Globalisation Flashcards
Define globalisation
Globalisation is the increasing interconnectedness between countries. People, information, culture and money can move more easily between countries with fewer barriers.
What is a TNc?
A TNC is defined as a Transnational Corporation - companies that operate in multiple countries
Where are tncs headquarters located and why?
Inc headwaters are generally located in the country of origin because that’s where most profit will return to, and where most of the top management is located.
Where are tnc research and development facilities usually located?
They ore often in developed countries that have a skilled workforce and high level of technology
What is Glocalisation?
Glocalisation refers to products that are distributed globally, but are adjusted to accommodate consumers in local markets.
What are the pros of tncs
Jobs created in now income countries, raised living standards, cheaper products, infrastructure built
What are the cons of TNC
Environmental suffering like oil spills, exploitation of workers rights, minimum wage violations
What are the 4 TNC case studies?
Apple, Coca-Cola, Tesco, shell
What’s economic globalisation
Economic globalisation is growth in world trade, TNCs becoming more present globally.
What’s cultural globalisation
The spread of culture through global news and tourism
What’s political globalisation
The spread of governmental influence between countries, western democracies dominate decision making
What’s demographic globalisation
Increased mixing and migrating of populations
What’s environmental globalisation
Increased prevalence of problems like climate change, they become more widespread
What are the three aspects of globalisation?
Lengthening connections, deepening connections and faster connections
What is deepening connections?
More people can connect with faraway places, through tourism, foreign food, TNCs
What’s lengthening connections?
Introducing new links between countries that are far apart
How have connections been lengthened?
Aviation- long haul flights
Containerisation - standardised shipping unit to trade lots of goods
How have connections been made faster?
Fast internet, social media, WhatsApp, zoom calls
What’s the shrinking world conecept
Physical distance between places has remained the same, but technology has allowed time to be reduced. So the shrinking world is the idea that there has been space-time compression.
Who invented containerisation
Malcom McLean
How has containerisation increased globalisation
Increases the scale of transport, and provides a standardised unit. So goods can be traded between countries at a faster rate.
How has ICT development increased globalisation?
Businesses around the globe can connect instantly through phone calls, emails and texts
How have global organisations increased globalisation?
They encourage global trade and provide loans for LICs
How has improved air transport increased globalisation?
Allows for more people to travel through budget airlines like easyJet, so culture can be shared easily between countries and tourism can thrive
How have trading blocs increased globalisation?
They have improved relationships between countries and encouraged free trade. They remove barriers for brands to grow and trade freely.
What is FDI?
Foreign direct investment - when one country invests in another, can be through finance, education or infrastructure.
What are IGOs?
Intergovernmental organisations- organisations created by global powers to make decisions about the economy or environment. For example, the World Bank, WTO and IMF.
What is offshoring?
When a TNC moves part of its production to another country to save money on labour and land
What’s outsourcing?
Other countries are given contracts to complete parts of production
What are barriers of trade?
Laws and regulations that discourage trade and encourage protectionalism
What’s a tariff?
Taxes placed on imported goods
What are quotas?
Limits placed on the number of goods that can be imported from different countries.
Whats embargo?
Bans on goods being imported
What’s a trade bloc?
A group of countries that group together to improve economic interests and trading patterns. They ensure that it is more expense to import goods, so customers buy from trade blocs.
What are the advantages of trade blocs?
Create a bigger market to sell to
More efficient production, so there are more goods to sell
What is the main disadvantage of trading blocs?
Countries lose independence and become interdependent on other countries within their trading blocs
What are examples of trading blocs?
EU, NAFTA, ASEAN
When was the EU formed?
1993
When was ASEAN formed?
1967
Who are the world’s top 3 biggest exporters?
China, USA and Germany
What’s an SEZ?
Special Economic Zone - an area that has different economic regulations, like reduced taxes, to encourage foreign investments
What is evidence of Chinas Open door policy?
TNCs are able to invest in some Chinese sectors
FDI from china is over 1 billion dollars in the last ten years
What is evidence of china being closed door?
Only 34 foreign films allowed to be shown yearly
Google and Facebook have limited access to chinas market
TNCs have strict controls
How can countries attract FDI?
Cheap/free land, job opportunities, worker training, improved internet, guaranteed electricity/clean water, low taxes, relaxed environmental regulations, access to raw materials
What are the two globalisation indexes?
KOF index, AT Kearney index
What are the indicators in the KOF index?
Economic, social, political
What are the indicators for the AT Kearney index?
Economic, personal, technological, political
What are some characteristics of a switched on country?
Wealth, TNCs, political stability, large coastline, educated population, natural resources
What are some characteristics of a switched off country?
political instability, landlocked, poor healthcare, natural disasters, colonialism, lack of transport links
Is the Gambia considered switched on or off?
Off
What social factors cause Gambia to be switched off?
- 40% literacy rate
-75% rely on primary sector
-160th highest HDI
What environmental factors cause the Gambia to be switched off?
Very small coastline, no natural resource deposits, small country
What economic factors cause the Gambia to be switched off?
Reliant on international aid, money generated by TNCs doesn’t stay in the country
What political factors cause the Gambia to be switched off?
Only gained independence from the UK in 1965
Is India switched on or off and what evidence is there?
switched on - contributed 16% to economic growth globally in 2023, good international connections
Is the Sahel region switched on or off?
Switched off
What causes the Sahel to be switched off?
all countries are landlocked, all are low GDI, high levels of corruption, harsh desert climate
Is North Korea switched on or off?
Off- it’s a one party system that is politically isolated, no internet access
Is singapore switched on or off?
On
What causes singapore to be switched on?
High GDP growth, technology attracts TNCs and FDI
What is the global shift?
The movement of manufacturing work from Europe and USA towards the east (Asia)
What factors lead to the global shift?
trade liberalisation, looser environmental restrictions, cheaper land, cheap labour (less worker rights), SEZ
Is China a winner or loser of global shift? why?
Winner- has caused many benefits like infrastructure, reduction in poverty, better education
What are the costs of global shift in China?
Loss of farmland, exploitation of resources, loss of biodiversity, pollution
How does Coca Cola negatively affect the countries it’s located in?
-In India, there has been an increase in pollution since Coca Cola was in the country
-Working conditions are harsh, with minimum wage violations and few workers rights
How has Coca Cola positively affected the countries it’s in?
-provides training and education schemes
-in Vietnam, 4000 women were given training and merchandise to begin selling Coca Cola
-community schemes set up in Africa
-jobs created directly and indirectly
