Globalisation Flashcards
Define transnational corporations
Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods and services. Many of the largest are instantly recognisable “global brands” that bring cultural change to the places where products are consumed.
Define remittances
Money that migrants send home to their families via formal or informal channels
Define spatial division of labour
the common practice among TNCS of moving low skilled work abroad (or offshore) to places where labour costs are low. Important skilled management jobs are retained at the TNCS headquarters its origin country.
What are large intermodal containers
Large capacity storage units which can be transported long distances using multiple types of transport, such as shipping and rail, without the freight being taken out of the container
Define sovereign wealth funds
Government owned investment funds and banks, typically associated with China and countries with large oil revenues such as Qatar
Define Special Economic Zones
An industrial area often near a coastline where favorable conditions are created to attract foreign TNC’s. These conditions include low taxes and exemption from tariffs and export duties.
Define Offshoring
TNC’s move parts of their own production process to other countries to reduce the cost of labour
Define Outsourcing
TNC’s contract another company to produce the goods and services they need rather than do it themselves. This can result in the growth of complex supply chains.
Describe deindustrialisation
The decline of regionally important manufacturing industries. The decline can be charted either in terms of workforce numbers or output and production measures.
Name 5 flows of globalisation
Capital Commodities Information tourists Migrants
Name 4 significant dates for transport innovation
1492 Columbus arrived in America
1800’s Trans Siberian Railway (9000km)
1960’s Container shipping (90% of exports)
2013 Tesla’s hyperloop San Fran to L.A in 30 minutes
Name 4 communications innovations
1800’s= trans atlantic boats
1970’s= GPS & satelitte’s
1980’s onwards= broadband internet
2000’s social networks like FB have over 1 billion users
Name 2 facts about Easy Jet
1995=30000 passengers annually, only in UK
2014=65000000 passengers annually, 30 countries
Describe 4 facts about mobile phones
2005 6% of Africans had mobiles
2015 70% of Africans had mobles
Saudi Arabia has nearly 2 phones per person
UK has 130 mobiles per 100 people
Name 4 threats of globalisation
TNC’s exploit cheap labour and undermine soverign work force, e.g India, Redcar tata steel
Cultural threat, e.g. the americanisation of India
Interdependent economies, e.g. 2008 financial crisis
Young and old migrants strain social services
Threat to government ideologies, e.g. China’s communism
Name the three main financial IGO’S
IMF
World Bank
WTO
What does the IMF do?
Gives loans dependent on free market policies
Name the pro’s and on’s of the IMF
+: encourages connections and liberalisation
-:strict, cuts health and education funding
What does the World Bank do?
Gives loans, grants and support to developing countries
Name the pro’s and con’s of the World Bank
+:gives grants which means less debt
-: All it’s presidents have been american
What does the IMF do?
It supports liberalisation and the trade of manufactured goods
Name pro’s and con’s of the IMF
+: encourages policies, no debt. It is swiss based and relatively neutral
-: Little incentive to follow the advice, eg. the US &UK use subsidies (protectionist)