Globalisation Flashcards
Why are some countries “switched-off” from globalisation?
Landlocked- deterring inward investment due to limited connections
Limited education levels- lack of skills needed to attract TNCs
Politically isolated- minimised trade with outside world
Unfavourable climatic conditions- limited transport/trade connections so unequal access to market
What are the positive impacts of a “westernised” culture?
More opportunities for disadvantaged groups e.g Paralympics
Uproot traditional views towards women e.g India increased women occupations
Increased acceptance to express religion, sexuality and freedom of speech
What are the negative impacts of a “westernised” culture?
Changing diets to fast food- Asia, increased methane emissions, deforestation. Social implications- obesity, diabetes and consumer culture
Cultural erosion- indigenous people of Amazonia exposed so clothing/diet changed. Young search for employment in urban areas
Loss of languages- 50-90% predicted to disappear in next century due to dominance of English communication + internet
How may a government attract FDI?
Creation of SEZs- good transport links/tariff free, increased profit for foreign companies
Govnts encourage TNC investment- tax incentives tied to a location designated by gov
Removing price controls- tariffs etc reduces protectionism so increased trade from foreign companies
Why is ICT important for globalisation?
increased speed/volume of data transmission for instant global communication between businesses
Satellites for TV- adopting cultural traits
Online conferencing- Zoom- geographically independent with high productivity
What is the “global shift”?
Relocation of economic centre of gravity towards Asia from Europe and USA
eg shift of manufacturing jobs to China and service jobs to India
What are the benefits of the Global Shift?
Factory work provides more reliable wage than subsistence farming
Poverty reduction- 1b people lifted
TNCs invest in training/skills development improving productivity and households pay for children’s education
What are the costs of the Global Shift?
Loss of productive land- construction of factories on agricultural land and can pollute available land
Envtl pressure- industrial expansion= lack of regulations
Workers restricted of free time, separated from families
Loss of tradition- local clothes/food due to rapid change
What is containerisation?
standardised containers to transport goods making trade cost effective and efficient
What are the key benefits of containerisation?
-un/load quick-reducing time in port
-shipping costs dropped by 90%
-large volumes on ships
-reduced risk of damage and theft saving billions
What technology is involved in containerisation?
Specialised cranes and handling equipment
Automation and robotics to handle containers
How has containerisation revolutionised globalisation?
transport costs of a pair of shoes from Asia to Europe is less than 10p
Global supply chains- cars’ parts can be manufactured and assembled in different countries
Market expansion on global export goods
Explain IMF as an international organisation
International Monetary Fund- reduces poverty around world
-Offers loans in financial crisis
-Recommends policies to sustain growth
-Provides technical assistance in banking etc
Evaluate IMF as an international organisation
Restored confidence in markets eg Global Financial Crisis 2008-9
Policies can overlook interests of developing countries due to influence by US
Explain WTO as an international organisation
World Trade Organisation- facilitates smooth and free trade between nations providing frameworks
-promotes trade liberalisation by reducing tariffs- rates decreased 16.7% to 7.5% in 25 years
-resolves trade disputes so runs smoothly
-monitors policies to ensure compliance by producing reports on trade trends
Evaluate WTO as an international organisation
Prevents trade wars ensuring rules are respected
However, favours developed countries so concerns about participation in negotiations from developing
Explain The World Bank as an international organisation
provides financial and technical assistance to developing countries through projects
-funds projects that build infrastructure and improve education+healthcare
-gives policy advice with effective development strategies
-conducts research for data on global development issues
Evaluate The World Bank as an International organisation
Improves transportation and water supply inn developing countries
Low-interest loans reduce poverty
Can cause displacement in communities and environment degradation
3.1c 21st century dominated by fibre optics
land-based and sub-sea cables through cyberspace
SATNAV in delivery vehicles
popular channels worldwide via satellite
3.1c 21st century dominated by electronic banking
1/3 of country’s GDP sent by M-Pesa annually
Urban- utility bills and school fees
Rural- fisherman check market prices
3.1c 21st century dominated by mobile phones
reduced costs expanded usage
ubiquitous consumer products
2015- 70% Africa owned phone
3.1b Shrinking World Effect
Physical distance remains unchanged but reduced transport times of goods/people/info = time-space compression
3.2a Where were the intl organisations founded and what were their main aim?
Founded in Bretton Woods conference 1944
To rebuild world economy after WW2
3.2b What are free trade blocs?
Countries specialise in goods with advantages eg lower production costs
(firms producing specialisation become TNCS)
Agreement to remove barriers to trade