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.
