Globalisation Flashcards
What is globalisation?
The process by which countries become increasingly interconnected
What are global hubs?
Cities that are extremely influential on the world, and are some of the most globalised places in the world
What are some examples showing the difference in level of globalisation worldwide?
- Global light pollution
- Twitter heat map
- Spread of undersea fibre optic
cables
Why are some places detached?
Physical- landlocked, mountain ranges e.g. the Himalayas
Political- Command or free economy, relations with other countries regarding trade
Environmental- Climate change affecting ability to produce, harsh climates can limit development of transport
Economic- Poor literacy rates amongst working age population makes FDI unattractive
What is the shrinking world effect?
As travel times fall due to new inventions, different places begin to feel closer together than in the past
What is a subsidy?
Financial assistance to a business by government to make it competitive/ prevent collapse
What is a quota?
A limit on the quantity of good a country allows into the country
What is protectionism?
Policies to protect businesses and workers in a country by restricting trade with foreign countries
What is privatisation?
Transferring ownership of a public service into private ownership run for profit
What is neoliberalism?
A political approach that encourages free market capitalism, deregulation and a reduction in government spending
How does the world trade organisation promote globalisation?
Supervise and liberalise international trade
Asks countries to remove tariffs and subsidies so that trade is free
How does the world bank promote globalisation?
Lends money on a global scale
Aims to finance economic development using bank deposits placed by the world’s wealthiest countries to provide loans for developing countries
How does the IMF promote globalisation?
Channels loans from rich countries to countries that apply for help
In return, the countries must agree to run free market economies that are open to outside investment
What is a foreign merger?
Two firms in different countries join forces to create a single entity
What is offshoring?
Some TNC’s build their own new production facilities in low wage economies
What are foreign acquisitions?
When a TNC launches a takeover of a company in another country
What is transfer pricing?
Some TNC’s have sometimes channelled profits through a subsidiary company in a low tax country such as Ireland
What is OPEC?
Organisation of petroleum exporting countries
What are trade blocs?
Countries join together in geographical areas to encourage trade within the bloc by removing tariffs on goods for members
What is the multiplier effect?
The positive spin offs that follow an initial investment in a region
What is cumulative causation?
A model that explains why wealth becomes concentrated in certain places
What is an export processing zone?
A small industrial area where favourable conditions are created to attract foreign TNC’s
What are technopoles?
Cluster of technologically innovative businesses and research institutes
How has privatisation encouraged FDI in the UK?
- 1980s and 1990s the UK government initiated a series of privatisations under Margaret Thatcher, where major industries e.g. water, gas and electricity were privatised
- Royal mail was recently privatised
How does globalisation generally encourage FDI?
- Attracts investors
- Improves efficiency
- Provides additional capital
How do free trade policies affect the UK economy?
- Increases exports and imports
- Economic growth
- Job creation
Examples of TNC’s present in the UK
Amazon, McDonald’s, BP, Nissan
Nissan in particular creating many jobs
What are some physical factors which can influence whether a country is detached?
- Physical location (landlocked)
- Resources available for agriculture
- Vulnerability to natural hazards
What are some human factors which can influence whether a country is detached?
- Skills and literacy rates
- Ethnicity (conflicts)
Example of a country which remains detached
The Gambia:
- Landlocked
- Lack of mineral and natural deposits in comparison to other African countries
- 75% rely on farming to live
- Unpredictable weather
- Lack of technology available
- Lack of education
What does the Brandt Line show?
Visual depiction of the North-South divide between economies, based on GDP per capita, proposed by W. Brandt in the 1980s
What is glocalisation?
Adapting the goods or services of a business to increase consumer appeal in different markets
Example of glocalisation
In films where they change individual things to appeal more to the target audience e.g. changing the sport played in a film or the language
Explain Lee’s push pull theory (1966)
Explained the factors causing migration in terms of the positive and negative characteristics of original and destination areas
What are intervening obstacles (as stated in Lee’s push pull theory)
Things which can get in the way of migration e.g. not speaking a language, obtaining visas, family pressure to stay
Problems with megacities
- Pollution
- Increase in informal housing
- Crime
- Congestion
- Higher property prices
- Disease
- Poverty
Example of a megacity which has experienced problems
Mumbai’s population has doubled in size to 22m in 2015 since 1970
Increase in informal housing (Dharavi) being the biggest ‘slum’ having a population of around 1,000,000
What are elite international migrants?
Highly skilled professional or influential people, their wealth has come from their profession or inheritance and are highly desirable to international governments
What are low waged international migrants?
Legal/illegal migrants that work in low wage jobs
Benefits of migration to the source country
- Reduced pressure on welfare spending
- Reduction of workforce balanced by remittances
- Returning migrants bring professional experience
Costs of migration to the source country
- Skills shortages in key areas of the economy
- Demographic imbalance
- Depopulation leading to dereliction
Benefits of migration to the host country
- Filling of skills gaps and labour shortages
- Migrants contribute to economy as consumers
- More tax paying workers to support and offset an ageing population
Costs of migration to the host country
- Extra community policing and transaction costs
- Need for extra school places and health services
- Pressure on rented sector of housing market
What is culture?
A collective and so is shared by groups of people and will have a common influence on the way that they live their lives and interpret the world around them
What are some cultural traits?
- Traditions
- Language
- Food
- Clothing
- Religion
What is cultural diffusion?
The spread of cultural beliefs and social activities from one group to another
What is cultural erosion?
The loss of traditional language, food, music, clothes and social relations often associated with specific cultural groups
What is individualism?
The belief that individuals should have the right to pursue their own actions and dreams
What is consumerism?
The belief that wealth, and the ability to buy goods and services leads to happiness
What is cultural imperialism?
A major power imposes ideas or values on less powerful nations
What is religious intolerance?
Notably lower levels of religious freedom for minority groups exist in some places
What does the core demonstrate in the ‘electric cable’ development process?
Economic growth, technology and enterprise
What does the outer causing demonstrate in the ‘electric cable’ development process?
Many different strands which represent many different aspects of development growth
What is a diaspora?
A scattered population whose origin lies within a smaller geographic locale, it can also refer to the movement of the population from its original homeland
Examples of a diaspora
- Jews living outside israel
- Polish migrants joining a diaspora community in London (first formed in the 1940s when the UK and Poland were WW2 allies
What is protectionism?
The economic policy of limiting trade between countries in order to protect the economy
What is local sourcing?
Acquiring goods or materials from suppliers within the same country or region
What are some costs of local sourcing?
- Harms economic growth in LIC’s
- Supplier may depend too much on local suppliers leading to inefficiency
- Less efficient with restricted EOS
What are some benefits of local sourcing?
- Shorter supply chains boosts predictability
- Cut down air miles and so air pollution
- Easier for face to face communication between buyer and supplier building trust
What is an ecological footprint?
A measure of how much biologically productive land and water an individual, population or activity require to produce all the resources it consumes, and to absorb the waste it generates
What are two benefits of fair trade?
- Fairtrade minimum price
- Fairtrade premium
What is a circular economy?
Alternative to a traditional linear economy in which we keep resources in use for as long as possible, then recover and regenerate products and materials
