Globalisation

Question 1

% of UK’s population as foreign born in 2011?

Answer 1

12.7%

Question 2

White British fall from 2001-2011?

Answer 2

87% to 82%

Question 3

Global Production Network?

Answer 3

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

Question 4

Outsourcing?

Answer 4

External delegation of one or more business processes to an external provider who administers, managers and owns the selected process to an agreed standard

Question 5

Why does outsourcing bring risks?

Answer 5

1. Natural hazards = 2011 = disrupt global supply chain
2. Scandals = 2013 horsemeat scandal = many international companies supplied meat to many European supermarkets e.g. Frigilunch, Belgium > Birds Eye
3. Rana Plaza factory disaster collapse - Bangladesh
   + 1100 killed
   + Bonmarche, Primark, Matalan all outsourced here…

Question 6

Outsourcing example?

Answer 6

Apple (California > China)

Question 7

What is glocalisation?

Answer 7

Changing design of products to meet local tastes/laws

Question 8

Why does glocalisation exist?

Answer 8

Variations in:

1. People’s tastes = Cadbury chocolate = sweeter
2. Religion/culture = Dominos’ only offer veggie food in India’s Hindu neighbourhoods
3. Lack of avalibility of raw matierals = SABMillar uses cassava to brew beer in Africa

Question 9

Examples of glocalisation?

Answer 9

1. MCDONALDS = notorious
   - Japan = ebi shrimp
   - Israel = only kosher meat
   - veggie restaurant, Sikh pilgirims, Amritsar

Question 10

Why do some companies not glocalise?

Answer 10

To keep an authentic brand

e.g. Lego, Apple

Question 11

Switched On?

Answer 11

Nations, regions, cities that are strongly connected to others by the production and consumption of goods and services

Question 12

Who wants to be more switched on?

Answer 12

CHINA
OBOR = global strategy to link up Eurasia

SAUDI ARABIA
VISION 2030 = reduce dependency on oil, diversify economy, improve public service

Question 13

Why are some places switched off?

Answer 13

1. Highly vulnerable to natural hazards e.g. Japan (move of it’s manuf of Nissan and Toyota = UK)
2. Poor resources for agriculture e.g. Eritrea = only 12% of total land is good for farming
3. Lack of skills and literacy e.g. Niger = 19%
4. Politically isolated e.g. NK
5. Ethnic conflict e.g. Saudi = Sunni & Iran = Shia

Question 14

When was height of global shift?

Answer 14

1970’s

Question 15

Types of industrty?

Answer 15

1. Primary
   - extractive industries .e.g mining
   - 12% of UK GDP
2. Secondary
   - manuf/ assembly
3. Tertiary
   - services and goods provision
   - 80% of UK GDP!!!
   - London = hub for UK financial services
4. Quaternary
   - research and development expertise

Question 16

Emerging Asia?

Answer 16

Japan:
+ 1950’s

South Korea:
+ foreign investors started working with chaebols

China:
+ 1978: rlly attracted foreign investors to inject FDI

Question 17

Positives of globalisation/global shift?

Answer 17

1. 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
2. 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
3. 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

Question 18

Negatives of globalisation/global shift?

Answer 18

1. Pollution
2. Increase in unplanned settlements
   - too much rural-urban mig (using Hukou to control dis) = unplanned settlements
3. Environmental degredation
   - desertification expanding at rate of 67km2 annually!

Question 19

What is outsourced to India?

Answer 19

Call centres

• speak English
• good wages
• broadband capacity high in Bengaluru

Question 20

Extreme poverty in China reduction?

Answer 20

1990 = 60%
2005 = 16%

Question 21

What is a sweatshop?

Answer 21

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!

Question 22

What is OBOR?

Answer 22

A development strategy involved in infrastructure development & infrastructure

Question 23

What does Chinese gov see OBOR as?

Answer 23

An initiative to “enhance regional connectivity”

Question 24

What does world see OBOR as?

Answer 24

A push for Chinese dominance in global affairs with a Chinese centered trade network

Question 25

How many countries does OBOR say to link?

Answer 25

152 countries!

Question 26

What is the focus of OBOR?

Answer 26

- infrastructure investment - education - railway and highway - automobile - real estate

Question 27

How many countries has China acc signed cooperation document on OBOR?

Answer 27

126 countries

Question 28

China's neocolonialism? (or 'dept-trap diplomacy')

Answer 28

Constructed the Addis Ababa-Djibouti Railway Yiwi-London Railway line 99 year debt relief on Hambantota port, Sri Lanka

Question 29

What did Russia and China call themselves?

Answer 29

"Good friends"

Question 30

What did Malaysian President say about China?

Answer 30

"There is a new version of colonialism happening" | Malaysian Prime Minsiter Mahathir Bin Mohammed

Question 31

Negatives of globalisation in general?

Answer 31

- inequality | - economically dominated world with little care for environment or social problems

Question 32

Conflict due to economic globalisation demand?

Answer 32

Playstation Wars, DRC, 1990's-2000's - demand for coltan: mobiles, tvs, electronics - 80% of coltan is held in DRC