Globalisation Flashcards

1
Q

Why are some countries “switched-off” from globalisation?

A

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

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2
Q

What are the positive impacts of a “westernised” culture?

A

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

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3
Q

What are the negative impacts of a “westernised” culture?

A

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

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4
Q

How may a government attract FDI?

A

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

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5
Q

Why is ICT important for globalisation?

A

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

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6
Q

What is the “global shift”?

A

Relocation of economic centre of gravity towards Asia from Europe and USA
eg shift of manufacturing jobs to China and service jobs to India

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7
Q

What are the benefits of the Global Shift?

A

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

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8
Q

What are the costs of the Global Shift?

A

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

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9
Q

What is containerisation?

A

standardised containers to transport goods making trade cost effective and efficient

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10
Q

What are the key benefits of containerisation?

A

-un/load quick-reducing time in port
-shipping costs dropped by 90%
-large volumes on ships
-reduced risk of damage and theft saving billions

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11
Q

What technology is involved in containerisation?

A

Specialised cranes and handling equipment
Automation and robotics to handle containers

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12
Q

How has containerisation revolutionised globalisation?

A

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

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13
Q

Explain IMF as an international organisation

A

International Monetary Fund- reduces poverty around world

-Offers loans in financial crisis
-Recommends policies to sustain growth
-Provides technical assistance in banking etc

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14
Q

Evaluate IMF as an international organisation

A

Restored confidence in markets eg Global Financial Crisis 2008-9

Policies can overlook interests of developing countries due to influence by US

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15
Q

Explain WTO as an international organisation

A

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

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16
Q

Evaluate WTO as an international organisation

A

Prevents trade wars ensuring rules are respected

However, favours developed countries so concerns about participation in negotiations from developing

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17
Q

Explain The World Bank as an international organisation

A

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

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18
Q

Evaluate The World Bank as an International organisation

A

Improves transportation and water supply inn developing countries
Low-interest loans reduce poverty

Can cause displacement in communities and environment degradation

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19
Q

3.1c 21st century dominated by fibre optics

A

land-based and sub-sea cables through cyberspace
SATNAV in delivery vehicles
popular channels worldwide via satellite

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20
Q

3.1c 21st century dominated by electronic banking

A

1/3 of country’s GDP sent by M-Pesa annually
Urban- utility bills and school fees
Rural- fisherman check market prices

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21
Q

3.1c 21st century dominated by mobile phones

A

reduced costs expanded usage
ubiquitous consumer products
2015- 70% Africa owned phone

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22
Q

3.1b Shrinking World Effect

A

Physical distance remains unchanged but reduced transport times of goods/people/info = time-space compression

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23
Q

3.2a Where were the intl organisations founded and what were their main aim?

A

Founded in Bretton Woods conference 1944
To rebuild world economy after WW2

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24
Q

3.2b What are free trade blocs?

A

Countries specialise in goods with advantages eg lower production costs
(firms producing specialisation become TNCS)
Agreement to remove barriers to trade

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25
Q

3.2b What is the role of the EU as a national government?

A

Single market trade bloc of 25 members
It promotes free movement of people, goods and capita

26
Q

3.2b What is the role of ASEAN as a national government?

A

Association of Southeast Asian Nations
-low tariff applied between members for specialised goods
-banned nuclear weapons in 1995
- more political than economic

27
Q

3.2b What role do national governments play in economic liberalisation ?

A

Free-market liberalisation- Little government intervention
Margaret Thatcher founded
Involves choosing supplier for gas, electricity= breaking monopolies

Privatisation- gas, electricity, water now privately owned since 1980s

Encouraging business start ups- loans made in growth areas eg pharmaceuticals= using well-enforced contracts, efficient bankruptcy procedures eg UK gov supports ICT in Silicon Roundabout

28
Q

3.2c What are government subsidies?

A

Where government pays for a company to promote an activity
Western consumers benefit from lower cost goods eg gov covers relocation costs

29
Q

3.2c What are attitudes towards FDI?

A

Asian Tigers by 1980- 4 asian countries chose export-led growth= creating new jobs, better working conditions

30
Q

3.2c What is China’s open door policy?

A

SEZs on coast eg Pearl River Delta Zone
-export increase $2b to 200b in 20 years
- China joined WTO in 2001 so countries lowered tariffs on exports
However- FB and Google limited
cultural erosion
export restrictions on rare earth minerals removed

31
Q

3.2c How do SEZs attract FDI?

A

Good infrastructure, close to trade routes, freedom from crime and violence
1960 President of Indonesia created Jakarta Export Zone- unions were banned so no striking
tariff+quota free
environmental regulations limited
all profit to HQ overseas

32
Q

3.3a What indices are used to measure the degree of globalisation?

A

AT Kearney
KOF

33
Q

3.3a Describe and evaluate KOF index as a measure of globalisation

A

Produced annually by Swiss institute
Mean of the categories calculated

Economic globalisation- cross-border trade, money flows, tariff rates

Social- international, phone calls, tourist flows, household with TV set

Political- no. with foreign embassies in country

Evaluation- USA and BRICS= lower value as it measures intl interactions

tech developments outdated eg email not used

34
Q

3.3a Describe and evaluate AT Kearney index as a measure of globalisation

A

Produced annually for ‘Intel peace foreign policy’ magazine

Economic integration- trade +FDI flows

Tech connectivity- no. of internet users, hosts + servers

Political engagement- membership of intl organisations

Personal contact- intl travel + tourism

Evaluation- small euro countries dominate due to smaller domestic markets, USA have low engagement but high connectivity

35
Q

3.3b What are TNCS?

A

Firms with operations in more than one country
Grow from creation of trade blocs- removing barriers and creating SEZs
eg Walmart= Polands GDP

36
Q

3.3b How do TNCs take advantage of economic liberalisation?

A

Via outsourcing (firm contracts to obtain goods from another country) and
offshoring (moving parts of production to another country)

37
Q

3.3b Give an example of outsourcing

A

Tesco 2013- Romanian supplier was mixing horse meat into cheaper beef burgers= less direct control over imports

38
Q

3.3b Give an example of offshoring

A

Designing Apple iPhones in California, manufacturing by Foxconn in China- wage rates lower+ less environmental regulations

39
Q

3.3b How does glocalisation contribute to the spread of TNCs?

A

Adapts brands+ products to suit local markets+ conditions
eg Cadbury sweeter in China due to local taste preference
Volvo makes cars with both sides wheel

40
Q

3.3b What is an example of a drawback of TNCs?

A

2013 Rana Plaza incident, Bangladesh
1100 killed in textile factory collapsing
Halted garment supplies to Walmart

41
Q

3.3c Two countries that are switched-off locations

A

North Korea
Political- Kim Jong UN- communist system, emigration prohibited, personality cult= all successes to him

Sahel Region
Physical- land-locked, poor quality roads= high transport costs deterring FDI
Environmental- semi arid-climate= desertification reduces availability for land+agricultural exports

42
Q

3.4a Winners of global shift

A

600m Chinese lofted out of poverty between 1992-2015

factory work= reliable wage as farming vulnerable to weather

TNCs invest in skills development for workforce productivity- more income used to educate children

China built 11k km of motorways 2015

43
Q

3.4a Losers of global shift

A

Construction of factories uses agricultural land

Rapid urban growth= unplanned settlements (Mumbai slums) as outpaces construction

Air pollution decreased chinas life expectancy by 5 years (50% world coal burnt)

Resource pressure

Workers separated from families

44
Q

3.4c What is an example of a deindustrialised region in developed country?

A

Detroit, Michigan= spiral of decline
4th largest manufacturing city when car-producing
parts were moved to Japan =cheaper costs= city bankrupt
derelict houses, rise in crime - lack of job

45
Q

3.3c What problems do deindustrialised regions in developed countries face as a result of economic restructuring?

A

High unemployment-factory closure= crime and drug abuse
Population decline- migration due to lack of job opportunities
eg Rust Belt USA

46
Q

3.5a What are the challenges of rapid urban growth?

A

Social- short-supply of housing= slums and lacking water supply

Economic- lack of taxes= gov can’t supply healthcare

Environment= slums- loss off farming land, wood fires= air pollution

Dharavi, Mumbai- 1.2m ppl in one square mile, 1 toilet per 1450 ppl, near railway lines

47
Q

3.5b High wage economic migration to London (Global hub city)

A

High-paid workers eg lawyers are attracted to London= employing maids, nannies

Russian billionaires invest in London so they can send children to UK elite private schools

48
Q

3.5b Low wage economic migration to UAE

A

Low skilled migrants as Construction workers eg Qatar World Cup created housing for workers

$12.5b money sent from UAE to India in remittances
Recession= construction in UAE suffers then India who planned to work can’t

49
Q

3.5c What are the impacts of migration on host and source locations?

A

On source- brain-drain as skilled migrants leave eg Poland to UK in EU recession

On hosts- more workers willing to work with low wages eg 80% Dubai are migrants
Can strain healthcare and housing

50
Q

3.6a Cultural diffusion eg TNCs, tourism, westernisation

A

Exchange of ideas eg Disney, fast food and consumer culture- wasteful resources
Wealth creation- Americanisation through McDonalds - obesity and diabetes
Awareness of disadvantaged eg Paralympics

51
Q

3.6b Korowai Tribe as an example of cultural erosion

A

1974- first contact from US
Wooden longhouses- clay bricks
Visited but healthcare workers often
Young people migrated for employment
Don’t speak local language often
Coca-cola available and football shirt worn often

52
Q

3.6c Give an example of anti-globalisation group

A

Occupy Wall Street- economic disparity between the highest economic class and the mid to lower economic classes is growing

53
Q

3.7a What is the difference between single and composite indices as economic measures?

A

Single- measures one variable eg life expectancy and easier to measure
Composite- combines variables eg HDI

54
Q

3.7a Describe HDI as a measure of development

A

HDI (0lowest- 1highest)- economic and social development eg life expectancy at birth, income+years in education

countries have diff ranks (political reasons) eg more spent on military rather than education

55
Q

3.7a GII as a measure of development

A

Gender inequality index (0equality- 1unequality)- eg reproductive health of women (maternal mortality ratio and adolescent fertility), ppt in workforce, empowerment (political representation in parliament and access to higher education)

56
Q

3.7b What are the Gini Coefficient measures of widening income inequality?

A

GNP- output produced by country
GNI- includes TNC profits and remittances
GDP- total output of goods and services in a country per year

57
Q

3.7b Who are the winners of economic globalisation?

A

Between economies- Luxembourg 105k average income vs South Sudan 220
Within- China’s coastal cities 10k vs rural west under 2k

58
Q

3.7b Who are the losers of economic globalisation?

A

Rural, isolated Asia and Sub-Saharan Africa- subsistence farming and limited trade connections

Workers in old industrialised cities that have lost jobs

Exploited workers in sweatshop factories

Slum dwellers

59
Q

3.7c What are the trends between economic development and environmental management between global regions? (CHINA VS SWEDEN)

A

Measured using ecological footprint (resources used by a person/country in global hectares)

Chinas rising economy increases with eco footprint but has risen less than Sweden

Sweden income 29k-50k however little increase in footprint (maintaining biodiversity)

60
Q

3.8a What are the factors increasing immigration pace?

A

open borders in EU since 1995

FDI encouraging TNC workers to move overseas

deregulation of job markets lead to more foreign qualified workers