resources in the economy will maintain equilibrium.
How much waste does the UK recycle
44% of household waste
How can recycling be evaluated?
The recycling process requires large amounts of energy, and is thus possibly only transferring a problem. some waste which is meant to be recycled ends up in landfill
