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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-
promotes global economic and financial stability
-encourages developing countries to accept FDI and open up their economies to free trade

In 1976, Britain had to borrow $3.9bn from the IMF when it faced an inflationary crisis.

Restored confidence in markets eg Global Financial Crisis 2008-9

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14
Q

Criticise IMF as an IGO

A

-criticised for promoting a ‘western’ model of economic development that works in the interests of developed nations and TNCs.

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15
Q

Explain WTO as an IGO

A

-aims to reduce the trade barriers between different countries

tries to get all countries internationally to agree to the same terms that help to create free trade

tries to persuade nations to reduce their tariffs on a range of goods and services

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16
Q

Criticism of WTO as an IGO

A

favours developed countries so concerns about participation in negotiations from developing

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17
Q

Explain The World Bank as an IGO

A

-lends money to the developing world to fund economic development and reduce poverty

-helped developing countries develop connections with the global economy

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18
Q

Criticism of The World Bank as an IGO

A

criticised for having policies that prioritise economic development over social development
(Can cause displacement in communities)

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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
3.2b What is the role of the EU as a national government?
Single market trade bloc of 25 members It promotes free movement of people, goods and capita
26
3.2b What is the role of ASEAN as a national government?
Association of Southeast Asian Nations -low tariff applied between members for specialised goods -banned nuclear weapons in 1995 - more political than economic
27
3.2b What role do national governments play in economic liberalisation ?
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
3.2c What are government subsidies?
Where government pays for a company to promote an activity Western consumers benefit from lower cost goods eg gov covers relocation costs
29
3.2c What are attitudes towards FDI?
Asian Tigers by 1980- 4 asian countries chose export-led growth= creating new jobs, better working conditions
30
3.2c What is China's open door policy?
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
3.2c How do SEZs attract FDI?
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
3.3a What indices are used to measure the degree of globalisation?
AT Kearney KOF
33
3.3a Describe and evaluate KOF index as a measure of globalisation
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
3.3a Describe and evaluate AT Kearney index as a measure of globalisation
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
3.3b What are TNCS?
Firms with operations in more than one country Grow from creation of trade blocs- removing barriers and creating SEZs eg Walmart= Polands GDP
36
3.3b How do TNCs take advantage of economic liberalisation?
Via outsourcing (firm contracts to obtain goods from another country) and offshoring (moving parts of production to another country)
37
3.3b Give an example of outsourcing
Tesco 2013- Romanian supplier was mixing horse meat into cheaper beef burgers= less direct control over imports
38
3.3b Give an example of offshoring
Designing Apple iPhones in California, manufacturing by Foxconn in China- wage rates lower+ less environmental regulations
39
3.3b How does glocalisation contribute to the spread of TNCs?
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
3.3b What is an example of a drawback of TNCs?
2013 Rana Plaza incident, Bangladesh 1100 killed in textile factory collapsing Halted garment supplies to Walmart
41
3.3c Two countries that are switched-off locations
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
3.4a Winners of global shift
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
3.4a Losers of global shift
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
3.4c What is an example of a deindustrialised region in developed country?
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
3.3c What problems do deindustrialised regions in developed countries face as a result of economic restructuring?
High unemployment-factory closure= crime and drug abuse Population decline- migration due to lack of job opportunities eg Rust Belt USA
46
3.5a What are the challenges of rapid urban growth?
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
3.5b High wage economic migration to London (Global hub city)
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
3.5b Low wage economic migration to UAE
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
3.5c What are the impacts of migration on host and source locations?
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
3.6a Cultural diffusion eg TNCs, tourism, westernisation
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
3.6b Korowai Tribe as an example of cultural erosion
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
3.6c Give an example of anti-globalisation group
Occupy Wall Street- economic disparity between the highest economic class and the mid to lower economic classes is growing
53
3.7a What is the difference between single and composite indices as economic measures?
Single- measures one variable eg life expectancy and easier to measure Composite- combines variables eg HDI
54
3.7a Describe HDI as a measure of development
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
3.7a GII as a measure of development
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
3.7b What are the Gini Coefficient measures of widening income inequality?
GNP- output produced by country GNI- includes TNC profits and remittances GDP- total output of goods and services in a country per year
57
3.7b Who are the winners of economic globalisation?
Between economies- Luxembourg 105k average income vs South Sudan 220 Within- China's coastal cities 10k vs rural west under 2k
58
3.7b Who are the losers of economic globalisation?
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
3.7c What are the trends between economic development and environmental management between global regions? (CHINA VS SWEDEN)
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
3.8a What are the factors increasing immigration pace?
open borders in EU since 1995 FDI encouraging TNC workers to move overseas deregulation of job markets lead to more foreign qualified workers
61
3.8b What attempts have been made to control the spread of globalisation?
North Korea= no access to westernised ideas UK uses points system Aus matches immigrants to job vacancies Chinas internet is censored
62
3.8c How do some groups retain cultural identity in their regions?
First Nations schools- teach native languages festivals to reserve oral traditions 100 in Canada are funded by government
63
3.9a Define sustainability
Meeting the needs of the present without compromising the needs of the future
64
3.9a What is localism and how do transition towns promote this?
foods and goods should be grown locally supporting jobs and limiting transport Towns grow food locally on farms eg Totnes has own local currency for trade
65
3.9b What are the concerns of working conditions and global trade?
Exploited labour- tea, coffee, bananas not providing farmers with decent income and uses excessive packaging EG Bangladesh- 13k litres of water to make jeans, fertilisers leak into river, most jeans only last 12-18 moths
66
3.9b fair trade
paying famers a guaranteed price- supports families However more expensive for consumers eg Forest Stewardship council- logo on woods- farmers must respect land (indigenous)
67
3.9c Costs of recycling over years
Consumer society- places high value on new products, eating more meat and buying water intensive goods Not all products are recyclable NGO- Keep Britain Tidy 1954- tidy man logo on bins to encourage disposal of household waste
68
What are the aims of the Bretton Woods' institutions?
- helped to maintain the dominance of 'western' capitalism - support free trade and economic development - initially established a fixed exchange rate system - help increase international FDI and capital flows. - increasing funding and capital available to developing countries so they grow

Geography (13 decks)

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