Globalisation Flashcards
What 5 factors accelerate globalisation?
TNC’s, Lower transport costs, Technology, International Organisations and New markets
What is the definition of globalisation?
the growing interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services
Advantages of trade blocs?
Protection from foreign competitors and political stability (limit cheap goods from China)
Bigger markets, but no extra taxes ( Uk companies such as Tesco have benefitted by expanding to the EU)
National firms can merge to form TNC’s (bringing greater investment and therefore sales)
Disadvantages of trade blocs?
Compromise (must follow foreign firm to gain market share)
Loss of sovereignty (EU deals with trade as well as human rights)
Interdependence (countries become more dependent on each other because of trade)
What do international organisations such as the IMF, World Bank, and WTO promote?
FDI, privatisation, and trade barriers.
Physical reasons an area/country may be switched off
Distance from the market, wilderness, low agricultural potential (eg. Chad= growing season is 2 months and 2/3 are subsistence farmers)
Economic reasons an area/country may be switched off
Government debt, poor education/workforce, poor transport/telecommunications (eg. Ethipoia+has to repay million in debt)
Political reasons an area/country may be switched off
Corruption, civil/tribal conflict, and disadvantage by trade blocs
Positives of TNC’s
Provide employment, cheap goods for consumers, encourage FDI and improve infrastructure
Negatives of TNC’s
Cheap labour, poor working conditions, over power governments and take jobs from people in MEDCs
What are key causes of deindustrialisation?
Key companies outsourced, unemployment, no source of income, cant afford mortgage and abandonment of houses/factories
What are push factors of rural to urban migration?
Poorly paid farm jobs and poor education and health standards
What are pull factors of rural to urban migration?
Better schools and universities, houses more likely to be piped, have electricity and sewage disposal, better healthcare and jobs
What do hyper globaliser believe?
Globalisation is a successful process. Cultures will become more integrated and homogenous cultures will occur. (eg. similar consumer demands across cultures)
What do transformalists believe?
Cultures are dynamic in their response to globalisation. All cultures will change, but in different ways and new hybrid cultures may evolve (eg. rap music emerged from the USA and spread globally, but hasn’t developed in some countries such as Japan)
