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