Globalisation Flashcards
What is globalisation?
- Globalisation is the process by which the world is becoming increasingly interconnected as a
result of massively increased trade and cultural exchange.
How can you measure globalisation?
- KOF globalisation index (2002) measures extent to which countries are socially, politically and economically linked to others
- Kearney index uses measures of business activity, human capital, information exchange, cultural experience and political engagement.
- IMF’s annual report on exchange arrangements and restrictions.
- KAOPEN index of openness to capital, how easy it is to invest and withdraw investment in different countries.
Why do levels of globalisation vary between countries?
- pattern of connection is not uniform across all countries, benefits are not evenly distributed.
- global hubs host TNC’s and diverse populations, demographic flows, finance, trade all flow towards global hubs.
- infrastructure, transport and communications networks are focused in core areas, leading to more incentive for businesses to invest in those areas.
- internet connection also allows greater opportunities for businesses.
- offshoring and outsourcing come from the core.
What role do TNC’s play in the globalisation process?
- architects of globalisation ,bolt together different national markets with their supply chains and marketing strategies.
- import and export goods and services whilst making significant investments in foreign countries.
- increased sales and profit encourages TNC’s to expand internationally
- outsourcing where a business makes a contract with another company to complete some of their work.
- offshoring where a company moves part of its operations to another country due to lower costs.
Why are some countries excluded from globalisation?
- isolation causes peripheral locations to remain switche doff from globalisation
- distance from market discouraging FDI
- corruption
- government debt
What is the global shift and why did it occur?
- the changing economic fortunes of different world regions over time.
- the shift of manufacturing to Asia and outsourcing of services from developed to emerging economies means there is a greater share of economic activity which brings a greater share of global influence.
- the changing location of production is termed the global shift.
What impact has globalisation had on NIC’s? (positive, negative and SEE impacts)
- rapid industrialisation and urbanisation from global shift have caused pollution, over exploitation of resources and dumping of waste.
- speeds up development of infrastructure and services due to improved economy
- megacities traffic congestion, 75% of co2 emissions
What social impacts has globalisation had on poor countries?
- increased number of jobs and decreased unemployment
- which could improve economy slightly
- however low paid jobs in bad conditions have a negative social impact on quality of life
- tax towards government is not large due to low paid jobs.
How has globalisation impacted developed countries?
- deindustrialisation reduces number of jobs and increases derelict land unless the land is repurposed.
- highly skilled secondary workers may struggle to find jobs.
- unemployment increases causing depopulation as people seek opportunities elsewhere.
What is a megacity?
- city with a population of 10 million or more
What are the reasons for growth in mega cities
- driven by rural to urban migration due to underplay net, scarcity of goods, loss of farmland, pollution, conflicts.
- mass transportation has made movement easier.
- pull factors, more job opportunities, improved services and better quality of life.
What social and environmental challenges do rapidly growing urban areas create?
- overcrowding, causes pressure on resources whihc lead sto a poorer quality of life for many.
- poor housing, authorities cannot plan for mass migration so migrants are forced to live in poor conditions
- traffic congestion, rapid growth faster than the authorities can build new routes so congestion occurs.
- air pollution, concentration of solid fuel stoves, industrial fumes and waste, and emissions from vehicles.
How has international migration created global hub cities?
- when cities are strongly connected to similar places globally through trade, they experience flows of elite migrants.
- they may be affluent people whose investment is sought by countries through tax breaks, these people face few barriers because their immigration is considered by governments to be beneficial to economic growth.
- Nationality act 2006 created a five tier system for awarding entry visas tier 1 being for high value immigrants.
How has international migration deepened interdependence between regions?
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What are the economic impacts of migration to the host country?
- filling of skills gaps and labour shortages.
- migrants contribute to economy as consumers
- more tax paying workers to support and offset an ageing population.