Globalisation Flashcards
(99 cards)
What is globalisation
The process by which People their Culture Money Goods and Info can be transferred between countries
Three types of globalisation
Political, Social, Economic
Shrinking world and time space compression
20th- World closer by quicker as in letters and trade ships
21st- Internet emails aircraft
Concepts increasing shrinking world
(8)
internet, fibre optics, containerisation, steam ships, mobile phones, mobile banking, jet aircraft, telegraph
Containerisation how and why its been improved
Each container same size and shape so trading becomes easier as each partner knows the capacity of its good receiving, helping to improve speed of trade for globalisation
Players definition
Anyone with a vested interest or involvement with a particular process or event
1930s key players
global economic shut down free trade into protectionism and economic were shattered
1944 43 countries met so this would not happen again
Tariff
A tax placed on goods that are imported from other countries
Quotas
A limit placed on the number of goods that are imported from other countries
Embargos
A ban placed on certain goods imported from other countries
Subsides
A sum of money grantee by the government to help an industry or business keep the price of goods low
Barriers to trade (4)
Tarrif, quota, embargo, subsides.
Discourage trade and encourage protectionism
What are trading blocs
Countries which group together to improve their economic interests and trading patterns
Trade blocs examples (2)
ASEAN, European union
What is ASEAN
Association of south-east asian nations, 10 countries, formed in 1967, combined gdp of $3.6tn
What is the European union
27 countries, formed in 1993, gdp of $19tn, free trade zone, free migration,
Advantage of trade blocs
Removes intra community trade, Producers focus on what there good at making, smaller nations merge with TNCs
Disadvantages of trade blocs
Loss of sovereignty, interdependence(example Russia war oil)
What is the IMF
International Monetary Fund, 1944, Supporting economic policies that promote financial stability and Monetary Cooperation essential to increase productivity and job creation
What is the World bank
187 countries, reduce poverty by lending money on a global scale to members to help improve their economies by building schools, facilities and medical centres
What is WTO
World trade organisation, 1995,
advocates trade liberalisation (manufactured goods) and promote banning protectionist attitudes
What is offshoring
Off loading parts of their own production process to other countries to reduce labour or other costs
Offshoring example
Royal Dutch Shell has headquarters in uk and Netherlands
What is free market liberalisation
Restrictions being lifted on how companies and banks operate