Globalisation Flashcards
What is globalization?
A process by which people, cultures, money, goods, and information can be transferred between countries with few or no barriers, making the world more interconnected.
What are the four types of globalization?
Political, economic, cultural, and social.
Example of economic globalization?
International exports have increased 30x since 1950.
Example of political globalization?
Problems such as climate addressed by worldwide organizations such as the EU and UN (COP 26).
Example of cultural globalization?
Western cultures, such as food like McDonald’s, have become dominantly spread worldwide.
Example of social globalization?
Spread of IT to become more interconnected.
Example of information flow?
In 2021, TikTok had 1 billion users.
Example of capital (money) flow?
In 2019, the volume of foreign exchange transactions reached US$6.6 trillion per day.
What is another common way of capital flow?
Remittances—money sent home by migrants to their home country.
What are the two types of people flows and examples for each?
Tourists: In 2019, tourism directly contributed $2.9 trillion to global GDP. Migrants: The number of economic migrants and refugees reached 280 million in 2019.
What are problems with remittances?
If the government puts up restrictions and barriers for these, the GDP would fall.
What are eight factors that accelerate globalization?
International organizations, non-governmental organizations, new markets, colonialism, transport, TNCs, ICT, containerization.
How does containerization accelerate globalization?
Development of shipping containers has allowed it in 1970 to be 20x cheaper to transport goods than in 1965.
What are transport innovations that have accelerated globalization?
Steam power in the 1800s, railways (e.g., Trans-Siberian Railway connected Moscow, China, and Japan), jet aircraft (Boeing 747 used by EasyJet).
Case study: EasyJet for transport - two examples?
300 flight routes in the EU. Switched on Tallinn in Estonia in 2004, flew British tourists there for £40 each.
How does ICT accelerate globalization?
Affordable and instantaneous connectivity, better interconnectivity globally.
What are the roles of ICT in economic globalization?
Electronic transfer of TNC profit, online trade and markets, disaster appeals.
What is the role of ICT in cultural globalization?
Facilitates the spread of music, film, etc.
What are the roles of ICT in political globalization?
Multinational organizations have global influences online, spread demographic movements, NGOs research and journalism networks.
What are four advances in technology?
Mobile phones, satellite TV, optic fiber cables for instant communication, internet access.
Why do businesses benefit from ICT?
Keep in touch with all parts of production, transfer money and investments instantly, analyze data on sales.
What three things does ICT allow?
Information sharing (e.g., health and education), social networks, keeping in touch.
Case study of Facebook and Microsoft in ICT?
Installing undersea optic fiber internet cables for the east coast of the US to Spain to increase bandwidth and speed of connection.
How do IGOs contribute to globalization?
Through the promotion of free trade policies and foreign direct investment (FDI).
What was done in the past to reduce free trade?
Protectionism: demanding taxes and tariffs on imported goods, using quotas, restricting foreign investment, banning foreign firms from operating.
Why do some countries use protectionist policies?
Imports may threaten the country’s own industries, migrants change culture, information may threaten government.
Two examples of IGOs?
World Trade Organization and New Development Bank.
What does the World Trade Organization do?
Sets up trade rules to increase flows in goods and money.
What is the New Development Bank?
Funds infrastructure and sustainable development in BRICS and developing nations.
Why are national governments good at contributing to globalization?
They can adopt policies to allow for increasing connectivity and promote free trade blocs.
What policies can national governments adopt to accelerate globalization?
Free market liberalization, privatization, encouraging business startups, joining trade blocs.
What else can national governments promote?
Special economic zones to attract FDI.
What properties do special economic zones have?
Tariff and quota-free, unions banned, good infrastructure, limited environmental regulations, low taxes, profits can be sent overseas.
Examples of how the UK national government has accelerated globalization?
Closed industries like coal mining, tax breaks for companies investing in developing areas, grants for foreign companies.
Examples of how the Chinese government has accelerated globalization?
Open door policy in 1978, investment in special economic zones, membership in WTO, largest FDI receiver.
What is a trade bloc?
A group of countries that work together to promote trade by limiting tariffs, quotas, and barriers.
Advantages of trade blocs?
Encourages market growth and makes products cheaper.
Disadvantages of trade blocs?
Encourages migration, domestic companies may go out of business.
Two examples of trading blocs?
ASEAN and EU.
How does ASEAN work?
10 Southeast Asian countries promoting economic growth and political stability.
How does the EU work?
28 members facilitating trade and free movement of people.
What factors make a place switched off?
Poor market links, high government debt, low agricultural potential, corruption, lack of resources, harsh terrain, exclusion from trade blocs, civil conflict.
Advantages of switched off places?
Sustainable and low ecological footprint, maintain unique culture and identity.
Disadvantages of switched off places?
Left out of global connectedness, lack of access to modern medicine, unaware of societal achievements.
Two examples of switched off places?
North Korea and the Sahel region.
Why is North Korea switched off?
Corrupt government, cut off internet, malnourishment due to harsh climate.
Why is the Sahel region switched off?
Lack of natural resources, diseases, droughts, poor market links.
What is global shift?
The movement of manufacturing from Europe and the USA to many Asian countries from the 1960s onwards.
How does global shift work?
Asian countries allow overseas companies, TNCs seek areas for manufacturing, FDI flows into emerging markets.
Why are TNCs outsourcing production to China?
Joined WTO, open door policy, cheap labor, large internal consumer market.
What percentage of China’s exports are foreign companies?
50%.
What is an export processing zone?
Where businesses can import raw materials and manufacture without taxes.
What percentage of China’s exports are manufactured goods?
80%.
Economic cost of global shift in China?
Rural-urban divide with significantly lower income in rural areas.
Economic benefit of global shift in China?
Largest FDI recipient since 2000.
Social cost of China’s global shift?
20% of the population rely on less than $2 a day.
Social benefits of China’s global shift?
Poverty reduced by 680 million, free and compulsory education.
Environmental costs of China’s global shift?
60% groundwater is poor quality, 36% of forests under pressure.
Environmental benefits of China’s global shift?
Pressure to limit carbon emissions, some TNCs work to improve the environment.
Why has India’s newly emerging economy switched on?
Tropical climate, high population, political support for technology use.
Impacts of global shift in India?
Value of exports rose significantly, growth in manufacturing industries, predicted to have the second largest economy by 2040.
Negative processes caused by global shift in abandoned areas?
Deindustrialization, dereliction, depopulation, deprivation.
Impacts of global shift in developed countries?
Pros: cheaper labor costs, reduced local pollution. Cons: increased unemployment, spiral of decline.
Impacts of global shift for developing countries?
Pros: economic growth, job creation, improved infrastructure.
What is deindustrialisation?
Decline of importance of manufacturing industry.
What is dereliction?
Land that once had economic use is now unused.
What is depopulation?
Decline of population in an area.
What is deprivation?
Lacking things that are considered normal by society such as jobs, income, secure housing, education, and healthcare.
What are the pros of the global shift in a developed country?
Cheaper labour costs, reduction in local pollution, bigger quaternary sector.
What are the cons of the global shift in a developed country?
Could increase unemployment and leave area with a spiral of decline.
What are the pros of the global shift for developing countries?
Increases GDP and decreases poverty, improves education, infrastructure, healthcare, and transport, reduces unemployment.
What are the cons of the global shift for developing countries?
Rural to urban inequalities, environmental degradation, exploitation of workers.
What has the global shift led to?
Rural to urban migration due to push and pull factors of switched on and off places.
What does rural to urban migration lead to?
Rapid urbanisation and urban sprawl.
What are the push factors in rural to urban migration in India?
Low farming incomes and quality of life.
What are the pull factors in rural to urban migration in India?
Literacy rates 20% higher in urban areas than rural areas, better education, healthcare, and income.
What is a global hub?
A highly globally connected city or home region of a large globally connected community.
Give an example of a global hub.
London - highest stock exchange in the world, transport hub with 100,000 flights out of London monthly, 15 million foreign tourists yearly.
What are the three types of migrants?
Elite international migrants, low wage international migrants, internal (rural to urban) migrants.
What are elite migrants?
Often wealthy or skilled and welcomed by government, such as Russian or American oligarchs.
What are low wage international migrants?
Take low paid jobs, e.g., over 2 million Indian migrants live in the UAE making up 30% of the total population.
What are the pros of low wage international migrants?
Natural resources sales increase and so does infrastructure.
What are the cons of low wage international migrants?
If markets fall, remittances decrease and lower GDP of the original country.
Where is rural to urban migration most important?
In developing countries, being the main driver of a city’s growth.
What is an example of interdependence challenge of migration?
Due to the 2009 UK recession, construction was halted, affecting Estonia’s remittances and reducing its economy by 13%.
What process happens due to globalisation?
Cultural diffusion.
What are the pros of cultural diffusion?
Equality, freedom of speech, democracy from the spread of Western culture.
What are the cons of cultural diffusion?
Consumer-driven, environmental issues, Western culture dominance, cultural erosion.
What are two ways of cultural diffusion?
Cultural imperialism (force) and soft power.
What are four factors that contribute to cultural diffusion?
Transnational corporations (TNCs), media, migration, global culture and language.
How do TNCs encourage cultural diffusion?
Global dispersal of goods, e.g., Apple, Lego, and glocalisation to meet local market needs.
How does media encourage cultural diffusion?
Spreads ideas like American family values and Western festivals.
How does migration encourage cultural diffusion?
New languages, food, religion, and tradition.
How does global culture and language help cultural diffusion?
English is the dominant business language, aiding the flow of money and information.
What is hyperglobalisation?
When Western culture emerges in areas due to cultural diffusion, leading to pushbacks.
What are the consequences of globalisation?
Cultural erosion and environmental degradation.
Give an example of environmental degradation from Coca-Cola in India.
In 2004, Coca-Cola had to close its Plachimada bottling plant due to high levels of toxic lead, calcium, and phosphorus.
Give an example of cultural erosion due to globalisation.
Many Amazonians and New Guineans are wearing Westernised t-shirts, leading to cultural loss.
How has France opposed globalisation?
In the early 2000s, had to have 40% broadcasts in French and no more than 55% American imports.
How has China opposed globalisation?
60 internet regulations and monitoring of phones to control protests.
What is a transnational corporation (TNC)?
A company that has operations in more than one country, e.g., McDonald’s.
Why do TNCs expand overseas?
More profit, cheaper manufacturing, lower labour costs, bigger markets.
Why do countries want TNCs to expand to them?
Incomes and employment improve standard of living, improved infrastructure, technology.
What are four ways TNCs spread?
Mergers and acquisitions, offshoring, outsourcing, and shaping common patterns of consumption.
What are issues related to outsourcing?
Natural hazards can occur, e.g., Japan 2011 earthquake affected iPhone sales.
What are the impacts of Apple as a TNC in China on people?
$3 an hour low wage, unpaid overtime, high suicide rates.
What are the impacts of Apple as a TNC in China on the environment?
iPhone 12 production caused spikes in air pollution, 27 suppliers not properly disposing hazardous waste.
What are the costs of TNCs?
Bad environment, most profit goes to host country, growing global wealth divide.
What are the pros of TNCs?
Political stability, raising environmental awareness, raising living standards, transfer of technology, multiplier effect.
What is glocalisation?
TNCs shift products for specific areas and local markets.
What was the major industry in Detroit 100 years ago?
Car manufacturing industries such as Ford.
Where did the Detroit car brands move 100 years ago?
To Japan, resulting in high crime rates due to dereliction, depopulation, and high unemployment.
What percentage of Detroit’s population was lost 100 years ago?
A quarter of the population.
How many parcels of land were abandoned in Detroit by 2013?
1/4 of all parcels.
What happened as a result of Detroit’s depopulation?
White flight - many white fled to the suburbs due to tensions.
How many jobs were lost in Detroit since General Motors closed down?
14,000 jobs.
What was the income of Detroit’s families 100 years ago?
1/3rd of families’ income below US poverty levels.
What is sustainability?
Meeting the needs of the current generation without compromising future generations.
What are ethical and environmental concerns of globalisation?
Exploitation of labour, inadequate farmer income, pollution from packaging, transport, and ecological footprints.
Give an example of a consumer-driven society.
Fiji Water shipped 20,000 km from Fiji to the UK.
What is the food sustainability problem?
By 2050, food demand is expected to double.
What is the energy sustainability problem?
50% global increase in energy by 2035.
What are four local strategies for achieving sustainability?
Transition towns, fair trade, recycling, ethical shopping.
What are transition towns?
Local scale movements promoting local sourcing of goods and sustainable energy production.
Give an example of a transition town in the UK.
Totnes, Devon - promotes local currency and sustainable practices.
What are the limitations of transition towns?
TNC workers lose jobs, hard to scrap TNCs, harder in larger communities.
What does fair trade do?
Ensures minimum income for farmers, provides community premiums, prohibits child labor, prevents worker exploitation.
What are examples of fair trade?
1.5 million farmers are fair trade worldwide.
What are the limitations of fair trade?
Incomes are often less in fair trade areas, cost of living may deter consumers.
What is ethical shopping?
Deliberate choice by consumers to buy products that benefit workers and the environment.
Give an example of ethical shopping.
Patagonia outdoor clothing brand promotes anti-consumerism and has a large clothes repairing factory.
What are the limitations of ethical shopping?
Expensive, limited access, energy-intensive to fix products.
What does recycling do?
Encourages less product manufacturing and reduces landfill waste.
Give examples of recycling in the UK.
OPRL labelling scheme, Recycle Now educational website, recycling was 48% of the UK’s waste in 2017.
What are the limitations of recycling?
2/3rds exported for processing, many items aren’t recycled, downcycling occurs.
What are four national actions against sustainability?
Green taxes, carbon credits, biofuels, green technology.
What is an example of rural to urban migration in India?
Dharavi slum with 1.6 million people living there.
What are social challenges of Dharavi slum?
Only two hours of water a day, public latrines shared by 500, leading to pollution.
What is one cost of rural to urban migration for the host?
Local shortage of primary school places.
What is one cost of rural to urban migration for the source?
Closure of educational facilities due to lack of students.
What is one benefit of rural to urban migration for the host?
Fills particular job shortages.
What is one benefit of rural to urban migration for the source?
Entrepreneurs starting up businesses.
What percentage of the globe’s surface is used for agriculture as a result of globalisation?
40%.
How much of Vietnam’s forests have been lost due to agriculture between 1990 and 2005?
78%.
How many censorship regulations are there in China as a way of controlling globalisation?
60.
What is a general example of globalisation’s cause for uneven development?
40% of the world’s population accounts for 5% of income.
What is expanding in emerging powers that is degrading the environment?
The growth of the middle class.
