Globalisation Flashcards
1
Q
Globalisation impacts
A
- you can tap into any market, sell anything from anywhere
- national/local factories must compete with TNCs
- submarine cables mean financial transactions must occur faster than clicking a mouse
- iTunes is having to compete with streaming services like Spotify
- A38- and 797 have added capacity, but more for business class
- domestic football teams can be made up of foreign talent
2
Q
Transnational corporation (TNC)
A
a firm operating in more than one country / many countries / spreading across borders operating internationally / working globally
- critics: process reinforces inequality between nations
- supporters: all countries that establish good governance, education, and training and openness to foreign investment and technology transfer will benefit
3
Q
5 main drivers of globalisation
A
mobile phones internet social networking electronic banking fibre optics
4
Q
Globalisation statistics
A
$26trillion flow of goods, services, and finance in 2012
$450billion added to global GDP growth each year by flows
up to $85trillion flow of goods, services and finance by 2025 - 3x value of 2012
500% increase in international Skype call minutes since 2008
90% of commercial seller on eBay export to other countries
5
Q
1948 General Agreement on Tariffs and Trade (GATT)
A
initially 23 countries agreed 45,000
created after WW2 to build free trade to help economies grow after war
concessions affecting US$10bil of trade
rose to 102 countries agreeing tariff reductions worth US$300bil+
6
Q
1994 The World Trade Organisation (WTO)
A
GATT became this
123 countries agreeing to major reductions in tariffs and agricultural subsidies
allowed full access for textiles and clothing from developing countries and extension to property rights
7
Q
2001 - Now
Doha Development Round
A
Unsuccessful negotiations to reduce barriers to trade made by WTO
Main disagreement between developed economies (EU, US, Japan) and emerging economies (Brazil, India, China) over agricultural subsidies - seen as trade barrier
8
Q
5 factors that have accelerated process of globalisation
A
TNCs Lower transport costs Computer and internet technology International organisations New Markets
9
Q
World Trade Organisation
A
replaced the general agreement on tariffs and trade (GATT) in 1995
wants trade liberalisation- for goods and for countries to not just protect their own companies
Laos can trade directly with the EU now
BUT USA preferential treatment to own company Del Monte, making harder for Ecuador to export bananas to Europe
10
Q
World Bank
A
lend money and give grants all around the world for poverty reduction
impose strict conditions
BUT poor countries will rely on aid, so they won’t bother to fix the economy themselves
11
Q
International Monetary Fund (IMF)
A
channels loans from rich to poorer countries, but they have to agree to run free market economies and allow outside investment, e.g. sierra leone
governments might have to cut back on heath care, education, sanitation, housing programmes
encourages privatisation
structural adjustment programme
bailouts are on condition of structural adjustment programmes, which broadly expect countries to be more globalised / liberal etc.
based in Washington
IMF can be seen as a hindrance- LEDCs fall into debt with their industries privatised, profits leaving the country and environmental or workforce exploitation
countries who face debt- have to cut funding in areas such as education and healthcare- further damages economy and welfare
12
Q
Role of TNCs in globalisation
A
would be no investment without them
they initiate development in different sectors
contribute to country’s GDP
TNCs benefit from cheap labour- costs are kept to a minimum so they are more productive, high profit so reinvest into product innovation and new technology
investment crushes all local/lesser companies = dominant
13
Q
Role of developing countries in globalisation
A
need places to source and outsource from
used as a source of cheap labour
14
Q
Foreign Direct Investment
A
Ownership of a business in one country by an organisation that is based in another, making it legal for foreigners to own and control businesses and property in another country
15
Q
Inorganic FDI
A
where a foreign firm buys a company in another country
can lead to job losses
16
Q
Organic FDI
A
FDI expanding operations of existing business into a new foreign country
creates jobs
and regenerates infrastructure
17
Q
Offshoring
A
some TNCs build their own new production facilities in ‘offshore’ low-wage economies
e.g. USA opening plant in Mexico
18
Q
Foreign mergers
A
two firms in different countries joining to create single entity
19
Q
Foreign acquisitions
A
where a TNC launches a takeover of a company in another country
e.g. Cadbury taken over by US Kraft
20
Q
Transfer pricing
A
some TNCs e.g. Starbucks and Amazon, have channeled profits through a subsidiary company in a low-tax country
21
Q
ASEAN
Association of South East Asian Nations
A
10 member states
6 million people
promoted free trade and helped develop manufacturing and created jobs
call centre for workers in Philippines
22
Q
EU
A
multi-governmental organisation with own currency
shared legislation
countries became eligible for funds
member states gave freedom of movement
23
Q
Trade Block pros and cons
A
pros:
- market is bigger = companies can expand into other countries and source materials more cheaply from within trade bloc
- firms could merge together - creates economies of scale: lower costs and higher profits and more investment
- you protect yourselves from other parts of the world - forced consumers to buy locally sourced goods
cons:
- you lose some sovereignty - human rights legislation, CC treaties
- interdependence - economic problems in on country spread to another
- you have to compromise and concede - have to compete with foreign companies, own companies might go out of business, competition creates lower prices and more efficiency
24
Q
British Airways
A
Offshoring-
- BA plans to off-shore many of its IT jobs to India
- this will affect BA Heathrow (700 job losses a Waterside), BA Newcastle (100 job losses)
- BA is transferring its UK IT jobs to Tata Consultancy Services (TCS) in India
- BA staff are angry – replacing them with another company’s cheap labour
- BA is enjoying huge profits, claims only about 200 UK jobs would be lost, and it employs 35,000 people in the UK
foreign mergers:
- BA merged with Iberia in 2011, creating the International Airlines Group - world’s 3rd largest airline group
25
Jebel Ali
- ME's first big 'free zone', now 22 in Dubai alone
- world's largest
- has own judicial system
- 1,225 companies with 14-18% growth per year
- $1bn of new development planned
- 5% VAT initiated in Jan 2018
- previously tax-free, increases product cost
- part of the GCC, Gulf Cooperation Council
- Jebel Ali port, the metro, Jumeirah Lakes towers (housing)
- attracts FDI
- US Navy 5th fleet
- governments can protect local cultures - Emirati citizenship
- expats make up 85% of citizens, hard to get citizenship
- main part of economy is tourism, sell oil
- worried about falling oil prices, won't be a leading global player
- oil and gas industry makes up 40% of GDP
- want to grow in manufacturing industry
- currently nation sate- need to start relying on globalisation to sustain economic growth
26
KOF globalisation index
countries
measured over 36 years for 158 countries
to what extent are countries socially, politically and economically linked to each other
the more globalised = the more links to tourism, communication, trade, FDI and socio-political processes
composite indicators
political- 39% weighting- if they are members of international organisations and trade blocs, number of foreign embassies in country, participation in international treaties
economic- 37% weighting, flows of FDI, flow of goods
social- 24% weighting, personal contact through international phone calls, tourists, no. of internet users per 1000 people, number of McDonalds
27
AT Kearney Index
64 cities
measures business activity, human capital, information exchange cultural experience, and political engagement
notices growing countries
more business / economic related
28
Compare KOF and AT Kearney
KOF compares countries annually- reveals trends, up to date, and considers many factors
AT Kearney ranks future potential of cities, measures different features: e.g. offshoring, looks at global connections, builds a picture of where a TNC should invest
29
Global hubs
intense connections to the rest of the world
many host major TNCs and have increasingly diverse populations
flows of finance, trade and ideas
air travel and containerisation and telegraphs allow movement of people and goods between hubs
30
Physical geo affecting globalisation
natural hazards disrupt supply chains
dodgy meat products
poor local working conditions
location of factories- could affect production line if in a dangerous / vulnerable place
31
Abercrombie and Fitch
offshore- moved manufacturing operations to Bangladesh where there is cheap labour
opened as a joint venture in UAE- Majid Al Futtaim fashion
adapted to the local appeal in the UAE- no topless models
glocalisation - e.g. McD's India inspired burger- chicken instead of beef
child labour is legal in China, Vietnam, India, Guatemala
company's sales grew 87% overseas and from 1 store to 40 stores
32
TNCs getting away with what they want
YES:
- poor environmental reputations e.g. Apple in China with nets on balconies to prevent suicide
- countries desperate for FDI so use low taxes and licence agreements to encourage TNC investment
- workers depend on them for jobs- can threaten to leave any country (capital flight)
NO:
- want profit so they have to find labour that is cheap
- labour becomes more expensive over time
- might need better reputations with consumers - Rana Plaza fire in Dhaka
- consumer market always changing so need to adapt to this- don't have complete control
- anti-globalisation groups
- physical geo disrupts supply chains e.g. Japanese tsunami, factories with cheap labour are where natural disasters occur
33
Pros and cons of TNCs
investment:
- bring money into country's local economy
- wages paid exploit local workers
- tax incentives- most of profit taken out of developing country- minimal economic benefit
- growing global inequalities- cluster in selected economies
technology:
- development- brings in technology and knowledge
- but have to educate population otherwise country's industry won't benefit
- if they share too much info, could increase competition from local companies
transport:
- creates jobs for the locals
- invest in quality of transport
- transport links receive financial help from TNCs often only serve the direct routes and needs of that company not wider area
employment:
- create jobs for local population
- jobs are highly skilled so company brings own people
environment/safety:
- companies bring technology and expertise to reduce harmful pollution and create safe environment
- TNCs have poor records of pollution and worker safety- cut corners to keep costs down
- environmental degradation = many move manufacturing production out of the EU to avoid carbon taxes
- can bring good environmental practice into countries= rare
34
TNC stats
- many TNCs have higher annual income than some countries
- 119 McDs fast food outlets worldwide, 62 million customers every day
- 75% of world flows come from TNCs
- 67% of all exports are directly related to TNCs
- India processes 1% of food it grows, US- 70%
35
Mali
Spiral of decline
political:
- secular, freedom of religion
- north wants autonomy- self-governing
- Al-Qaeda control Timbuktu
- Coup d'état- government overthrown
- civil war = poverty = don't focus on other issues, concerned about war
- landlocked with bad neighbours- would have to rely on agreements
- not part of a trade bloc- would cost TNCs extra money
- used to be colonised by France- but after they left = didn't know how to function?
- weak education levels and poor workforce skills
economic:
- 64% live below poverty line
- Al-Qaeda placed ban on visiting historical shrines
- gold mining = 2nd main export - but extraction limited by corruption
- natural resource trap- need to rely on resources and forget the government
- cost of providing infrastructure outweighs the market profit potential
- wages will be low, and not viable markets so no one wants to invest
- vulnerable to commodity cycle
environmental:
- North = desert
- South = fertile savanna, population pressure
- River Niger in south = 1700km of land
- subsistence agriculture- cotton, cereal, rice
- can farm cotton for profit but then won't have enough land space to farm for survival
- desertification, arid conditions
- physical isolation- extreme climate and low population density
social:
- food shortage encourages anger and extremism
- high rate of infant mortality
- 37,000 refugees fled to Burkina Faso
- food shortages = extremism
technological:
- little shelter, little water
- little roads, little hospitals
- telegraphs- bandwidth is low and cost of internet access is too high
36
Chad
- no coastline
- corrupt governance- 99% of cash earmarked by government for spending on health, disappeared before it even reached hospitals, money went to military instead
37
Pakistan
- new president in 2018, Imran Khan
- 45% of country's annual budget has to be paid back to the IMF
- growing trade deficit
- GDP growth rate 3.5%, increasing but small
- interest rates = 10.5% very high, borrowing money is hard
- 12 previous IMF bailouts- previous loan total = $18.9bil
- structural adjustment programme, IMF
- $6 billion bail out package, given opportunity to sort out economy, but aren't fixing economy on their own (become lazy) but can reduce spending and spend in the right area
- value of currency is weak- people can't afford to buy stuff
- if they allow currency to rise with inflation = people will have more confidence in currency
- increasing value of currency = more investment
- widespread anger- think government has sold them to the IMF
- will have to privatise loss-making companies that are owned by the gov. e.g. energy companies- will stop investment and money wasted, and can now tax them
- Ivory Coast= similar structure adjustment programme and they are 'on right track'
- WB and Asian Development Bank might agree to lend another $2bn, bad as they will rely on money and won't ever become self-sufficient, more debt to overcome, could be influenced by China as they strengthen relationship with Pakistan (ally)
38
Role of national governments in FDI
- encourage FDI because influx of capital can boost economic growth, employment opportunities, tax revenues
- FDI leads to improvement in infrastructure and can benefit domestic firms
- greater competition = improves productivity gains and greater efficiency
- transfer of skills through job creation and advanced technology for research and development
39
Gov. mechanisms to encourage FDI
- low corporation tax and low individual income tax rates
- SEZs
- export processing zones
- free / subsidised land
- visas and approval for relocation
- subsidies for infrastructure spending
- subsidies for research and development
40
World's shifting centre of gravity - the economist
rapid urbanisation in developing countries - e.g. China
people moving to cities- many becoming richer, driving further economic growth as they contribute to the economy
millions migrated to Asian cities for work opportunities in secondary sector
less people living on $1.25 per day, one of the UN MDG's
less poverty = contribute to economy = initiate services
shift from primary to secondary
rapid rates of urbanisation = poverty + unemployment + poor public health care + overcrowding = too many people moving not enough jobs
infrastructure can't cope with increasing population
can't afford accommodation = slums
child labour large scale
high levels of pollution, exploitation of resources, dumping of waste
megacities= pollutants from traffic and inc. energy consumption
corruption= not meeting emission targets
41
Dhaka, Bangladesh
Rana plaza collapsed April 2013, killed 1,000 people
led to major structure, fireproof, electrical and safety reforms- sprinkler systems, electrical upgrades, stronger foundations
cheap labour - $40/month
pays more than subsistence
independence for women as they are able to work
life cost = $60/month
delta location = frequent flooding
bad QoL
gov. turning blind eye to practices going on
8 story building collapsed
Primark clothing factory
workers complained about safety of building hour before collapse- saw cracks in walls, told to go inside
ignore safety to feed demand of western market
100+ died in fire before this event
need to regulate factories better and establish rules/laws
17 people dying annually in factories = decreased
42
Scunthorpe / Redcar
2,200 jobs lost
owned by Tata steel industries (Thailand origin)
poverty
worried about becoming ghost town - deindustrialisation
UK iron/steel industry - 90% decline, few jobs, area decreased in population, decrease in services = multiplier effect
more high tech jobs, services industry growing = but people who worked in manufacturing don't have skills for these jobs
Clark Fisher Model - model of economic change over time, shows job types
manufacturing- make lots of products = pollution = must pay extra tariffs or fines
factories in UK are old- to rebuild and make more modern is more expensive and harder, than relocating to areas like China
WTO and free trade = iron/steel can be made/exported anywhere in world
economic restructuring -> derelict land -> unemployment -> poverty
reduce no. of connections for FDI so forced to invest in different countries
cheap labour takes away job opportunities from employees who could be better skilled
increase laws and policies in China and India - will reduce amount of cheap labour and make more fair
newer technology needs less manual labour (robots)
43
Detroit
White population leave due to deindustrialisation, Afro-Americans remain in area, becomes less attractive for the white population.
Job losses, means population resorts to crime as a means of survival. Becomes an unattractive location = ghetto
can't sell property for a decent price so stuck in area
44
Karachi
capital of Pakistan, most populous city
20 million people
6th most populated in world
90% of young people don't see opportunity for them in Karachi
political instability = 41% uncertain about future
premier industrial and financial centre
formal economy estimated to be worth $113bn
Karachi generates approx. 20% of GDP
30% of industrial output from Karachi, ports handle 95% of foreign trade
90% of multinational corporations operating in Pakistan are HQ in Karachi
murder rate in 2015 decreased by 75% compared to 2013
kidnappings decreased 90%
urban planning and services- not kept pace with Karachi's growth
no cohesive transport
1,000 new cars added daily to street
not enough infrastructure: housing, schools, hospitals
agriculture- 20% of GDP, employs 42%, but crop production has decreased
people migrate due to assumption that QoL is better in city
migrants= no qualifications so can't get higher paying jobs
```
Katchi Abadis (slums)
first issued 'slips' to refugees which allowed refugees to settle in any vacant land
informal settlements = half city's residents live in these unplanned communities
```
informal sector- 70% of workforce
Pakistan Rangers- against crime, crime rates decreased and increased real-estate prices
no fixed salary- desperate to survive
Taliban working against gov.
militant groups operate
slum- where extremism begins
ASWJ solves problems that gov. doesn't, providing free education with Islamic bias
police checkpoints- ensure engines aren't stolen
effective checkpoints- murder rate decreased by 75% and kidnappings by 90%
police not well resourced- lack manpower, shootings
45
A8
expansion of EU in 2004
extended rights to live and work in other EU member states
central + eastern EU migrants entered UK
46
Slough
employment opportunities
earn 4-5x more than in Poland
polish communities already established
large network of airports + airlines - WizzAir, RyanAir
most visitors are seasonal, staying 6 months for agricultural work
10,000 migrants = pressure on services
schools adapted with EAL provision- new pupil costs £5,500/year
Slough needs 10 new schools to keep up
new foods- Polski Sklep
```
promotes tolerance b/w different groups
economic boost - Polish contributed 3x cost
skilled and qualified workforce
increased cultural diversity
young population
```
target- 100,000 new migrants per year
47
source country costs and benefits
- remittances received and invested in local businesses / house repairs / medical care
- less unemployment
- wages rise as fewer workers, demand for workers inc.
- new job opportunities, women pick up jobs men left
- services less crowded
- house prices may fall
- loss of skilled workers- 'brain drain'
- loss of ta revenue, reduced gov. spending
- loss of population to sustain services
- loss of culture, community
- families divided, mental health of children
- young migrants leaving, ageing population, dependancy ratio
48
Russian Oligarchs
business owners who acquired commodity firms
Londongrad - wealthy parts of London where Russian business owners have property for children, British education
rich migrants benefit from UK institution
loans raised by Russian businesses in London b/w 2004-2013 was £250billion+, UK banks charge fees 3% on amount borrowed
Russian int. investment in London = £27bn, but only accounts for 0.5% of total international assets
1% of UK financial services = not a lot
Russian mafia fears- MET struggled to engage with gangs
buy expensive property in London
moved after collapse of USSR (Soviet Union)
trying to shift more cash into London property to conceal assets from international sanctions
49
EU migrants
EU migrants doing dangerous jobs
Untrained so use the incorrect tools making job more dangerous
EU migrants being paid below minimum wage - 'slavery'
EU migrants have driven down wages for normal workers
live in cheaper outskirts of London
send remittances back to home country
1.5 million workers migrated from EU to UK
immigration has reduced pay to care workers, waiters, cleaners, and competition has risen - 10% in immigration = 1.9% fall in pay of unskilled jobs
EU citizens fear futures after Brexit
50
Why London?
- political, cultural, sport, employment attractions of London, wealthy elites own multiple properties across the world
- stock exchanges and HQs of TNCs - attract wealthy stock-brokers and executives
- inherent attractions of migrant enclaves, e.g. Bangladeshi community in Tower Hamlets
- wide range of employment opportunities- elite, low paid, formal, informal
- conc. of many languages spoken = market for further investment and opportunities in translation
- Unis, and proximity to major ones, UCL, LSE, Imperial, Oxbridge- mainly attracts African/Asian/Mis-East not EU
- access to NHS, benefits, education
- free movement granted to EU nationals, since 1993
- 2004 A8 migrants allowed movement for work
- large presence of US citizens - TNC staff, diplomats, media
- sources of Russian wealth, 'safe haven' for wealthy people from Europe
51
Stoke Mandeville Stadium Guttmann Centre
USA used to be anti-disabled
Ludwig van Guttman left Germany because of Nazi persecution
used sports as therapy for injured WW2 military personnel
remains National Centre for Disability Sport
52
Paralympics
first recognised in Seoul, 1988
London 2012 advertised very well
took long time for it to be recognised compared to the Olympics
GLOBALISATION
provides opportunities for different people and for different sports
adverts
provides opportunities, careers
same sports to non-disabled = equality
positive attitudes
Invictors Games (global) - Prince Harry founded, event for disabled, injured ex-military, opportunities to compete
in China- 25% of disabled people employed
53
Rio Games
SUCCESS
2016 sold 2 million tickets
London 2012 2.8 million
170,000 spectators which was more than Olympics
2012- Channel 4 showed 400 hours of coverage, Chinese 5 hours a day, played overnight in Germany/France, Italy 500 hours
presents disabled as glamorous, ambitious and capable instead of being a victimised minority
USA- 279 athletes in Rio 2012
PROBLEMS
Russia, Japan and USA didn’t show the event
okes by Barack Obama that ‘his bowling skills suited him for the Special Olympics’
rich-country event – costly prostheses, specialist training, 9 countries provide 40% of athletes
technology needs to be good quality and with updated features so not disadvantaged when competing
present disabled people as only being interesting ‘if they can run, jump and score goals’
54
cultural globalisation
the transmission of ideas, meanings, and values around the world in such a way as to extend and intensify social relations
55
Sarawak
- over exploitation of, e.g. logging silting up rivers.
- disruption of eco-system through mining/drilling activity, e.g. orangutans
- conversion of land to farming for agribusiness, e.g. palm oil
- improving technologies, making remote resources more accessible, HEP dams
- exploitation managed by TNCs, powerful influence, Rio Tinto
- exploitation managed from urban core - Kuching
- tourism influence- speak English and lose traditional dialect
- land degradation = knock-on effects on environment
- loss of culture = loss of sense of value for ecosystems
- economic growth = primary goal, so social value for biosphere is lost
- Western ideas pushed by TNCs
- hyperglobalisation
- consumerism and greed
56
cultural diffusion
can be achieved through coercion, legal, military tools
languages, religions and customs were spread around the world using force by the Roman and the British Empires
forced = imperialism
voluntary = banal imperialism
57
cultural dilution
push out local industries
gradual disappearance of traditional artefacts / services / languages / mentefacts
can't continue traditional practices e.g. hunting
provide an issue for tourism, more nations becoming similar to home, travellers won't experience different cultures, a threat to certain nations’ economy who depend on tourism
players from successful Western countries project their culture through globalisation easily
culture open to globalisation = likely to change culturally
cultures who view globalisation as a threat = defend cultural integrity
58
Cannes Burkini Ban
banned 2016
dozens issued fines for ‘not wearing an outfit that respected good morals and secularism’
ban suspended by French courts
France should expect to be subject to terrorist attacks due to the way they victimise the Muslim culture
France- attempted to control globalisation by restricting foreign language media- 40% of all broadcasts must be French
59
is tension inevitable?
YES
- younger members exposed (internet / travel), creating tension with elders
- political clash
NO
- some communities resit – e.g. Hasidic Jewish (Stamford Hill) – westernisation is contrary to deeply held beliefs
- diaspora + remote communities might preserve culture (e.g. Bengali in London, Amish in USA)
- the more exposed we are to diversity the more accepting we are of different cultures
DEPENDS
- access vs. censorship to globalisation
- exposure to globalisation (social media)
- age balance in community, young more open/vulnerable to new ideas
60
Cultural erosion and opposition to globalisation
- opposition to globalisation from some groups = structuralists
- believe in inequalities arising from globalisation
- believe inequality will only be resolved by structural change
- other groups regard inequality as the product of winners and losers in global competition, and so promote free trade and free markets as a means of eradicating inequality
- support globalisation - believe that all countries will eventually receive the same benefits as Western economies and cultures
61
development gap statistics
GDP per capita under $20,000
only 4 countries that have GDP per capita over $80,000
45 countries with GDPs of $1000 or less
62
GDP
total value of goods and services produced in a country over one year, per person
hides variations
wealth can be distributed unevenly- gives an inaccurate indicator
doesn't reflect QOL of the average citizen
63
Gini coefficient
measures degree of inequality in distribution of income or wealth
0= no inequality
the closer to 1 = more inequality
area between Lorenz cure and the line of equality
more opinionated
hard to measure countries against each other
64
Gender Inequality Index (GII)
composite indicator
measures loss of achievement within a country due to gender inequality
uses: reproductive health, empowerment, labour market participation
high adolescent pregnancy = low educational opportunities for women, weak life choices
65
factors that have narrowed income gaps
Globalisation, deregulation,
IT revolution,
expansion of trade, capital flow and global supply chains
66
Germany and refugees
aiming for 800,000 refugees (2015)
took in 1 million migrants from Syrian civil war
refugees are allocated to different towns- spreading them out = less tension
different states have different quotas
older people and women buying weapons for self-defence- fear of sexual assault
migration situation - out of control
language classes to allow integration- if they align with culture, will become more accepted by Germans
Nazi history = made them more sensitive to prejudice towards minority groups = atone their nazi past
population declining/ageing = so taking in migrants will help them
worries about clashes between Syrian and Chechen Muslims
aggression expressed online
migrants create competition for jobs
working migrants contribute more tax than they need benefits
worried about cultural alienation 13,846 right-extremist crimes in 2016, 950 were violent
67
great firewall of China
| censorship
highest recorded number of imprisoned journalists - for communicating with groups abroad, signing online petitions, calling for reform to end corruption
concerned that online tools can organise or publicise protests and riots
BBC estimated 2million monitoring internet for the Chinese gov = creates jobs
500 million internet users in China - biggest population of internet users in the world
Chinese gov. able to cover up situations that they don't want public
no access to Facebook or Google
in 2011 2 trains crashed, gov. wanted to cover this up
release fake air quality data, US embassy shows real data
'block and clone' innovation
foreign information could be seen as a threat
68
DEnE First Nation
economic liberalism
- experienced the negative impacts of petroleum development
- 200million barrels extracted since 1920
- trout / other fish died in oil polluted lakes – ruining subsistence lifestyle of fishing, hunting and trapping
- effects of alcohol and drugs (brought by oil workers) on youngers
69
For McKay First Nation
mmokay
balance between environmental liberalism and economic liberalism
- worked with oil sands industry to protect land and culture: a 20km exclusion zone
- 250,000 barrels of bitumen a day
- but the industry gets $US100m a year
70
Haida First nation
Halt- want environmental liberalism
- protested in 1985 over logging
- agreement between Canada and the Council of Haida Nation
- their entire archipelago / surrounding water are now protected (the Gwaii Haanas National Park Reserve / Haida Heritage Site
71
Popular River First Nation
P for protect
complete environmental liberalism
- covers 2 million acres of lowland forest / bog (muskeg)
- wanted the trees to be left, soil undisturbed, so that carbon won’t be released
- established a land management and conservation plan; the Poplar/Nanowin Rivers Park Reserve
- want it to be a World Heritage Site
- ban on all forms of development – commercial logging, mining, dams, power lines
72
Bristol Pound
| Economic +/-
+
- money keeps circulating locally to benefit local independent businesses
- local multiplier effect
- instead of 80% of money leaving local area when spent at supermarket, stays local
-
- consumers can miss out on price benefits of competition in national markets
73
Bristol Pound
| Social +/-
+
- using local currency creates stronger bonds between local consumers and businesses
- increases social capital, spreads trust and cooperation
-
- very inclusive, excludes outsiders
74
Bristol Pound
| Environmental +/-
+
- local trade reduces dependence on international trade and enhances self-sufficiency
- decreases emissions through reduced transportation costs
-
- global trade allows for production in the most resource-efficient location/way
- Kenya requires less energy than EU glasshouses
- costs of transport doesn't always outweigh gains
75
consumerism
- higher incomes have changed consumer patterns
- global meat production = x4 in last century, 308million+ tonnes in 2013- high environmental costs due to water, antibiotics, grazing land required
- coffee production- at mercy of price volatility
- 1billion+ cars worldwide
- 270million tonnes of plastic produced in 2013--> landfills
76
transition town
community project builds resilience in response to issues with peak oil, etc.
supports local production and consumption of goods
be less reliant on peak oil, and fossil fuels
local gov. control and promote local culture and history
raises awareness of sustainable living and builds local ecological resilience for future
encourage gardens and tree planting
repairing old items instead of throwing away
not threatened by global financial crisis
77
environmental problems of globalisation
increased exploitation/development of natural resource base of developing countries e.g. loss orangutan habitats due to growth of palm-oil production
less strict regulation = higher levels of air pollution e.g. Taiwan
pollution and damage to ecosystems e.g. 7000+ factories in Mexico City
78
buying locally
+
- lower carbon footprint, lower food miles = reduced emissions
- local food = organic, not using pesticides
- local farmers = raised income
- consumers know where food coming from
problems for consumers:
- not always available, can be more expensive
- might have high environmental costs e.g. heated greenhouse
- consumers lose access to all-year supplies of seasonal food
- unrealistic to support large population of a city
problems for producers:
- poor farmers in LDCs lose trade
- less sales = surplus supply = price fluctuates
- hard for poor farmers to access HIC markets e.g. EU tariffs
79
Fifteen Cornwall Restaurant: Local Production
- Eden Project- Rainforest Biome
- harvest coffee beans, process roast them
- bad quality = won't sell
- didn't have to be shipped, community based
- eco-friendly, efficient use of resources
- no air miles
80
Nespresso Pods
- South Sudan
- 3 coffee coops and wet mills
- aluminium casing, 90% recyclable
- but can't control how long a coffeemaker is plugged in and what is done with unused boiled water
81
Starbucks: Fair Trade Coffee
- prioritise fairtrade coffee
- use premiums to build a medical clinic and toilet block at local schools
- best way to help farmers is for more customers to drink more coffee
- not efficient use of cups
- 5p charge when you use normal coffee cup
82
PactCoffee: not fair trade
- better coffee
- high quality coffee
- go back to the same farmers every year and buy their beans
- farmers can plan ahead and invest money into their farms and communities as they know business will be back next year
- posted to all consumers
- pro-poor, increasing equality
- for the rich as it is expensive
83
Grundon
- carbon neutral
- hazardous waste collection services
- private business so they charge, not council provided
- operate at Heathrow = biggest waste producer
- have a food waste collection services - convert into energy, then send to the national grid = renewable energy produced
- cardboard waste effectively dealt with in schools
84
Local Agenda 21
established after UNEP conference in 1992
| banning free plastic bags in UK and Northern Ireland
85
Circular economy
shifting the cost of production/waste onto manufacturers so they have to find a way to maximise profits by reusing components
86
Why circular economy works
- reduces need for landfill sites
- reduces need for new resources that require energy for production
- recycling is collected from households
- goods sorted so reduces processing time/costs
- meets carbon footprint targets and other national gov. targets
- lower tax on landfill for council
- reduces methane from landfill as food is recycled
- smaller bins encourage people to be less wasteful
87
Why circular economy doesn't work
- lack of education over green agenda
- people don't think it will make a different, don't understand, too lazy
- more collections of recycled rubbish will increase pollution (lorries)
- still uses energy to reprocess
- waste gets sent abroad - exploit poor who sort it
- other priorities e.g. financial pressures
88
IGOs
IMF, WTO, World Bank
| work to harmonise economies whilst promoting democratic ideology
89
Flow of commodities
good easily imported, increasing countries interdependence one another
UK bottled water imported from Fiji, 10,000 miles away
90
Political globalisation
gov. form connections to trade- trade deals, trade blocs
western democracies have had a global influence on political ideas, such as development of market economies in former communist states
deregulation policies allow markets to grow with an international reach
international organisations work to harmonise national economies and political relations e.g. UN
91
19th, 20th century important innovations in transport
- steam power: Britain was leading the world in the use of steam technology. allowed Britain to move their goods and armies very quickly into key areas such as Asia and Africa
- jet aircraft: newer and more efficient aircraft have allowed goods to be transported quickly between countries. EasyJet, RyanAir
- containerisation: 200million+ container movements every year
- telegraph: first cables in Atlantic 1860s
92
21st century important innovations in transport
- telephones
- broadband and fibre optics: 1990s, cables laid along the ocean floor
- GPS: satellites have allowed companies and people to track goods across the world. Modern cars
- internet: 40% of world's population have access to it. Social media
93
Environmentally switched off
- landlocked- cannot be independent in trade, must rely on neighbouring countries
- poor fertility of land, mountainous, arid- reduces ability to produce a commodity for trade
- vulnerable to climate change- e.g. sea level rise, desertification
94
Politically switched off
- political agenda and governance of a country may limit flows of people or culture (anti-migration policies, censorship)
- terrorism or active conflict - detrimental to global connectivity
- corruption- money is lost rather than invested
95
Economically switched off
- LEDCs- can't afford to invest in ports, infrastructure, incentives for TNCs, no education to improve the skills of its labour force
- countries with unstable markets or weak currencies will deter investment and businesses
96
World Trade Organisation
Geneva, Switzerland
aims to liberalise trade by removing tariffs, subsidies and quotas
WTO criticised because it has failed to prevent EU and USA from implementing protectionist measures like subsidies, has been unsuccessful in creating equal opportunities for all countries to trade
97
repatriation of profits
profits from TNCs making money overseas are sent back to core regions, rather than put into the economy of the periphery regions
98
free market liberalisation
Ronald Regan, US
Margret Thatcher, UK
believed government intervention would hinder economic growth and long-term development
banking and finance sectors separate from the government
London= one of world's major financial centres
99
UK privatisation
after 1980s- railways and utilities privatised
private companies ran these services
some believe privatisation compromises the quality of services (northern rail- raising prices, there was increasing strikes)
100
foreign acquisitions
TNC acquires another company from abroad
| local job loss, lack of interest in local environment
101
trade protectionism
subsidies, tariffs, quotas
help country protect domestic industries
2016- Chinese steel flooded global markets at very low prices "dumping"
caused major problems for steel industries around the world
UK Tata Steel - closed and sold all plants as it lost £1million every day
102
free trade blocs
| + / -
+
- businesses have a larger potential market to sell to- larger potential revenue to make
- many other businesses can benefit by providing raw materials, skilled workers, providing outsourcing opportunities = positive feedback loop
- trade of essential materials or services become more reliable within trade bloc - less economic risk and better pathways for imports (food, energy)
-
- selfish interest
- outside trading countries become excluded, difficult to join in trading, direct damage from competition or lack of opportunities
- don't guarantee fair treatment- Mexico and USA (NAFTA)
103
Purchasing Power Party (PPP)
expenditure of a country's population and reflects the cost of living
104
vertical integration
taking ownership of another company of similar industry- large companies controlling smaller companies
105
horizontal integration
taking ownership of the supply chain- buying a plantation
106
start of outsourcing of manufacturing to China
1990s- Shenzhen and Dongguan offered investors a large pool of cheap labour
volume of TNCs outsourcing to China has increased since then
107
rural push factors
poverty and deprivation
conflict
land reform - when locals cannot prove they own the land, TNCs with gov. support claim the land
agricultural modernisation - machinery so less people needed
climate and natural disasters- drought/crop failures
108
Iran resisting cultural change
2000s- banned barbie dolls and confiscated them from all stores as they weren't seen as appropriate for the Islamic state
