Globalisation Flashcards
Enquiry Question 1
Define Transnational corporations
Company that operates worldwide
Define gross domestic product (GDP)
All the money a country earns per year
Define emerging economies
Countries that are newly industrialised
Define remittances
Money sent back to the home country
Define interdependency
Becoming reliant on something
Define globalisation
The integration of countries around the world (global connection)
Positives + negatives of globalisation
Positives:
•Technology - travel, phones, internet
•Speed of exchange - travel, communication
•Take advantage of conditions - made cheaper bought cheaper
•connections are lengthening
•connections are faster
•connections are deepening
Negatives:
•When companies move to other poorer countries, people in the richer country lose jobs, the other country gain jobs but are low paid so remain poor
•Climate change - transport - co_2 - global warming
Define shrinking world effect/the time-space compression
The world begins to feel smaller as travel times reduce
What developments have accelerated the ‘shrinking world’?
•transport has allowed the value of trade to increase
•large manufacturing companies (Ford + General Motors) able to export products more widely
•steam power, railways, telephone + telegraph, jet aircraft, container shipping
•internet - link computers
•GIS + GPS (global internet/position system) - deliveries can be tracked by companies
•broadband - large amounts of data moved fast through cyberspace
•fibre optics
Case study for globalisation through transport?
EasyJet
Define tariff
A tax imposed on imports
Define subsidy
Financial assistance to a business by government to make it competitive or prevent collapse
Define quota
A limit on the quantity of a good a country allows into the country
Define protectionism
Policies to protect businesses and workers in a country by restricting/regulating trade with foreign nations
Define free-market economy
A market economy based on supply and demand with little or no government control
Define free-trade
A policy where a government does not interfere with imports or exports by applying tariffs, subsidies or quotas
Define privatisation
Transferring ownership of a public service/ agency/ property into private ownership run for profit
Define neoliberalism
a political philosophy of free markets, free made, privatisation and increasing the role of busness in society (While decreasing the influence of government).
What does SAP’s stand for
Structural Adjustment Programmes
Problem with governments removing barriers
•TNC’s see a profit and want to invest as costs are reduced
•TNC’S bring new ideas, products, cultures etc
•The TNC will geneate wealth
•This will incresse sandard of life + demand for foreign products
•Country become interconnected + interdependent on eachother.
What does FDI stand for
Foreign Direct Investment
Define offshoring
TNCs build new production facilities in ‘offshore’ low wage economies (Nike, coca-cola, Fender)
Define foreign mergers
Two firms agree to work together (Royal Dutch Shell - headquarters in UK + Netherlands)
Define foreign acquisitions
TNC launches a takeover of a company in another country (Cadbury - owned by American company)
Define transfer pricing
TNC channelled profits through a subsidiary company in the low tax country such as Ireland (Starbucks + Amazon)
Three examples of free trade
•World Trade Organisation
•IMF
•World Bank
Trade blocs?
(intergovernmental agreement)
•use trade for economic stability - want free trade with each other - this meant tariffs on other countries
•economies of scale increased - cheaper
•foreign mergers within the trading bloc
Types of trade blocs
•preferential trade area - lower barriers among members
•free trade area - eliminate internal barriers but mainin inderpendant external barriers - NAFTA (North American Free Trade Agreement)
•customs union - eliminate internal barriers, agree on common external barriers - EU
•common market - eliminate internal barriers, adopt common external barriers, allow free movement of resources among member countries - Mercosur
•economic union - eliminate internal barriers, adopt common external barriers, free movement of resources, and a uniform set of economic policies - EU
•full integration - US
2 case studies of policies used to globalise
•UK
•China
What does LDCs stand for
Least Developed Countries
Ways to measure globalisation
•A.T. Kearney World Cities Index
KOF index
What is a winner
Switched- on/globalised
What is a loser
Switched-off/not globalised
What factors prevent being switched on
•physical
•human
•challenges
Examples of trade blocs
•ASEAN
•EU
•NAFTA
•BRICs
Define outsourcing
The delegation of one or more business processes to an external provider, who then owns, manages + administers the selected processes to an agreed standard
Define global production network (GPN)
Series of arrangements, Just In Time (JIT)
Define glocalistation
Adapting global product to fit local condition (McDonalds - no beef in India)
Enquiry Question 2
Define deindustrialisation
Rich countries loose secondary manufacturing (Coventry)
Define externalities
Unintended consequences
Define global shift
Manufacturing work moved from richer to poorer countries
Externalities of global shift
Child labour, suppression of trade unions, pollution, exploitation etc
Externalities of globalisation
•social - communication (Skype) , better quality of life
- but: health issues from TNCs, exploitation, child labour
•Environmental- TNCs mean well, better sewage systems
- but: destruction of habitats, transport (CO_2 emissions), not meeting COP, global warming, polluting industries
•Economic - more jobs in LICs + NICs, more money, cheaper prices, decreased travel prices, SAPs
-but: widening gap between rich + poor (People left Switched-off), TNCs more poverful than goverment, brain dain (LICs loose brightest people- move), deindustralisation - long term employment in previously industrial cities leading to longer term social problems (manchester/Sheffield)
Spiral of decline
Inner city area, old factories close, land becomes derelict, jobs lost, leave inner city, fewer services needed, more jobs lost, more people leave, elderly and low income stay, little money into area - run down, more crime and vandalism, quality of life gets worse
Social impacts of global shift
•glocalisation - range of sevices into nations, global education
•negatives - factory workers loose jobs, child labour (1 in 10 children), migration (depopulation)
•Hong Kong + Singapore
Environmental impacts of global shift
•transport goods
•economic Specialisation - Shell into Nigeria - mess for peaple
•Decreased biodiversity - increased transport - increased climate change - so decreased biodiversity
•China’s airpocolypse
•Environmental problems for industrialised regions - exporting CO_2 emissions
Economic impacts of global shift
•cheaper raw materials - easier transport links
•low labour costs in developing countries
•decreased cost of manufacturing
•wide variety of goods
India
•high employment after manufacturing relocation
•deindusalisation - negative Spiral effect
•loss of work force -brain drain - ½ in Uganda
Define economic migrant
Move for work
Define refugee
Has to move for safety
Fear of being persecuted for race, religion, nationality, member of social group or political opinion
Define asylum seeker
Safety seeker
Define contripetal migration
Rural to urban
Define emigrant
Moves out
Define immigrant
Moves in
Define net migration
People moving in - people moving out
What is migration theory
Push factor, intervening obstacles, pull factors
Types of migrant
Displaced persons, voluntary migrants, illegal migrants
2 case studies of mega cities
Karachi vs Mumbai
What makes a global hub
•host TNCs
•easy access
•growing economy
•stable government
•connected
•trading
•diverse
•physical factors
•human factors
•migration
3 types of population movement
•elite international migration
•low wage international migrants
•internal migration
Define cultural traits
Things that identify us as a certain culture:
•language
•food
•clothing
•religion
•traditions
Define cultural imperialism
A major power imposes ideas or values on less powerful nations (Willingly alter culture to follow others)
Define soft power
The global influence a country derives from its culture, its political values and its diplomacy
Source countries of global brands
Pattern of most global brands originated from America. There are signs that western brands are beginning to influence culture too as China, Germany and Japan also have some global brands.
Define homogeneous
Globalised
What is the American dream
Freedom, success, the best, admired
America’s soft power and cultural imperialism
Not forced brands on people but people want it as it is seen as successful. Follow others - buy the brand. Voluntarily following Americanisation.
What is global culture
Religious beliefs, attitudes, morals, ethics, language, art, dress, symbols, behaviour norms, laws
Define democracy
The belief that a developed society is one where everyone has the right to vote
Define individualism
The belief that individuals should have the right to pursue their own actions and dreams
Define consumerism
The belief that wealth, and the ability to buy goods and services leads to happiness
Define technology
The belief that problems can be solved by using technology
Define economic freedom
The belief that markets should be free, and people should be at liberty to make money how they choose
Define westernisation
The process of global culture being dominated by USA and Europe
Define Mcdonaldisation
The principle of the fast-food restaurant dominating more societies around the world: efficiency, calculability, predictability, control
Changing diets in Asia
•increase in meat consumption
•lots of agricultural jobs
•increase in transportation - damage environment
Indigenous lifestyles
•people no longer value local ecosystems
•get an income, education and health improvements for their children
•hunting endangered species for food or to sell
Paralympic movement
•equal rights for disabled people
•change in attitude towards disabled
•Paralympic games - one of the worlds biggest sporting events - celebrate physical achievements of elite athletes with disabilities
The backlash
Protests against WTO - 200 arrests in Toronto 2003, now have meetings behind closed doors
The cultural continuum
Acceptance ^ ‘melting pot’ (or hybridism)
| pluralism
| ‘citizenship testing’
| assimilation
| internet censorship
| religious intolerance
Resistance v closed door to migration
Examples of parts of the cultural continuum
France - protective of language, 40% of television output must be French
China - strict quota of 34 foreign films a year, rest are Chinese films
Nigeria - try to ban (oil firms) Royal Dutch Shell - accused by amnesty international to bring great damage to environment
Enquiry Question 3
Define absolute poverty
Live on less than $1 per day
Define Millennium Development Goals (now sustainable development goals)
Help people out of poverty - economic and social
SDG- run by UN - economic and social and added environmental
Define relative poverty
Compared to the rest of the area
Define informal sector
Like people asking to clean your car in the street
Define development
The process of change socially, environmentally and economically
Define development gap
The social and economic disparity between the wealthy and the poor, locally and globally
What is shown by the development cable
The level of development, the outcomes of development and integral to development
Economic indicators
-look at a countries GDP - no longer works, doesn’t take into account the difference of rich + poor in a country (extremes), measure in US dollars
-GNI/GNP- companies working abroad, TNCs
-imports/exports as % of GDP - trade, money made from other countres
-PPP ‘Purchasing Power Parity’ - how much it costs to live in a country, how far does your money go
-employment structure - % people working in Sector
-energy consumption
Human indicators
- % in education
- undernourishment
- adult literacy
-calories per day
-population growth rate - doctors per 100,000 people
-% urban population - life expectancy
- infant mortality
Environmental indicators
- CO_2 levels
Define gini coefficient
Calculation of how equal things are
Define agribusiness
commerce in farming and farming-related activities
Explain inequality and give an example
-wealth isn’t evenly distributed
-80% of population have <1%
-2% have half of world’s wealth
-richest 1% have 43% of wealth
-300 rich = 3 billion poor
-gap is widening between rich and poor
-rich give money (debt payment, SAPs) but TNCs take it back
-$2 trillion from poor -> rich
-Chine + Indonesia - majority better off than previously but economically worse off in relation to richest members in their society
Differences between HIC, NIC and LIC
HIC = richer, wasteful with energy
NIC = mid-high life expectancy, a little less energy (use in factories)
LIC = poorer, lower life expectancy, better environmentally
Lorenz curve and gini coefficient
-a graphical representation of income inequality or wealth inequality. The graph plots percentiles of the population on the horizontal axis according to income or wealth and plots cumulative income or wealth on the vertical axis.
-Calculate area under curve
-perfect inequality = 0.50
-0.5-area under curve
-The Gini Coefficient is calculated as the ratio between the area between the line of perfect equality and the Lorenz Curve to the right triangle under the line of perfect equality.
-calculate gini coefficient by dividing area under curve by 0.50
-closer to 0 is more equal
Define post-accession migration
The flow of economic migrants after a country has joined the EU.
Define and give examples of diaspora
Organised mass migration
E.g. polish migrants to UK - WWII allies, UK to Mediterranean - retired move to spain
Define crude birth rate
the number of live births each year per thousand of the population in an area
Define nationalist
Someone who identifies with their nation
Define post-colonial migrants
People who moved to European Countries from former colonies
Define net migration
the number of immigrants - the number of emigrants
Cultural melting pot
Positives + negatives
Positive - share beliefs, experience other cultures
Negative - clash of cultures, mistrust, refuse to accept, keep own culture
Migration to the UK
-5 tier points system
Tier:
1) highly skilled
2) skilled with specific job
3) lower skilled - fill specific labour shortages
4) students
5) temporary workers/youth mobility
Ugly extremism
-protests that are close to racism
-protect traditions
-goes too far - persecution
-using migrants as an excuse
-rise of right wing parties e.g. Hungary, France - Marie Le Pen
First Nations in Canada
Conflicts over the Mekong Delta
How do China fight back against migration
Great firewall of china - censorship, blocked sites
Define internet citizenship
the responsible use of technology by anyone who uses computers, the internet, and digital devices to engage with society on any level
Define resource nationalism
the assertion of control by people and governments, for strategic and economic reasons, over natural resources located on their territory
The fall of the nation-state
Nation-state power diminished in order to manage its economy due to the effects of globalisation
Prohibited flows
Legislation - laws against global flows
-Cuba to USA (complete trade embargo)
-world to china (information flows)
-Australia to New Zealand (honey)
-china to Europe (cheap Chinese textiles)
Protecting cultures
-Venezuela seized control of ExxonMobil and ConocoPhillips (oil)
-Congo - 65% of Canadian copper controlled by government
-china put restrictions on exports - Japan, USA and EU complained to WTO - relaxed restrictions
The case against Royal Dutch Shell
-Exploited Ogoni people
-Worked with Nigerian government - soldiers killed people
-MOSOP (movement for the survival of the Ogoni people) - against shell
-cases against shell
-ended by lawsuit of $15.5 million
Define ally-shoring
The process of sourcing essential materials, goods and services amount trusted democratic partners and allies
Define near-shoring
A strategy that includes a manufacturing company transferring all or part of its operations to a nearby country
Define reshoring
The process of bringing back production activities from overseas locations to the home country
Define decoupling
Reducing amount of resources used to generate economic growth with decreasing environmental deterioration and ecological scarcity
Collective of ally-shoring, near-shoring and reshoring
What recent events have added to geopolitical instability
-Russian invasion of Ukraine
-war in Gaza
US-China decoupling
US become less dependent on china using tariffs, subsidies etc due to a potential risk of restrictions of critical imports and increase in military capabilities. Still reliant due to china making so many parts that are used in manufacturing goods.
Define natural resources
Materials from the ground
Define consumer society
Focused on buying the latest item
Define ecological footprint
Area needed to support your style of life
Define water footprint
Area needed to create water needed - includes embedded water
Define carbon footprint
Land needed for carbon we produce
Define food miles
Distance food travels from production to consumption
Define transition town
Move away from globalisation - be more local
Define sustainability
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
(Environmental, economic and social)
Explain the trend in consuming classes
Huge increase of over 50% since 1950 (around 4b people) - less subsistence people where people only but what they need to survive
The local sourcing solution
•fights against our ‘reliance’ on globalisation
•many of our laws focus on TNC’s and allowing them to ‘globalise’
•so, support local businesses - creates jobs, reduces pollution, tackles climate change
•need to: change laws, not assume that global consumerism is normal
Pros and cons of local sourcing
Pros:
•faster and more predictable delivery times
•work with suppliers much more closely
•not need to manage warehouse as meticulously
•can make last minute orders
•don’t deal with import taxes
•enhancing sustainability and reducing carbon footprint
•fostering community growth and support
Cons:
•local supplier become over dependent on your business
•cancelling a contract - backlash
•can’t get best or latest products
•local suppliers less efficient
•hard to ensure objective supplier selection
•limited access to specialised products
•higher cost and less cost competition
•dependence on regional vulnerabilities
Transition towns
•focus on food
•Todmorden, West Yorkshire - ‘incredible edible’, using public spaces to grow food (road sides, schools, grave yard), volunteers do all the work, no actual funding, people donate seeds, tubs, tools, building expertise, advice, currently some is sold to local shops/markets but people can harvest for free
Insecurity
•food
•water
•energy
•climate
The problem with e-waste
More difficult to recycle (lithium), dangerous metals and minerals, not biodegradable, generating more electronic waste
Define ethical purchase
Thinking of the environment and people before the product
Ethical purchasing
•avoiding fast fashion - cheap, bin after one season e.g. H+M, shein, primark
•Primark:
-Social responsibility
-Rana Plaza, Bangladesh, Dhaka, 24/4/2013
-not owned by primark - outsourcing
-over 1000 dead - mainly female workers, make primark goods, poor safety
Fair trade
•acts as a middleman - ensure producers get a fair price
•offers a guaranteed income for producers
•lets shoppers know money is going to poor workers
•not everyone will pay more for it
•as number of schemes grow its harder to ensure money is correctly distributed
•not all farmers can join
•most sustainable - people get something from it (the product)
Supply chain monitoring
•large businesses increasingly accept the need for corporate social responsibility
•Gap + Nike prohibit worker exploitation in their own foreign factories. Hard to monitor working conditions + pay for workforce of every supplier they buy from
•less sustainable - relies on checking own company
NGO action
•Charity War on want flew South African fruit picker to Tesco stakeholder meeting in London, she said on farm no women toilets, Tesco told farm they’d use a different supplier if not solved
•hard to control suppliers’ suppliers
•limited money - limits what they can achieve
•less sustainable - relies on charity
Uk government actions on Agenda 21
•Rio, Brazil, focus is sustainable cities, plan for 21st century - recycling
•Uk cities:
-5p plastic bags - people reuse bags
-curb side recycling - if not in separate bins they weren’t taken
The circular economy
•best but most difficult
•no material ever becomes waste
•make product -> fix -> another use -> recycling
•clothes -> repair -> textiles for stuffing sofas -> carpet -> cleaning cloths -> recycle -> back to clothes
•technological + biological economy
