Globalisation Flashcards
Define globalisation
The widening and deepening of global connections, interdependence, and flows (of commodities, capital, information and people)
Why is the world “shrinking”?
Due to advances in transport and trade
What are some 19th-Century developments towards a “shrinking” world?
Railways, telegraph lines and steam ships
What are some 20th-Century developments towards a “shrinking” world?
Jet aircraft and containerisation
What is time-space compression?
Information and goods can move globally quicker and cheaper, due to rapid development of ICT
When and where were the World Bank and IMF Established?
Bretton Woods 1944
Where are the World Bank and IMF based?
Washington, D.C.
What does IMF stand for?
International Monetary Fund
What does the World Bank do?
Uses deposits from wealthy nations to loan for development. The loanee has conditions imposed, such as adopting a free market
What does the IMF do?
Maintains international financial stability through loans. Loanees must privatise government assets; leading to poor countries selling to wealthy TNCs
What does WTO stand for?
World Trade Organization
Where is the WTO based?
Geneva, Switzerland
What does the WTO do?
Promotes free trade without subsidies or tariffs. This is “trade liberalisation”
What do International Trade Blocs do?
Trading blocs support trade between members by removing tariffs, creating barriers on non-members, or introducing subsidies
Why can’t most countries offer subsidies?
It is against WTO rules
How come the EU and USA offer subsidies?
They are too powerful to be influenced by the WTO
What is foreign direct investment?
Investment made by a company or government into an overseas company or organisation
When did China set up SEZs?
After the 1978 ‘open door policy’ allowing international business
What does SEZ stand for?
Special Economic Zone
How many SEZs were initially set up?
4
How did the SEZs attract investments and international business?
They offered tax incentives and cheap labour
By what year did 50% of Chinese exports came from foreign companies involved with SEZs?
2005
By 2005, what proportion of Chinese exports came from foreign companies involved with SEZs?
50%
What factors dictate the degree of globalisation of a nation?
Governance, trade and development
Who produces the KOF Index?
The Swiss Economic Institute
What are the components of the KOF Index?
Economic, Social and Political globalisation
Who are the most globalised nations according to the KOF Index?
The Netherlands, Ireland and Belgium
Who produces the A T Kearney Index?
Carnegie Endowment for International Peace
What are the components of the A T Kearney Index?
Political, Technological, Personal contact, and Economic
What does Personal Contact mean for the A T Kearney Index?
How globalised individual citizens are, e.g. telephone calls, travel, remittances
Who are the most globalised nations according to the A T Kearney Index?
Singapore and Switzerland
How do TNCs play a role in globalisation?
Global production networks, which develop new markets.
They outsource and offshore work and production
Why do TNCs outsource and offshore?
Cheaper labour and production
What is a New Economy?
Where GDP is earned more through the knowledge sector than from manufacture
What is off-shoring?
When a company does some of its work overseas
What is outsourcing?
When work is contracted out for another company to do
For what reasons might a country be switched-off to globalisation?
Geographic location, political ideologies, lack of economic potential
What is an example of a switched-off country?
Zambia
When did the Global Shift of industry begin?
1970s and 1980s
Which nation did the service industry become mainly outsourced to?
India
Which nation did the manufacture industry move to?
China
What benefits are brought by economic restructuring?
Improved infrastructure, investment, and employment
What is the Global Shift also referred to as for individual countries?
Economic restructuring
How has China benefitted from the Global Shift?
World’s longest highway network
How has Shanghai benefitted from the Global Shift?
The Maglev; the fastest commercial train ever - over 400 km/h
What are some costs of economic restructuring?
Loss of productive land
Unplanned settlements
What percentage of China’s rivers and lakes are polluted?
70%
How many of the Yangtze’s tributaries aren’t even fit for irrigation?
207
What percentage of China’s farmland is suffering from degradation?
40%
How is China’s farmland degrading in the south?
Acidification by industry
Give an example of over-exploitation of resources in developing countries
The Amazonian rainforest has been mostly cleared in Ecuador
What is a disadvantage of the Global Shift for developed nations, and an example?
Dereliction, depopulation, out-migration, crime and unemployment, e.g. Leicester textile companies closed
What is hyper-urbanisation?
Population growth outpaces the ability of the authorities to provide basic services
Where is an example of hyper-urbanisation?
Mumbai, India
Where is an example of migrant workers sending remittances home?
Filipinos in Saudi Arabia
How does international migration benefit the host nation?
Receives skilled workers in sectors with shortages, and is able to sustain the lifestyle of its middle class
How does international migration disadvantage the host nation?
There may be pressure on housing and services
How does international migration benefit the source nation?
Reduces unemployment, and earns remittances to help build local businesses
How does international migration disadvantage the source nation?
It suffers an imbalanced population and loses skilled workers
Who notably owns many Australian, British, and American news outlets?
Rupert Murdoch’s News Corp.
What is the proportion of the assets of the ‘super-rich’ in China?
Top-1% own one-third of the property and industry
How did the development gap change from 1980 to 2012?
It increased
Between what years did the development gap increase?
1980 to 2012
Which two types of nation grew the most from 1980 to 2012?
Advanced economies
Newly-industrialised Asian economies
Define cultural diffusion
The spread of one culture to another by various means
What has happened because of China’s changing eating habits?
Obesity increased five times from 2002-2013
How has China’s diet changed?
More processed foods
More animal protein (pork and poultry)
What does HDI stand for?
Human Development Index
What are the four factors of HDI?
Life expectancy, literacy, years of education, GDP/capita
What is the scale of HDI?
0 to 1
What does GNI stand for?
Gross National Income
What is GNI?
The value of goods and services earned by a country, including overseas earnings
What is GDP?
The value of goods and services earned by a country, excluding overseas earnings
What does GDP stand for?
Gross Domestic Product
What does PPP stand for?
Purchasing Power Parity
What is PPP?
How much average earnings could buy you
What is economic sector balance?
The relative contribution of primary, secondary and tertiary sectors to GNI
What does GII stand for?
Gender Inequality Index
What are the indicators for GII?
Reproductive health, empowerment, education and employment
What is the Lorenz curve?
A graph of the percentage of income each percentage of population earns
What is the Gini index?
The income distribution on a scale of 100%
0 is perfect equality
How is wealth distributed in China?
Wealthier cities on the east coast; poorer as you move inland
What is life like in the Sichuan province, around the Three Gorges Dam?
China’s dirtiest cities (30m people)
Thousands of premature deaths due to polluted air
Why is London so multicultural?
Open borders of the EU
How have cities like London become more economically diverse?
FDI
What negatives have been brought about by immigration?
Extreme political parties
Trans-border water conflicts (Mekong)
How have nations attempted to control globalisation (information and ideas)?
Censorship (China) - The State controls media and the internet
How have nations attempted to control globalisation (economic)?
Trade protectionism - Introducing tariffs on the imports of some goods
Why did Tata Steel put all of its UK plants on sale?
Cheap, subsidised Chinese steel was saturating the market
How did Canadian people object to cultural globalisation?
First Nation peoples protesting resource exploitation of historical land
When was the Open Door Policy?
1978
What are some 21st-Century developments towards a “shrinking” world?
ICT, mobile phones, internet (fibre optics), social networking, electronic banking
How do the IMF and World Bank differ?
WB primarily lends money for developing countries
IMF oversees international exchange rates and payments, and loans for members’ international debts
How long is China’s highway system?
almost
140,000 km
How have international organisations contributed to
globalisation?
Promotion of free trade policies and foreign direct investment
How have national governments contributed to
globalisation?
By promoting free trade blocs and through policies (e.g. free market; privatisation)
How do different measures contrast with each-other about the impacts of globalisation?
Economic measures disagree with social measures
How have nations attempted to control globalisation?
Censorship (N. Korea, China)
Immigration (UK, Japan)
