globalisation 2 Flashcards
Name the 5 flows of movement
capital: money flows routed daily thro world’s stock market
commodities: valuable raw materials (fossil fuels, food, minerals) have always been traded between nations
info: internet has brought real-time communication between distant places
people: migrants and tourists ->
What is a gross domestic product
measure of the financial value of goods and services produced within a terrirtory
What are emerging economies
-countries that began to experience high rates of economic gorwth due to industrialisation
What are remittances
money that migrants send home to their families via informal/ formal channels
What is interdependency
if 2 places become over-reliant on financial and/ or political connections
Describe the interrelationship between trade and transport growth
transport -> improved communication & transport tech helped trade to grow into geographical scale
-> technological progress brings unexpected changes to operation of companies
trade -> transport tech help[s build new global market which will ^ profits
->
Name 4 developments in transport
-steam power:
-railways:
-jet aircraft:
-container shipping
What is spatial division of labour
common practice among TNC’s -> moving low-skilled work abroad where labour costs low
What is shrinking world
due to tech, places feel closer and take less time to reach
What are trade blocs
voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join
What are tariffs
taxes that are paid importing/ exporting goods and servies between countries
What are the benefits of the growth of free trade blocs
growth of trade blocs -> free trade with neighbouring countries -> allows state boundaries to be crossed freely by flows of money, goods -> internal tariffs (taxes on importing/ exporting goods) are removed
-removing barriers -> markets for firms grow
-e.g. tesco gained 75 mill customers when 10 new nations joined EU
-firms that own production of product/ service should prosper
-e.g. french winer-makers have better climate, so nicer wine -> consumed all over
-smaller national firms within a trade bloc merge to form TNC -> cost effective
What is a special economic zone
industrial area near coastline where favourable conditions are created to attract foreign TNC’s
-e.g. low tax rates,
Why do trade blocs include nations at varying economic development levels
-mexico, usa part of NAFTA
-as mexico- emerging economy, cheap labour force
-usa- managment, research expertise
-american tnc’s lower cost this way
Name the 4 issues with trade blocs
-Trade distortion-
-short-term unemployment-
-cultural erosion
-spvereignity loss
Trade distortion
Imposition of common external tariff makes goods from non-members expensive. Trade distorted as the switch from cheaper non-member producer to more expensive member producer. Prices rise and SOL falls.
Short term unemployment
Specialisation shifts resources to industries which have a comparative advantage.
Firms being specialised away from will shut down. Workers’ employment lost (though there are new jobs in the expanding specialised industry and in new demand areas from increases purchasing power)
new jobs likely to benefit new workers and older ones less likely to retrain
Cultural erosion
cheap uniform products across the bloc replace more expensive local variants.
Sovereignty loss
nation gives up determination of some areas of economic (and in single market, immigration) policy
When does the WTO accept subsidies
- WTO may accept a subsidy for FDI, e.g. in SEZs as this promotes trade
- through gov subsidies they can increase globalisation as through the financial injection, firms can work on a more global scale. it increases consumption so the firm can expand, leading to economic and cultural globalisation
Give an example of a special economic zone
-Indonesia
-in late 1960s Presdient Suharto created the Jakarta Export Zone -> had attractive legal & economic conditions designed in consultation with US and European TNCs.
-World bank funded infrastructure improvements for ports, power supplies, roads
-Gap and Levis FDI followed
Why do firms become TNC’s
-to maximise profits -> being TNC reduces costs & generates higher revenues from new markets
What is offshoring
moving part of a company’s own production process to another country
, e.g. building a new factory in China, where wage rates are lower.
-reduces costs -> wages, tax, raw materials, transport cheaper
Name 3 drawbacks of TNC’s
TNCs have been accused of exploiting workers in the developing/emerging world by paying them low wages.
Outsourcing jobs can lead to job losses in the home country.
Local cultures and traditions can be eroded by TNC brands and western ideas
How is North-Korea switched off
-citizens don’t have access to internet or social media
-no undersea data cables connecting NK with rest of world
-
How is the Sahel REgion switched off
poor infrastructure & low literacy levels -> make it unattractive for offshoring FDI
low income levels mean it lacks market size to attract retail outlet FD
What is the global shift
the international relocation of different types of industrial activity
-e.g. The shift of manufacturing jobs from Europe, Japan and North America to China
How did the global shift occur
improvements in transport & communications & lowering trade barriers and economic liberalisation, opening up to FDI
-large no. of workers willing to work for low pay -> labour-intensive manufacturing -> Asia
Name 4 benefits of the global shift
-waged work -> factory work provides reliable, regular work
-low wages still pay more than rural
-poverty reductionl- income rises due to waged work
-education & training -> tncs invest in training & skills to improve workforce - skills transferrable
-higher incomes -> childrens schooling
-investment in infrastructure
Name 3 disadvantages of global shift
-loss of productive land -> building of factories occupies land used for agriculture
-unplanned settlements ->
-environment/ resource pressure -> industrial activity -> air & water pollution
CHINAs open door policy pg.200
What is deindustrialisation
closure of manufacturing industries such as steel
What is deindustrialisation
decline of regionally important manufacturing industries
Name 4 social and environmental problems as a result of economic restructuring
-dereliction- Detroit’s population fell from 1.5 mil, 1960 to 0.7 mill in 2012 due to closure of car factories.
-crime-
-depopulation
-dereliction
pg.213
What is a megacity
population of over 10 million.
How do megacities grow
through combo of rural-urban migration & natural increase
Name the 3 causes of rural-urban migration
urban pull factors
-rural push factors
-shrinking world technology
pg.214
What is centripetal migration
movement of ppl directed towards the centre of urban areas
Give 2 examples of rapid megacity growth
-Mumbai- ppl migrating there from rural areas
-big global brands; hilton, starbucks -:> there
-Lagos- rural-urban migrants escaping poverty in rural nigeria
pg.215
What is a global hub and give an example of countries classified as a global hub
-highly globally connected city
e.g. NY
Name 3 types of population movement thats led to the growth of global hubs
-elite international migrants
-low-waged international migrants
-internal migration
pg.217
Name the benefits & costs of migration for host countries
benefits- fills skill shortages
-do work locals dont want to do
-ambitious- establish new businesses
costs- social tensions
Name the benefits & costs of migration for source countries
benefits- less public spending on housing & health
-migrants/ their kids may return bringing new skills
costs- economic loss
-increasing ageing pop
What is cultural imperilasm
promoting culture of one nation in another
Name 3 major influncers of a global culture
-TNCS
global outsourcing to india pv210
global outsiurcing of manufacturing to china
Give 2 examples of low-wage international migration
-indian workers moving to the UAE -> 45% of population of UAE are migrants from india, pakistan, bangladesh
-fillipino workers moving to Saudi Arabia ->
What is soft power
global influence a country derives from its culture, its political values and its diplomacy
How have TNC’s influenced global culture
-global dispersal of food, clothes and other goods by TNC’s has played a major role in shaping a common culture
How have global media has influenced global culture
How has migration and toursim influenced global
How does cultrual change affects people and the environment
Name 2 costs of cultural erosion
-provide an example
-languages around world are disappearing as use of english spreads
-tribes in amazonia -> becoming aware of western culture & are adopting this
-many are moving from tribes to urban areas
what are the ways in which global culture has increased opportunities for disadvantaged people
the Paralympic movement
- the growing awareness for female quality, child marriage and girls education
- the promotion of LGBTQ
- improvements in discrimination amongst race and sexuality
What is the human development index
measure that ranks countries according to economic criteria
What are environmental issues with globalisation
-climate change
-biodiversity loss
Describe the tensions in London in terms of foreign investment and migration
restrictions of migration:
-threaten UK’s TNCs competitiveness & role as global hub
Explain extremsiim in Europe
-nationalist parties, France’s national rally, oppose immigration
-in 1990s UKs British National Party voiced its opposition to presence of post-colonial migrants
-ISIS terror attack in barca 2017 -> demonstrate tensions in multicultural europe
What are the economic benefits of globalistaion
- job creation (both locally, nationally and internationally)
- footloose industries can take advantage of cheap labour and costs
- increased overseas investment, FDI
- greater competition, products become cheaper
- economy boosted through increased employment
- economies of scale
what are the economic problems of globalisation
- trade doesn’t always benefit poor economies
- leakages to countries of origin
- interconnection can cause economic weaknesses, e.g. financial crisis
what are the socio-cultural benefits of globalisation
- freedom of movement (labour advantages)- quality of living ^
- more opportunities for international travel and tourism
- more opportunities to work abroad due to liberal immigrant laws and foreign worker programmes, send remittances, access higher-skilled jobs
- instant access to information from anywhere in the world, capacity to communicate allowing for international trade 24/7
- the rapid spread of consumer products (e.g. food/clothing brands), westernisation, worldwide entertainment including music, sports, pop culture
- westernisation has introduced a better work ethic, spread of foreign ideas has led lap many business opportunities
- capacity to communicate and defend ones values and ideas globally
what are the socio-cultural drawbacks of globalisation
- loss of cultural diversity through westernisation
- brain drain in many countries
- exploitation of local people, low pay and poor working conditions
- spread of commodity-based consumer culture
- dangerous or violent ideals can spread faster
- small cultures may lose their distinct features
what are the political benefits of globalisation
- greater collaboration to strong units, groups, trade blocs, e.g. G6, G8, UN
- smaller countries can work together and gain more influence internationally
- International organisations are often more committed to spread values like freedom and to fight abuses within countries
- access to international aid and support, can learn from each other
- contributes to world peace
what are the political drawbacks of globalisation
- state sovereignity is reduced
- the functioning of international and supranational organisation is often not democratic in terms of accountability
- co-ordination is difficult and expensive
- big countries can shape decisions in supranational organisations
- some TNCs become powerful than the government
Environmental tensions over water in south-east asia pg.235
legislating against global flows
