Globalisation Flashcards
What are the dimensions of globalisation?
PULSED - Political, Urban, Linguistic, Social/Cultural, Economic/Environmental, Demographic
Give an example of an economic dimension of globalisation.
The WTO and TNCs expanding global trade, leading to rapid economic growth in RICs and NICs
Give an example of an urban dimension of globalisation.
There is a hierarchy of global cities that command the global economy, with New York, London and Tokyo right at the top
Give an example of a social dimension of globalisation.
Western culture has spread throughout the world through TV, cinema, the Internet and TNCs, however other cultures have also influenced the West through cuisine and religion
Give an example of a linguistic dimension of globalisation.
English has emerged as the language of the ‘global village’, with 1.9 billion speakers (1.5 of which speak it as a second language). Many local languages are in danger of dying out (Bhutan)
Give an example of a political dimension of globalisation.
Growth of trading blocs (EU, NAFTA) and ‘world government’ (UN) but also rise of global terrorism
Give an example of a demographic dimension of globalisation.
Desire of people to move across borders
Give an example of a environmental dimension of globalisation.
Long range transportation damages the environment globally, international cooperation through Earth Summits
Define globalisation.
The increasing interconnection and interdependence of the world’s economic, cultural and political systems
Define global shift.
The large scale filter down of economic activity from MEDCs to NICs to LEDCs
Define Newly Industrialised Countries.
Nations that have undergone rapid and successful industrialisation since the 1960s
Define transnational corporation.
Corporation which has the ability to organise and control operation in more than one country, even if it does not own them
Define foreign direct investment.
Overseas investments in physical capital by TNCs
Define internationalisation.
Extension of economic activities across national boundaries; essentially a quantitative process that leads to a more extensive geographical pattern of economic activity
Define new international division of labour.
Divides production into different skills and tasks that are spread across regions and countries rather than within a single company
Define World Trade Organisation.
Established in 1995, a permanent organisation to arbitrate trade disputes
Define global civil society.
A range of organisations and individuals who are challenging the way globalisation operates; their aim is to civilise globalisation, making the process more democratic at all levels
Define religious fundamentalism.
Movements favouring strict observance of religious teaching
One in every 35 people are…
…living outside the country of their birth
Define deindustrialisation.
The long-term absolute decline of employment in manufacturing
Define global city.
Major world city providing financial, business and other significant services to all parts of the world
15% of jobs in the UK are in what sector?
Secondary; however output has increased by 13% since the early 1990s
Why is there a widening social division in the UK?
Wages at the top end in the financial and businesses sectors have risen due to the success of these industries, however wages for unskilled and semi-skilled jobs have stayed low
The UK is the ………….. most attractive country in the world to invest in.
Second
What is one advantage of migration into the UK?
Many migrants do unskilled jobs that Brits don’t want to do, but they also fill skill shortages
What is one disadvantage of migration into the UK?
Strain on public services
The UK has a comparative advantage in the manufacture of…
…pharmaceuticals, aircraft parts and scientific equipment
How much of the UK’s exports is made up of financial and business services?
A third and they are known as invisible exports
How much of global financial service exports come from the UK?
25%
How much of global computer exports come from the UK?
14%
How much of the UK workforce is employed by TNCs?
20%
What are food miles?
The distance food is transported to reach markets
How long does it take to travel 293 miles from London to Paris on the Eurostar?
2 hours, 15 minutes - this is a great example of the transport revolution
What effect does low production costs in China have on the UK economy?
Low inflation
When did China start to open its economy to international trade?
1978
The Chinese economy grew at an average of …… % over three decades.
9.2
China produces half of the world’s….
…. clothes and microwaves
Why so there regional inequality in China?
Wages in urban areas are much higher and rural areas tend to be ageing as young people move to find well paid work
In 1992 China’s oil consumption was just 3.8% of the world’s total, by 2006 this had increased to ….. % despite there only being ….. cars per 1000 people.
8.6, 20
China is the world’s ………. largest producer of greenhouse gases.
Second
What is the negative impact of China protecting its forests?
China now has to import 100 million cubic metres of wood a year, over 25% of which is illegally felled in Brazil, Russia, south-east Asia and Africa
People in Guangdong province are suffering fro health issues relating to…
…high levels of sulphur dioxide and nitrogen oxide, which are above safe levels for several months of the year
Why have Pegatron, an Apple supplier, been criticised over their working conditions?
Job applicants have their ID taken from them and are then told how to fill out their application; including agreeing to work overtime and standing up
Why do some Chinese factories have nets on the outside of the building?
To catch workers attempting to commit suicide
How much of Guangdong’s population is expected to live in urban areas by 2020?
85%
The private sector generates ….% of China’s GDP.
70
Define Least Developed Countries.
The poorest and weakest economies in the developing world; subset of LEDCs
How much do LDCs often spend on their debts?
40% of their GDP
What are TNCs?
Capitalist enterprises that engage in foreign direct investment and organise the production of goods and services in more than one country
What organisational structure does Toyota use?
Product specialisation
What organisational structure does Nike use?
Transnational vertical integration
Why doesn’t Nike make any clothes or shoes itself?
It subcontracts work to South Korean and Taiwanese companies
How many contract workers does Nike have?
650,000 in 700 factories worldwide
More than 75% of Nike’s workforce is based in what continent?
Asia
How does Nike show Fordist characteristics through the production of its Air Max Penney basketball shoes?
The shoes are made of 52 component parts from 5 countries and will have passed through 120 people during production
Define Fordist.
Traditional manufacturing systems based on the techniques of mass production introduced by Henry Ford I the early twentieth century
Define flexible manufacturing.
New management techniques such as just-in-time technology; wider range of specialised products
Toyota is the ……….. largest car manufacturer.
Second (after General Motors)
Toyota has a policy of producing vehicles where…
…the demand exists
Toyota’s overseas operations become largely…
…self-reliant
Define lean manufacturing.
Carrying minimal stocks, just-in-time delivery, right first time quality management
Toyota has 52 bases in how many countries?
27
Nike produced a report in 2005 about their factories after sweatshop allegations. What did it show?
Abuses of human rights such as restricting access to toilets and water, denying workers a day off per week, forced overtime, wages below the national minimum, verbal harassment
What are the positive impacts to Beaverton, Oregon of Nike outsourcing to Vietnam?
Stimulates high-level skills in design, marketing and development; contribution to local and national tax base
What are the negative impacts to Beaverton, Oregon of Nike outsourcing to Vietnam?
Negative impact on balance of payments, less job creation
What are the positive impacts of Nike outsourcing to Vietnam?
Creates employment with higher wages than traditional industries, improves skill base, cumulative causation, positive contribution to balance of payments, sets high standards, contribution to tax base
What are the negative impacts of Nike outsourcing to Vietnam?
Exploitation of workers, poor working conditions, child labour, undermining of local culture, political influence of TNCs, investment easily withdrawn
How much does of world GDP does world trade account for?
25%, double that of 1970
If Africa increased its share of world trade by 1% it would earn an additional…
…£49billion, 5 times the amount it receives in aid
Trade is worth …… times as much as aid.
20
What are IMF and World Bank loans dependent on?
The countries they are loaning to must open their markets
Why might LEDCs struggle to sell agricultural produce at a lower price than producers in the USA and EU?
The industry is heavily subsidised in these areas
Define terms of trade.
The price of a country’s exports relative to the price of imports and the changes that take place over time
What is an issue associated with the rapid reduction of import tariffs?
Imports are suddenly the cheaper option and therefore domestic producers have to lower the prices of their goods, leading to a fall in rural incomes (India)
Define protectionism.
The institution of policies which protect a country’s industries against competition from cheap imports
In 1990 there were less than 25 regional trade agreements; by 1998 there were more than…
…90
Manufacturing accounts for ….% of total exports in the UK.
60; despite being a post-industrial economy
When did China become the world’s largest exporter?
Late 2007, overtaking Germany
The UK has a merchandise trade deficit and a commercial services trade….
….surplus
Why is the UK a net importer of agricultural produce?
It’s climate means it can’t grow a large range of crops
What is the poorest country in South America?
Bolivia
What trade blocs is Bolivia part of?
Mercosur and the Andean Community
Why does Bolivia get subsidised tariffs on exports to the USA?
The USA aims to promote economic alternatives to drug trade through their preferential tariff treatment under the Andean Trade Promotion and Drug Eradication Act
What is the UK’s share in world total merchandise exports?
3.71%
What is China’s share in world total merchandise exports?
8.02%
What is Bolivia’s share in world total merchandise exports?
0.03%
What is the UK’s share in world total merchandise imports?
4.99%
What is China’s share in world total merchandise imports?
6.38%
What is Bolivia’s share in world total merchandise imports?
0.02%
What is the UK’s share in world total commercial service exports?
8.26%
What is China’s share in world total commercial service exports?
3.32%
What is Bolivia’s share in world total commercial service exports?
0.02%
What is the UK’s share in world total commercial service imports?
6.49%
What is China’s share in world total commercial service imports?
3.79%
What is Bolivia’s share in world total commercial service imports?
0.03%
What is the nature and destination of most of the UK’s exports?
77.6% manufactures, EU
What is the nature and origin of most of the UK’s imports?
65.3% manufactures, EU
What is the nature and destination of most of China’s exports?
92.4% manufactures, USA
What is the nature and origin of most of China’s imports?
73.2% manufactures, Japan
Why is 20% of China’s imports fuels and mining products?
Demand from industry, inputs into manufacturing process
What is the nature and destination of most of Bolivia’s exports?
71.5% fuels and mining products, Brazil
What is the nature and origin of most of Bolivia’s imports?
78.2% manufactures, Brazil
What are the majority of the UK’s commercial services classed as?
71.7% not travel or transportation (financial/business/IT services)
Bolivia’s commercial service exports are 48%…
…travel
Define bilateral aid.
Aid supplied directly from one country to another
Define multilateral aid.
Aid given by a number of different countries together directly or through international organisations such as the World Bank and IMF
Define non-governmental aid.
Aid given by charitable organisations who raise money through public donations and government grants
What is short-term emergency aid?
Aid that provides immediate help to cope with the impact of disasters such as earthquakes and disease
What is long-term development aid?
International aid intended to promote more equitable global development by creating long-term sustainable economic growth in developing countries
What is the foreign exchange gap?
The ability of developing countries to pay for imports that are vital to development
What is the savings gap?
The ability to accumulate capital to invest in industry and infrastructure
What is the technical gap?
The availability of skilled labour
Define tied aid.
Bilateral aid in which the donor country specifies conditions relating to the way the money is spent, often involving goods and services from the donor country
What percentage of donations from OECD countries are tied?
40
What form does emergency aid usually take?
Food, clothes, medicine, shelter; often led by NGOs who try to ensure aid goes to the people who need it most
Define resource nationalisation.
She a country decides to place part or all of one or a number of natural resources under state ownership
Guangdong is China’s ………. most populous region.
Second
How did China start to liberalise its markets in the 1980s.
It set up special economic zones, including 3 in Guangdong, which is part of the reason for the inequality within China
In 1984, 14 coastal cities were opened to trade and FDI including….
…Guangzhou
Which area has become the powerhouse of China’s export led industrial growth?
The Pearl River Delta
Give 4 examples of TNCs that located in the PRD.
Samsung, Siemens, Toyota, Coca-Cola
In 2000, disposable incomes in Shenzhen were ….. times greater than in rural districts.
4
What is the rate of urbanisation in Guangdong?
5-6% a year
In Boston what proportion of the population are foreign born?
One in six people
What is the Great Firewall?
A government system that limits access to foreign websites
What is the Golden Shield?
A do estimated surveillance system
How many people in China are employed to police the Internet?
100,000 including people paid to post pro-government messages and steer conversations away from sensitive topics
What kinds of websites are blocked by the Chinese government?
Foreign newspapers and human rights organisations. Search engines such as Google are not blocked but if users enter a banned enquiry they are blocked for 90 seconds
What is the main goal of China’s censorship?
To prevent the organisation of riots or protests, in extreme cases the Internet can be shut down completely to avoid this happening (cut off for 10 months after 2009 Xinjiang riots)
What is the population of Bhutan?
Around 700,000
What is the official language of Bhutan?
Dzongkha
When were TV and the Internet introduced in Bhutan?
Late 1990s
What measures did the King of Bhutan put into place to combat globalisation?
Promoted “Gross National Happiness”, made everyone wear traditional dress, set quota and tax for tourists, censored TV (particularly against pornography and wrestling)
Bhutan installed a state-of-the-art digital telephone network to rival those of Singapore and Hong Kong in 1999, costing…
…$48million
Bhutan has a law that states forest cover should remains over…
…60% of the country
How and why is Bhutan moving away from an absolute monarchy?
The King is encouraging decentralisation and reducing his powers in order to encourage democracy
What did Nepal receive in aid from China after the April 2015 earthquakes?
Search and rescue personnel and $3.3million worth of aid
How long did it take India to respond to the earthquake in Nepal?
15 minutes
On the day of the earthquake, what did India give to Nepal in terms of emergency aid?
450 personnel, 40 tonnes of relief material (tents, food etc.)
India evacuated…
20,000 Indians and 170 other foreign nationals after two days, as well as rescuing stranded climbers on Mount Everest and retrieving bodies
The UK made the largest bilateral aid contribution to Nepal at…
…£33 million, along with £50 million raised by the Disasters Emergency Committee (an umbrella group for 13 UK charities)
What are goodwill visas?
India provided them to foreign nationals who were caught in the Nepal earthquake so that they could stay in India temporarily
How much did the Chad-Cameroon oil pipeline cost the World Bank?
$4.2 billion; when it was competed in 2003 it was the largest development project in Africa
Why did the Chad-Cameroon oil pipeline fail as a development project?
The World bank funded the pipeline on the condition that profits go to development of Chad, however the government then announced that oil money must contribute to the general budget and purchase of weapons or they would drive out the oil companies; money is spent on regime survival and rigged elections
How much did the Norwegian government spend on the Lake Turkana fish processing plant in Kenya?
$22 million
Why did the Lake Turkana fish processing plant fail as a development project?
The plants demand for water was too high in the desert and the Turkana people (who were supposed to benefit from employ,net at the plant) are traditionally nomadic and don’t eat or process fish
What is the life expectancy in Zambia?
52
What is the literacy rate in Zambia?
71% for males and 56% for females
What is the secondary school enrolment rate in Zambia?
30% for boys and 25% for girls
What are the three stages of the Camfed campaign for female education?
- Support girls through schools with bursaries/safety net funds
- Provide business training, grants and loans
- CAMA graduate scheme
How many girls in Zambia have been supported by Camfed?
200,000; over 90% of which finished their secondary education
How many start-up grants and expansion loans have been provided by Camfed?
1500 grants and 300 loans
What are many CAMA members trained as?
1500 have been trained as teachers, particularly for rural areas; 600 have been trained as local health advisors focusing on HIV
How much more do educated girls earn on average in Zambia?
25%
Educating girls leads to improved knowledge and understanding of health issues. This makes educated women…
…3 times less likely to contract HIV
Why is having fewer children beneficial in Zambia?
They are healthier; 40% more likely to live past 5 years old
Define poverty.
Abstract notion of extreme deficiency or inferiority which is difficult to quantify
What is the poverty cycle?
A model that shows why it is difficult for some LEDCs to develop without outside help
What are the stages of the poverty cycle?
Limited access to food and safe water -> hunger and poor sanitation -> disease, malnutrition and death -> depleted workforce -> economic decline -> low incomes
What does Rostow’s Model show?
Stages of economic growth and development
What is an example of Rostow’s traditional society?
Subsistence agriculture
What is an example of Rostow’s preconditions to take off?
Mechanised and commercial agriculture, therefore a growth in productivity
What is an example of Rostow’s take off?
Industrialisation
What is an example of Rostow’s drive to maturity?
Early take off industries decline
What is an example of Rostow’s mass consumption?
Growing investment in new technologies and infrastructure
On average the UK minimum wage is ….. times higher than in China.
14; however economic hubs have higher minimum wages (Shenzhen’s minimum wage is the highest in the country)
How much money did Britain give to Malaysia to fund the construction of the Pergau River Dam, and what was the condition?
£234 million; Malaysia spent £1 billion on British arms
What did the UK send to Bangladesh as aid shortly after the 1998 floods?
Bridge materials to prevent people being stranded in future floods, wheat
What did the Disaster Forum send to Bangladesh as aid shortly after the 1998 floods?
Medicine, blankets, tents, boats to rescue the stranded; they also dug and repaired wells
Give an example of anti-globalisation in the UK.
Move towards “Made in Britain” products such as John Smedley clothing from Derbyshire, LUSH from Poole
How many migrants were detected at EU borders Jan-Aug 2015?
350,000; more than the whole of 2014 (280,000)
Where are most of the migrants in the current migrant crisis from?
Syria due to civil war; also Afghanistan, Eritrea, Nigeria, Kosovo
Why has policing migrants been difficult in Europe?
Passport free movement in Schengen zone
How many people have left Syria?
5 million; a further 6.5 million have been displaced within Syria
Which two EU countries took most Syrian refugees?
Germany and Sweden
How many Syrian refugees are there in Turkey?
Around 2 million
How big is the Tata steel production plant in Port Talbot, Wales?
Biggest in UK, one of biggest in Europe
How has the number of people employed at Port Talbot changed?
20,000 in 1980s, now just 3,800
How much does Tata add to the Welsh economy?
£1.6 billion
Why did Tata announce it was pulling out of the UK in March 2016?
Weak demand, supply from China, high energy costs
What were the environmental issues with the steel works at Port Talbot?
In the first 9 months of 2013, airborne dust particles exceeded EU limits on 14 days; linked to respiratory illness
How much of Nigeria’s export revenue is from petroleum?
90%
How many people have died in Nigeria as a result of oil (contamination, conflict etc)?
53,000
What effect do oil spills have on Nigeria?
Reduced farming and fishing yields
How much of the oil money in Nigeria is taken by corrupt government officials?
70%
How is IKEA an environmentally friendly company?
Flat pack furniture, less than 1% of products transported by air, aim to transport 40% by rail, transportation companies must be environmentally friendly, model for sustainable forestry
How many countries does IKEA have suppliers in?
55
Where is IKEA’s HQ?
Leiden, Netherlands (near Amsterdam)
Where is IKEA’s design HQ?
Almhult, Sweden where the company was founded
