GLOBALISATION! Flashcards
what is globalisation?
the ever increasing interconnectedness between countries
what is an MNC and TNC?
multinational corporations
transnational corporations
flows in globalisation:
capital
commodities
people (tourism, migrants)
information
four types of globalisation:
economic
social
cultural
political
what is a trade bloc?
a group of countries with an agreement to trade without as many barriers to the movement of goods. a type of intergovernmental agreement, usually goes along with other treaties about the free movement of people
what is the Schengen Agreement?
allows people who are from countries that have signed the agreement to move across most EU borders without being subject to border checks
what is social globalisation?
the increasing number of international migrants, increasing quality of educations and healthcare, rise of social media
what were jet aircrafts used for before carrying passengers?
military purposes
what is time space compression?
allows the relative distances between places to feel far smaller
what is the key idea in containerisation?
by making sure all containers are the same size, ships and ports around the world can be fitted to deal with all types of goods in the containers. makes global shipping far quicker and cheaper
what is an example of pre-1800s globalisation?
the British Empire and East India Company
what has accelerated globalisation?
rapid development of ICT and mobile communication (mobile phones, internet, social networking, electronic banking, fibre optics)
how many of the top 10 most valuable TNC brands in 2018 were technology companies?
six
what are special economic zones?
areas that national governments can set up to help attract FDI into a region
what is foreign direct investment?
when companies from abroad come and invest in industry within a country
what is China’s open door policy?
opened up the country to investment from abroad leading to significant economic growth
what is the limit on the number or quantity of good and services that can be exported called?
a quota
what are free trade blocs?
can increase interconnectedness between countries by removing tariffs and quotas for trade in goods and services eg. EU and NAFTA
what is a tariff?
taxes on goods that are imported and exported
what does China encourage to locate there and how?
TNCs by offering low labour costs and taxes
examples of free trade blocs:
EU
NAFTA
examples of china’s economic initiatives:
encourages TNCs by offering high low taxes and low labour costs
allows 34 foreign films a year in cinemas
joined WTO in 2011
how might a government attract start up businesses?
offering subsidies
offering lower tax rates
installing high quality infrastructure
what is it called where state-owner businesses or infrastructure are sold to private TNCs?
privatisation
by 2017 the New Development Bank had given loans of how much to member countries?
$1.5 billion dollars
what are the Bretton Woods institutions?
International Monetary Fund (IMF)
World Bank
World Trade Organisation (WTO)
which of the following countries has been a particular focus for Chinese investment in infrastructure projects?
Kenya
BRIC countries:
Brazil
Russia
India
China
indicators in the AT Kearney index
economic integration
technological connectivity
personal contact
political engagement
why is the AT Kearney Index considered more holistic than the KOF index?
it looks at the number of web-servers rather than just internet communications for example
what are ways to measure globalisation?
KOF index
AT Kearney index
human flows of migrants
indicators of globalisation:
flows of migrants
trade flows of FDI
membership of trade blocs and IGOs
2 terms to describe TNCs worker relocation:
outsourcing
offshoring
how does McDonalds reflect globalisation?
McVeggie and McSpicy Paneer in India
what does outsourcing mean?
when a TNC gives a contract to another company to complete part of their work eg. outsourcing customer service call centres to parts of the world w lower labour costs eg. BT in India
how do TNCs help globalisation spread?
global production networks or global supply chains
what does glocalisation mean?
TNCs adapt their products to the needs of local consumers
why do the landlocked countries of the Sahel region struggle to export goods?
no ports
reasons why places are switched off from globalisation:
economic: eg. being excluded from trade blocs
social: eg. a country or region with a poorly educated population putting off a TNC from setting up production there
physical: eg. a country being landlocked w. no access to a port
environmental: eg. a country lacking energy resources to trade
political: eg. a dictator choosing to excuse he country from the global economy
why is North Korea switched off from globalisation?
communist dictatorship
no access to internet
social media sites not permitted
cheap goods not imported
what is dutch disease?
when nations that export a lot of raw materials like oil suffer because their exports become uncompetitive
what percentage of China’s farmland was predicted to have degraded because of pollution and increased building in 2014?
40%
what is global shift?
the movement of manufacturing and the outsourcing of services from the West to the East. can be considered the movement of the global economic centre of gravity. main driver is labour costs
at what growth rate did China’s economy grow at between 1978 and 2012?
9.4% per annum
how many people did BT employ in India in 2003?
2200
what happens as more people move to cities to take jobs in manufacturing?
squatter settlements grow: low quality of life, causes problems for local government
impacts of working environment on health:
unsafe working conditions
unplanned settlements
water and air pollution
examples of areas experiencing loss of biodiversity:
since 1990, Togo has lost 60% of forested area
Nigeria has lost 50%
in 2015, WWF found that China had lost 50% of vertebrates since 1970
3 facts about pollution in China:
pollution in Northern China is so bad that it cuts three years from life expectancy
in Beijing in 2013, air pollution levels at the time were 20x above recommended levels
in 2015, 85% of water in Shanghai’s major rivers was undrinkable
why do unplanned settlements often have terrible health conditions?
no running water, sanitation system and hygiene is often v poor
major environmental problems caused by global shift:
land degradation
resource exploitation
loss of biodiversity
by 2016, China had made 22,000km of what to help export goods easily?
high-speed rail network
3 examples of the spiral of decline:
in March 2015, youth unemployment rate in many European countries stood at more than 20%
spiral of decline set in 2013 in detroit after car companies struggled against japanese competition
in 2017, detroit was still losing 0.5% of population yearly
3 examples of the spiral of decline:
leicester UK
greece
detroit, USA
what was a result of the closure of the mines in the North of England in the 1970s and 80s?
increase in mental health issues
unemployment
3 push factors towards mega cities:
lack of access to education in rural area
lack of access to health care in rural areas
lack of access to clean water and sanitation in rural areas
how many people live in Asia’s largest slum in Orangi Town in Karachi?
2.4mil
megacity pull factors:
better employment opportunities in city
better healthcare available in city
overall better quality of living
what problems can rapid population growth cause?
environmental: shortage of resources
social: shortage of housing and services
how many people are employed in recycling plastics in Dharavi?
5000
problems because of the rapid growth of Karachi:
water shortages
tax avoidance
unplanned settlements
3 facts about Mumbai:
Dharavi is the largest slum
Mumbai has doubled in size since 1970
in slum areas people have little or no access to waste management
what are elite migrants?
wealthy migrants who are welcomed to a country because of the investment and capital they bring
impacts of low wage migration on source countries
creates an interdependence between host and source countries
benefits from remittances sent home
skills gap left
what is it called when less skilled workers move to new regions to find work?
low wage economic migration
pros and cons of elite migration:
:) increases investment into host country
:) fills skills gaps eg. nurses in NHS
:( lack of investment in source country
:( skills gap in source country
in Dubai, foreign migrants make up how much of the construction workforce?
80%
benefits of low wage economic migration for host country:
cheap labour can be used to develop infrastructure of country
what can a recession in one country lead to in another country?
fall in demand for low skilled migrants
how can migration help to rebalance a population?
reduce impacts of an ageing population by increasing tax base. particularly key in western european countries eg. germany
which nation suffered from brain drain after joining the EU?
poland
environmental impacts of Western culture on China:
diets are changing meaning a huge increase in demand for meat
increase in deforestation as trees are cleared to use for cattle ranches
beef and lamb are most emissions intensive food
by 2015, China had become world’s biggest market for processed food
what is cultural diffusion?
spreading of a culture into another, can mean loss of own local culture in some communities eg. loss of tribal lifestyles in Papua New Guinea
impacts of cultural erosion:
lost traditions eg. language, food, clothing
damaged natural environments eg. rising demand for resources = people care less about local ecosystems
damaged built environment eg. if TNCs move into an area and westernise it
papua new guinea cultural erosion
1 in 4 local languages at risk of being lost forever
7000 different cultural groups
what are anti globalisation groups?
they argue against the rise of a global culture, esp dislike tax avoidance tactics of many global TNCs eg. Apple pay tax rates as low as 0.005% in ireland
what are anti globalisation groups opposed to?
environmental damage
child labour
TNC tax avoidance
how does cultural erosion impact the natural environment?
if people start to care less for their local ecosystems for the rising demand of resources
what is GDP?
an example of a single measure of development
the total value of goods and services produced in a country over one year
gdp per capita divides gdp by the number of people in a country
what are some composite indices of development?
Humans Development Index (HDI)
Environmental Quality Index (EQI)
what does the HDI include?
life expectancy at birth
expected and mean levels of schooling
gross national income (GNI)
according to the WHO, which country tops life expectancy rankings with 84.2 years?
Japan
in the US the share of national income that the top 1% own has increased from what% in 1980 to what% in 2014?
11% to 20%
What is South Africa’s and Iceland’s gino coefficient in 2017?
South Africa: 0.62
Iceland: 0.25
what was the UKs most equal city in recent studies?
Sunderland
what was Donald Trump’s decision to curbs immigration from certain countries branded as?
‘Muslim ban’
large scale migration can:
put a strain on schools and healthcare
put pressure on host location’s housing provision
examples of political tensions from globalisation:
UK: UKIP popularity, brexit
USA: Trump’s ‘Muslim ban’
what campaign strongly opposes the development of a ski resort in the Jumbo Valley?
‘Keep Jumbo Wild’
why do some groups fight the globalisation of culture?
to resist changes to cultural identity
to protect wilderness for future generations
to keep their physical resources
who was censorship used by?
Nazi Party in Germany in 1930s
Soviet Union under Stalin
Chinese and North Korean governments today
what’s the Chinese version of Whatsapp?
what are infant industries?
industries that are in the early stages of development in the domestic country
how does trade protectionism affect the spread of globalisation?
it limits it by adding tariffs to imports
what does sustainability mean?
the ability to meet the needs of the current generation without compromising the ability of future generations to meet their own needs
what is localism?
aims to increase sustainability by limiting food miles. buying food from local producers means it doesn’t travel to reach its destination to carbon emissions are lowered
what is the aim of the Fair Trade Foundation:
a scheme that aims to reduce inequality that results from globalisation
aims of Fair Trade Foundation:
reduce inequalities of global trade
improve working conditions by ensuring fair price
reduce environmental degradation by increasing awareness of negative impacts of production
how much was paid to producers via the Fairtrade premium in 2013-14?
£106.2mil
Keep Britain Tory’s aims:
to cut litter
end waste
improve public places
educate future generations
