Globalisation Flashcards
What is globalisation?
The process where the world is becoming increasingly interconnected
What factors are involved in globalisation?
Movement of people
Trade
Communication and transport
Environmental problems
Politics
Why isn’t everyone in the world equally interconnected?
Countries find conections with stronger countries (eg. superpowers) to be more useful than small countries, so they focus their interests on the more influential countries instead of the less developed ones
What is meant by the term trade?
Buying and selling goods and/or services
What is meant by TNC?
Trans-National-Corporation: a company thay oporates in multiple countries
What is meant by Foreign investment?
When a company or country invests in projects abroad
What is meant by labour?
To work, especially physical work
What is meant by development aid?
Money, goods or help given to a country to help them improve their country
What is meant by the term economic blocs?
Agreements where groups of countries agree to reduce taxesfor goods and services traded between those countries
What is meant by the term transport?
Carrying people or goods from one place to another by a vehicle, aircraft or ship
What is meant by information technologies
Systems for sending, storing and receiving information
What is the main cause of globalsation?
- Countries becoming more dependent on others for social, economic and enviornmental gain
What factors have accelerated globalisation?
TNCs
Trade blocs
Improved communication
New markets
What is the global economy?
The connectedness of individual countries economies to form 1 single economic system
What 5 forms of flow does a global economy include?
Trade
Aid
Foreign investment
Labour
Information
What is the primary industry?
Industry involving the collection or extraction of raw materials from the earth or sea (farming, fishing, mining)
What is the secondary industry?
Those that take the raw materials and process them into manufactured goods and products
What is the teritary industry?
Involves the selling of services and skills
What is the quaternary industry?
Industries providing information services, such as ICT, consultancy and R&D
What is the globall shift in manufacturing?
The movement of manufacturing from developed to developing countries
Where has the majority of manufacturing moved to?
Asia
Why is manufacturing shifting to developing countries?
Transportation is cheaper
Raw materials to be exploited
Cheap, unregulated labour
Absence of anti-pollution regulation
Availability of cheap land
Less health and saftey regulations
Saving money on wages
What is meant by a host country?
Countries where TMC’s set up factories manufacturing their goals?
What is meant by a home country?
Countries where TNCs are based
What is outsourcing?
A practice companies use to obtain goods and services from foreign suppliers rather thank providing them themselves
What are some advantages of outsourcing?
Businesses can focus on their core business rather than admin
Businesses can save money as it is cheaper to pay people in developing countries to do admin tasks
Tasks will be completed faster as staff have complete focus
What are some disadvantages of outsourcing?
Businesses may have problems with the quality of task completion
Businesses may become dependent on the outsource supplier
Businesses may lose control of some things
Loss of confidentiality
What are key players in the global economy?
Organisations with lots of power and influence
What is the role of the world trade organisation?
To manage global trade systems and laws
What is the role of the International Monetary Fund?
To stabilise exchange rates between countries
What is the role of the United Nations?
To maintain international peace and security
What is the role of NGOs?
To be a non-profit organisation that acts like a charity
What is the role of the World Bank?
To give loans to countries to help them develop
What are the Impacts of Globalisation on People and Places?
Creating economic and environmental winners and losers
What is geopolitics?
The study of the relationships between countries and the influence of geographical factors on these relationships
What makes a country powerful?
Large physical extent
Strategic global location
Large well-educated population
Wealth of natural resources
High level of economic development
Command of modern technology
Strong military forces
Strong alliances with other powerful countries
What are the 11 trade blocs?
NAFTA
Central American Integration System
EU
Carribean Community
Union of South American Nations
Arab League
African Union
European Free Trade Association
Eurasian Economic Community
A SEAN Free Trade Area Agreement
Pacific Islands Forum
South Asian Association for Regional Cooperation
What are the advantages of trade blocs?
Imported goods and services become less expensive
Nearby countries will allow for free trade
Free movement of labour
Good trade relationships
Strengthens connections
More jobs
Benefits for all member countries
Helps LICs
Living standards increase
Fairer trade
