Globalisation Flashcards
Definition of globalisation
The widening and deepening of global connections and interdependence through flows of commodities, capital, info,migrants and tourists
What were the three waves of globalisation when the global population and GDP shot up?
Steam ships
Jet aircraft’s after ww2
Electronic communications
How has trade grown?
Exponentially since 1970
How has international internet bandwidth grown?
Exponentially since 2006
Roughly the global flow of information in 2020 will b e 25x what it was in 2010
How has international internet bandwidth grown?
Exponentially since 2006
Roughly the global flow of information in 2020 will b e 25x what it was in 2010
How has direct foreign investment changed?
Most steadily rising in developing economies although there is much just as much in developed countries , the amount just fluctuates more
How have migration rates changed?
Number of migrants to Asia has been growing fast from 2007
Most migrants go to europe, Asia, and north america, but flows to every destination are steadily increasing
What is space-time compression and the shrinking world?
The time taken to travel to places around the world has fallen from a maximum of 40 days to a maximum of over 1.5days
How did steamships accelerate globalisation?
From 1830 to 1955 the time taken to get from Liverpool to New York shrunk from 17days to 3.5days
How did railways accelerate globalisation?
In 1830 there were only a couple of railway lines around NYC
By 1912 there was a dense network around the whole country
How did telegraphs accelerate globalisation?
The worlds first telegraph message was received in London from Paris in 1851
They were real time messages by putting copper wires down on the ocean floor when before it would have taken 72 days to get a letter to sydney
How did the transatlantic telephone service accelerate globalisation?
It started in 1927
Initial capacity was one call at a time at $75 per 3mins
But by 1956 36 calls could be made at once at $12per 3mins
How have unlimited free calls accelerated globalisation?
Internet use has grown from nothing in the mid 80s to now having about 4billion users
Users trebled before from 2006-2016
Capacity became huge and prices tiny when the sipper wore was changed into fibre glass
What are SEZs?
Special Economic Zones
It encourages FDI
It means less tax, tariffs, quotas, and customs, and labor regulations
What are examples of SEZs?
Shantou, Shenzen, Xiamen, and Zhuhai in China
What is ASEAN?
the Association of South East Asian Nations
What are the aims of ASEAN?
1) To accelerate economic, social and cultural progress through equality and partnership
2) Peace and stability through law and the UN charter
3) Assistance through training and research facilities
4) Promote Southeast Asian studies
5) Collaboration to improve agriculture, industry, trade, transport, communication and living standards
What has ASEAN achieved?
A major partner of Shanghai Cooperation Organisation
ASEAN
In 1992, members reduced intraregional tariffs eased restrictions on foreign investment by creating the ASEAN free Trade Area
Adopted a declaration to resolve disputes in South China Sea, established the ASEAN regional forum, and worked to resolve conflict in East Timor
What are the strengths of ASEAN?
peace maintained
Different branches easy to manage as they require little political and diplomatic involvement
Has kept expanding its numbers, keeping it relevant, especially to major powers
What are ways of measuring globalisation?
tourists broadband availability international flights members of IGOs variety of places of worship social media exports and imports (% of GDP) diet variety
What are the weaknesses of ASEAN?
Major powers can threaten or favourite smaller countries within ASEAN
Still mistrust and suspicion between countries with unrestful histories
What is KOF?
Swiss Federal Institute of Technology
What economic factors do KOF use to measure globalisation?
levels of cross-border trade and investment
restrictions on trade
What political factors do KOF use to measure globalisation?
No. of foreign embassies
No. of IGOs
No. of UN peace missions
What social factors do KOF use to measure globalisation?
Telephone calls, letters, and tourist flows
Access to the internet, TV, and foreign press
No. of McDonald’s and Ikea branches
What has KOF found about globalisation?
it has roughly doubled in the last 30 years
What are the most globalised countries according to KOF?
Netherlands, Ireland, Belgium
What are the least globalised countries according to KOF?
Solomon Islands, Eritrea, Equatorial Guinea
What are the economic factors AT Kearney use to measure globalisation?
International trade
FDI
What are the technological factors AT Kearney use to measure globalisation?
internet servers
internet users
What are the political factors AT Kearney use to measure globalisation?
IGOs
peacekeeping
treaties
What are the personal factors AT Kearney use to measure globalisation?
telephone traffic
travel
remittances (sending money back to another country)
According to AT Kearney, which countries are the most globalised?
Singapore, Ireland, Switzerland, USA
What are the physical factors that cause Singapore to be switched on?
natural harbor island access to Asian trade Close to China and the Asian tigers at the mouth of the Malacca Strait, through which 40% of maritime trade passes
What are the political factors that cause Singapore to be switched on?
small government was a British colony- English speakers Simple legislation to avoid contradiction quick decision making uncorrupt
What are the economic factors that cause Singapore to be switched on?
no “red tape” (business rules)
low tax and tariffs
joined trade blocs
What are factors not helping Singapore to be switched on?
harsh judgements
tame press
illegal to be gay
protests rarely allowed
What are the physical factors that cause the Sahel to be switched off?
land-locked
remote and arid with locusts
rainfall decreased after 1970- severe drought
big and empty to limited transport options
population increased
What are the political factors that cause the Sahel to be switched off?
influx of modern heavy weapons from Libya
Boko Haran (“Western ways are sacrilege”)
18 Europeans kidnapped 2012
Badly patrolled border with Algeria- lack of security
loads of refugees
What are the economic factors that cause the Sahel to be switched off?
limited infrastructure
Biggest business in the Sahel is smuggling
Small national armies and no security
TNCs don’t want to invest
In what sense is Coca-Cola a global company?
It can be bought everywhere except Cuba and North Korea
It’s made in every continent but Oceania
What is outsourcing?
Reducing costs by moving work outside suppliers
How does Coke outsource?
they license independent bottlers
they buy ingredients from big producers
What is offshoring?
Relocating a business to another country
How does Coke offshore?
It keeps about $10billion of its $13billion in cash overseas (2011)
$3billion in Brazil where interest rates are higher
What is Global shift?
the movement of economic activity around the world as a result of globalisation
What is Thomas Friedman’s attitude to globalisation?
Globalisation is making the world a level playing field, where everyone has equal opportunity, so geography is dead
What is Vandana Shiva’s attitude to globalisation?
Globalisation has unintended social and ecological effects. It leads to brutal exploitation. Besides, diversity is beautiful
How has the world become more unequal?
in 1807, the life expectancy range was 15years, and income range was $2,000
In 2018, the life expectancy range is 25years, and the income range >$60,000
What is Guangdong?
A Southern Chinese province
How has the population of Gunagdong changed?
growing lineally since 1950
the rate of growth increased increased in about 1990
Overall trebled since 1950
How has the GDP of Guangdong changed?
Was almost nothing in 1985, but is now over 8,000 billion yuan
almost exponential growth
growing 8-18% annually since 1990
has the same GDP as the Netherlands
What opportunities are there in Guangdong?
45 universities
60,000 yuan is the average wage
What urban growth is there in Guangdong?
Shenzen has grown 6000% since 1985
the area of farmland in the province has dropped 35% since 2000
What environmental problems have arisen in Guangdong?
In 2013, 44% of rice samples had poisonous levels of cadmium
air pollution at unsafe levels
a PH of 1 was recorded by Greenpeace in the Pearl River at Fogang
how many workers do iphone manufacturing in China?
In 2009 there was about 99milion factory workers
What major iphone manufacturing plant is in Shenzen?
Foxconn’s Langhua plant where 450,000 work- overall as many people are employed by Foxconn as live in Estonia
What suicides were there in the Langhua manufacturing plant?
In 2010, there were 18 attempted suicides and 14 confirmed deaths
20 more were talked down
How long do most employees last at the Langhua last?
only a year
What are the working conditions like at the Langhua plant like?
12hr shifts
unfair fines
promises of free housing only to have huge water and electricity costs
unkempt promises of benefits
bosses who humiliate workers in front of everyone for small mistakes
meant to be 8 people per dorm, but was 12
How has the car industry in Detroit changed?
it was booming in 1942, but has now collapsed
Factories abandoned in 1988
How has the population in Detroit changed?
1,850,000 in 1950
677,116 in 2015
What is the dereliction like in Detroit?
at least 70,000 abandoned buildings
31,000 empty houses- over half of residents left
the mayor planned to bulldoze a quarter of the city in order to be able to provide services in concentrated areas
When did Detroit declare bankruptcy?
July 18th 2013
the city is in huge debt to Wall Street banks
What percentage of Detroit is unemployed and economically inactive?
17% unemployed
29% economically inactive
What have the impacts of crime been in Detroit?
life expectancy lowered by 30% due to rising gun crime
drug-related crime formed the basis of the informal economy
In 2012, the murder rate topped the 1970s even though Detroit was dubbed the “murder capital” of the US in 1974
What has happened to Detroit house prices?
Major fall in house prices
some sold for s dollar in some districts
What was “white flight” in Detroit?
Industries moved to the suburbs, followed by veterans in ww1 and their middle class families who wanted to be close to work and in a good neighbourhood. This was fuelled by the 1967 race riots.
How did the circle of deprivation effect Detroit?
GM motors and Ford cut jobs and shut down plants resulting in a lower employment rate so less taxes, services, and public spending. local govs cut taxes so less investment and population decreased
What happened in Detroit in 1943?
there was an oil crises which lead to drivers buying vehicles with better fuel economy than the gas guzzlers made in Detroit
Honda and Nissan (Asian companies) had more desirable models
Why was the Detroit vulnerable?
It only had the car industry so was vulnerable to economic change within it
They didn’t react quick enough to the competition from Germany and Japan after their economies had recovered from ww1
Why is there a manly poor black population in Detroit?
They were banned from the suburbs by segregation at first and many moved to the city to escape the kkk + abuse in the South. When the civil rights movement allowed black presence in the suburbs the black middle class moved there, leaving a poor black population in the city.
How many migrants were there globally in 2013?
750million internal migrants in cities
250million international migrants
How much forced displacement was there globally in 2014
the most since ww2
How many people are displaced globally now?
60million
How many people will live in cities by 2050?
75%
What are the causes of rural-urban migration?
push and pull factors
“shrinking world” technology (informing people of potential opportunities and improved transport)
What is centripetal migration?
movement of people directed towards the centre of urban areas (eg. dumps in Lagos, cemeteries in Cairo, or steep hills in Rio)
What creates global hubs?
elite international migrants Low-waged international migrants (30% of the UAE is Indians) internal migration (NEEs + LICs) where parent companies of major TNCs have established subsidiary firms or allianced with local companies
What are the benefits of migration on the host countries?
fills skills shortages (Indian doctors arriving in the UK in the 1950s)
economic migrants willing to do labor locals won’t (poles on Peterborough farms)
migrants pay taxes and rent
some set up businesses that employ locals (in 2013, 14% of UK businesses start-ups were migrant owned)
What are the benefits of migration on the source region?
remittances contribute to national earnings (25% of Nepal’s in 2014)
less public spending needed on housing and health
migrants or their kids may return with new skills (British Asians start restaurants and health clubs in India)
what are the costs of migration on the host region?
social tension (UKIP) Political parties change their policies (pledges to reduce migration) shortages of places at local primary schools- migrants' natural increase new markets develop for ethnic food- visible change
What are the costs of migration on the source region?
economic loss of a generation, schooled at gov. expense
reduced economic growth as consumption falls
increased proportion of aged dependants
closure of uni courses due to lack of students
closure of urban services and entertainment aimed at young adults (nightclubs closed in Warsaw in 2004)
Example of interdependence
When building projects were cancelled in the UK in 2009 due to economic crises, Estonia’s economy shrank by 13%
What is westernisation?
culture spreading from the West and influencing other parts of the world (mainly started with colonialism)
What does cultural diffusion and global culture come from?
TNCs
global media
tourism
migration
what is americanisation?
similar to westernisation- alot due to the dominance of TNCs
what is cultural imperialism?
getting dominance over other countries by spreading culture and ideas, forcing other to adopt them
What is an example of soft power?
£280million a year to the BBC world service from the government- 11 languages- giving an alternative viewpoints to isolated areas, but is also the direct voice of the UK government
what is soft power?
westernisation+ americanisation+ cultural imperialism
spreading your culture over other areas without force
Where were the top 50 global brands from in 2015?
the top 5 were American
24 overall were American
10 were European
3 were Japanese
What are the cultural benefits of globalisation?
global standards regulate extreme local standards (global campaign started in 2017 to end FGM)
more positive view of disability globally (more emphasis on the paralympics in 2012 but in 2018, people were banned from climbing Everest if they had no legs)
How much meat does China now eat?
a quarter
Rose from 10million tonnes in 1980, to 70million tonnes in 2010
overtook the USA in 1990
How many people are obese in China?
> 100million
5x what it was in 2002
How many people are diabetic in China?
in 2010, 9.7% of the population were diabetic
Why have diets in China changed?
Exposure to western diets
in Europe and America, obesity correlates with poverty, but in Asia, it is the urban middle class- the drive for children’s academic achievement leaves them no time for exercise.
How have chocolate sales changed in China?
2000-2006 chocolate sales quadrupled
How many languages are in danger of being lost?
in 2013, 577 Critically Endangered Languages (UNESCO)
people feel a loss of cultural identity
How is global population and GDP growing?
global GDP is rising faster than population growing- spike since early 1950s
Which country has the top HDI
Norway
What country has the lowest HDI
Niger
What is the GII
The gender inequality index
What are the best and worst countries for GII?
USA= less than 0.14 difference Yemen= 0.68-0.77 difference
Where is the male:female labor rates ratio particularly bad?
In NEEs
1:0.6 labor participation rate
How do you work out the Gini coefficient?
equal/equal+reality
A/A+B
How has the global GINI trend changed?
spiking since roughly 1980
- 6 in 1982-0.54 in 2000
no. of countries with extreme GINI levels also increasing
Which area is the most unequal
South America
Why has the GINI coefficient spiked?
Reagan and Thatcher’s neo-liberalism and the collapse of the USSR
Leading to mass migration and political extremes
What are the effects of globalisation on the environment?
deforestation increased travel urbanisation resource extraction intensive agriculture pollution waste disposal
What are the effects of globalisation on wildlife?
60% of animals wiped out since 1970 (the Guardian 2018)
especially South- East Asia
North Pacific especially for marine species
What is an example of a hard border?
Cueta and Melilla- Spanish enclave in Morocco
What is an example of a soft border?
Belgium and the Netherlands
What did Umberto Bossi say about migrants?
The boats should be shot out the water
“I want to hear the sound of cannons by the morning”
Who was Jean- Claude Junckerand what did he say about migrants?
he was the head of the EU in 2016
said borders were “the worst invention ever”
How much of the most recent vote did the Austria Freedom Party get?
26%
How much of the most recent vote did the Swiss People’s party get?
29%
What happened to the Rana Plaza?
it was a textile factory in Dhaka, Bangladesh that collapsed on 24 April 2013
the search for dead ended on May 13, at a death toll of 1,130
What is localism?
Localism supports local production and consumption of goods, local control of government, and promotion of local history, local culture, and local identity