Globalisation Flashcards
What is globalisation?
The increasing interconnectedness between countries through trade, culture, technology, and politics.
Driven by economic, social, political, and cultural factors.
What are the key flows in globalisation?
Commodities: International trade of goods.
Capital: Money and investment (FDI, stock markets).
Information: Digital and media exchange.
Migrants: Movement of people across borders.
Tourists: Travel and cultural exchange.
What are the four types of globalisation?
- Political: Growth of trade blocs (e.g., EU, NAFTA) and organisations (UN, WTO).
- Social: Increased migration, cultural exchange, and global education.
- Cultural: Spread of Western ideas (e.g., McDonald’s, Netflix).
- Economic: Growth of multinational corporations (MNCs) like Apple and Zara.
How has technology accelerated globalisation?
ICT and mobile advances (internet, social media, e-banking).
Time-space compression: Faster communication makes the world feel smaller.
Leap-frogging: Developing nations adopting new technologies without older infrastructure (e.g., M-PESA in Kenya).
How do governments influence globalisation?
Privatisation: Selling state-owned businesses to foreign investors (e.g., UK privatised BT, British Airways).
Free-market liberalisation: Reducing government control, allowing businesses to grow (neoliberalism).
Subsidies to TNCs: Encouraging foreign investment (e.g., Ireland’s tax deals with Apple).
Encouraging business start-ups: Lower taxes, better infrastructure, and relaxed trading laws.
How did China’s economic policies accelerate globalisation?
1978 Open Door Policy: Allowed FDI (Foreign Direct Investment) and urbanisation.
Special Economic Zones (SEZs): Offered low taxes and labour costs to attract TNCs.
“Workshop of the World”: Became a major exporter of goods.
How does China restrict globalisation?
Censorship of foreign tech (e.g., Facebook, Google).
Limits foreign films to 34 per year in cinemas.
What are free trade blocs, and how do they encourage globalisation?
Groups of countries that remove tariffs and trade barriers.
Encourage free movement of goods, services, and people.
Examples: EU, NAFTA, ASEAN.
What are the benefits of free trade blocs?
Increase trade flows between member countries.
Lower prices for consumers.
More job opportunities in member nations.
How does Westernisation spread through globalisation?
Media influence (Hollywood, Netflix, Disney).
Fast food chains (McDonald’s, KFC).
Global retail (Zara, Apple, Nike).
How do TNCs affect national identity?
Foreign takeovers of local businesses (e.g., Cadbury bought by Kraft).
International investment changes industries and cities (e.g., Chinese investment in London real estate).
Raises questions about national identity and local control.
What are the positive effects of globalisation?
Economic growth due to foreign trade and investment.
Access to new technologies and innovations.
Increased cultural exchange and diversity.
What are the negative effects of globalisation?
Job losses in some sectors due to outsourcing.
Cultural homogenisation (loss of local traditions).
Environmental damage from increased production and transport.
