Globalisation Flashcards
Define Globalisation
The increasing interconnectedness of the world economically, culturally and politically i.e. a process in which human activities are organised on a global not national scale.
What are the 3 types of globalisation?
- Economic
- Social/cultural
- Political
What is economic globalisation?
Goods and services produced in one part of the world are increasingly available in others
What are examples of economic globalisation?
- Cheaper in other countries
- Lots of chemicals: can dump easily in other countries
= Global market place
What do... - TNC - MNC - FDI ...stand for?
Transnational company
Multinational company
Foreign Direct Investment
What do more of TNC and MNC lead too?
More FDI
What is FDI?
Where one business directly invests in another business in another country
Why if FDI now easier?
As money (capital) flows almost instantaneously round the world
What problems arise from more FDI
Credit crunch = sudden reduction in the general availability of loans(or credit)
People couldn’t afford houses/cars -> bankrupt
What’s another word for money
Capital
What’s global shift?
Movement of industry from HIC’s to new cheaper locations (the NEEs)
What does
NEE
stand for?
Newly Emerging Economies
Name two causes of globalisation
- 1866 - Telegram cable across Atlantic: could talk instantly
- 1939-1945 - WW2: Lots of countries got involved: USA, Africa, India, Japan etc - v. global then EU formed
What is containerisation?
A system of intermodal freight transport using standard containers
- can be loaded onto ships, railways, planes and lorries
What’s TEU?
Twenty foot equivalent unit
Advantages of containerisation?
- Can be locked
- Steel: can’t break
- Safe
- Improvements in port handing efficiency=lower costs= increased trade flow
What’s mass air transport?
Jet aircraft have replaced passenger ships for inter continental travel
what’s flag carriers
countries that have own airline that only they use
What are low cost airlines?
an airline that generally has lower fares, but may charge for extras eg food priority seat allocation and baggage etc
- good as have increased air travel in LICs for tourism
What’s air freight?
carry goods over air
- increased by 15% since 1970
- 5% of all goods traded go by air
what is included in “recent globalisation”
- from 2000 onwards
- driven forwards by development in ICT and mobile phone tech.
eg internet, email, www, mobiles
why does ict help?
- makes the world feel ‘borderless’
- also allows companies to become ‘footloose’ = free to go abroad and sell products
- allows businesses to trade more cheaply eg conference call and no flights etc
what does:
- switched on country
- switched off country
- access to internet
- no access
what’s the impact of modern telecommunications on businesses?
- reduces need for face 2 face interactions eg email, video conference (cheaper)
- businesses can be footloose
- it enabling rapid movement of money and information around the globe (up to date with everything)
what’s the FLAG (fibre optic link around the globe)
- $1.5 billion project
- 28000km underwater cable
- snaking its way across the ocean floor from britain to japan
- offers uninterrupted data between europe and asia
what are advantages of fibre optic cables?
- voices and data traffic is faster, cheaper, more reliable and subject to less interference
what are disadvantages of fibre optic cables?
- submarine pipelines are vulnerable to both physical and human attack
what’s time space compression
ict has changed our conception of time distance and barriers to goods, people and money
aka “the shrinking world”
what’s a special economic zone?
(sez) a geography region that has economic and other laws that are more free market oriented than a countries typical national laws
what do SEZ do (china)
mainly export related manufacturing areas where the taxes are reduced as an incentive for companies to offshore or out shore manufacturing
China:
How did they change in policy?
- run by communist party since 1949 revolution
- began to adopt neo-liberal economics (free market) in 1978.
- TNCs play major role in economics
- joined WTO 2001 (door opened even further)
Define: off shore
business go to china and buy land and build factory
Define: outsource
business will employ a Chinese companies to make products in china on its behalf
Political globalisation:
What does G8 stand for?
-Group of eight
Who is in g8?
leaders from; Canada, france, Germany, Italy, japan, Russia, uk and us
what do G8 do?
leaders take it in turn to be president
is G8 a good idea?
this IGO only contains 8 countries out of 195 making international decisions
What’s the WTO?
- founded in 1995
- world trade organisation for ‘liberalising trade’
- considerable power
Whose the WTO used by?
- EU, US and individual TNC’s
what do the WTO do?
- For governments to negotiate trade agreements
- and settle trade disputes
What are the positives of WTO?
- have liberalised trade, so easier to trade between nations = globalisation of companies
- battled to reduce tax on goods and services, benefited countries wishing to both import ad export
- points above have helped some countries to grow economically as trade barriers lifted= countries with little clout could sell goods around the world
What are the negatives of WTO?
- too powerful, when coupled with IMF & WB - can force entire countries to change laws for the benefit of its member countries eg Indonesia
- wto is run by the rich for the rich - gives no significant weight to problems of developing countries eg rich countries haven’t fully opened to products from poor
- no interest in conditions in sweat shops for eg- only aims are to assist trade between nations
- lowered GDP
- lacks democratic accountability - its hearing on trade disputes are closed to public and media
What is trade blocs
agreement between a group of countries that either reduce of eliminate the barriers to trade - making it easier for a select number of countries to trade amongst themselves
give 4 examples of trade blocks
eu -Europe union
nafta - north American free trade area
asean - association of southeast Asian nations
caricom - Caribbean community (15 member nations)
positives of trade blocks
- lower prices of commodities due t minimal tariffs on importation and exportation between the member countries
- stimulate trade between member countries
- free trade agreements: positive impact on economic growth and help countries focus on what they do best
- opening doors for other countries to compete fairly (w/o tariffs or trade policies)
negatives of trade blocks
- congressional budget office said; the pursuit of free trade could ‘divert the world from multilateral negotiations and lead to the developments of rival trading blocks’
- exploitation of developing countries by industrialised countries
- environmental concerns as the production of goods overseas is not consistently regulated from country 2 country
- political concerns that may influence negotiations between trading partners
what’s political globalisation
the increasing number and power of associations which influence or govern the world as a whole eg UN, EU, NATO, WTO, G8
what’s colonialism
the extension of a nations sovereignty over territory beyond its borders
indigenous populations are directly ruled or displaced
have more resources and labour
what’s imperialism (today)
eg usa
strong influence over many countries
it doesn’t directly rule them but influences them economically
what’s the IMF
- based in US
- channels loads from hics to lics who apply for help
- then they must run free market economies in return
- resulting in TNCs being able to enter these countries more easily
- there is rules eg have to cut back on heath care, education , sanitation etc
What’s the world bank
- lends money on a global scale
- headquartered in Washington, DC (us)
- gives direct grants to developing countries
- help given to Philippeanes in 2014 and to Democratic Republic
- total: US$65 billion in loans and grants in 2014
- like IMF, the WB imposes strict conditions on its L&G
- all WB presidents have been American
Whats the WTO
World Trade Organisation
- took over from General Agreement on Trade and Tariffs in 1995
- Based in Switzerland
- advocates trade liberalisation - especially for manufactured goods and asks countries to abandon protections in favour of untaxed trade
- failed to stop richest countries e.g. US and UK from subsiding their own food products
- harmful to farmers in developing countries, who want to trade on a level playing field
How is Indonesia an e.g. of a cause of globalisation
- IMF joining with Suharto, a man who killed communist sympathies
- opened the doors to globalisation because it allowed the west to open markets in Indonesia.
- enabling them to set up companies, this means the TNCs can move in and exploit the Indonesia workers by making them work long hours with little pay.
Name 3 other causes of globalisation
1) 15th century - beginning of slave trade: slaves to America - changed name, culture, religion
2) 1804 - Trevithick (steam trains): first time not using horse and carriage - fast, lots of people
3) 1866 - telegram cable across Atlantic: cable in sea, instant contact e.g. usa 2 uk
What are the two types of migration
1) Elite Migration
2) Low waged migration
Whats ‘elite migration’
- highly skilled
- multiple homes in diff countries
aka ‘millionaire migration’ ‘oligarch migration’
whats ‘international elites’
high levels of wealth
can easily migrate
e.g. footballer, movie star
define; host country
the country migrants have moved to
define; source country
country migrants have left
define; remittances
money made in the host country sent back home
what are 6 reasons for FDI (motives for TNCs)
1) raw materail seeking
2) cheaper labour costs
3) market seeking
4) accounting benefits
5) political leverage
6) environmental exploitation
give example of out sourcing
Coca Cola
give example of off-shoring
HSBC bank
out sourcing?
off shoring?
someone else does work for us
the work is done overseas
what does HSBS bank do
offshoring processing work to LEDCs to reduce cost of providing services in MEDCs
offshoring angered workers and trade unions in both US and UK bc of lose of jobs
what does coca cola do
out sourcing process by moving to India as everything was cheaper
but problems arose e.g. lack of water - crops won’t grow
Whats a TNC
Trans national cooperations
- locates in more than 1 country
- multi locations / multi plants
- few are truly global
benefits of locating TNCs in LICs
- cheaper wages
- lower tax
- plentiful work force
- raw materials
reasons for countries being ‘ switched off’
- political eg corrupt
- physical e.g. mountains
- cultural e.g. don’t want to be cultralised
give example of a switched off place
- North Korea
- split from S Korea in 1948
- ruled by the Jong-un family
- purposely isolated from rest of the world
why is N Kore switched off
- no access to internet
- 3 tv channels (2 only available on weekends)
- bible possession = illegal
- wearing jeans = illegal
- non state moves = punishable by death
- only military and government can own a car
- no undersea cables connections
whats global shift
- the global scale relocation of diff. types of industrial activity
- especially manufacturing has bought w/ it both positive and negative aspects
Why are large parts of Africa bypassed by globalisation
- Corruption
- Debt
- Un skilled Labour
- Crime
- Politically unstable
Whats a case study that shows a negative aspect of globalisation
- Coca Cola, India
because the people and the environment were negatively effected
What happened in Bhopal, India
- 1984
a dangerous chemical reaction occurred
- 3800 dead
- 11,000 disabled
What are the positive aspects of globalisation for Chinese workers
- greater availability of employment
- regular pay
- change in attitudes for women
What are the negative aspects of globalisation for Chinese workers
- poor pay: $2 a day
- long hours: 11-16
- ## young workers: 14+ (miss an education)
What are negative environmental factors in China
- no clouds just constant fog from smoke
- 75% of cities have not met air quality criteria
- 60% of Chinas water is polluted
- fish are diseased
What does BRICS stand for
Brazil Russia India China South Africa
What does MINT stand for
Mexico
Indonesia
Nigeria
Turkey
What are the BRICS
countries that started to show increased levels of globalisation in the 80s
What are the MINT
countries that are the next lot that are showing higher globalisation
Why is Nigeria increasing its globalisation
Its production of oil
How is Wales globalised
a small town in Wales… Brymbo village
- steel works closed in 1990
- 1100 jobs were lost
- town went into ‘depression’
- residents= negative equity
Whats the ‘negative equity’
it occurs when price of your property is worth less than what you are paying for your mortgage
What has ‘negative equity’ got to do with globalisation (in the UK)
- little industry left in UK because all gone to China
Why has Detroit got the highest level of ‘negative equity’ in the US
because D used to be hot spot for cars - now all closed down - gone to china - now second poorest place in US
Give facts about Detroit
- 1000 people a month leave Detroit
- high crime rate
- empty buildings
- can’t afford to eat
Why did Detroits industry collapse?
1) Market Location: near ports
2) the “wrong type of car” - big cars not wanted
3) costs of workers healthcare
4) Cheaper labour
5) import/export costs
Effects of deindustrialization on cities?
1. Inner city area…
… 11. Quality of life gets worse
- Old factories close
- Jobs lost
- People leave inner city
- Fewer services needed, schools and shops close
- More jobs lost
- More people leave
- People left: elderly/ low income groups
- Little money is put into area, so becomes more run down
- Lands become derelict
- More crime and vandalism
What is the rural urban migration
- the movement of people and business from rural areas into towns and cities
- leads to urbanisation
Define urbanisation
- an increase in the proportion of people living in urban areas within a specific location
what is creating ‘mega cities’
- the mass movement of people to urban areas
what are ‘mega cities’
cities with a population of 10 million or more people
e.g. LA, Bangkok
Why do people migrate
Down to pull or push factors
What are push factors
- something about their home that makes them want to leave
e. g. poverty, crime, unemployment, disaster
What are pull factors
- element of a location that draws a migrant
- usually opposite of push factor
e. g. good employment, low crime
What are the ‘intervening objects’ in the ‘Lee’s Migration Model’
- they may prevent migration from taking place or may reduce the numbers moving
- distance may be such an obstacle while social or economic factors may also act as obstacles
define natural increase
where a place has a higher birth rates compared to its death
opposite: natural decrease
what do
CBR and CDR
stand for
crude birth rate
crude death rate
what is the difference between a countries CDR and CBR
natural increase
what does a high rate of urbanisation lead to
a high birth rate bc migrants will have children
What 2 goals must be met to make megacities sustainable
- environmental sustainability
2. social sustainability
what are ‘global hubs’
- highly globally connected cities
aka ‘smart cities’ ‘world cities’
(v globalised)
what are some factors of global hubs
- highly connected
- v globalised
- strong economy
- good work force
- drowns in range on migrants
- strong infrastructure
- large no. of TNCs
- range of jobs in tertiary and quaternary sector
give example of global hubs
London, New York, Tokyo
what is a global hub recognised by
- how influential it is
e. g. a socio-economic influence globally
give 2 benefits of host nation
- economic migrants willingly do labouring work that locals may be reluctant to do e.g. polish farm workers in Peterborough
- fills particular skills shortages e.g. Indian doctors arriving in UK in 1950/60s
give 2 benefits of source region
- less public spending on housing and health (unemployment in Poland has halved since 2004)
- migrants may return bringing new skills (British asians returns in India to start health clubs)
give 2 costs to host nation
- local shortages of primary school places bc natural increase among a youthful migrant community
- social tensions if people think migration has led to lack of jobs/ affordable housing
give 2 costs to source nations
- closure of universities courses due to lack of students
- reduced economic growth as consumption falls
define culture
- the ideas, customs and social behaviour of a particular people of society
- each culture has own traits, making it unique
e. g. language
give culture traits
language religion ethnicity clothing music food and drink
what is culture diffusion
- the spread of a culture
e. g. Roman Empire: straight roads, wine, baths
why don’t some people like culture diffusion
bc considered to be a form of “soft powder”
what is: “soft powder”
- where a place has changed the culture in another place bc of large amount of influence on media and entertainment
what is ‘americanisation/westernisation’
- argued that the US have used ‘soft powder’ to change the culture of other nations
what is culture imperialism
where a culture is more dominant over nations
e.g. the English language
CASE STUDY: NIGERIA
REASONS FOR CULTURAL CHANGE
- the indigenous languages are under threat due to dominance of English language
- Nigerian music been neutralised w western music
- Nigerian youth prefer western hair styes/ clothes
- changing gender roles
- culture of borrowing money has emerged
- nigeria become big importer of rice, but now prefer American rice - farmer loss jobs
- effected settlement patterns - ppl leave for cities
- pay school fees due to privatisation of education
Why is McDonalds so successful
bc can ‘glocalise’
- where we can take dominant culture and weave it into the local one, making its entry into local culture more readily accepted
why do China the loser of globalisation
bc want to be like west, so eat as obesity and heart disease is a trend
why is the media a benefit to spread awareness
bc it shows different cultures and lives, so become more accepted and more common globally
e. g. Paralympics in NEEs and LICs
- disabled people now knows as ‘super human’
White Horse Village, CHINA
What happened before?
- people forced out homes
- farmland replaced
- no homes for villagers
White Horse Village, CHINA
What happened after?
- new shops open everyday
- 1000s of new residents
- bridges and tunnels built in mountains
- new schools built
how to calculate the Gini Coefficient
A
—
what’s the line of equality scale
0 - perfect equality 10 20 30 40 50 60 70 80 90 100 - perfect inequality
What is post accession migration
the sudden moment of migrants into other EU countries when their home country joins the EU
- happened in 2008 when 8 Eastern countries joined the EU
what were the 2 impacts of post accession migration
1) Thriving migrant diaspora
eg NY, lots of culture, mixed and vibrant
2) Extremism and racial/cultural tension
define diaspora
the dispersion/spread of a group of people from their original home
give an example of Diaspora
New York
- 5 boroughs is most diverse
- speak around 800 languages
- so many groups yet so little racial conflict
- every third person is a migrant
- openly embrace range of ethnicities eg parades- chinese new year
give examples social tension
after Brexit - rise in extremism
“leave the EU, no more polish vermin”
Groups: Britain first
