Globalisation Flashcards
Define globalisation
A multi strand process where by there is increasing interconnectedness incorporating social, economic, cultural, political and environmental aspects
Name an example of economic globalisation
TnCs operating in multiple countries increased cross border exchanges
Name an example of social globalisation
Migration causes loss of culture - cultural erosions
Name an example of political globalisation
Colonialism
Name an example of cultural globalisation
Foods from different countries are available
Name an example of environment globalisation
Transportation of goods increased global warming
Name the connections
Lengthening - countries that are far apart are connecting
Deepening - more connections are being made
Faster - speed increase of connections
What is economic liberalisation
The progressive freedom of money control in a country
What is the world bank
An international financial institution that provides loans to countries of the world for capital projects
Name the 5 flows
Commodities, capital, information , tourists and migrants
What is the relationship between transport and trade
Transport increases trade, but transport needs to be updated and this creates a feedback loop
Name some points about steam power
Leading power in 1800s
Moved goods and armies quickly
Trade routes in Asia and Africa
Name some points about railways
1800s expanded globally
HS2 halving train times
By 1904, 9000km trans Siberian railway
Name some points about telegraph
First cables in 1860s
Placed 3 week boat journeys
Instantaneous communication
What are the three factors in HDI
GDP, life expectancy and education ( % literacy rate and years of schooling)
What are the values for HDI
- 550 or lower for developing
- 550-0.799 for emerging
- 800 or above for developed
When were the Bretton Woods Organisations founded
After WW2 to avoid the return of the Great Depression
What was free trade replaced with
Protectionism
Why did they set up
Because western economically weak countries felt threatened by territorial advances made by communist countries
What are the organisations there to encourage
Free world trade and globalisation
Explain the free trade loop
Governments take away barriers that make trade more costly eg tariffs
As costs are reduced, TnCs see profit and want to invest in nations
They bring new ideas, products etc
They generate wealth
This increases development and in turn increases standard of living and demand for foreign products
Nations become more interdependent
Name some points about jet aircraft
Available to the mass market in the 1960s
Budget airlines made air travel available to everyone in developed world
Explain time space compression
Heightened activity/ connectivity changes our perception of time, distance and potential barriers
What is the shrinking world
As travel times fall, places feel closer
Name some key points about World Trade Organisation
Believes in free trade (trade liberalisation)
Makes countries and producers become poorer and monopoly rises
Yet imports are cheaper
Name some key points about the International Monetary Fund
Lends money for development purposes
Forces countries to privatise government assists in order to increase size of private sector (in order to pay back loans) (structural adjustment programme) which stops money going to education
Name some key points about the World Bank
Formed to finance economic development Money from wealthy to poorer countries Agreements on conditions made Focuses on natural disasters Structural adjustment programme
What is the global financial crisis
Governments in developing and emerging countries became mistrustful of financial advice from the Bretton Woods Organisations
What does BRICS stand for
Brazil, Russia, India, China and South Africa
What did BRICS set up
The new development bank as an alternative
Name the three reasons why policies of the WTO disadvantage developing nations such as Ghana
Commodity traders
Over seas tariffs and unequal power
Why is commodity traders bad for Ghana
- Trader but cocoa in advance for TnCs which is called futures market and this guarantees price, supply and delivery
- other producers put pressure on Ghana as traders have alternative sources to negotiate with
Why are overseas tariffs bad for Ghana
There are higher tariffs on processed beans so they have to sell raw cocoa, which isn’t turning a low value product into a high value product
Why is unequal power bad for Ghana
Pre-WTO Ghanaians were subsidised to encourage food production but the WTO imposed a no subsiding condition and this means some farmers gave up
What do trade blocs and national governments do to promote globalisation
Free trade and foreign direct investment
What does foreign direct investment involve
Offshoring, foreign mergers, foreign acquisitions and transfer pricing
What is offshoring
Building production facilities in offshore low wage economies
Give an example of offshoring
Fender with Mexican plant in 1987
What is foreign mergers
Two firms in different countries merge
Give an example of foreign mergers
Royal Dutch and Shell
What is foreign acquisitions
When a tnc takes over another company in a different country to get that nations benefits
Give an example of foreign acquisition
Kraft over Cadbury
What is transfer pricing
Some TNCs have sometimes channelled profits through a subsidiary in a low tax country
Name an example of transfer pricing
Amazon through Ireland
What is a trade bloc
A group of nations that form to reduce/eliminate barriers to trade
What do governments recognise about secondary and tertiary products
That there is more money to be made, as if trade in these increase then so will the tax base and therefore skill level and high wage employment
How do trade blocs gain members
They attract FDI form other nations that want to invest to avail tariffs and access the large market
What do primary products not provide
Stability
What do you get with being in the EU
Currency- eligible for EU structural funds
Agriculture - produces benefit from farm subsidies
Peace- European Parliament holds peace
Freedom of movement - granted to all citizens of member states and the Shenzhen agreement means national borders are removed
What are the ASEANs aims
Eliminate tariffs and encourage free trade
Aim to develop into a single market (the Asian economic countries)
Where is ASEANs financial centre
Singapore
Where is ASEANs call centre
Philippines
Where is ASEANs manufacturing
Indonesia
How many countries and people are in ASEAN
10 countries and 600 million people
What is a special economic zone
An industrial area, often near a coastline where favourable conditions are created to attract foreign TNCs
What do SEZ’s add towards
Economic development goals
Explain SEZ’s in Indonesia
In 1960, president Sauharto built a new legal and economic framework which attracted companies such as Gap and Levi’s
What did President Sauharto do
Borrowed money from the world bank and built roads, power supplies and ports
What happened to Indonesia
It became a centre for sweatshop manufacturing and had quick social impacts
Explain SEZ’s in India
In 1991, there was a sweeping financial reform and foreign retailers can only gain a presence by forming partnerships with local businesses
Explain China’s open door policy
Pre 1978- poor and politically isolated
1978 - Deng began open door and allowed China to embrace globalisation
Rural areas first changed and farmers made a small profit
1 child policy
1978+ - largest human migration 300 million into cities, instant cities made
1990s- 50% GDP from SEZ’s
2015- many workers making good profits
Today- worlds largest economy and 400 million people escaped poverty
What are the terms switched on and switched off
Switched on is globalised and off is not
How can we measure economic globalisation
Balance of trade
GDP per capita
Tariffs
How can we measure environmental globalisation
% change in CO2 emissions
Species loss
How can we measure social globalisation
% of people in higher education
Equality
How can we measure political globalisation
Corruption index
Involvement in foreign organisations
What indicators does KOF use
Economic, social and political globalisation
How is each country’s KOF rank calculated
Weighted as some indicators are more important, then added into one value
Number between 0-100
What indicators does the AT Kearney use
Political engagement, technological connectivity
Personal contact
Economic integration
How is each country’s AT Kearney rank calculated
Uses holistic indicators and worked out using a complex points and weighting system
4 separate ranking system then weighting
Explain Manchester’s deindustrialisation
Between 1971-1981 it lost 50,000 jobs and 17.5% of its population due to loss of jobs in textiles
Started the north south divide
Due to globalisation and global shift in manufacturing
1986 economic liberalisation meant money went straight to London
Slight regeneration through ‘northern powerhouse’
Explain Redcars deindustrialisation
Steelworks went to China and India
Majority of people lost their jobs due to globalisation
Unemployment rate of 8.3% which is 3% higher than national average
What are the 3 D’s associated with deindustrialisation
Dereliction
Depopulation
Deprivation
Explain dereliction
It costs the government money to keep the site safe and contaminated land costs to clean
Explain depopulation
A loss of jobs leads to migration
Explain deprivation
Lower standard of living due to unemployment and a low life expectancy by 10 yearsyears
What is the index of multiple deprivation
Divides England into 32,844 areas with between 1500-2500 people
It’s made up of 7 domains and 37 indicators
What are the 7 domains
Income Employment Education Health Crime Barriers to housing Living environment
Explain IMD
It ranks areas in deprivation
Data comes from the government so the deprived can be enhanced
It only shows how good or bad areas are compared to others
Rankings can change dramatically by small events
What are the benefits of global shift
Infrastructure investment
Waged work
Poverty reduction
Education and training
Explain infrastructure investment in China
China has 10,000km of rail system and 82 airports
What is waged work
Growth of disposable income and regulations are put in place
Explain poverty reduction in China
Poverty went from 84% to 10%
Explain education and training in China
It is now free and compulsory and there are higher literacy rates
Name some negatives about the global shift
Loss of productive land
Unplanned settlements
Environment and resources pressure
Explain loss of productive land in China
3 million hectares polluted by heavy metals
Increased use of fertilisers means that farmland near drinking water has to be left
Explain unplanned settlements in China
Informal housing due to rapid industrialisation
Expanding villages and privately being built on
Explain environmental and resource pressure in China
Too much demand for resources
Reliant on other places
Loss of biodiversity in China and reliant places
What does the Mann Whitney test test
Whether there is a significant difference between two sets of data
What is the MW based on
The median
When is the MW test used
When the data set has between 5-20 values
When the data set doesn’t have the same number of values
When the data isn’t normally distributed
When does it show that there is a significant difference
If the U is smaller than the critical value
Why is the MW test prime to human error
It has lots of steps
When does the MW test work better
When data says are independent
What word should we always use in the null hypothesis
Significant
What two factors cause urbanisation
Rural to urban migration
Natural increase
Name three push factors
Poor employment opportunities in primary sectors due to mechanisation
Poverty
Poor schooling due to lack of teachers and large classes
Name three pull factors
Better employment opportunities in secondary and tertiary sectors
Greater opportunity for education
A perceived higher standard of living
What’s happening in developed countries
Counter UR migration
International highly skilled migrants coming in
Green belts prevent cities expanding
What are the 5 social challenges of rapid urban growth
Overcrowding Poor housing Pressure on governments to provide services Lack of doctors and healthcare Unemployment causing growth of extremism
Name the three environmental challenges for rapid urban growth
Air pollution
Water pollution
Increased chance of flooding
Which continent has the highest level of intraregional migration
Africa as they have a low education and it’s lower cost
What are global/hub cities
Switched on places possessing qualities that makes other places want to connect and migrate there
Name 5 human aspects of hub cities
Well connected infrastructure Skilled labour Open governments that are stable Large labour force Multilingual
Name 4 physical aspects of a hub city
Coastline
Flat plain
Useful resources
Accessibility
What do global hubs attract
FDI capital and TNCS
Internal and external migrants
Why do low wage migrants bring more money to an economy than elite migrants
As elite migrants have more connections and therefore will send taxes to other countries
Explain low wage migrants and give an example
Large amounts of people coming from India and Pakistan to UAE
Entry visas tied to work contracts
Low pay
Make up for lack of work force
Explain elite migrants and give an example
Russian oligarchs to London for property investment
Highly skilled, affluent individuals
Good way of investing money as the pound is a stable currency
Name 4 positive impacts of migration on the source country
migrant remittances contribute to national earnings
reduced unemployment
less strain on government
less people working in informal economies that release greenhouse gases
Name 3 positive impacts of migration on the host country
brings high demand therefore prices can increase
migrants do work that locals are unwilling to do
migrants can bring new ideas to a country
Name 4 negative impacts of migration on the source country
brain-drain for workers and politicians
imbalance of population
dereliction of urban areas
reduced economic growth as consumption falls
Name 4 negative impacts of migration on the host country
more competition for normal jobs
social tensions arise with locals and migrants
extremism
overcrowding
Define cultural diffusion
the spread of cultural ideas and way of life between individuals and cultures
Define cultural erosion
the loss or dilution of a specific culture due to cultural diffusion
A change in ideas and traditions
Name two disadvantaged groups
Minority political/religious views
Physical disabilities
What is meant by a disadvantaged group
How someone’s identity can be a disadvantage rather than their resources/environment
What is a composite measure
a measure using several sets of data
When did the development gap widen
between 1980 and 2012
What measures does GII use
reproductive health, empowerment, education and employment
What does GII stand for
gender inequality index
What are the highest and lowest countries for GII
Norway
Pakistan
Explain the Lorenz curve
a graph that shows what % of the population contributes to the countries wealth
closer to the line of equality, the more equally money is shared
What are the values for the Lorenz curve
1 - 1% of people have all the wealth
0 - equal distribution of wealth
Explain the windrush generation
500,000 caribbeans come to UK to rebuild after the war and to escape poverty due to decolonisation
1940’s
When did the pakistanis come to britain
1950’s for the textile boom
750,000
Why were both of these easy to do
as there were little visa restrictions/requirements
When did the poles and slovakians come to britain
2004 when they joined the EU
5 million
What % of residents in 2011 were born outside of the uk
13%
Why is London a multicultural mixing ground
capital tertiary jobs open and accepting different languages international air connections
What is a diaspora
the migration of people who share a nationality or ethnic identity away from their perceived home land
Name a diaspora in London
Balham
polish church and community centre
What are the three causes of diasporas
open borders
deregulation with businesses
FDI from foreign companies
What causes tensions in and between countries
Nationalist parties such as Front Nationale
Resources
Explain Front Nationale
perceived view is that migrants are getting favourable benefits
support from younger generation and those in deindustrialised areas
Name a company that has tried to retain cultural identity
First Nations Canada
protecting 643 indigenous people
land being returned to groups after colonial rule
Name a company who is anti globalisation
Occupy london
want a more sustainable economic system
What are the three ways we can increase sustainability in globalisation
locally sourcing through transition towns
fair trade and ethical shopping
recycling
Explain transition towns
meeting local needs through local production
eg Todmorden
£10 spent in local businesses is £23 to local economy which creates a multiplier effect
Which NGO promotes recycling and waste disposal
Keep Britain Tidy
What is ethical consumption
buying from companies that ensure safe working conditions, minimum wage and look at environmental impacts
How is censorship controlling globalisation
Stop companies that are banned from advertising
state control the media (great firewall of china)
How is limiting immigration controlling globalisation
often contraversial
not effective in EU countries
Trump proposed a wall between Mexico and US
How is trade protectionism controlling globalisation
rules put in place for a fair market globally
China 2016 heavily subsidised steel made UK lose 1 mil a day and a deal had to be made
often very effective as all countries have to follow deals and it protects the countries domestic production
