Globalisation Flashcards
What is globalisation
Globalisation is known as the increasing interdependence between countries through flows of capital, trade, goods and services as well as culture and ideas.
Changes to which 5 branches of society have contributed to increased globalisation
- Economic Factors
- Social Factors
- Political Factors
- Cultural Factors
- Technological Factors
3 economic factors that have contributed to increased globalisation
- FDI
- Increased presence of TNCs
- Online purchasing and shipping
3 social factors that have contributed to increased globalisation
- Social Media allowing cross border communication
- Increased migration and immigration
- More tourism
3 political factors that have contributed to increased globalisation
- IGOs like the IMF or WTO
- Trade Blocs like the EU
- Political views and ideas spread online through news and social media
1 factor that have contributed to increased globalisation
Americanisation/Westernisation
3 technological factors that have contributed to increased globalisation
- The Internet
- Social Media
- Better transport methods like planes and trains increase interconnectivity
Name 4 innovations in the 19th/20th century that increased globalisation
- Steam power (for boats and trains)
- Jet aircraft
- Telegraphs for communication
- Containerisation
How many containers are transported a year
200 million
3 recent inventions that increased globalisation
- Mobile phones
- The Internet
- GPS
What are the 5 dimensions/flows of globalisation
- Capital (Money)
- Labour (People)
- Goods (Products)
- Services (eg. India Tech Support)
- Information (eg. News)
2 Environmental Reasons as to why a country may be ‘switched off’
- Being landlocked makes a country reliant on another for trade which could reduce the amount of trade a country can do
- Depending on the land a country owns, for example if it is a desert or nonarable or small, the country may not be able to produce any commodities making it unable to export
2 Political Reasons as to why a country may be ‘switched off’
- The governance of a country may limit flows entering or exiting the borders, like North Korea
- Terrorism can deter countries from being closely associated or interconnected with them
2 Economic Reasons as to why a country may be ‘switched off’
- Some LICs may not be able to afford infrastructure like ports or schools, making it unable to grow its labour force
- Countries with unstable markets or currencies may deter foreign investment or businesses
3 reasons why global flows could be perceived as bad
- Importing products from elsewhere could hurt the domestic industry of that product
- Migrants from abroad could put a strain or services or be unwanted by the local population
- Foreign information could be seen as threatening to the stability of a country
what is a tariff
tax imposed on people
what is a subsidy
financial assistance to a business from the government to give it a competitive advantage or to help it avoid collapse
what is a quota
the limit of something that is allowed into a country
what is protectionism
policies to protect businesses and workers in a country in a country by regulating or restricting trade with other countries
what is a free-market economy
an economy with little government intervention based on supply and demand
what is free-trade
when the government does not intervene in trade by not applying any quotas, tariffs or subsidies
what is privatisation
transferring ownership of a public service into private ownership run for profit
what is neoliberalism
a political philosophy of free markets, free trade and privatisation to encourage trade as much as possible, which the ideology states will create more trade, which increases wealth and reduces poverty
What are the four different types of FDI
- Offshoring: Building production companies in a different country to have foreign people work there (often in low wage companies to decrease costs for the business)
- Foreign Mergers: Two businesses in different countries merging into the same entity
- Foreign Acquisitions: Launching a takeover of a foreign business to own them
- Transfer Pricing: Channelling profits through a subsidiary company in a foreign low-tax country in order to avoid paying high tax levels
Name 3 major IGOs
IMF, World Bank, WTO
What does the IMF stand for and what do they do
International Monetary Fund - Invests money into countries that apply for help in order to stabilise the economy of the country in return for privatisation and free trade
What does the World Bank do
Invests money into countries to help instigate long term economic development and poverty reduction
What does the WTO stand for and what does it do
World Trade Organisation - Encourages free trade and the removal of quotas and tariffs in favour of untaxed trade
When and what is the Bretton Woods Agreement
July 1944, an agreement between various countries towards the end of WW2 which set up the IMF and World Bank
3 ways governments can limit the rate of globalisation
- Censorship
- Immigration Policies
- Protectionism
What are SAPS
Structural Adjustment Programs/Policies -
Loans given by the IMF and World Bank to developing to countries to help stabilise their economy, in exchange for the country having to follow neoliberal rules which opens up the economy to foreign TNCs and forces privatisation
Give an example of a SAP gone wrong
Tanzania - Upon privatisation of Tanzania’s water supply, they were taken over by British Business City Water, who only seeked to maximise profits - Tanzanian citizens saw a sharp increase in the price of water, but never received any improvements to the supply, reliability or quality of water
Give an example of a country that has suffered from joining WTO
Pakistan - it had previously enforced a 200 mile exclusion zone for fishing on its coastline but opened up its fishing grounds after joining the WTO, which led Pakistani fishermen to be outcompeted by huge Indian trawlers, leaving Pakistani fishermen impoverished and starving
What is a Trade Bloc
A group of countries that agree to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves to promote economic integration and cooperation.
3 advantages of Trade Blocs
- Increases the potential market for businesses which could increase revenue
- Increased market could lead to more production which benefits raw material suppliers, creating a positive feedback loop
- Constant trade is more reliable and there are less external factors which risk the continuation of trade
3 disadvantages of Trade Blocs
- Loss of sovereignty
- Creation of interdepence with other countries which puts the other at risk if something happens to one
- Foreign firms can enter the country and become a big part of the domestic market share taking away from local businesses
What is the Trade Bloc between Canada, USA and Mexico
USMCA
1 advantage and 1 disadvantages of USMCA for Canada/USA (they have similar outcomes)
+ Companies can use Mexico for cheaper labour costs which maximises profits for their businesses
- Canadian and American manufacturing jobs are lost to Mexicans
2 advantages and 2 disadvantages of USMCA for Mexico
+ Mexican companies are forced to adopt higher business standards
+ As a part of the membership, Mexico has reduced or zero tariffs with 60% of the world
- Mexico has become dependent on the USA for 88% of its exports
- Many Mexican manufacturing jobs created by USMCA have Mexicans working and living in Maquiladoras, which are unsafe, badly paid and offer an overall low quality of life for the workers
What year was the EU (ECSC at the time) founded
1952
When did the UK join and leave the EU
1973 - 2020
What is the Schengen Agreement and when was it founded
Ended border checks in the EU allowing full movement of flows within the EU
Introduced in 1985 solely for Belgium, France, Netherlands, Luxembourg and West Germany but expanded in 1995 to cover all EU members except the UK and Ireland
When was the Euro implemented
1999
When was ASEAN founded and what is its aim
1967, it encourages free trade between its 10 member states (All of SE asia minus East Timor)
What is CPTPP and which nation left leaving what impact
A trade bloc spanning 12 countries, 11 Pacific Nations and the UK, which encourages free trade between all of them
The USA left the agreement in 2017, citing sovereignty issues, which reduced their ability to trade and lost them an estimated $131 billion between 2017-2030
Population of Detroit in:
1870:
1950:
2020:
1870: 80,000
1950: 1.85 million (peak)
2020: 640,000 (lower than 1920)
Reason for the decline of Detroit
A loss in the manufacturing industry that made it rich as a result of decreased demand after WW2 and suburbanisation moving wealthy people away from Detroit to cities like NY leaving poorer people behind
How many car factories in Detroit in:
1930:
2025:
1930: 125
2025: 3
Redcar Case Study 2 hard facts
Closure of SSI steel manufacturing lost 3000 jobs in Redcar, reduced average income per person by £10,000
When was China’s open door policy and who implemented it
Deng Xiaoping in 1978
What was China’s GDP growth per year before vs after the Open Door Policy
Before: 2.9%
After: 9%
How many Chinese people have been lifted out of poverty since the Open Door Policy
800 million
What was the open door policy of China
Opening up of China to foreign businesses and investment, setting up four EEZs with tax incentives for Western Businesses. This encouraged investment from Western countries with better technology compared to before the policy where it traded almost exclusively with the USSR and its satellite states
Give an example of the risks of outsourcing for company reputation
In 2013, the Rana Plaza Factory in Bangladesh collapsed which killed 1100 people. They made clothes for Walmart and showed the West the terrible worling conditions supported by TNCs
3 benefits of TNC’s outsourcing
- Raises living and working standards in manufacturing country
- Transfer of technology can stimulate economic growth in manufacturing country
- Productivity increases political stability
3 costs of TNCs outsourcing
- Tax avoidance
- FDI is often concentrated in certain areas increasing economic inequality (eg East vs West China)
- Unemployment in TNC country
3 stereotypical reasons why Africa is often ignored by TNCs
- Crime
- Lack of infrastructure
- Politically unstable
What are 2 indexes used to measure extent of globalisation
KOF Index and AT Kearney Index
Describe the KOF Index
Measures countries from 1-100 (100 being the most globalised) for political, social and economic factors
Top 3 on KOF Index (2024)
Netherlands, Switzerland, Belgium
Describe the AT Kearney Index
Measures CITIES on how globalised they are, considering political, communication and technological copies
Top 3 on AT Kearney Index (2024)
New York, London, Paris
What is GNI
Gross National Income - Value of goods and services of a country, INCLUDING overseas earnings
What is GDP
Gross National Income - Value of goods and services of a country, EXCLUDING overseas earnings
What is PPP
Purchasing Power Parity - Total expenditure of a country’s population
What is GII
Gender Inequality Index - A composite indicator which measures women’s rights based on female employment, political representation and reproductive health standards
In 2016, the top 200 TNCs accounted for __% of the Earth’s GDP
25%
What is glocalisation and give an example
The adaptation of goods or servies in a specific area or country in order to match the needs of the local population - for example McDonalds in India does not serve porkor beef burgers due to the Muslim and Hindu Populations
What is the ‘global shift’ and how has it changed
Where the average location of manufacturing and industrial activity is located - it is shifting towards Asian countries like China and India
__% of the wealth generated in India in 2017 went to the richest 1%
73%
How many Indian billionaires in 2000 vs 2025
2000: 9
2025: 185
5 Push factors from rural places
- Lack of job opportunities
- Bad healthcare standards
- Conflict (from lack of resources)
- Drought
- Modernisation of technology (less people needed on farms)
5 pull factors to urban places
- Family reunification
(Perceptions of)
- Stability
- Education
- Healthcare
- Jobs
2 reasons for growth of population
Natural Increase and Migration
Example of a rapidly growing Megacity
Mumbai
Population of the Metropolitan Area of Mumbai
25.8 million
Reasons for housing and slum problems in Mumbai
As the city is built on an archipelago, there is extremely limited space, meaning housing is more limited and is therefore extremely expensive. This means that people can’t afford the housing leading to the creation of informal settlements such as Dharavi
How is Mumbai combatting their housing crisis
Developing an underground metro system, due to be finished in May 2025, which will allow people to live further from Mumbai and still work in the city
What 2 things leads to the development of global hubs
Natural and Human Resources
What are elite migrants and give an example
Highly skilled, wealthy or influential people who own a property or move to another country - £27 billion has been invested into London and its properties by Russian Oligarchs
What are low-waged international migrants and given an example
Skilled workers (like builders) moving to a different country for low paid work, like construction workers in Qatar for the world cup 2022
3 benefits of economic international migrants for the host country
- Larger pool of potential workers
- Contribute to the economy
- Increase in cultural and demographic diversity
3 benefits of economic international migrants for the source country
- Remittances
- Migrants gain skills and come back to apply their skills in host country
- Reduced strain on services from less people
3 drawbacks of economic international migrants for the host country
- Possible racial/ethnic tensions
- Strain on services
- Strain on housing supply
3 drawbacks of economic international migrants for the source country
- Brain drain
- Decline in investment in original country’s economy
- Young people leaving could make the population older and less able to sustain the economy
What 4 main things is culture composed of
- Food
- Religion
- Tradition
- Language
Which 4 things can change the culture of a place
- Media
- Businesses/TNCs
- Migration
- Social Media
Give an example of a cultural change to diets in the last few decades
China’s traditionally plant based diet is becoming more meat based, meat consumption per capita rose from 5kg to 50kg from 1990 to 2015
Give 3 examples of countries resisting cultural change
France: 40% of all broadcast media must be made in French
China: The Great Firewall prevents Chinese people from using many foreign media or social media outlets and prevents users searching information which reflects badly on the government such as Tiananmen Square
What is the GINI Coefficient
An index showing inequality amongst a population, with 0 being perfectly equal and 100 being completely unequal
what is Democracy
The belief that a developed society is one where everyone has the right to vote.
what is individualism
The belief that individuals should have the right to pursue their own actions and dreams.
what is Consumerism
The belief that wealth, and the ability to buy goods and services, leads to happiness.
what is hyperglobalisation
The idea that a largely Westernised global culture is emerging as a result of cultural erosion in different places.
what is economic freedom theory
The belief that markets should be free, and people should be at liberty to make money how they choose.
what is cultural imperialism
A major power imposes ideas or values on less powerful nations.
what is cultural landscape
The landscape of a place that has been shaped over time in characteristic ways by the combined action of natural and human processes.
what is mcdonaldisation
the principles of the fast-food restaurant dominating more and more societies around the world: Efficiency, Calculability, Predictability, Control
what is americanisation
the action of making a person or thing American in character or nationality.
what is westernisation
a process whereby societies come under or adopt what is considered to be Western culture
what is cultural diffusion
the spreading or merging of different cultural ideas
Relative Poverty vs Absolute Poverty
Relative: Basic needs can be afforded but not luxuries
Absolute: Not all basic needs can be afforded
How does a Lorenz Curve work
The straight diagonal line going from 0 (X-Axis) to 100 (Y-Axis) is the ‘line of equality’, and the curved line is the Lorenz Curve. This shows which proportion of people based on their incomes makes up what % of the total economy - its cumulative
A lorenz curve closer to the line of equality suggests less economic inequality
Describe the Jumbo Glacier ski resort
A proposed 15,000 acre ski resort in Canada that would have imposed on the Ktunaxa Natives, large grizzly bear populations and large areas of forest, which was eventually not given permission to be built after legal battles
Ogoni People in Nigeria
Live in an area where oil is common, and Shell has been extracting oil and causing large environmental damage to soil and water from over 2.1 million barrel spills from 1958-73 alone
The government has favoured Shell over the Ogoni people and despite their rivers having no fish, and over 5 feet of dead soil preventing the Ogoni’s argiculture and fishing, the Nigerian Government has largely ignored them despite complaints
What is a transition town and an example with what theyve done
A community led effort to increase self-suffiency whilst reducing the effects of globalisation and climate change
Totnes is an example, it introduced its own currency, increasing local production and the people choose to use independent shops rather than large chains
What is WinACC
WInchester Against Climate Change - an initiative encouraging people in Winchester to be more sustainable about their food purchases, transport methods and energy
Fairtrade
A certification on products like bananas ensuring that suppliers like farmers are being paid a fair price for the products they produce
