Globalisation Flashcards
1
Q
What is a trade bloc?
A
A type of intergovernmental agreement, where barriers to trade in a world region (tariffs and non-tariff barriers) are reduced or eliminated amongst the participating states.
2
Q
Why do national governments encourage FDI?
A
Influx of capital can encourage economic growth, employment opportunities and tax revenue in the host country.
3
Q
What are 3 examples of government mechanisms to encourage FDI?
A
tax exemptions
subsidies for infrastructure spending
free or subsidised land
4
Q
Globalisation?
A
The connections of all countries. The process by which people, culture, finance, goods and information transfer between countries. It is the increasing connectedness and interdependence of parts of the world.
5
Q
Outsourcing?
A
When work is contracted out to another company and obtaining key products from cheaper, alternative locations- often abroad- than original home sources
6
Q
Time-space compression?
A
Refers to the set of processes that cause relative distances between places (ie measured in terms of travel time or cost) to contract, effectively making such places grow “closer”.
7
Q
Trade blocs?
A
A trading bloc’s primary purpose is to remove barriers to trade within a specified group of countries.. are a form of economic integration
8
Q
Trade liberalisation?
A
The removal or reduction of restrictions or barriers on the free exchange of goods amongst countries
9
Q
Tariff?
A
Are tax on imports. Imposed by a government. Make imports less desirable.
10
Q
Subsidies?
A
Grants given by the government to increase the profitability of key industries
11
Q
FDI?
A
Investment made by an overseas organisation into an organisation based in another country
12
Q
Special economic zones (SEZ)?
A
Areas with financial or tax incentives to attract FDI
13
Q
TNC?
A
A company that acts in more than one country
14
Q
Off-shoring?
A
When a company does work overseas so as to take advantage of lower costs
15
Q
GloCalisation?
A
When a company re-styles it’s products to suit local tastes, could incorporate local products
16
Q
Global shift?
A
Manufacturing has moved east, southeast and south asia via offshoring. Outsourcing of services has moved from developed to emerging economies.
17
Q
Deindustrialisation?
A
The reduction of industrial activity or capacity in a region or economy.
18
Q
Depopulation?
A
Substantial reduction of a population in an area
19
Q
Deprivation?
A
The damaged lack of material benefits considered to be a basic necessity in a society
20
Q
Dereliction?
A
The state of having been abandoned and become dilapidated
21
Q
Megacities?
A
A very large city, typically with a population over 10 million
22
Q
Hub cities?
A
The central and most active part of a place
23
Q
Hyper-urbanisation?
A
The creation of sustainable, dense cities
24
Q
Interdependence?
A
Mean that what happens in one place increasingly has impacts on other places ie natural disaster
25
Migration?
Refers to movement of humans from one place to another.. push and pull factors.
26
Elite migrant?
The movement of highly skilled elites, for educational and professional opportunities, symbolises the phenomenon called “brain drain”
27
Host location?
A country that a TNC has chosen to establish part of its operations in.
28
DELETE CARD
?
29
GDP?
The value of all goods and service produced by a country per year.. total economic output
30
Economic sector balance?
The % of primary, secondary and tertiary sectors contributing to gross national income
31
HDI?
Provided a measure of life expectancy, GDP, and education- how are people benefiting from economic growth?
32
Gini coefficient?
a measure of statistical dispersion intended to represent the income or wealth distribution of a nation’s residents - measurement of inequality
33
Deregulation?
When governments reduces or eliminates restrictions on industries, often with the goal of making it easier to do business
34
Ecological footprint?
Measure of the human pressures on the natural environment from the consumption of renewable sources.
35
Gross national income?
The value of goods and services earned by a country (not including those overseas)
36
Purchase power parity?
Relates average earning to local prices ie what can people buy with their money
37
Gender inequality index?
Measure gender disparities using there measures: reproductive health, empowerment and labour market participation.
38
Special economic zones (SEZ)?
Areas with financial or tax incentives to attract FDI
39
Privatisation?
The transfer of assets from the public to the private sector (gov gives rights over something to a private company)
40
Free market liberalisation?
The lessening of government regulations and restrictions on the economy
41
Economic reconstruction?
Developed economies shifting from manufacturing to a tertiary service economic base
42
Diaspora?
A group of people who share national and/or ethnic identity who have moved away from their perceived homeland
43
Demonstration effect?
The process of acquiring or modifying a certain culture for the benefit of tourist demand.
44
Censorship?
Is the suppression of speech, public communication, or other information, on the basis that such material is considered objectionable, harmful, sensitive or “inconvenient”.
45
Trade protectionism?
Is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods etc
46
Shrinking world?
Idea the world seems smaller due to increased connectivity
47
What are global connections best thought of?
Flows
48
What are the 5 different global flows?
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Economic
Cultural
Political
Demographic
Environmental
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49
What is containerisation?
Containers carry good which is must more efficient + cheaper
They’re inter-modal
50
Trade?
Exchange of goods and services between people and companies
51
What does globalisation increase?
Interdependence and interconnection
52
Time-space compression?
Idea that the cost, in terms of time or money, of communicating over distance has fallen rapidly
53
Protectionism?
Reduces total trade volume ie demand tariffs
54
Free trade?
Increase trade. Removal of tariffs etc
55
What is the world trade organisation?
Works to reduce trade barriers and create free trade
56
What is the world bank?
Role is to lend money to the developing world to fund economic development and reduce poverty
57
What is the international Monetary fund?
Works to promote global economic and financial stability, and development encourage more open economies
58
What country is an example that declines global connectivity?
North Korea
59
What are 4 ways in which governments promote globalisation?
Joining free trade blocs ie european union
Opening up marks to competition: free market liberalisation
Privatisation
Grants + loans to help with business start up
60
Why are special economic, free trade and export processing zones attractive to FDI?
Tariff and tax free
Unions usually banned
Taxes usually low
Profits can be sent back to company HQ overseas
61
What does the KOF index measure?
The degree of globalisation of countries on an annual basis. It measures three aspects:
Economic globalisation
Social “
Political “
62
What does the AT kearney global cities index measure?
How economically successful cities are
63
What fours ways have TNCS contributed to globalisation?
Outsourcing
Offshoring
Glocalisation
Developing new markets
64
What are three negative aspects of TNCs?
Exploitation of the workers in developing economies ie low wages
Outsourcing jobs can lead to job losses in developed economies
Local cultures and tract can be eroded
65
Global shift?
Refers to the outsourcing and offshoring of industry, through FDI to asia
66
“Switched off” country?
Countries with weak connections with other places
67
Political isolation example
North Korea: deliberately isolated itself from the rest of the world, shunning world trade and limiting the use of technologies
68
Physical isolation example
Himalaya mountain countries: isolated by terrain and winter snow BuT tourism and media exposure is changing this
69
Economic isolation example
Rural parts of Sub-Sahara Africa- very poor so capacity to create connections are limited
70
Environmental (barriers) isolation example
Harsh desert climates, extreme polar cold etc
71
+ of global shift
Investment into roads, airports and power infrastructure
Major reductions in regional poverty due to employment
Local and national government use taxes to invest in public services
72
- of global shift
Pressure on natural resources, especially water
Low wages, working hours and lack of union support
Rapid loss of cultural tradition
73
Migration?
A permanent move from one place to another
74
What type of migration feeds the growth of mega cities?
Rural to urban migration
75
What % of urban growth is from rural to urban migration?
60%
76
What % of urban growth is from natural increase?
40%
77
What are the benefits to the migrants’ source country?
Remittances boost the income of a family
Contact with a different culture
Reduce pressures on resources if population is large
78
What are the negatives to the migrants’ source country?
Loss of skilled and educated workers
Families are broken up
Mass emigration can be viewed as a failure to provide for people at home
79
What are the benefits to the migrants’ host country?
Low waged workers full skills gap
| Migrants can counteract the ageing population
80
What are the negatives to the migrants’ host country?
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Some host population workers don’t get jobs
Demand of services
Cultural tensions
Housing demands
Loss of green spaces
Overcrowding
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81
Remittances?
The money migrants send back home to help families in the source country
82
Cultural diffusion?
The exchange of ideas between different people as they mix and interact as a result of globalisation
83
Economic restructuring?
Occurs when one sector such as secondary industry is replaced by another such as tertiary industry; this leads to widespread changes in job types
84
What is a Western global culture?
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Originates in North america and europe. Culture is based on:
Wealth creation
Private enterprise
Success (measured via wealth)
Fashion, tech and trends
```
85
What other factors are also important in terms of the western culture?
Tourism brings people into contact with new culture
Tncs spread their brand and products around the world
Global media organisations like disney spread a western view
86
Negatives of the western culture?
Spread of a wester diet (mcdonald’s)= obesity levels rising in emerging countries
Wastefulness in terms of resources- linked to deforestation and excessive water use in industry, as well as air and water pollution
Exploiting of workers
Created increased inequality (the 1%)
Cultural erosion
Passed political power into hands of TNC- uncaring government
87
Positives of the western culture
Tended to improve opportunities for some traditionally disadvantaged and discriminated groups such as women, the disabled and LGBT groups.
Global media coverage of paralympics, gay pride matches and high profile cases of sex discrimination may help to erode discrimination and prejudice developing in emerging countries
88
Anti-globalisation movements?
Those strongly opposed to the western culture
89
What is the 1%?
A very small group of rich, powerful people - inequality
90
The development gap?
Refers to the difference between the richest and poorest people that can be
between or within countries
91
Development?
Means progress, usually in social and economic terms
92
What is an example of a single measurement used to measure development?
GDP per capita
| Life expectancy
93
Human development index?
Combination of life expectancy, income and years in education
94
Gender inequality index?
Combines the reproductive health of women, their participation into the workforce and empowerment.
95
What are the most popular indexes of comparing economic development between countries?
Purchasing power parity and GDP
96
Within countries, how is inequality measured?
Via the Gini coefficient with income divides into quintiles plotted as a Lorenz curve
97
How are the environmental impacts of development and globalisation measured?
An ecological footprint
98
Ecological footprint?
Is a measure of resources used by a country or a person over the course of a year, measured in global hectares
99
What doe different ecological footprints of countries show?
That some counties can take advantage of globalisation without damaging the environment whilst others cannot
100
What do most counties’ population consist of?
Immigrants
101
Diaspora?
The name given to the dispersal of a population overseas
102
What is an example of a diaspora?
Since about 1700 about 10m Irish have emigrated overseas creating the irish diaspora
103
What are four factors that have increased the pace of migration?
Open boarders to migration within the EU since 1995
FDI, encourages TNCs to move overseas
Deregulation of some job markets= foreign qualified workers
Humanitarian crises eg Syrian civil war
104
What are some negative aspects of migration?
Strain on services and housing
Tensions amongst host country populations
Social and political tensions that has led to some extremists eg anti immigration political parties
105
What are some ways in which countries have tried to limit the spread of globalisation?
Trade protectionism is still common
Banned internet in North Korea
Points based immigration systems
106
Points based immigration system?
Points awarded to potential immigrants based on education skills, language and other criteria so that migrants are matched with a countries needs
107
What are four ethical and environmental concerns that are quite widely held?
Fears that consumer goods have been made using exploited labour
Concerns that imported food like tea etc do not provide their farmers with decent income due to low prices
Concerns that consumer goods use excessive resources during their production, packaging, transport and use
Worries that are consumer culture is contributing to global warming as ecological footprints rise
108
Ethical issues?
Are those rich have moral dimension, and concerns whether something is acceptable. eg child labour
109
Localism?
The idea that food and goods should be gone and made locally, supporting local jobs and reducing transport, rather than being sourced globally
110
What are ways in which countries have tried to promote localism?
Fair trade- attempts to reduce inequality in global trade
Recycling
Ethical consumption schemes- sourced wood from sustainable forests thus not contributing to environmental degradation
Transition towns- grow food in community gardens (not import it) ie ‘grow your own’
