Globalisation Flashcards
What is globalisation
the process by which people their culture money good and info can be transferred between countries
three types of globalisation
Political, Social, Economic
Shrinking world definition
the world is becoming theoretically closer due to the increase in trade and therefore globalisation
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 to trading off 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 oil problem, one problem has knock on effect)
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
1944, 187 countries, reduce poverty by lending money to members to help improve their economies by building schools, facilities and medical centres
what is WTO
world trade organisation, 1995, governments can negotiate trade agreements and all major decisions made by the membership as a whole
What is offshoring
Off loading ur business onto another country taking advantage of cheap labour
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
What is Open door policy
the economic policy initiated by Deng Xiaoping in 1978 to open China to foreign businesses that wanted to invest in the country.
Open door china facts
Foreign TCS are allowed to invest in some sectors of chinas domestic market, china agreed to export more rare earth materials
Closed door china facts
Social media platforms have little to no access to chinas market, only 34 foreign films shown in cinema each year
Two ways of measuring globalisation
AT Kearney index, KOF index
The KOF index
Looks at three aspects of globalisation and a series of variables to convert each one substituting any missing data, into a score out of 100
A.T Kearney index
Four main indicators; political engagement, technological connectivity, personal contact and economic integration
How do TNCs influence globalisation
Using global production networks
New places to do businesses
Global products more local
What is a TNC
Trans national company that has operations in more than one country
Grown by buying up foreign firms in merges and acquisitions, link countries together through production of goods
Why the uneven spread of TNCs.
Not all places are suitable for production for example accessibility or natural resources
Global production network
A TNC manages its GPN like a manager of a football team
250 countries in production for a mini, engine form Brazil.
what is Glocalisation
Adapting the goods or services of a business to increase the consumer appeal in different countries, commonly used for religious or cultural differences
E.g BMW make right hand drive for uk
what is Outsourcing
When a TNC contracts another company to produce the goods and services they need rather than do it themselves, complex supply chain.
What is global shift
A significant economic shift in centre of gravity from west to Asia, lots of manufacturing has been moved to Asia
Why has global shift occurred
Asian nations allowed in TNCs(open door)
Cheap labour
Outsourcing
High populations
Costs and benefits of economic growth
Benefits, poverty reduction, improvement in education and training
Costs, loss of productive land, pollution and health problems, pressure on resources
What’s the case study for rural to urban migration
Mumbai.
What is deindustrialisation
Process of social and economic change cause by the removal of reduction of industrial capacity or activity in a country or region
What was the cause for uks deindustrialisation
Margret thatcher came into power and wanted to promote economic shift so shut down coal factories, these powered factories so all was eventually shut down
What loss did the workers in factories feel after deinstitutionalisation
Money, manufacturing has 12% more pay to an equivalent tertiary job, this means there skills wouldn’t get them as good as pay.
Deindustrialisation case study??
Red car
Trade flow from south to north
Primary goods, raw materials, food
E.g, Africa to Europe
Trade flow north to south
Manufactured products and services
E.g Europe to India
What’s switched off mean
Detached, Not being globalised and very independent and isolated
Core countries
Canada, Austrália, UK Spain
Semi periphery countries
India, South Africa, Brazil
Periphery countries
Russia and majority of Africa
What’s a core country?
Owns and consumes 80% of goods and services, IMF world bank, most global investment
What’s a periphery?
Owns and consumes 20% of global goods despite having 75% global population
Lower income
Very few global economy decisions
What’s a global city
Defined not by number but by influence
What’s a million city
A city with over a million residents
What’s a megalopolis
A chain of roughly adjacent metrapolion areas, in one specific country
What’s a super city
A vast urban area, often got several smaller cities
3 stages of concern for globalisation
Progressive/cautious/resistance acceptance of new diaspora or immigrant cultures
Religious intolerance
Notably lower levels of religious freedom for minority groups exist in some places e.g Iran
Closed doos migration
Stopping any immigration altogether for fears of cultural dilution e.g Cambodia
Cultural diffusion
The spread of one culture to another by various means, globalisation has lead to increased cultural diffusion and the development of a sort of global culture
Cultural diffusion positives and negatives
+ American society used to sterilise disabled people but after ww2 war veterans were appreciated and the Paralympic’s influenced disabled acceptance
- China is becoming fatter as American food make sits way into their society, 5kg-50kg of meat a year
- All the meat consumed means the cows need feeding meaning soy needs growing and so deforestation of the amazon occurs
What is cultural erosion
the loss of traditional language, food, music clothes and social relations
cultural erosion example
- Papua New Guinea, thousands of years ago no clothes was completely normal whereas no seeing Americans wearing clothes have caused them to cover up
- they also want jobs and money and not just live in their tribe
what is hyper globalisation
intensified version of globalisation deeply connected
negatives of hyper globalisation
- languages around world
- environmental damage
-global culture of consumerism is at odds with sustainable development goal
positives of hyper globalisation
- values equality
- freedom of expression and reduced discrimination
what is hybridism
positive view of American culture as organic, adopts new migrant values
What is pluralism
EU nations tolerate equal rights for all migrants to practise their religious and cultural beliefs
what is citizenship testing
UK rules for migrants are becoming stricter in reaction to popular concerns over immigration
what is assimilation
a belief that minority traits should disappear as immigrants adopt host values
what is internet censorship
preventing citizens form learning about other global viewpoints using online sources
what is development and how is it measured
- the process that creates growth progress or the addition of physical economic environmental social and demographic components
- GDP and HDI
what is economic development
- monetary value
- hard to be acgcurtaes as does not measure the informal economy
what is social development
- how people live in each country
- HDI, life expectancy, education, GDP per person.
- Gender inequality index, reproductive health, empowerment and education
what is environmental development
OCED, greenhouse emissions, waste water, intense forest use
what is the lorenz curve
graphical representation of wealth inequality within a country.
It compares the cumulative percentage of income/wealth with the cumulative percentage of the population.
whats open borders mean
people may travel to ad from a country without presenting passport or visa
whats freedom to invest
means u can move resources in and out specific activities both internally and across countries borders
What is FDI
foreign direct investment, investment into another business in another country
what is diaspora
the dispersion of any people form their original homeland
what is post-accession migration
flow of economic migrants after a country has joined the EU
UK and immigration facts
- 500,000 migrants form Caribbean after ww2
- 1960s textile industries booming 750,000 pakistans and milllion indians needed for labour
risk of extremism in Europe
- nationalist parties rising and they oppose immigration
- radically aggravated assault
- Stephen Lawrence staff of pro immigration magazine shot dead
how can we control the flows
-limitting migration, people flow
- censorship, info flow
- trade protectionism, goods flow
how do we use trade protectionism to limit flow
- prohibited flow (embargo)
- illegal and criminal flows=
what an ecological footprint
a measure how much biologically productive land and water an individual, population or activity requires to produce all resources + waste
sustainability definition
meeting the needs of this generation without compromising future generations need to meet theirs
how does globalisation effect food insecurity
middle class diets favour meat and milk meaning more of this needs to be made, environmentally damaging
how does globalisation effect water insecurity
more crop needs more water, some countries are drying but grow wet crops e.g. Australia
how does globalisation effect energy insecurity
increase energy use due to technology spreading around the world
how does globalisation effect climate insecurity
global adoption of manufactured products increase carbon use
what is localism
purchasing locally sourced food and commodities
boycotting supermarket food that has high food miles and more expensive
what is a transition town
an area trying to switch to localism
benefits of localism
- shorter supply chains boost delivery times
- money likely to spent within community
- small air miles
- face to face communication
- no lax laws to exploit
costs of localism
-reduces the demand fro inc goods harming economic growth of LICs
- might not be local competition meaning high prices
- hard to terminate contracts
- may depend too much on local
- small company’s may be less efficient
what is ethical shopping
a deliberate choice of products for ethical reasons considering the social and environmental costs of the good purchased
- concerns for exploitation, food miles, natural vs harmful
is fairtrade ethical
- leads to overproduction
- little evidence its lifted producers out of poverty
- dependency
FOR ethical consumerism
- promotes individual action
- billions of consumer impact could be big
- consumers driver market demands so could force firms to change
- doesn’t require government intervention
AGAINST ethical consumerism
- consumers easily get confused with different messages
- people believe own contribution is too insignificant
- people opt for unethical choices
- buying ethical products may mean buying form HICs instead of LICs
