globalisation Flashcards

1
Q

What is globalisation?

A

The widening and deepening global connections, interdependence and flows (commodities, capital, information, migrants and tourists

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2
Q

What are the most important global flows?

A

a
Capital, commodities, information, tourists, migrants

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3
Q

What is the shrinking world effect?

A

Whilst the physical distances between places remain unchanged, developments in technology and transport makes places feel closer than in the past

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4
Q

What are some of the important innovations in transport contributing to a shrinking world effect?

A

Steam power (1800s)
Railways (1800s)
Jet aircraft (Boeing 747 in 1960s)
Container shipping (around 200 mil individual container movements take place every year - intermodal containers)

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5
Q

What is the IMF’s role in globalisation?

A

a
It loans from rich nations to countries that apply for help, but in return the recipients must agree to run free market economies that are open to outside investment

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6
Q

What is the World Bank’s role in globalisation?

A

a
It lends money on a global scale and gives direct grants to developing countries

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7
Q

What is the WTO’s role in globalisation?

A

It advocates trade liberalisation, and asks countries to abandon protectionist attitudes in favour of untaxed trade

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8
Q

What are the different types of FDI?

A

a
Offshoring - TNCs build own production facilities in low wage economies
Foreign mergers - two firms in different countries join forces to create a single entity
Foreign acquisitions - TNC launches takeover of a company in another countries
Transfer pricing - TNCs have channelled profits through a subsidiary company in low tax country

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9
Q

How are national governments key players in globalisation?

A

They promote free trade blocs and key policies (free market liberalisation, privatisation, encouraging business start ups)

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10
Q

What is free market liberalisation?

A

Governance model which follows 2 beliefs:
- government intervention in markets impedes economic development
- overall wealth increase, trickle down takes place from richest to poorest in society

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11
Q

What is privatisation?

A

Allowing foreign investors to gain a stake in privatised national services and infrastructure to help fund it

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12
Q

What are trade blocs?

A

Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations who join
Markets for firms grow through the removal of barriers to intra-community trade, enlarged market increases demand (meaning products can be sold more cheaply), smaller national firms within bloc can merge to form TNCs
What is the EU?

EU
Formed in 1993.
27 member single market trade bloc, with a single currency (the Euro) adopted by 19 members.
Guarantees the free movement of goods, capital and people

ASEAN?
Established in 1967, ASEAN has 10 member states.
Uniform low tariff is applied between members for specified goods, and the agreement promotes peace and stability (members have pledged not to have nuclear weapons)

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13
Q

What are SEZs?

A

Special Economic Zones - an industrial area, often near a coastline, where favourable conditions are created to attract foreign TNCs

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14
Q

How is globalisation in China successful?

A

Radical ‘Open Door’ allowed China to embrace globalisation whilst remaining under one party authoritarian rule. It gave China the nickname the ‘workshop of the world’ due to the world’s largest TNCs finally being let in to establish factories etc.
FDI from China and its TNCs predicted to total $1.25 trillion between 2015-2025
China is now part of WTO
400 million said to have escaped poverty
Life expectancy reduced by 5 years due to air pollution in cities - worst in the world
Strict controls on foreign TNCs in some sectors
Google and Facebook have little to no access to China’s market

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15
Q

What is outsourcing?

A

When TNCs contract another company to produce the goods and services they need rather than do it themselves

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16
Q

KOF index, A.T. Kearney Index

A

24 indicators spread over 3 categories - political, economic and social globalisation. Each indicator converted to index value, then data is analysed before comparing the new scores with previous ones dating back to 1970
Only measures international interactions (not internal) and does not include recent technological developments. Some cultural bias

12 indicators spread across 4 categories - political engagement, technological connectivity, personal contact, economic integration - complex points and weighting system.
Uses more holistic indicators than KOF
Only includes 62 countries, heavy weighting given to ICT allows USA to gain high index score despite low political engagement

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17
Q

How is North Korea a ‘switched-off’ place?

A

Ruled as an autocracy, chosen deliberately to remain politically isolated from rest of the world.
Ordinary citizens have no internet acess, no undersea data cables connecting North Korea with anywhere else
As a result, North Korea has relatively low GDP and development especially as it only trades with China

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18
Q

What is glocalisation?

A

Changing the design of products to meet local tastes or laws (common strategy used by TNCs)
driving seat positioned differently in US and UK
reality tv shows are re-filmed using local people in different countries
certain foods made specfically for different countries

19
Q

How is the Sahel region a ‘switched off’ place?

A

Economic - low income levels mean it lacks market size to attract FDI, low literacy rates makes it unattractive for offshoring
Physical - all Sahel countries are landlocked resulting in high transport costs which defers FDI
Environmental - semi arid climate becoming drier due to climate change, reducing land area available for agriculture

20
Q

What is the ‘global shift’?

A

The global shift is the relocating of the global economic centre of gravity to Asia from Europe and North America, over the last 30 years

21
Q

Why has there been a global shift?

A

It has been driven by improvements in transport and communications, plus the lowering of trade barriers and economic liberalisation, opening up to FDI. Labour-intensive manufacturing was attracted to Asia by the large amounts of workers willing to work for low wage rates

22
Q

Why have US and UK businesses outsourced so much work to India?

A

Many Indians are fluent English speakers, giving them a comparative advantage for call centre services
Broadband capacity is unusually high in the city of Bangladore, it is a long established technology hub
some business process workers report they are exploited
work can be high repetitive
huge gap between rich and poor (80 million living in extreme poverty)
indian call centre workers earn good middle class wages by Indian standards
Indian outsourcing companies have become extremely profitable

23
Q

global outsourcing of manufacturing to China?

A

in early years, many workers exploited in sweatshops
environment continues to suffer greatly, air pollution reduces Chinese life expectancy by 5 years

people enjoying large income gains, can afford smartphones and car ownerships grown to 1 in 5
trasnfer of technology, meaning local compaines have adopted tech and management techniques brought to China by TNCs

24
Q

What are some examples of environmental challenges for communities in developing countries as a result of global shift?

A

Ivory Coast - tens of thousands of Ivorians suffered ill health after toxic waste alleged to produce hydrogen sulphide dumped by ship in employ of Dutch TNC Trafigura in 2006
Indonesia - deforestation of 13 million hectares of rainforest due to demand for palm oil plantations, biodiversity suffers as a result

25
What are the challenges of deindustrialisation as a result of global shift?
high unemployment rising crime rates depopulation dereliction contamination
26
What is centripetal migration?
The movement of people directed towards the centre of urban areas
27
What are some urban pull factors? What are some rural push factors?
employment (the hope of promotion and advancement into professional roles that are non existent in rural areas) better schooling better healthcare poverty, aggravated by population growth agricultural modernisation and mechanisation resource scarcity
28
What is a megacity?
A city with a population of 10 million or more
29
What is an example of a megacity facing social and environmental challenges?
Mumbai, population exceeding 20 mil in 2020 (growth to 25 mil by 2025) Social = 20,000 small factories and sweatshops in Dharavi, 10 people die each day on train lines Environ = water pollution Water pollution from untreated sewage, and air pollution from industry or exhausts creates challenges for city planners. Provision of adequate urban housing, health care and education is a major challenge for planners in developing countries. Mass migration is causing exponential population growth.
30
What is a global hub?
a A highly globally connected city, or the home region of a globally connected community. A settlement or region that has become a focal point for business activities witha global influence
31
What are elite international migrants?
Highly skilled and/or socially influential individuals - their wealth derives form their profession or inherited assets E.g. migration of Russian oligarchs to UK via investing in London property and sending their children to elite private schools
32
What are low waged international migrants?
Migrants who work for a low income with little skill e.g. India to UAE - 2015, 27% of UAE population was from India
33
What resources can help a global hub to develop?
Oil resources, physical factors aiding the growth of industry, coastline ideal for trade, strategic location to encourage investment Large labour force, skilled labour (e.g. universities), affluence, languages spoken
34
What factors help to explain the emergence of a Western-influenced ‘global culture’?
TNCs - the global dispersal of food, clothes and other goods by TNCs shapes a common culture Global media Migration and tourism - brings enormous cultural change to places, during age of empires Europeans forced their language and customs on people in other countries
35
What is cultural diffusion?
The spread of culture from one group of people to another
36
What is cultural erosion?
Cultural erosion is the process of a country or region losing it’s traditional elements due to outside influences
37
What are the positives/ negatives of a westernised global culture?
tends to improve opportunities for traditionally disadvantaged and discriminated groups such as women, disabled and LGBT global media coverage of events such as the Paralympics may erode prejudice in developing countries spread of western diet linked to rising obesity and diabetes in many emerging countries (e.g., per capita meat consumption has increased tenfold in Asia in 1990s due to Westernisation) fast food consumer culture is extremely wasteful, linked to deforestation and excessive water use
38
How do some areas protect their cultural identity from globalisation forces?
UNESCO World Heritage Site List - UN gives special recognition to places that have unique cultural or physical significance so that policies can be established to protect from too much change China - censorship through ‘great firewall of China’ prevents users from using BBC or Facebook services, strict quota of 34 foreign films a year France - French gov supportive of French filmmakers, subsidises works filmed in French lang. 40% of tv output must consist of French productions, French language music heavily promoted on radio
39
+ves of spread of culture
Global media turns Paralympic Games into one of the world’s biggest sporting events by celebrating physical achievements of elite athletes with disabilities Pride marches/month leads to awareness for LGBTQ+ community how has cultural erosion impacted tribal lifestyles in Papua New Guinea? 7000 different cultural groups, by 2014 1 in 4 languages were being lost Due to: migration to urban areas and increased awareness of Western cultures and lifestyles (e.g., wearing t shirts)
40
Who are the social and economic winners and losers in Africa and why?
WINNERS - North Africa, where large income gains have been made in coastal hubs which are ‘growth engines’. Strong middle class growth is expected here LOSERS - Sub-Saharan Africa due to geographical isolation and political extremism, poverty remains. This has led to falling life expectancy due to conflict and human rights abuses
41
What is the First Nations in Canada, how are they threatened by globalisation?
6 groups of indigenous people whose lifestyle is based on subsistence fishing, hunting and trapping Globalisation means global oil companies have begun extracting oil barrels in the area Social impacts = alcohol and drugs on young people’s lifestyles Environ impacts = death of trout and other fish in oil polluted lakes First Nations are opposing attempts by global companies to exploit oil resources
42
What are the links between globalisation and rising environmental insecurity?
Food - by 2050, demand likely to double worldwide. Middle class western diet characterised by consumption of meat and dairy Water - many commodities such as chocolate or coffee have a high water footprint, household water use also increasing Energy - 50% increase in global energy use is predicted by 2035 Climate - increased average carbon footprint size, rising CO2 emissions means global temp rise of 2 degrees looks inevitable
43
What is a transition town?
A settlement where individuals and businesses have adopted ‘bottom-up’ initiatives with the aim of making their community more sustainable and less reliant on global trade Todmorden in the South Pennines Food grown locally, ‘Incredible Edible Todmorden’ created 40 public fruit and veg gardens and educational talks/events
44
local sourcing?
Local sourcing of everyday meat and vegetables can be very expensive, especially for people on low incomes. Tomatoes and other exotic produce have to be grown in heated greenhouses and polytunnels during winter, resulting in a larger carbon footprint. Less demand from UK consumers for food from producer countries means halted economic development Many small producers in the UK use organic farming methods (fewer pesticides = health benefits). UK farmers have moved up value chain by manufacturing locally sourced items, such as jams, fruit juices and wine. Local sourcing sometimes helps people reduce their carbon footprint size.