Globalisation Flashcards
Define Globalisation
Refers to the way people and places across the world have become closely linked together. This has deepened global connections, interdependence and flows of capital, commodities, migrants and tourists.
State the four pinnacles of Globalisation
- Economic Globalisation
- Social Globalisation
- Political Globalisation
- Cultural globalisation
What is Economic Globalisation
o The growth of transnational corporations (TNCs) accelerates cross
border exchanges of raw materials, components, finished
manufactured goods, shares, portfolio investment and purchasing
o Information and communications technology (ICT) support the
growth of complex spatial divisions of labour for firms and more
international economy
o Online purchasing
What is Social Globalisation
o International immigration has created extensive family networks that
cross-national borders – world city-societies become multi-ethnic
and pluralistic
o Global improvements in education and health can be seen over
time, with rising world life expectancy and literacy levels
o Social interconnectivity had grown over time thanks to the spread of
universal connections such as mobile phones and the internet
What is Political Globalisation
o The growth of trading blocs allows TNCs to merge and make
acquisitions of firms neighbouring countries, while reduced trade
restrictions and tariffs help markets grow
o Global concerns such as free trade, credit crunch and the global
response to natural disasters
o The World Bank, the IMF and the WTO work internationally to
harmonise national economies
What is Cultural Globalisation
o Successful Western cultural traits come to dominate in some
territories e.g. Americanisation or McDonaldisation of tastes and
fashion
o Glocalisation and hybridisation are a more complex outcome and
takes place as old local cultures merge and weld with globalising
influences
o The circulation of ideas and information has accelerated thanks to
24-hour reporting; people also keep in touch using virtual spaces
such as Facebook
What 5 factors are accelerating Globalisation
- TNCs
- Transport and Communication
- Technology
- International Organisations
- Markets
How are TNCs accelerating globalisation
- TNCs have influenced global culture and improved local economies
providing job opportunities - TNCs try to appeal to local markets by the process of glocalisation
which means products are specially designed for the taste of the
consumer - Additionally, TNCs develop new markets and take advantage of
economic liberalisation by offshoring and outsourcing
How is Transport and Communication accelerating globalisation
• Improvements in mobile communications, internet, social media and
fibre optics have allowed people to connect together from all over
the world
• Transport development has produced cheap travel, reaching
everyone and causing time-space compression
• Migrants each year send home US$500 billions of remittances
which helps build economic connectivity
Explain an example of the impact of improving communication on Globalisation
More than a million Kilometres of undersea cables carry the worlds emails, searches and tweets.
Satellites broadcast the position and time data to users throughout the world.
Deliveries can be tracked by companies using vehicle-tracking systems, helping the growth of global production networks to be managed
Explain an example of the impact of cheap travel on Globalisation
Around 200 million individual container movements take place each year – some commentators describe shipping as the ‘backbone’ of the global economy since the 1950s.
E.g. the Chinese vessel, Cosco, is 336 metres long and can carry 13,000 containers
Explain an example of the impact of remittances on Globalisation
Poland has become particularly reliant on remittances since its joining of the EU in 2004.
Remittances has directly increased the disposable income of recipients, who can then decide whether to spend them or to save them.
Depending on what goods or services are purchased, this can lead to increases in recorded consumption or investment, and thus, though multiplier effects, to increases in overall GDP.
How do international organisations encourage globalisation
International political and economic organisations, such as the WTO and IMF, have contributed to globalisation by promoting free trade policies and foreign direct investment
For many decades three central international organisations have acted as ‘brokers’ of globalisation through the promotion of free trade policies and FDI
International monetary fund (IMF)
- Based in Washington, DC, the IMF channels loans from rich nations
to countries that apply for help. In return, the recipients must agree
to run free market economies that are open to outside investment - As a result, TNCs can enter these countries more easily
Evaluation…
- IMF rules can be controversial, especially the strict financial
conditions imposed on borrowing governments, who may be
required to cut back on health care, education, sanitation and
housing programmes
The World Bank
- The world bank lends money on a global scale and is headquartered
in Washington, DC. - In 2014, a US$470 million loan was granted to the Philippines for
poverty-reduction programme - The world bank also gives direct grants to the developing countries – e.g. grant to Democratic Republic of the Congo for a mega dam to
kick start its economy
Evaluation…
- In total, the World Bank distributed US$65 billion in loans and grants
in 2014 - However, like the IMF, the World Bank imposes strict conditions on
its loans and grants - Controversially, the World Bank presidents have all been American
citizens
World Trade Organisation
- The WTO took over from the General Agreement on Trade and
Tariffs in 1995 - Based in Switzerland, the WTO advocates trade liberalisation,
especially for manufactured goods - Asks countries to abandon protectionist attitudes in favour of
untaxed trade - China was persuaded to lift export restrictions on ‘rare earth’
minerals in 2014
Evaluation…
- The WTO has failed to stop the world’s richest countries, such as the
USA and the UK from subsidising their own food producers - This protectionism is harmful to farmers in developing countries who
want to trade on a level playing field - The WTOs continuing lack of success in getting its 159-member
countries to reach a global agreement on any aspect of trade,
especially in relation to food, raises questions about its long-term
role
Define Foreign Direct Investment
A financial injection made by a TNC into a nation’s economy, either by building new facilities, or to acquire, or merge with, an existing firm already based there
What are the four key typed of Foreign Direct Investment (FDI)
Offshoring
Foreign Mergers
Foreign Acquisitions
Transfer Pricing
What is Offshoring
Some TNCs build their own new production facilities in ‘offshore’ low-wage economies
What is Foreign Mergers
Two firms in different countries join forces to create a single entity
What are Foreign Acquisitions
When a TNC launches a takeover of a company in another country
Transfer Pricing
Some TNCs such as amazon channel profits through a subsidiary company in a low tax country. (Ireland, Luxemburg)
How do National Governments influence the acceleration of globalisation
National governments promote free trade blocs by removing trade barriers and forming international groupings
Additionally, policies such as free-market liberalisation, privatisation and encouragement of business start-ups help improve economic wealth whilst accelerating globalisation and forming global networks.
This has also led to huge stock growth
What is the policy of Free-Market Liberalisation
- This model is associated with the policies of the US President,
Ronald Reagan, and Margaret Thatcher’s UK government during the
1980s - Followed two simple beliefs:
Government intervention in markets impedes economic
development
As wealth increases, trickle-down will take place from the richest
members of society to the poorest
- In practice, this meant restrictions being lifted in the way companies
and banks operated
London (1986) (deregulation case study)
- In 1986 the city of London was deregulated by the Thatcher government an attempt to transform it into a global competitor similar to the likes of New York and other European capitals.
- There were three key elements of this de regulation:
Abolishing minimum fixed commissions on trades,
Ending the separation between those who traded stocks and shares
The allowance foreign firms to own UK brokers.
Effects…
- It produced a free-for-all, as brokers, jobbers and the City’s
traditional merchant banks merged. - Across the world foreign investors were determined to gain a share
in the new opened up stock exchange. - Of the 300-member firms of the stock exchange that had all been
domestic - within a year 75 were now foreign-owned. - In Canary Wharf, plans for an entirely new financial district were
sought - Only a week after deregulation had been introduced, the volume of
trade that flooded through the new terminals soared from averaging
$4.5bn a week to more than $7.4bn a week - London is now the world’s leading global hub for financial services
How can National Government policies of Privatisation influence the acceleration of globalisation
- Privatisation is the transfer of a business, industry, or service from
public to private ownership and control. - Up until the 1980s, important assets, such as the railways and
energy supplies, were owned by the state – however, running these
services often proved costly - Since then, UK governments have led the way in allowing foreign
firms to gain a stake in the privatised national services and
infrastructure - Overtime, ownership of many assets has passed overseas, e.g.
French company Keolis owns a large stake in Southern England’s
railway network
How can National Government policies of ‘encouraging business start ups’ influence the acceleration of globalisation
- Methods range from low business taxes to changes in the law
allowing both local and foreign-owned businesses to make a profit - Italy has eased restrictions on Chinese investors wanting to start up
textile companies inside the EU; as a result, the city of Prato now has
the largest Chinese population in Europe
How can National Government policies of encouraging the ‘growth of free trade blocs’ influence the acceleration of globalisation
- Agreements have been drawn up all allowing state boundaries to be
crossed freely by flows of goods and money - Within a trade bloc, free trade is encouraged by the removal of internal tariffs
- This is used to promote trade activities within certain areas, whilst also assisting in economically managing specific regions.
- By implementing trade blocs, a means of agreement between the countries within that trade bloc is provided which enables them to benefit from each other through trade activities.
- As well as increased integration amongst members of a trading bloc. It is argued that trading blocs help globalisation through making global negotiations easier.
- For example, in the case of trade negotiations. The EU will negotiate as a single trading block making it easier to push through practices which increase free trade. Enlarged market increases demand
Explain the European Union
- The European Union is a political and economic union of 28-member
states that are located primarily in Europe. It has a population of 500
million - Over time the EU has evolved from being a simple trade bloc into a
multi-governmental organisation with its own currency (the Euro) and
some shared political legislation - Member states are eligible for EU structural funds to help develop
their economies, while agricultural producers in the region all benefit
from farm subsidies issued under the common Agricultural Policy
Beneficiaries of the EU…
By removing barriers to intra-community trade, markets for firms
grow. For instance, when ten new nations joined the EU in 2004, UK
first Tesco gained access to 75 million extra customers
An enlarged market increases demand, raising the volume of
production and thereby lowering manufacturing costs per unit
The EU also agrees common external tariffs and quotas for foreign b
imports – in 2006, the EU blocked imports of underwear from
Chinese manufacturers on the basis that the annual quota had been
exceeded, jeopardising sales of EU clothing makers
Explain ASEAN
- ASEAN (the Association of South East Asian Nations) has 10-member
states and a combined population of 600 million - Established in 1967, ASEAN founding members include Singapore,
Indonesia, Malaysia and the Philippines - Over time, they have worked to eliminate tariffs in favour of free
trade - The enlarged ASEAN market has helped Indonesia’s manufacturing
industries to thrive - ASEAN is expected to develop further into a single market called the
ASEAN Economic Community (AEC) - The ASEAN agreement also promotes peace and stability: its
member states have pledged not to have nuclear weapons
How have Special Economic Zones (SEZs) influenced the acceleration of globalisation
- One of the important reasons for the acceleration of globalisation
has been changing attitudes in regions outside of Europe and North
America - Asia’s most populated countries – China, India and Indonesia – have
all embraced global markets as a means of meeting economic
development goals - In all three cases the establishment of Special Economic Zones has
played an extremely important role
Define Special Economic Zones
An industrial area, often near a coastline, where favourable conditions are created to attract foreign TNCs. These conditions include low tax rates and exemption from tariffs and export duties.
Explain the impact of Indonesia as a Special Economic Zone
- Indonesia is an important example here, in the late 1960s the
president opened up Indonesia’s markets - American and European TNCs met with the Indonesian market and
built an attractive new legal and economic framework for foreign
offshoring - Indonesia instantly became a popular offshoring location for TNCs
like Gap and Levi’s - World Bank lending funded the speedy modernisation of its roads,
power supplies and ports
China and its 1978 Open Door Policy
Impact of ‘switching on’ to globalisation case study
- Prior to 1978, China was a poor and politically isolated country,
‘switched off’ from the global economy - However, in 1978 radical ‘Open Door’ reforms were sought which
allowed China to embrace globalisation while remaining under one-
party authoritarian rule
Actions…
Foreign TNCs allowed to invest in some sectors of China’s domestic market
World’s largest TNCs established branch plants, or trade relationships with Chinese-owned factories
Newly established Special Economic Zones set up
Mass industrialisation
Impacts…
China transformed into an urban, industrialised nation – 300 million
people left the cities in search of a better life in the cities
In the 1990s, 50 percent of China’s GDP was being generated in
SEZs
FDI from China and its TNCs is predicted to a total of US$1.25 trillion
between 2015 and 2025.
Controversies…
While China evidently has an open-door policy towards global
investment– it remains a highly restrictive nation and demonstrates a
number of ‘Closed door’ approaches to globalisation
Google and Facebook are entirely banned from the Chinese market
China’s Government sets a strict quota of only 34 foreign films to be
screened in cinemas each year
Still some restrictive policies on TNCs in certain aspects of industry
What is the KOF index
Measures globalisation on economic, social and political dimensions on a scale of 1-100.
These new scores are then compared to previous scores dating back to 1970.
It is a useful scale as it allows comparisons to be made between countries at any given time and uses data that is readily available.
However, trade calculations often ignore the informal economy which can account for a large proportion of actual trade.
What is the Kearny Index
Broken down into 4 categories: Economic integration, personal contact, technological activity and political engagement.
Each one is given a value between 0 and 1. The Kearny Index is useful as it covers 96% of the worlds GDP, 84% of the worlds populations and allows for comparisons between countries over time.
However, only 64 countries are included in the index.
What are the two measurers of globalisation
KOF Index
Kearny Index.
Why is globalisation uneven
- Globalisation has affected some placed more than others
- The location of TNCs vary significantly – some parts of the world
have benefited far more than other from FDI from TNCs because:
Not all places are suitable sites of production for goods, for a range
of physical and human reasons
Not all places have enough market potential to attract large retailers
Define Global Production Network
A chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of the consumer goods.
The network serves the need of a TNC, such as Apple or Tesco.
Explain the importance of Global Production Networks
- One other strategy that plays an important role in a TNCs attempt to
build their global business are rooted within their Global Production
Networks - Rather than investing directly in the offshoring of branch plants, or
acquiring foreign firms, TNCs can instead forge business
partnerships with existing companies in other countries (outsourcing) - For example, Tesco has established tens of thousands of
outsourcing partnerships while building heir global businesses - Global production networks have particularly benefited developing
countries - Local factory owners in Chinas Special Economic Zones (SEZs) have
profited from the work that foreign TNCs have outsourced to them.
Define Glocalisation
The practice of conducting business according to the local and cultural needs of a population, in order to maximise the appeal of a product
McDonalds (Glocalisation case study)
- By 2012, McDonald’s had established 35,000 restaurants in 119
different countries - However, in order for this to occur, the TNC had to make a number
of changes to its business model in order to attract consumers
across the globe, who have different tastes, religions, laws and local
interests - In India, the issue has been catering for Sikhs and Hindus who are
predominately vegetarian – while Muslims do not eat pork - McDonalds opened a vegetarian restaurant for Sikh pilgrims visiting
sites of religious importance in Amritsar
What factors often contribute to a country being switched off to globalisation
- Some areas of the world remain relatively switched off from global
production networks - This can be due to physical, political, economic or environmental
reasons
North Korea
Impact of being ‘switched off’ to globalisation case study
- Country chosen to remain politically isolated from the world since
the 1950s - Ordinary citizens do not have any access to the internet or social
media - There are no undersea data cables connecting North Korea with
anywhere else - Huge amounts of poverty and a clear lack of development, despite
its abundance in natural recourses.
Sahel
Impact of being ‘switched off’ to globalisation case study
- The mismanagement of natural and human recourses has played a
role - Many of the countries in this region lack a coastline, which means
they struggle to attract FDI - Arid conditions and desertification give further rise to further
development challenges - In particular, the extreme environmental conditions increase the cost
of providing infrastructure such as railways and ICT
What is the ‘global shift’
- The term ‘global shift’ describes the international relocation of
different the of industrial activity, especially in manufacturing
industries. - Thousands of TNCs have offshored their production facilities to
LEDCs in order to reduce the manufacturing costs
Give the three main costs as a result of the ‘global shift’
- Environment and recourse pressure
- Worker Exploitation and poor social conditions
- Social and environmental problems for deindustrialised regions
Explain the impacts of Environmental and recourse pressures as a result of the ‘global shift’
- The flip-side to global economic growth is the acceleration of
environmental decline - Forested land has been sacrificed to urbanisation, logging and cash
cropping - Since 1990, Togo has lost 60% of its forest area; Nigeria’s forests
have halved - Crop land has been ruined by over-exploitation, mining and soil
erosion. - Land degradation and biodiversity loss are widespread in Indonesia,
where an area of rainforest as big as 100,000 football pitches are
lost each year to make room for oil-palm plantations and mining
operations
Explain the impacts of Worker Exploitation and poor environmental/social conditions as a result of the ‘global shift’
- Communities within many developing economies have experienced
major environmental problems as a result of the global shift - Adverse impacts on the health and well-being of people have
resulted from pollution, over-exploitation of resources and the
dumping of industrial waste - In Ivory Coast, tens of thousands of Ivorians suffered from ill health
after toxic waste was dumped by a ship owned by a European TNC - Air pollution in Chinese cities has reduced Chinese life expectancy
by five years - In India, where call centre employment has been outsourced too
due to the large English-speaking population, workers are easily
exploited into 10-hour shifts, 6 days a week
Explain the impacts of Social and environmental problems for deindustrialised regions as a result of the ‘global shift’
- Global shift creates challenges for developed countries
- During the 1970s, many European and American factory workers lost
their jobs - Western factories closed in large numbers once Asia became the
focus of global manufacturing - Issues such as high unemployment, rising crime, depopulation and
dereliction occurred - In some low-income US urban districts – which were hit hard with
the effects of de-industrialisation – life expectancy is 30 years lower
than in affluent districts. - Detroit has lost 1 million residents since 1950, which has caused the
catastrophic collapse in house prices and created 20,000
abandoned properties - The combination of manufacturing industry closures, falling house
prices and rising crime has resulted in widespread environmental
dereliction.
Give the benefits created by the ‘global shift’
- Poverty reduction and waged work
- Education and training
- Infrastructure and, the built environment
Explain the impacts of Poverty reduction and waged work as a result of the ‘global shift’
- Worldwide, 1 billion have escaped US$1.25-a-day poverty since 1990 – with 500 million of these being from China alone
- The term ‘new middle class’ is used to describe the growing mass of
urban and working people who have escaped rural poverty - Many earn between $US10 and $US100 per day
- By 2030 it is predicted that Asia will be home to 3 billion middle-
class people
- As conditions improve, people are enjoying large income gains –
more people can now afford smartphones and fridges – in China, car
ownership has gone from 1 in a hundred to 1 in 5 since 2000
Explain the impacts of
Education and training as a result of the ‘global shift’
- Throughout Asia, education has improved in recent decades
- Around 2500 universities in China, India and South Korea award
millions of graduate degrees each year. - China alone awarded 30,000 PhDs in 2012
- Asian countries now play a leading role in quaternary sector
research in biotechnology and medical science
Explain the impacts of Infrastructure and, the built environment as a result of the ‘global shift’
- Alongside economic take-off, infrastructure development has taken
place, bringing modern motorways, high-speed railways and airports
to major cities including Jakarta - There is a growing trend for extreme high-rise development in city
centre hotspots in major Asian cities
What is a megacity?
- A megacity is home to 10 million people or more
- They growth through a combination of rural-urban migration and
natural increases
What three main factors cause rural-urban migration
- Urban pull
- Rural push factors
- ‘shrinking world technology’
Explain how urban-pull factors influence rural-urban migration
- The main factor almost everywhere is employment
- FDI by TNCs in urban parts of poorer countries provides a range of
work opportunities and their supply chains - Urban areas offer the hope of promotion and advancement into
professional roles that are non-existent in rural areas - Schooling and healthcare may be better in urban areas, making
cities a good place for young migrants with aspirations for their
children
Explain how Rural push factors influence rural-urban migration
- The main factor is usually poverty, aggravated by a lack of jobs
- Agricultural modernisation reduces the need for rural labour
- Recourse scarcity in rural areas with population growth triggers
conflict
Explain how ‘Shrinking World’ technology influences rural-urban migration
- Rural dwellers are gaining knowledge of the outside world and its
opportunities - As poor individuals in Africa and Asia begin to use inexpensive
mobile devices, information is being shared and they are being
‘switched on’ to globalisation - Transport improvements, such as South Americas famous Trans-
Amazon Highway, has removed intervening obstacles to migration
Mumbai (Megacity growth case study)
- India’s Mumbai urban area is home to 22 million people, having
more than doubled in size since 1970 - People have flocked there from the impoverished rural states of
Uttar and Pradesh - Urban employment covers a range of economic sectors and skill
levels - Big global brands such as the Hilton and Starbucks are present in
Mumbai - The senior management of large TNCs such as Tata and Reliance
Industries, some of whom are billionaires has driven up housing
prices in Affluent areas - In contrast; Dharavi is a slum housing area - It has a buoyant
economy (5000 employed in Dharavis plastics recycling industries)
Karachi (Megacity growth case study)
- Approximately 24 million people live in Karachi
- Pakistan’s centre of finance, industry and trade
- People flock to the city from rural areas all over Pakistan
- Range of industrial sectors including shipping, banking, retailing and
manufacturing - Population increase overtime is mainly due to internal migration,
through international migrants from other South Asian countries
Define Global Hub
Highly globally-connected city
Examples of ‘Global Hubs’ or ‘World Cities’ include New York, Mumbai, London, Beijing, Tokyo and Sao Paulo
Explain the three type of population movement that allow the development of a global hub
Elite international migrants: Highly skilled migrants and/or socially influential individuals. Their wealth derives from their profession or inherited success. Most countries welcome highly skilled and extremely wealthy migrants.
Low-waged international migrants: Drawn towards global hubs in large numbers. London, LA, Dubai etc. are all home to a large number of legal and illegal immigrants working for low pay in Kitchens, construction sites or as domestic cleaners.
Internal (rural-urban) migration : Is the main driver of city growth in global hubs in developing and emerging economies but plays a lesser role in Europe and North America
Impacts of migration?
- There are multiple costs and benefits of migration
- There are impacts from both the source and hosts
- These impacts are further subdivided into economic, social, political
and environmental effects (which may all be interconnected)
Give the benefits of migration to the host and source region
Host:
Fills particular skills shortages (Indian doctors)
Economic migrants willingly do labour work that locals may be
reluctant
Working migrants spend their wages on rent, benefiting landlords,
and pay tax on legal earnings
Larger workforce
Prevent ageing population
Source:
Migrants remittances can contribute to national earnings significantly
Less public spending on housing and health (unemployment in
Poland decreased by a half since joining EU in 2004)
Migrants or their children may return, bringing new skills
Wealth from remittances
Source country has international links
Give the costs of migration to the host and source region
Host:
Social tensions arise if citizens of the host country believe migration
has left to a lack of jobs or affordable housing
Political parties change their policies to address public concerns
Local shortages of primary school places due to natural increase
among a youthful migrant community
Increased birth rate
Stress on services
Source:
The economic loss of a generation of human recourses, including
key workers such as doctors and teachers
Reduced economic growth as consumption falls
The closure of urban services and entertainment with a young adult
market
Reduced population size
Define interdependence
Over time, international migration makes places interdependent. Each country depends on the economic health of the other for its own continued well-being.
Define cultural diffusion
The spread of cultural beliefs and social activities from one group of people to another. Through cultural diffusion, horizons are broadened, and people become more culturally rich.
Multiple factors can influence the level of cultural diffusion that takes place, this includes: TNCs, Global Media and Migration & Tourism
How do TNCs impact cultural diffusion
- The global dispersal of food, clothes and other goods by TNCs has
played a major role in shaping a common culture - Some corporations, such as Nike and Apple have rolled out ‘uniform’
products globally, bringing cultural change to places - When TNCs engage with new markets, they adapt their products
and services to suit places better (Glocalisation) and this increasing
reflects local cultures
How does the Global Media impact cultural diffusion
- Media giant Disney has exported its stories of superheroes and
princesses everywhere - The BBC helps maintain the UK’s global cultural influence overseas
- Often, reality and celebrity shows, are entirely re-filmed for different
national markets
How does migration and tourism impact cultural diffusion
- Migration brings enormous cultural changes to places
- Europeans travelled widely around the world during the age of the
empires, taking their languages and customs with them - Migrants can affect the culture of host regions, but changes are
often partial: e.g. in India, the colonialist influenced the language and
social activities such as Cricket on the population, but few others. - Tourists introduce cultural change to the places they visit
What are the costs and benefits of cultural diffusion
costs:
- Some people are concerned that languages around the world are disappearing as use of English continues to spread – 4 billion people speak ‘Globish’ (a form of basic English consisting of around 1500 words)
- Some locations face the loss of traditional foods, music, clothes, social beliefs and languages
Benefits:
- it has allowed worldwide changes in attitudes towards disabled people – shown with the Paralympics
Indigenous people of Amazonia and Papua New Guinea (Cultural Erosion impacts case studies)
- Amazonia and Papua New Guinea’s tropical rainforest tribes are
among the world’s last isolated groups of indigenous people - More western members of rainforest tribes are becoming aware of
Western culture and lifestyles - Today, many Amazonians and New Guineans are wearing modern,
Westernised clothing - Increasingly, many young Amazonians are moving from the
rainforest to urban areas like Manaus - Indigenous people no longer value ecosystems the way they used
to, on account of cultural erosion - They want income, education and health improvements for their
children – inevitably, social goals are becoming more important and
this has driven many indigenous people to hunt endangered species
for food or to sell. - Papua New Guinea’s Tree Kangaroo is under threat
How has resistance to globalisation developed
- At a range of geographical scales, there is opposition to
globalisation - individuals, pressure groups and governments may all experience
some degree of concern with the cultural impacts of globalisation – - In addition to its social, economic or environmental consequences
- France is fiercely protective of its culture and language - the French
government is extremely supportive of French film makers and
subsidises works filmed in the French language – under local
content law – 40% if television output must consist of French
productions - Amnesty international has accused oil firms such as Shell and
ExxonMobil of bringing great environmental damage to Nigeria and
other countries
What are the 5 single and composite measures of economic and social development
Income per capita
Gross Domestic Product (GDP)
Human Development Index (HDI)
Gender Inequality Index (GII)
Environmental Performance Index (EPI)
What is Income per capita
- The mean average income of a group of people
- Calculated by taking a source of income for a country and dividing it
by population size
What is Gross Domestic Product (GDP)
- Final value of the output of goods and services inside a nation’s
borders - Includes the value added by foreign-owned businesses that have
located operations there
What is the Environmental Performance Index (EPI)
- Measures environmental pollution
- Environmental quality is often poor in developing and emerging
economies – it usually improves as economic and social
development occurs - Improves as places make the transition from industrial to post-
industrial forms of economic activity
What global economic trends have resulted from globalisation in terms of human impact
Global trends indicate a widening income inequality (Measured using Gini coefficient)
- The great gains made by European and North American nations
over the same time period has resulted in a widening of the average
income gap between people living in the world’s wealthiest and
poorest countries - In Africa, large income gains have been made in countries such as
Tunisia, Algeria and other North African countries – which have
become very ‘switched on’ to globalisation – A strong African
middle-class is expected to rival Asia in the coming decades - Yet, in contrast, in other areas of Africa, such as sub-Saharan
countries including Burundi and Central African Republic –
geographical isolation, poverty and political extremism has resulted
in falling life expectancy due to conflict
What social issues have been created by open door policies
- Open door policies have brought rapid cultural change
- In 2004, the EU opened up its borders to eight Eastern European
nations which brought an unprecedented volume and rate of post-
accession in-migration - In the UK, where Polish immigration has been largest – many non-
Polish residents have welcomed the new arrivals and their
contribution to the local economy and society – however, some local
people worry that young migrants have increased the crude birth rate
beyond the capacity of the area’s primary schools
Extremism in Europe (Impact of Immigration case study)
- In many EU states, nationalist parties, such as France’s Front
National and the UK’s United Kingdom Independence Party (UKIP)
has commanded significant support - This is often due to their string rejection of immigration and
multiculturalism - In France in 2015, staff of the satirical magazine Charlie Hebdo were
killed by gunman of Algerian descent – who claim their Islamic faith
had been mocked - Events such as these are rare, however, demonstrate the tensions in
multicultural Europe - It is clear there is a growing ant-immigration sentiment in Europe – In
the 2014 European Parliamentary elections – around 25 percent
supported France’s Front National Party
How has legislation been used to prevent global flows of people
- Governments may try and prevent or control global flows of people,
goods and information, with varying success - Laws can be strengthened to limit numbers of economic migrants,
however, illegal immigration can be hard to tackle
How have countries attempted to prevent cultural diffusion of Western media into Chinese society
- Around 40 world governments limit their citizen’s freedom to access
online information - In China, the government restricts access to google, Facebook,
Twitter and YouTube in a system called the ‘Great firewall of China’ -
more than 400 million Chinese citizens interact with one another
using vetted social media sites approved by the Chinese
government
How have countries attempted to resist unfair trade practices
Trade protection is still common – USA has a complete trade embargo on Cuba while in New Zealand imports of honey from Australia have been banned for 50 years
How has recourse exploitation impacted the First Nations in Canada
- Canada is home to six groups of indigenous people
- Tribes located in the Yukon River Basin oppose the attempts of
global oil companies to ‘switch on’ their region - Over 200 million barrels of conventional oil has been extracted
there since 1920 - The death of trout and other fish in oil-polluted lakes – which is
fundamental to the cultural identity of the Dene’s tribe - The effects of alcohol and drugs (brought by oil workers) on the
behaviours of young Dene people
What are the fundamental links between globalisation and rising environmental insecurity
- Food Insecurity: By 2050, food demand is likely to double worldwide and growing Middle-class diets are characterised by their consumption of meat and dairy and have a larger ecological footprint
- Water insecurity:- As societies develop economically and urbanise,
everyday household water use increases significantly. Food production
depletes water supplies. Animal husbandry and crop production can be
water-intensive activities - Energy: 50 percent increase in global energy is predicted by 2035
Unless significant innovation in terms of clean energy is achieved –
fossil fuel consumption will continue to rise - Climate: The global diffusion and adoption of manufactured items has
increased the global carbon footprint. The harmful global temperature
rise in excess of 2 degrees now appears inevitable
Define Ecological Footprint
A measurement of the area of land or water required to provide a person or a society with the energy, food and resources needed to live
Define Water Footprint
A measure of the amount of water used in the production and transport to market food and commodities
Define Carbon Footprint
The amount of carbon dioxide produced by an individual or activity
Define sustainability
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
Explain the three different types of sustainability
Economic sustainability : Individuals and communities should have access to a reliable income over time
Social sustainability: All individuals should enjoy a reasonable quality of life
Environmental sustainability: No lasting damage should be done to the environment; renewable recourses must be managed in ways that guarantee continued use
Explain what local sourcing is and it’s impacts
- The critics of global capitalism say environmental costs should be
accounted for in the pricing of products - low pricing of containerised transport allied with cheap labour and
material costs in developing cost has helped TNCs build extensive
global production networks – these strategies maximise profits, but
they also maximise carbon footprints - It is argued – is it environmentally sustainable to transport a bottle of
water 20,000km just to reach the UK – as a result some people buy
locally - Local sourcing has allowed UK farmers to move up the value chain
by producing locally produced items – while also helps reduce
carbon footprint sizes - However, it can be expensive particularly for people on low incomes
and can have impacts on LEDC producers that currently rely on the
UK for exports
The Eden Project (Local sourcing case study 1)
- Popular tourist site in Cornwall
- Houses plants from all over the world in two enormous biomes
- For the 600,000 meals that are provided annually for visitors 90 per
cent of the produce is bought from local suppliers in Cornwall and
Devon
Todmorden
Local sourcing case study 2
- Todmorden is a down in the South Pennines
- Much of the food on sale is locally grown
- The ‘IET’ campaign, which received National Lottery funding, aims to
encourage consumers and growers to work together for the long-
term good of the planet - IET has created 40 public fruit and vegetable gardens and stages
regular educational talks and events in the town
How has globalisation led to the development of ethical consumption
- While consumers benefit economically from global shift’s cheap
goods, many have ethical concerns about the social costs of worker
exploitation - Ethical purchases are increasingly available as a result of the work of
NGOs, charities and a growing number of businesses with a ‘social
responsibility’ agenda
Rana Plaza collapse
The development of Ethics in business case study
- Recent events have shown that Western retailers are increasingly
beginning to take more responsibility for working conditions in their
supply chains - In 2013, the Rana Plaza building collapsed which led to the death of
1100 textile workers – on the day of the collapse workers were sent
back into the building to complete international orders in time for
delivery for western companies such as Primary ad Wal-Mart - Since then, many British TNCs have signed the Accord, which is a
legally binding agreement on worker safety – these companies now
promise to ensure safety checks are carried out regularly in all
Bangladeshi factories
Give three ethical consumption schemes
- Fairtrade
- NGO action
- Supply chain monitoring
Evaluate Fairtrade as an ethical consumption scheme
- The Fairtrade Foundation’s certification scheme offers guaranteed
higher income to farmers and some manufactures, even if the
market price changes - Commonly used in products such as coffee, chocolate, bananas and
wine
Positives:
- Fairtrade goods let shoppers know that what they spend will find its
way into the pay packets of poor workers
Negatives:
- However, as the number of schemes grow, it becomes harder to
ensure that money has been correctly distributed
- It is also not possible for all the worlds farmers to join a scheme
offering a high fixed price – it is economically unsustainable
Evaluate NGO action as an ethical consumption scheme
- NGOs are extremely powerful in promoting economic consumption
Positives:
- After pressure from NGOs - Tesco recognised the issues and told a
farm in South Africa it would use a different fruit supplier unless
conditions for women improved
Negative:
- However, NGOs have limited financial recourses, which limits the
scale of what they can achieve
Evaluate Supply Chain Monitoring as an ethical consumption scheme
- Large businesses increasingly accept the need for corporate social
responsibility - The largest TNCs have thousands of suppliers which increases the
risk of branded products being linked with worker exploitation
Positive
- Firms such as GAP and Nike now prohibit worker exploitation in their
own foreign factories
Negative
- However, it is hard to monitor the working conditions and pay for the
workforce of every single supplier they buy from
Evaluate recycling as a method of reducing the rate of recourse consumption
- Recycling is far more sustainable than sending waste to landfill –
reducing the rate at which new natural recourses are used - High levels of energy are still required are stull high due to the
treatment of waste and the transportation of waste to recycling sites - In Curitiba, Brazil, there are strong recycling schemes, whereas in
other places such as India, recycling systems have failed to develop - However, the future for recycling is strong – products in the future
could be designed in a specific way that allows them to be
disassembled and reused or repurposed far more easily
Evaluate the impact of the global shift on Indonesia
- Since rapid developed of SEZ’s in the 1980s the country has
developed into the largest economy in South East Asia - Poverty rate fallen from 60% to 15%
- The country’s main exports are led by palm oil and coal
briquettes, with jewellery, cars and vehicle parts, rubber, and
copper
Evaluate transmigration in Indonesia
Source: Over populated islands of Indonesia, for example, Java.
Destination: Under populated outer Islands such as Maluku.
Consequences for area they arrive in:
- In total over three million people have moved so this obviously puts great pressures on the areas they arrive in.
- Thousand of acres of rainforest have been cleared and this has led to soil erosion.
- Consequently, a large quantity of the land soon becomes unsuitable for farming.
- This is made worse by the shortage of tool and destruction of crops by wild animals.
- There has been friction with the migrants and the indigenous population.
- Trans-migrants receive two hectares of land as an incentive to move.
Indigenous people see this as government favouritism. - The tension is accentuated as sometimes migrants are given areas of land that locals used for shifting cultivation.
Consequences for area they leave:
- The population on main Islands like Java is continuing to grow rapidly and the trans-migration scheme is providing minimal relief.
- Also many trans-migrants are returning after having little success on the outer Islands. Transmigration has done little to remove the
problems of over-population.
Evaluate rural to urban migration in India
Source: Rural areas and small town’s among Calcutta.
Destination: Calcutta’s Bustees (Shanty Towns).
Reasons
- Large population growth in rural areas puts more pressure on the environment.
- Wages in Calcutta are approximately six times that of rural areas.
- Sub-division of land passed on makes a subsistence life more difficult and reduces the assets against which a rural inhabitant could get
a loan. - Increased mechanisation of agriculture to feed growing population means greater rural unemployment.
- A large number of migrants are a consequence of natural disasters such as those faced annually in the Monsoon season. Many cross
from nearby Bangladesh. - Indian cities receive approximately six times the investment of their rural counterparts.
- Better medical and health care. Infant mortality is lower in Indian cities than rural areas.
Consequences for area they arrive in:
In Calcutta they include:
- A chance to escape the rigid caste system that is still very strong in rural areas.
- Higher rates of infant mortality than towns.
- Half a million people sleeping on the streets.
- Increased air pollution as the pressures of population create a need for more industry. In addition, people use wood and charcoal for
cooking. - The old water system cannot cope. Leaking pipes allow contamination to enter the water supply. In Monsoon season, this is particularly
bad as sewage infects the water. - Increased traffic causes greater air pollution problems. As many as 60% of the population suffer from breathing problems.
Consequences for area they leave:
- If the migrant finds work in the city then it is likely that the village he left will benefit from money sent home. This is what every migrant
dreams of but the situation in reality is usually very different. - As the pressures of urbanisation increase so government expenditure on urban areas must increase this leaves the rural areas facing
an ever more difficult situation. - Lack of investment on health and welfare will have obvious effects for those left behind.
- It is the young motivated male that is most likely to leave.
- This has implications for those left behind. There will be a predominantly elderly population that will find it ever more difficult to support
themselves. - Whilst migration may ease some of the population pressures the high birth rates in rural areas means the situation is deteriorating. This
means a constant loss through migration with the break up of families.
Define Protectionism
the institution of policies, quotas, regulations that protect a country’s industries against competition from cheap imports.
The Natural Resource Trap
As exports of the natural resource increases, the value of a country’s national currency becomes stronger.
Therefore, other economic activities within the country become less competitive (e.g. manufacturing) because their product becomes more expensive than other countries’ products.
So the country’s domestic market suffers as people look elsewhere to buy products from abroad.
A good safe economy needs a balance.
Primary product dependency is dangerous.
Locational Advantage in trade
Some countries/cities are strategically located along important trade routes, giving them a big advantage in international trade.
What is Dutch Disease:
Dutch disease is an economics term that refers to the negative consequences arising from large increases in the value of a country’s currency.
It is usually associated with a natural resource discovery but can be a result from any large influx of foreign currency into a country (FDI – foreign direct investment), aid or a marked increase in natural resource prices.
North Sea oil:
1970s oil price x 3. Extraction becomes profitable off Scottish Coast. UK becomes oil exporter. Value of pound increases, prices increase. Britain goes into recession as people want wage increase and other domestic exports too costly.
What is Rostows 5 stage model
- Traditional society - subsistence, barter and agriculture…
dependent on rural economy - Transitional stage - specialisation, surpluses,
infrastructure - dependent on social appreciation of
education and skill development - Take Off - Industrialisation, growing investment, regional
growth, political change - dependent on Sub-urban
economy - Drive to Maturity - diversification, innovation, less
reliance on imports, investment - dependent on growth
and developed economies - High mass consumption - consumer oriented, durable
good flourish, service sector becomes dominant -
dependent on global economy or market managing
economies
Nigeria exports
97% of exports are Oil and natural gas
Egypt exports
77% of exports are Oil and Cotton
Cuba exports
77% of exports are Sugar and Tobacco
