Globalisation 3.1-3.3 Flashcards

1
Q

Globalisation

A

The widening and depending of global connections, interdependence and flows of commodities, capital, information, migrants and tourists.

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2
Q

5 dimensions of globalisation

A
Cultural - McDonaldisation
Economic - growth of TNCs
Political - the G8, big democracies
Environment - climate change
Social - global improvements
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3
Q

Lengthening of global connections

A

The connections are lengthening because new links are growing between places that are far apart

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4
Q

Deepening of global connections

A

The world is becoming more deeply interconnected - connecting with every person
It is no longer just the rich that are able to live globally

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5
Q

5 examples of global connections

A
Commodities
Capital
Information
Migrants
Tourists
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6
Q

Shrinking world

A

This idea has come about due to developments in technology, communication and travel. It allows places around the world to seem more accessible than ever before

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7
Q

3 improvements in transport

A

Steam power in the 1800s helped move goods and armies
Containerisation - ships transport over 90% of our goods
Aircraft - by value, 15% of our goods are flown and jet engines are becoming more efficient

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8
Q

4 technological advances in the last 100 years

A

Telephones
Internet
Air travel
GIS and GPS

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9
Q

Telephone development advantages

A

Instantaneous communication
This has allowed TNCs to set up in more than one country
It has allowed developing nations to leap frog in advancement

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10
Q

Telephone development example

A

BT Call centres can be located worldwide

This allows the company to find cheaper labour overseas

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11
Q

Internet development advantages

A

It has allowed the quick transfer of information

It has allowed employees to work remotely and to transfer information quickly via email

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12
Q

Internet development example

A

Disney are able to produce films all around the world simultaneously
Music companies etc. Can email recordings internationally

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13
Q

Air travel development advantages

A

Aerospace technology has made planes much faster and more quickly built
Bigger planes = more passengers = more tourists

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14
Q

Air travel development example

A

EasyJet have pioneered low cost mass air travel

Their Airbus A380 can carry 550 people

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15
Q

GIS/GPS development advantage

A

24 hour global positioning systems collect data at all times

This allows broadcasting of location also

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16
Q

GIS/GPS development example

A

GPS has generated $1.4 trillion in economic benefits for the United States since the 1980s
This is because its precise technology supports finance, communications and electricity systems
Many people rely on it day to day

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17
Q

BRICs

A

Brazil
Russia
India
China

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18
Q

Consumer societies

A

A society in which the buying and selling of goods and servies is the most important social and economic activity

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19
Q

Cultural erosion

A

The process of a culture losing many of its core elements

This is often due to the arrival of a new culture replacing it

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20
Q

Cultural imperialism

A

The practice of promoting one culture/language of one nation over another
It’s usually a large, powerful nation enforcing it on a smaller, less affluent one

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21
Q

Deindustrialisation

A

The decline of regionally important manufacturing industries

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22
Q

Diaspora

A

The dispersion or spread of a group of oriole from their original homeland

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23
Q

Ecological footprint

A

The measurement of the area of land and water required to provide a person/society with the energy food and resources they need to live

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24
Q

Elite international migration

A

Highly skilled or socially influential individuals that move to a new location
They are often welcomed by governments as they are highly skilled and wealthy
Eg Russian oligarchs in London

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25
Q

Enclave

A

A group of people surrounded by other groups of entirely different people

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26
Q

Ethical purchasing

A

A financial exchange where the consumer has considered the social, environmental costs of production for food, goods or services purchased

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27
Q

Food miles

A

The distance a food travels from a farm to the consumer.

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28
Q

FDI

A

Foreign Direct Investment
A financial injection made by a TNC into a nation’s economy, either to build new facilities (factories or shops) or to acquire/merge with an existing firm

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29
Q

G7

A

A group of 7 that are an inter-governmental political forum

Canada, France, Germany, Italy, Japan, the UK and the US

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30
Q

Global hub

A

A settlement or region that has become a focal point for activities with a global influence such as trade, business, education or research.
Unlike a megacity, a global hub is recognised for its influence rather than population size

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31
Q

Global production network

A

A chain of connected suppliers of parts and materials that contribute to the manufacturing/assembly of goods
Serves the needs of TNCs

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32
Q

Global shift

A

The relocating of the global economic centre of gravity FROM Europe and North America TO Asia over the last 30 years

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33
Q

Glocalisation

A

Changing the design of products to meet the local tastes/needs/laws
Strategy by TNCs to conquer new markets

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34
Q

GDP

A

Gross Domestic Product
A measure of the financial value of goods and services in an area - including foreign firms located there
Divided by population size for per capita to make good comparisons

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35
Q

IMF

A

International Monetary Fund

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36
Q

Interdependency and example

A

Places that are over reliant on financial and/or political connections with another
Eg. An economic recession in a host country for migrant workers makes the economy of the source country shrink due to falling remittances

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37
Q

Local sourcing

A

Buying consumer goods from the local area rather than importing goods from overseas

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38
Q

Low wage international migration

A

Buying consumer goods from the local area rather than importing products from overseas

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39
Q

Megacity and top 3

A

A city with 10 million or more inhabitants

Tokyo, Delhi, Shanghai

40
Q

NAFTA

A

North American Free Trade Agreement
Implemented in 1994 between US, Mexico, Canada
It reduced or eliminated tariffs on imports or exports between them

41
Q

OECD

A

Organisation for Economic Cooperation and Development
Intergovernmental economic organisation with 38 member countries
Founded in 1961 to stimulate world trade

42
Q

Offshoring

A

TNCs move parts of their own production process (factories or offices) to other countries to reduce labour or other costs

43
Q

Outsourcing

A

TNCs contract another company to produce the goods and serves they need rather than do it themselves. Causes complex supply chains

44
Q

Remittances

A

Money sent back home from migrants via formal or informal channels

45
Q

Rural-urban migration

A

The movement of migrants from rural areas to urban areas

46
Q

Shrinking world

A

Due to technology, distant places start to feel closer and take less time to reach

47
Q

Soft power and example

A

The global influence a country gets from its culture, political values and diplomacy
Eg. Hollywood and Microsoft in America

48
Q

SEZs

A

Special Economic Zones
An industrial area, often near a coastline, Where favourable conditions are created to attract foreign TNCs
These include low tax rates/exemptions from tariffs and export duties

49
Q

Switched off

A

Countries that are connected from social, economic, cultural or political networks

50
Q

Tariffs

A

The taxes that are paid when importing or exporting goods and services between countries

51
Q

Trade blocs

A

Voluntary international organisations that exist for trading purposes
They bring greater economic strength and security to the nation that join

52
Q

Transition town

A

A settlement where individuals and businesses have adopted ‘bottom up’ initiatives with the aim of making their community more sustainable and less reliant on global trade

53
Q

Transnational corporations

A

Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods services
‘Global brands’ that bring cultural change to consumer Countries

54
Q

Trickle down

A

The theory that there are positive impacts on peripheral regions and poorer people caused by the creation of wealth in core regions and amongst rich people

55
Q

World Bank

A

An international financial institution that provides loans and grants to the governments of low and middle income countries for capital projects

56
Q

WTO

A

World Trade Organisation

An intergovernmental organisation that regulates and facilitates international trade

57
Q

Banana wars explained

A

A six year trade quarrel between the US and EU
The US complained that the way the Caribbean had a quota of bananas to sell to the EU broke free trade rules
US based multinationals (eg Chiquita donated $500,000 to the Democrats) were annoyed because they want no protectionism because they sell Latin American bananas
The US has now put import duty on lots of European products in retaliation

58
Q

Banana wars impact

A

Scottish cashmere may have to cut 700 Jobs if it loses its £1.25m US exports
Half the population of the Caribbean rely on the banana industry so if the access to EU markets is suddenly taken away their economy could collapse

59
Q

NICs and example

A

A country that has just passed the point of being a developing country but still not highly developed
Brazil, Mexico, Turkey

60
Q

International political and economic organisations

A

WTO, IMF, WB

61
Q

National governments and Trade Blocs

A

EU and ASEAN

62
Q

Protectionism

A

High use of tariffs that means foreign trade is put off and your own country’s economy improves (due to tax and increased industry)

63
Q

Breton woods agreement

A

After WW2 the western allies wanted successful international trade for rebuilding economies
Came into force in 1946
A system of rules, institutions and procedures
Aimed to stabilise and regulate international financial transactions

64
Q

Quota

A

A limit placed on the number of goods that are imported from other countries

65
Q

Embargo

A

A ban placed on certain goods imported from other countries

66
Q

Subsidies

A

A sum of money granted by the government to help an industry or business keep the price of goods low
It helps protect domestic industries and create more profitable local businesses

67
Q

Why would a government use tariffs

A

To protect domestic jobs
To help a young industry to develop
To protect customers

68
Q

2 organisations formed from the Breton woods agreement

A

International Monetary Fund
To monitor exchange rates and lend currency
and the World Bank Group
To provide financial assistance
Facilitates globalisation by international trade

69
Q

SAPs

A

Structural Adjustment Programs
A way to help make debt repayments on old debts
They can result in deep cuts to health and social services and the removal of important subsidies
And the privatisation of govt asserts to increase private sector and increase wealth

70
Q

Evaluation of IMF

A

Use of SAPs hurts the poor the most
Selling govt assets may force LICs to sell to foreign TNCs
Privatising businesses is done at the expense of workers’ rights
It makes it necessary to open up to foreign firms

71
Q

How does the IMF operate

A

Member nations pay a quota to be part
Those making higher contributions have greater voting rights
It loans money on a deal that countries sign up to a SAP

72
Q

How does the World Bank operate

A

It uses bank deposits placed by the world’s wealthiest countries to provide loans for developing countries
Includes low interest loans, grants, tech assistance to LICs

73
Q

Evaluation of WB

A

It connects countries which helps them find assistance - dependence and interdependence
It can force developing nations to open their markets to foreign investors - increasing risk of financial crises

74
Q

how does the WTO operate

A

It aims for trade liberalisation
Seeks for all countries to be free of tariffs and quotas
Settles free trade agreements and disputes
Believes in FREE TRADE

75
Q

WTO and Pakistan

A

Pakistan joined WTO in 1995
It was forced to open up its (previously excluded) fishing zone around its coast
Then, deep sea trawlers owned by TNCs were allowed to fish in these waters - huge trawlers from India take most of the catch
‘Taking the fish’ by action aid found that their fish stocks were dangerously low and their fishing communities were left in poverty

76
Q

WTO Evaluation

A
Led to poverty in Pakistan
It hasn’t stopped the USA and UK from subsidising their own food products so hypocritical 
It’s too powerful
Run by the rich for the rich
Lacks democratic accountability
77
Q

Ghana and WTO

A

Ghana joined the WTO in 1995
Its govt had subsidised Ghanaian farmers until then
But the WTO made a joining condition that Ghanaian farmers should not be subsidied (even though the EU and USA freely subsidise their own farmers)
So now Ghanaian farmers can’t compete with imported subsidised foods so have given up

78
Q

The IMF and Greece

A

The IMF helped the Greek debt crisis in the years after the 2008 financial crash
This meant Greece was forced to cut back on its govt expenditure and into austerity
Lots of protest in Greece

79
Q

How does free trade increase globalisation

A

No barriers to trade = TNCs invest in different nations
Increases outsourcing, forms global supply chain
Global spread of ideas, culture etc.
Investment economically develops a Country which increases their demand for foreign products and leads to a reliance on global trade
More TNCs invest = interconnected

80
Q

Offshoring example

A

US owned Fender opening a plant in Mexico

81
Q

Foreign mergers

A

Two firms in different countries join forces to become one entity

82
Q

Foreign mergers example

A

Royal Dutch Shell has a HQ in UK and Netherlands

83
Q

Foreign acquisitions

A

A TNC launches a take over of a company in another country

84
Q

Foreign acquisition example

A

UK’s Cadbury taken over by US Kraft

85
Q

Transfer pricing

A

Some TNCs channel profits through a subsidiary company in a low tac country

86
Q

Transfer pricing example

A

Starbucks and Amazon in Ireland, a low tax country

87
Q

3 ways national governments influence globalisation

A

Free market liberalism
Privatisation
Encouraging business start ups

88
Q

Free market liberalism idea

A

Government interventions in markets hinders economic growth so we should have as few rules about trading as possible
As overall wealth increases, trickle down will take place from the richest to the poorest

89
Q

Deregulation

A

The process of removing or reducing state regulations

Removal of governmental regulation of the economy

90
Q

Neo liberalism in the UK

A

Deregulation of the City of London in 1986 made London become the world’s leading hub for financial services
However we have not had genuine trickle down of wealth because now the richest 10% earn 9.5x more than the poorest 10%. In 1980, this was 7x

91
Q

Privatisation

A

Foreign investors gain a stake in privatised national services and infrastructure

92
Q

UK Privatisation

A

Until the 1980s important assets like rail and energy supplies were owned by the state
To reduce govt spending, increase competition (so reduce costs, increase quality) and as part of austerity the UK govt sold
British telecom
Energy
Railways
There are concerns about services getting worse, rising costs and no accountability

93
Q

Encouraging business start ups methods

A
Love corporation tax
Free or subsidised land
Visas for staff
Subsidies for spending, training etc
Change in local laws
Increasing profitability of a company (subsidies)
94
Q

UK Encouraging business start ups

A

Subsidised land for Nissan in Sunderland
Change in Sunday trading laws attracted Disney and Burger Kind
Common Agricultural Policy increased the profitability of farming in the UK

95
Q

National governments and trade blocs

A

National governments have promoted the growth of trade blocs to trade freely with neighbours without additional tariffs

96
Q

3 Disadvantages of trade blocs

A

Loss of sovereignty eg. The EU also dealing with matters that are not about trade
Interdependence - if there is disruption of trade within a bloc this will have consequences for all
Compromise and concession - they must allow foreign firms to gain domestic market share at the expense of local companies

97
Q

3 Advantages of trade blocs

A

Bigger markets but no extra taxes
National firms can merge to form transnational companies and increase profit
Protection from foreign competitors and political stability - limits the import of cheap goods to protect domestic manufacturers = political stability?