Globalisation Flashcards
% of UK’s population as foreign born in 2011?
12.7%
White British fall from 2001-2011?
87% to 82%
Global Production Network?
A chain of connected suppliers, of parts and matierals, that contribute to the manufactering or assembly of the consumer good
- BMW = 2500 different suppliers for Mini Car
- Windscreen = Belgium
- Engine = Brazil
- Exhaust system = UK
Outsourcing?
External delegation of one or more business processes to an external provider who administers, managers and owns the selected process to an agreed standard
Why does outsourcing bring risks?
- Natural hazards = 2011 = disrupt global supply chain
- Scandals = 2013 horsemeat scandal = many international companies supplied meat to many European supermarkets e.g. Frigilunch, Belgium > Birds Eye
- Rana Plaza factory disaster collapse - Bangladesh
+ 1100 killed
+ Bonmarche, Primark, Matalan all outsourced here…
Outsourcing example?
Apple (California > China)
What is glocalisation?
Changing design of products to meet local tastes/laws
Why does glocalisation exist?
Variations in:
- People’s tastes = Cadbury chocolate = sweeter
- Religion/culture = Dominos’ only offer veggie food in India’s Hindu neighbourhoods
- Lack of avalibility of raw matierals = SABMillar uses cassava to brew beer in Africa
Examples of glocalisation?
- MCDONALDS = notorious
- Japan = ebi shrimp
- Israel = only kosher meat
- veggie restaurant, Sikh pilgirims, Amritsar
Why do some companies not glocalise?
To keep an authentic brand
e.g. Lego, Apple
Switched On?
Nations, regions, cities that are strongly connected to others by the production and consumption of goods and services
Who wants to be more switched on?
CHINA
OBOR = global strategy to link up Eurasia
SAUDI ARABIA
VISION 2030 = reduce dependency on oil, diversify economy, improve public service
Why are some places switched off?
- Highly vulnerable to natural hazards e.g. Japan (move of it’s manuf of Nissan and Toyota = UK)
- Poor resources for agriculture e.g. Eritrea = only 12% of total land is good for farming
- Lack of skills and literacy e.g. Niger = 19%
- Politically isolated e.g. NK
- Ethnic conflict e.g. Saudi = Sunni & Iran = Shia
When was height of global shift?
1970’s
Types of industrty?
- Primary
- extractive industries .e.g mining
- 12% of UK GDP - Secondary
- manuf/ assembly - Tertiary
- services and goods provision
- 80% of UK GDP!!!
- London = hub for UK financial services - Quaternary
- research and development expertise
Emerging Asia?
Japan:
+ 1950’s
South Korea:
+ foreign investors started working with chaebols
China:
+ 1978: rlly attracted foreign investors to inject FDI
Positives of globalisation/global shift?
- Poverty reduction and waged work
- since 1990, 500 mil escaped pov in China alone
- created new global middle class
- asia middle class = 2015 = 46%
- asia middle class = 2030 = 65%
- China = 2012 = 31% of pop is middle class - Education and training
- China awarded 10,000 PHDS in 2012
- China = C9 league, China’s ‘Ivy League’
- people at uni in china: 1998 = 1 mil - 2007 = 5.4 mil - Investment in infrastructure
- total of China’s airports = around 230
- connecting up cities and provinces
- encouraging rural-urban migration and jobs etc good good gooooood
Negatives of globalisation/global shift?
- Pollution
- Increase in unplanned settlements
- too much rural-urban mig (using Hukou to control dis) = unplanned settlements - Environmental degredation
- desertification expanding at rate of 67km2 annually!
What is outsourced to India?
Call centres
- speak English
- good wages
- broadband capacity high in Bengaluru
Extreme poverty in China reduction?
1990 = 60% 2005 = 16%
What is a sweatshop?
A factory/workshop where manual worker are employed at very low wages for long hours and poor conditions
- LOW
- LONG
- POOR
e.g. Nike only pay workers $0.2 an hour!
What is OBOR?
A development strategy involved in infrastructure development & infrastructure
What does Chinese gov see OBOR as?
An initiative to “enhance regional connectivity”
What does world see OBOR as?
A push for Chinese dominance in global affairs with a Chinese centered trade network
How many countries does OBOR say to link?
152 countries!
What is the focus of OBOR?
- infrastructure investment
- education
- railway and highway
- automobile
- real estate
How many countries has China acc signed cooperation document on OBOR?
126 countries
China’s neocolonialism? (or ‘dept-trap diplomacy’)
Constructed the Addis Ababa-Djibouti Railway
Yiwi-London Railway line
99 year debt relief on Hambantota port, Sri Lanka
What did Russia and China call themselves?
“Good friends”
What did Malaysian President say about China?
“There is a new version of colonialism happening”
Malaysian Prime Minsiter Mahathir Bin Mohammed
Negatives of globalisation in general?
- inequality
- economically dominated world with little care for environment or social problems
Conflict due to economic globalisation demand?
Playstation Wars, DRC, 1990’s-2000’s
- demand for coltan: mobiles, tvs, electronics
- 80% of coltan is held in DRC
