globalisation Flashcards
what is the shrinking world concept
suggests that the rapid rate of globalisation has made the world feel smaller due to increased connectivity and technology.
what is containerisation
a system of standardised, multi-modal transport that uses a common-sized steel container to transport goods and freight.
what does containerisation do
reduces the time it takes to load and unload cargo ships as transfort freight as the containers are multi-modal and can fit onto many methods of transport. around 90% of non-bulk goods are carried in containers which reduces the time and therefore costs of transporting goods.
how has technology developed due to globalisation
- people can connect instantly which has facilitated global collaboration, business transactions, and the exchange of information, reducing the barriers of distance and time.
- The rise of online shopping platforms and digital payment systems has made it easier for businesses to sell products and services worldwide. Companies can now reach a global customer base, and consumers can access goods from different parts of the world, driving economic interdependence.
- a greater access to Information and Knowledge: The internet has democratized access to knowledge and information. People from different parts of the world can access educational resources, research, and news, allowing for the sharing of ideas and innovation across borders.
- Innovations in transportation, such as faster and more efficient airplanes and shipping methods, have made it easier and cheaper to move goods and people across the globe. This has further supported the growth of international trade and tourism, two major drivers of globalization. e.g railway in the 1800s and jet aircraft
- digital platforms like streaming services, social media, and online content creation has facilitated cultural exchange across borders.
what is the world trade organisation and what do they do
international organization that regulates global trade between nations and its main function is to ensure trade runs as smoothly and predicably as possible, and encourages countries to abandon protectionist attitudes.
- The WTO aims to reduce barriers to trade by encouraging countries to open their markets and engage in free trade. Through negotiations, it works to lower tariffs, reduce subsidies, and remove non-tariff barriers to trade.
- The WTO provides technical assistance and training to developing countries to help them improve their trade capacity. This ensures that all members, regardless of their level of development, can participate in and benefit from global trade.
what is the world bank organisation and what do they do
WB provides financial and technical assistance to developing countries around the world through investment, low-interest loans and grants. These loans often fund large-scale projects such as building schools, hospitals, roads, and energy plants.
- The World Bank’s primary goal is to reduce poverty and improve living conditions in developing countries. By funding projects that enhance education, health care, and infrastructure
what is the international monetary fund and what do they do
IMF provides monetary cooperation and financial stability to its member countries. it made up of 190 member countries.
- developed nations channel loans to developing nations under the cause that they will open up a free market economy that is now open to forgein direct investement.
what is a trade bloc
a group of nations creating a formal agreement that facilitates trade between them by reducing or eliminating trade barriers such as tariffs, quotas, and duties. These agreements are designed to encourage economic cooperation, increase trade flows, and improve the economic standing of member countries
what is free market liberalisation
reducing government intervention in the economy and allowing market forces (supply and demand) to play a greater role in shaping economic activity.
policies are aimed at opening up markets, reducing tariffs, eliminating trade barriers, deregulating industries, and encouraging competition. The goal is to create a more open, competitive, and efficient global economy where businesses can operate across borders with fewer restrictions.
positives of free market liberalisation
- Global Trade Growth: Lower tariffs and fewer trade barriers lead to a significant increase in international trade.
- Innovation and Competition: When markets are open, companies are forced to compete on a global scale, leading to greater innovation, improved products, and the development of new technologies.
- Foreign Investment: With fewer restrictions, liberalized markets are more attractive to foreign investors
negatives of free market liberalisation
- Environmental Concerns: Deregulation can sometimes lead to environmental degradation, as companies may prioritize profits over sustainability.
- Inequality: Free market liberalization can exacerbate income inequality both within countries and between countries. While large corporations and skilled workers may benefit from a more competitive global market, poorer regions or less competitive industries can be left behind.
- Cultural and Social Impact: Free market liberalization can lead to the erosion of local industries and traditions as foreign companies enter markets and compete with local businesses.
what is privatisation
transferring ownership and control of state-owned enterprises (SOEs) or government assets to private sector entities. this may result in ownership of companies being pass over seas
how do national governments accelerate globalisation
- trade liberalisation, Reduction of Tariffs and Trade Barriers which facilitating the free flow of goods and services across borders.
- encouraging FDI Governments can create favorable policies to attract FDI, such as tax incentives
- Infrastructure Development through Enhancing Connectivity: Governments invest in infrastructure like ports, airports, railways, and roads to improve the movement of goods and people across borders, which fosters global trade. also can invest in technology which improves communication.
- International Agreements and Organizations
Multilateral Trade Agreements: Governments participate in and support international organizations such as the World Trade Organization (WTO), World Bank, and International Monetary Fund (IMF), which promote trade liberalization, financial stability, and global economic integration.
what is a special economic zone
an area in a country that is designed to generate positive economic growth. these areas are usually subject to different and more favourable economic regulations, such as tax incentives and lower tarrifs. they are designed typially to facilitate rapid economi growth to incourage FDI
what is FDI
foreign direct investement, a country making a physical investment into another, typically through building a factory.
what are TNCs
trans national corporations, global businesses that opperate in a number of countries and usually seperate production between these different areas. they account for 80% of global trade. e.g. all the parts of an apple iphone are made in different nations
what is outsourcing
where a company hires another company to be responsible for a production process that could have been performed in-home
what is off-shoring
when a company sends in-house jobs to be completed in another country
what is a global distribution market
the way specific services/ a product is produced, distributed and consumed. GPN makes up 80% of global trade. they link together a chain f companised and workers in order to complete a product e.g. apple product components are made from 43 countriesw
what is the global shift
the movement of the manufacturing industry from europe and north america in recent decades, to asian countries. TNCs are seeking cheaper labour and manufacturing costs to mass produce goods. a ‘race to the bottom’ has been created to find the cheapest ways to mass produce, and asian nations have recently opened their doors to free trade and market liberalisaion.
positives of the global shift for asian nations
waged work
improvements to the quality of life do to FDI
education and training
reduction in poverty
sharing of technology and knowledge
negatives of the global shift for asian nations
environmental pressure
increased inequlity
loss of tradition/culture
loss of productive land
exploitative work/child labour
over-reliance on FDI
unstable job market
negatives of the global shift for other nations
increased total carbon footprint
reliance on imports
inequalities of wealth/wealth concentration
job loss for developed nations
‘race to the bottom’
cultural/political tensions
positives of the global shift for other nations
global trade growth
better/more products avaliable
what are global hubs
areas where globalisation is at a maximum due to connectivity, influence, diversity and infrastructure.
e.g.
- economic hubs like Business and Finance Centers: Global financial hubs, like New York, London, Tokyo, and Hong Kong, serve as central locations for global markets, banking, investments, and multinational corporation
- Cultural Hubs: Cities such as Paris, Los Angeles are recognized as global cultural hubs due to their influence in the arts, entertainment, music, fashion, and media. They attract global talent and influence cultural trends worldwide.
- Tourism and Global Connections: Some cities, like Dubai and London, have become cultural melting pots that attract people from across the globe for tourism, education, and events, enhancing their status as global hubs.
- transport hubs e.g. london heathrow which are strategically important for global travel and transport
- political hubs e.g. Brussels that host EU meetings and are critical centers for internaional decision making
positives of migration to global hubs for the migrants
- Higher Wages and Employment: Migrants often move to global hubs for better job prospects and higher wages.
- Access to Skilled Jobs: Migration to global hubs often allows workers to find specialized and high-paying jobs, particularly in sectors like technology, finance, and healthcare.
- Cultural Enrichment: Migrants bring their own traditions, languages, and customs, enriching the social and cultural fabric of global hubs. In cities like New York, the blending of cultures leads to vibrant communities and cosmopolitan lifestyles.
- Political Stability and Legal Protections: Many global hubs, especially in developed countries, offer political stability and strong legal protections for workers, women, and marginalized communities. Migrants can often enjoy better civil rights and liberties in these locations.
negatives of migration to global hubs for migrants
- high costs of living in a global hub e.g. london where accomodation and services are significantly more expensive which could lead to financial strain for a lower-income migrant
- Cultural Alienation: Migrants often face a sense of isolation or alienation, especially if there is a language barrier, cultural differences, or limited support networks in their new environment.
- Job Market Saturation: Global hubs often have a highly competitive job market, especially for skilled roles. Migrants may find it difficult to secure employment due to high competition, language barriers, or the recognition of foreign qualifications.
- Xenophobia and Prejudice: Migrants may face discrimination, racism, or prejudice based on their nationality, ethnicity, or immigration status
examples of migration by groups of people to global hubs
- Financial Professionals to London = migrate to London for career opportunities in finance, accounting, investment banking, and asset management. = london is now a financial hub and is a leading city in global banking, trade, and finance
- Healthcare Workers to the Middle East e.g. dubai = e.g. indian migrants migrate for better job prospects, competitive salaries, and tax-free income = have helped strengthen healthcare systems in the region, allowing for world-class medical facilities to be built and healthcare services to be provided
- immigration to NYC = New York City has long been a destination for immigrants seeking economic opportunities, political asylum, and a better quality of life = multiculturalism
negatives of migration to global hubs for other people
- strain on services are more people are living in an area e.g. more people require healthcare, lack of housing or spaces in schools
- lower working population means less tax payers for source country
positives of migration to global hubs for other
+ money from migrants can be sent back to host countries
+ migrants filling up low-wage/dirty work
+ migrants bring a wide range of skill/culture to an area
+ typically younger which can help with aging populations and typically means they have a higher chance of working and getting a job
what is cultural diffusion
the spread of cultural beliefs and social activities from one social group to another
what is cultural erosion
the wearing away of cultural traits that can eventually lead to their dissapperance
what is the lorenze curve
shows a line of ‘perfect equlity’ where 50% of global income is owned by 50% of the population and the farther a countries line gets away from the ‘perfect one’ the more unequal it is.
how are diets changing in Asia
- increased Consumption of Processed and Convenience Foods
- Global Fast Food Chains: Western fast food chains, such as McDonald’s, have expanded rapidly in Asian markets, shaping dietary habits, especially among younger generations. These chains offer familiar, quick options that fit into the busy, modern lifestyle.
- Shift Towards Meat and Dairy Consumption
- Sugar and Junk Food: Along with the rise of fast food, sugary drinks, and snacks, such as soft drinks, candies, and chips, have become more common in the Asian diet, contributing to concerns about rising rates of obesity, diabetes, and other health problems.
- Rise of Delivery and Online Food Services that has been exacerbated since the covid-19 pandemic
what is the gini coefficient
a numerical scale that measures the inqualities between countries. it is an index with the values 0-100, where 0 means everyone has the same income and 100 means one person has all the income. the higher the number, the more unequal a country.
what is HDI
human development index - a measure combining education, life expectancy and standard of living
what is GNI
Gross national income - a measure of a country’s total economic output, including the value of goods and services produced by its residents, both domestically and abroad
what is GII
gender inequality index - assess gender disparities in a country, it captures the loss of human development potential due to gender inequality across reproductive rights, empowerment and labour market particiption
what is environmental quality
measures that include the assessment of soil, water and air
what is GDP
the market value of all goods and services provided within a domain
what is economic sector balance
the distribution of economic activities and output across different sectors of an economy (primary, secondary, tertiary, quaternary)
social tensions due to globalisation
- Cultural Homogenization due to westernization
- income inequality and wealth concentration
- labour migration, concerns about migrants and abuse against migrants in host country
what is Cultural Homogenization
where cultures become increasingly similar to each other
political tensions due to globalisation
- Sovereignty where national governemts feel they are loosing control over domestic policies as IGOs strengthen
- anti-globalisation parties
economic tensions due to globalisation
-Job Displacement and Income Inequality: Globalization can lead to job displacement, particularly in traditional industries such as manufacturing, where jobs may be outsourced to countries with cheaper labor costs. This has created tensions between developed and developing countries, and within countries, where certain sectors and regions are left behind in the global economy.
- unequal economic growth
- Trade Imbalances and Protectionism: The global nature of trade has led to trade imbalances between countries. For example, countries with large exports (like China) may run trade surpluses, while importing countries (like the United States) face deficits. This can lead to political pressure to impose tariffs and protectionist measures, sparking trade wars and economic tensions.
environmental tensions due to globlisation
- increased greenhouse gas use
- deforestation and loss of productive land
- loss of biodiversity
- soil, air, water pollution
- overconsumption
- water deficits and depletion
how does fair trade and other ethical consumption schemes reduce impacts of globalisation
- Fair trade organizations set minimum price floors and guarantee a fair wage for producers, ensuring that workers are paid adequately for their labor. This prevents exploitation and helps lift people out of poverty by providing fair compensation for the products they produce.
- Improved Working Conditions: Fair trade certification often comes with requirements for safer working conditions, reasonable working hours, and respect for labor rights. This reduces the exploitative practices that are common in industries driven by low wages, such as agriculture and manufacturing in developing countries.
- Sustainable Farming Practices: Fair trade supports farmers and producers in adopting environmentally sustainable practices, such as organic farming, agroforestry, and conservation techniques. These practices help reduce the ecological damage caused by industrial agriculture, which can lead to deforestation, soil degradation, and water pollution.
- Direct Market Access: Fair trade eliminates the need for middlemen, allowing producers to sell directly to consumers or companies in developed markets. This reduces the exploitation of producers, as they are able to earn a higher percentage of the retail price of their products, rather than having to sell at a loss to intermediaries.
- Gender Equity: Fair trade supports gender equality by ensuring that women have equal access to resources and decision-making within the supply chain. Women, who are often marginalized in traditional trade systems, benefit from the empowerment initiatives that fair trade promotes, such as equal pay and leadership opportunities.
ideas about localism
- energy = small energy companies that’re focused n renewable energy schemes e.g. the Whalley Hydro Scheme
- creating more green spaces/parks
- reducing waste and increasing recycling e.g. the real junk food project
- buying local = buying second hand or not buying from large companies, eating local food instead of delivering food or getting it from fast food chains e.g. incredible edible in todmorden
what is a circular economy
goods are produced, consistently reused and eventually recycled
what is a throw-away economy
goods are produced, used once for a short period of time and then thrown away
