globalisation Flashcards
1
Q
globalisation
A
the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transaction in goods, services, freer International capital flows and more rapid and widespread diffusion of technology
-started in the 60s
2
Q
how have transport and freer markets accelerated globalisation
A
- transport and communication technologies have improved meaning that national governing market forces have been able to extend their reach internationally
- freer markets promote competition and the division of labour, improving efficiency, increases profit and allows wealth creation (capital formation)
- Imports offer consumers more choice at lower prices whist also providing strong incentives for domestic industries to be competitive
- exports can stimulate job creation and higher productivity
3
Q
the shrinking world
A
- TNCs invest abroad, building links between the places that make goods and the places which consumer goods and services. TNC’s are the architects of globalisation
- lower transport costs makes it easier to move goods abroad (19th century railways, steamships and telegraphs, 20th century containerisation and aviation)
- global social media has led to the international recognition of brands
- international organisations help with cooperation (world trade organisation)
- the idea of a Digital economy arose in 1955 due to the creation of the internet. initially was focused on e business and e commerce yet has also extended the scope of the digital economy by changing the way people interact
- digital economy is now worth 1.5 trillion and this has demised certain businesses through competition
4
Q
economic globalisation
A
- growth of TNCs accelerates cross border transactions and purchasing
- information and communications technology supports the growth of complex spatial divisions of labour for firms and a more international economy
- online purchasing using amazon on a smartphone
- very nature of trade is et up to disadvantage poor nations (frank’s dependency theories)
5
Q
social globalisation
A
- international immigration has created extensive family networks that cross national borders (world-city societies became multi-ethnic and pluralistic)
- global improvements in education and health can be seen overtime with rising world life expectancy and literacy levels, although the changes are by no means uniform or universal
- social interconnectivity has grown overtime thanks to the spread of universal connections such as mobile phones, the internet and email
6
Q
cultural globalisation
A
- successful western cultural traits come to dominate in some territories (e.g. the Americanisation or McDonaldisation of tastes and fashion)
- glocalisation and hybridisation are a more complex outcome that takes place as old local cultures merge and meld with globalising influences.
7
Q
political globalisation
A
- the growth of trading blocs (e.g. EU, NAFTA) allows TNCs to merge and make acquisitions of forms in neighbouring countries while reduced trade restrictions and tariffs help the market to grow
- global concerns such as free trade, credit crunch and the global response to natural disaster (2011 Japanese tsunami)
- the world banks, IMF and WTO work internationally to harmonise national economies
8
Q
glocalisation
A
adapt ones products to meet the demands of the local population and market as cultural they are at variance with other countries.
9
Q
what flows are there?
A
- capital - companies can buy and sell currencies to make a profit. These companies can be investment banks or pension funds (TNCs), money moves through a data sense and fibreoptics so has only been relevant since the creation of the internet
- tourists - improvement in air travel has made it quicker and cheaper. low cost airlines have raised aspirations. ties in MC in emerging nations means more people are travelling (Chinese are wealthiest group of tourists) and emerging countries rely on this for the economy
- migrants - changed the face of many countries, this tends to be the flow that is most restricted. can create brain drain or a brain gain. creates remittances schemes leading to a loss of capital in the domestic country
- information - stored in the cloud (massive warehouse in Western Europe called server farms)
10
Q
remittances
A
- A remittance is a transfer of money, often by a foreign worker to an individual in their home country.
- increased aspirations for people who natively live in the country as there is more conceptions and new perhaps improved foreign work ethics
- economic loss if profit goes back to the domestic country
- services can run more smoothly if labour shortages are alternated
11
Q
factors that accelerate globalisation
A
- electronic banking
- internet
- social media
- fibre optics
- transport
- containerisation
- new markets (gave small businesses a local consumer base)
12
Q
how have ships contributed to globalisation
A
- standardised containers are used in intermodal containers speeding up the process, making it more efficient. this is less labour intensive so less people have to be involved in the procedure, making it cheaper in the long run and meaning goods can be moved faster
- container trains can be quicker as they take a more direct route. moreover, it opens up new trade routes allowing more profit opportunities as commodities can be offloaded at different points on the way unlike ships
13
Q
quota, protectionalism
A
- a set or agreed amount of stock that can be brought into a country in a set time period
- protect American trade, high quotas, import taxes, tariffs, domestic subsidies
14
Q
world trade organisation
A
- the world has experienced a significant increase in trade volumes and both the stock and flows of FDI have expanded considerably at the same time
- previously WTO members were unsure on the idea of FDI due to the economic impact it had on the investor’s nation
15
Q
world economic forum
A
- for almost 50 yeses the forum has been the catalyst for global initiatives, historic shifts, industry break throughs, economic ideas and thousands of projects/collaborations
- the G20 smart cities alliance will create the first global framework for smart city framework
- in late 2018, the WEF collaborated to launch the task force for closing the skills gap in India
16
Q
world trade organisation
A
- facilitate global trade through the removal of taxes and tariffs (trade barriers)
- arbiter in trade disagreements, helping to make negotiations more effective
- encourages FDI due to benefits associated with quotas, tariffs and taxes
17
Q
role of EU in globalisation and promoting trade
A
- the EU has economic partnership agreements with 69 American, Caribbean and pacific nations (most of whom are former European colonies)
- guarantees the free movement of goods capital and people
- a single currency whereby the euro has been adopted by 19 different countries
- uniform production labour and environmental regulations
- the original political aim was to integrate economies so that interdependence prevents war
- integrated economic policy areas provide structural funds to assist regions within member countries
- aims to be a distinct political and economic organisation. it operates within a distinct political entity with its own policies and laws
- largest free trade bloc in the world (500 million people and 20% of the global GDP)
- issues - migration, some countries pay more
18
Q
the role of NAFTA in globalisation and promoting trade
A
- a treaty between 3 countries (Canada, Mexico and the US) making it the world’s largest free trade agreement, with an approved removal of barriers between these nations and the removal of tariffs
- allow countries to compete with the EU and china in the wield market
- aims to allow free trade between countries and migration
- US is the dominant country which can cause conflict (e.g. Trump wants a wall and this will hinder the free movement of people)
19
Q
ghettoisation
A
large groups of similar people cluster in one place (e.g. based off race, ethnicity, religion)
20
Q
ASEAN
A
- affiliated member is China who has orchestrated an agreement to have preferential conditions when trying to locate here. they also managed to get china on board with a bilateral free trade agreement
- free trade between countries, more FDIm movement of skilled workers
- 80% of trade outside of ASEAN countries
21
Q
advantages of trade bloc membership
A
- bigger markets (but no extra taxes): the UK has a pop of over 65 million and the EU 508million. companies like TESCO have benefitted from expanding into other countries and sourcing their goods at the best prices from within the 28 member states
- national firms can merge to form transnational companies. TNCS can comets globally but they need the markets to generate economies of scale. increased sales lead to lower relative production costs and hence higher profits and consequent investment. e.g. Vodafone became the world’s largest mobile telecommunications company by merging with Germany’s Mannesmann in 2000
- protection from foreign competitor and political stability: for example, in 2007 the EU blocked £50 million of Chinese made clothes from entering the UK because the annual quota had already been filled (called ‘bra wars’ in the tabloid newspaper). the idea if to limit the import of cheap goods to protect domestic manufacturers. by limiting such confrontations, they are said to bring political stability
22
Q
disadvantages of trade bloc memberships
A
- loss of sovereignty: for example, the EU deals not only with trade matters but also with human rights, consumer protection, greenhouse gas emissions and other issues only marginally related to trade
- interdependence: because trading blocs increase trade among participating countries, the countries become increasingly dependent on one another. a disruption of trade within a trading bloc may have severe consequences for the economies of all participating countries. (e.g. the current challenges facing the banking sector of all eurozone countries)
- compromise and concession: countries entering into a trade bloc must allow foreign firms to gain domestic market share, sometime at the expense of local companies. they do this expecting their consumers will benefit from better products and keener prices, as well as in the hope that their firms will also expand abroad.
23
Q
what role does government play in economic liberalisation
A
- attracting FDI. this may be done through the privatisation of domestic companies, allowing overseas enterprises to bit or part own stores in thee organisations. the recent additions of industry encouraged the movement of people to facilitate this labour allowing for processes like ghettoisation and cultural globalisation
- business start ups
- liberalisation (deregulation of capital markets)
- trade blocks
24
Q
advantages of economic liberalisation for national governments
A
- improved efficiency of services as private firms are often more concerned in making profit
- government will raise revenue from sales. sealing state owned assets in the private sector raises significant sums for the UK government. this does however lead to loses on future dividends from the profits of public companies
- might lower operating costs through the use of more flexible personal practices, job categories, streamlined operating procedures and simplified procurement
25
what is free market liberalisation
- removal of barriers to trading can increase investment and therefore employment, reducing the need for welfare schemes
- unrestricted flows if capital goods allows for the allocation of resources and competitive advantages
26
FDI
an investment made by a firm or an individual into business interests in another country
27
different types of FDI
- commercial loans which are primarily taken in the form of bank loans to foreign businesses or governments
- official flows which generally refer to the forms of development assistance that developed nations give to developing ones
- international investment
- purchase of stocks
- vertical FDI = when the multinational fragments the production process internationally, locating each stage of proaction in the country where it can be done cheapest
- horizontal FDI = when the multinational undertakes the same production activities in multiple countries
- conglomerate FDI investment in unrelated industry
28
advantages of FDI
- local economic benefits, creating new jobs and tax
- makes international trade easier to complete
- foreign income can appreciate. workers wages increase which can create new resources. For example, due to exchange rates and regulations workers may now operate at an above average domestic minimum wage.
- created educational opportunities improving Human Resources. for example, basic agricultural labour can become more qualified work, increasing job competitiveness
- investment via TNCs can lead to clustering and agglomeration which can stimulate trickle down as increased employment can benefit peripheral areas. this means less money from a nation's sovereign wealth fund needs to be invested into a country
29
special economic zones
-an industrial area, often near a coastline, where favourable conditions are created to attract foreign TNCs. These conditions include low tax rates and exemption from tariffs and export duties.
30
china - special economic zone
- open door policy created in 1978 after the death of Chairman Mao
- rural farmers were given land and could run it for profit
- foreign trade was allowed
- huge surge of rural to urban migration (300 million people)
- cheap rural migrants created the 'workshop of the world'
- 400 million people have escaped poverty via these schemes
31
china - open door approach to global flows
- FDI from china and its TNCs is predicted to total over 1 trillion between 2015-2025
- china agreed to export more 'rare earth' minerals to other countries, in line with the WTO regulations
- foreign TNCs are now allowed to invest in some sectors of china's domestic markets, inkling its rail freight and chemical industries
32
China - closed door approach to global flows
- google and facebook have little or no access to china's market. instead, Chinese companies like Youku provide social networking services
- china's government sets a strict quota of only 34 foreign films to be screened in cinemas each year
- there are strict controls on foreign TNCs in some sectors. China blocked cocacolas acquisition of Huiyan juice in 2008
33
subsidies
- sum of money states give to a certain industry to keep the price of the product or service their selling lower than it would have normally been
- if one country produces hats for £10 and the second £5, a 6£ subside to the first country allows them to procure hats cheaper
34
types of subsides
- production subsides
- consumption subsidies
- export subsides
- employment subsides
- gov may do this to attract FDI, WTO usually prohibits subsidies to domestic firms as this acts as a trade barrier (the gov payment allows a firm to accept a lower market price, undercutting the price of imports)
- payments to to a company to promote a particular activity
35
advantages of subsides
- allows farmers to respond to problematic situations as it provides a safety net for anyone who might encounter problems
- provides revenues for government
- allows domestic workers to stay competitive with their international counterparts and also allows self sufficiency
36
disadvantages of subsides
- money offered through subsides often don't go to the people who actually need it (e.g. disaster protection and price loss coverage, not the workers). they are often paid to large commercial bodies first
- government may raise taxes to pay for subsides
- can lead to a sudden rise in demand due to cheaper goods, meaning supply cannot be met
37
KOF index of globalisation
- produced annually by the Swiss institute for business cycle research
- it is a composite index combining 24 indicators spread across three categories (economic, social and political globalisation)
- a mean of the three categories is calculated to give the overall index
- economic measured by indicators of cross border trade, FDI and tariff rates
- social globalisation measured by tourist flows, resident populations, global affinity (presence of international TNC retail outlets)
- political globalisation measured by foreign embassies in a country, membership of international organisations, trade agreements with other countries
38
pros and cons of KOF
- calculated since 1970 so allows for comparisons overtime
- one of the only measures that takes politics into account
- many examples of missing or estimated data
- technological developments means that some of the indicators are now quite dated (international mail)
39
AT Kearney measure of globalisation
- us management consultancy produces an index value
- uses 12 indicators across four categories
- economic integration, technological connectivity, global cities index, personal contact, political engagement
- index value calculated for each indicator based on its relative position on the scale (things like FDI and IT is weighed double)
- USA is ranked 4th due to high IT connectivity
40
pros and cons of of AT Kearney
- includes 84% of the world's global population and 96% of global GDP
- only 62 countries involved
- some factors are averages or weighed higher making it less holistic
41
IMF annual reports on exchange agreements and exchange restrictions (AREAER)
-records the existence of restrictions to trade in different countries
42
best method to measure globalisation
AT Kearney as it takes into account the broadest range of factors ranging from economic so social, cultural and political.
whilst KOF does this too, the variables used in At Kearney are more up to date and therefore provide a more accurate picture
-both are holistic measures, yet data is taken from government and therefore they are both only as good as these readings are. (extensive censorship in countries such as China and Korea may give a distorted impression)
43
economic reasons for being switched off to globalisation
- lack of money to invest into infrastructure, as it limited connectivity and trade due to a lack of transport and technology links (poorly developed telecommunications)
- high levels of government debt (e.g. Senegal)
- dependancy on one industry (natural resource curse = specialising in one industry based off one natural resource). all money invested into this leaving them subject to global circumstantial misfortune
44
political reasons for being switched off to globalisation
- governments have complete control over the country and do not allow movement into or out of it (e.g. North Korea). if there are controlled labour camps and detention centres in countries with totalitarian governments
- unstable governments as a consequence of Neo colonialism. e.g. the Sahel region. after colonising much of Africa, it was returned in the 1960s due to increasing expenses but also due to an increase in human rights making it politically unacceptable. following independence, many broke out in civil war between previously isolated and separated communities. this instability detracts TNCs
- lack of investment by government into infrastructure
- corruption/organised crime/terrorism (e.g. Zimbabwe where drug trades are rife and often run by gov)
- excluded from trade blocs as countries are often omitted if corrupt
45
environmental reasons for being switched off to globalisation
- arid conditions
- desertification started due to overpopulation, leading to greater consumption of resources, climate change and extreme weather
- trees are so important (water cycle, shade from cloud for livestock, building materials)
- lack of natural resources (coltan could lead to investment from technological TNC's)
- landlocked countries prevent social globalisation and isolation from markets
- all of these hamper development and therefore economic globalisation and therefore social and cultural globalisation
46
do you need TNC's to globalise?
- you cannot fully globalise without TNC's
- outsourcing (fox con, apple - china)
- offshoring (dyson - Malaysia) was made possible by economic liberalisation
- global production markets (trade blocs)
- investment in new markets (Dyson used Monica from friends so advertise and sales went up by approximately 3000%)
- partial globalisation can occur through other means like religion
47
top 3 TNCs
- microsoft (technology)
- apple (technology)
- amazon (consumer services)
- all bar 3 of the top 10 TNCs are technology related
48
global shift
- the growth of the east's economy compared to the west's, especially with regard to manufacturing
- countries in the east generally have a faster growing economy than the west yet this doesn't means they're wealthier
- emerging countries have been able to maintain this despite the world economy having negative economic growth during periods like the 2009 global recession as a result of the American hosing market crash
- emerging countries have the fastest growth rates for megacities because of this
49
causes of the global shift
- globalisation and the ease at which countries can connect with each other making it easier to relocate. e.g. the aviation industry
- human development is also a reason as education is less advanced overseas. this means there is cheaper land and about providing a monetary incentive
50
why have companies been locating in India?
- former British colony so has English speaking region s
- infrastructure and education funded by the British government
- Time difference allows 24 house service
51
why have companies located in China?
- gov open door policy and special economic zones welcomed manufacturing jobs
- cheap labour with no promise of civil rights. no trade unions makes it easy to increase profit
- quick and effective transport links
52
china - global shift -infrastructure
- worlds largest highway network
- its rails systems links all provinces and cities
- its HRS has doubled in length in 10 years linking its major cities
- shanghai's maglev is the faster commercial train (268mph) taking 8mins from the CBD to the airport
- 82 airports have been built since 2000 (now 250). it houses 8 of the top 12 airports by freight tonnage
53
china - global shift - reduction in poverty
- 300 million Chinese people are now considered middle class (equal to pop of USA)
- sales of consumer items have sharply risen, buying more TVs and laptops than Americans
- extreme poverty has reduced by over 80% in 1980 to 10% in 2016
- remittance payments have decreased rural poverty
54
china - global shift - better education and training
- education is free and compulsory
- 94% over 15 are literate compared to 20% in 1950
- in 2014, 7.2 million Chinese graduated from university, 15 times higher than in 2000
- this was a deliberate plan by the government to try and create an educated and innovative workforce.
55
china - global shift - loss of biodiversity and land degradation
- a 2015 survey by WWF found that China's vertebrates had declined by 50%
- the UN has identified the Yellow Sea and South China Sea as the most degraded Marine areas on earth
- 36% of forests are facing pressure from urban expansion
- over 40% of china's farmland is suffering from degradation
- industrial emissions are creating acidic soil in the south
- land clearance for industry has led to deforestation and over grazing has led to desertification
56
china - global shift - increase in unplanned settlements
- rapid industrialisation and then urbanisation has created a need for more housing resulting in informal slum dwellings
- an increase in land process has made affordable housing hard to find,
- farmland is being. privately developed without housing permission
57
china - global shift - over exploitation of resources and resource pressure
-china has coil, oil and metals such as iron ore but not enough
-supply cannot keep up with demand so the Chinese government are having to seek additional resources (amazon rainforest cleared for soy production and Venezuela is being exploded for oil, coltan mining in Congo)
0this is creating widespread degradation
58
china- global shift - health problems
- 70% of china's rivers and lakes are now polluted and can't be used for irrigation of drinking
- 100 cities suffer from extreme water shortages and 360 million people don't have access to clean water. taper water in some locations has 80/101 forbidden toxins under Chinese law
- third of the pop breaths in air that is subceeds western expectations
- NHexane (chemical in Apple production) can lead to nerve damage and even paralysis
- human waste incinerators are located next to villages and the layer of ash it creates also inhbitis photosynthesis
59
china - global shift - loss of productive farmland
- 3 million hectares (size of Belgium) has been polluted by heavy metals
- farmland close to rivers has been taken out of action due to the risk of pollution from fertilises and pesticides
- rapid urbanisation has led to a decline in farmers and so production
- overproduction in some areas (Loess plateau) has created desertification and a further loss of farmland
- rural farmers are 40% more Lilly yo suffer form liver cancer due to exposure to polluted land and water
60
how is India affected by the global shift?
- Bangaloor was originally farmland
- innovation and development of brand bands/tech means that 4/5 top tech companies are Indian (clustering and agglomeration)
- globalisation has exacerbated inequalities in wealth. it has led to a rise in MC
- India is significantly cheaper and therefore can afford to take more risk and therefore a greater margin for gain
61
push factors for rural to urban migration
- unemployment
- lack of safety
- lack of services
- poverty
- crop failure
- drought
- war, civil unrest
- hazards
- isolation
62
pull factors for rural to urban migration
- potential for employment
- a safer atmosphere
- better service provision
- greater wealth
- fertile land
- good food supplies
- political security
- less risk of natural hazards
- friends and family
63
environmental impacts of rapidly growing cities
- poor built environments (slum dwellings)
- increased air pollution
- urbanisation increases flood risk
- contaminated water resources (in china mercury has leached into the ground water)
- land degradation
64
social impacts of rapidly growing cities
- overcrowding
- civil unrest
- pressure on services
- exploitation
- mental health issues
- crime
65
can china be blamed for the GS impacts on cities?
- plans to move 250 million residents into newly constructed towns and cities over the next dozen years
- replacing small rural homes with high rises, altering the lives of rural dwellers
- change character of China who was previously communist with peasants tied to their small plots of land. there has been a shift in party priorities
- goals to fully integrate 70% of the population
- chronic urban employment
- efforts have been made to increase the attractiveness of urban life and to create a vision of modernity
- significant resources are needed, many of which rely on central government transfer payments or land sales.
66
global migration
- migration is increasing towards more developed countries (from 1960-2013, the US accepted 42.8 million) -migration tends to originate from the emerging world
- reports show that North America and Europe still hold the strongest pulling powers for the global high net worth population
- wealthy individuals are gravitating to a small number of locations leading to clusters of concentrated wealth
67
hub cities
- also known as world cities
| - cities with a major influence, based on finance, law, political strength, innovation and ICT
68
global hubs
- a settlement or region that has become a focal point for activities with a global influence
- Trade = Shanghai, Business = London, international governance = The Hague, education/research = Cambridge
- unlike a megacity, a global hub is recognised by its influence rather than its population size. Washington DC is a relatively small city yet it's home to the White House, Pentagon, World Bank and IMF
- flows of money, goods and workers help to link global hubs together, forming a network of important places
69
what explains the geographical location of global hubs?
- physical and human resources along with government policies
- in developing and emerging economics, global hubs like Jakarta and Cairo are places were parent companies of major TNCs have established subsidiary firms or forged alliances with local companies
- Disney headquartered in California has established an Indian subsidiary (Walt Disney Company India) in the global hub of Mumbai
70
what natural and Human Resources influence global hubs?
- oil reserves
- coastline
- strategic location (Pacific has a large about force that encourages investment)
- physical factors to aid industry (e.g. relief, minerals)
- skilled about (universities)
- large labour force
- affluence attracts service providers
- languages spoken (allow for call centre operations)
- flows of internal and international migrants
- flows of capital investments and TNCs
71
high wage elite migration
- skilled wealthy migrants usually in the finance or investment industry
- migrate to expensive him cities such as London
- in 2013, 82% of property deals in central London were from foreign buyers
- Qatari investment have bought into the shard, Canary Wharf, Olympic village and Hyde park
- 1.3 of all foreign purchases of residential property in London between 2004 and 2014 went to Russians
- However, countries that lose these elites may experience a development disadvantage through lost skills and investment
72
low wage migrants
- some areas have experienced large flows of cheaper labour (UAE and Qatar). Both have small population (low labour participants from females) so need cheap manual labour and rely on natural gas/oil reserves
- 90% of UAE's workforce are migrants (Indians and Pakistanis) who are given visas connected to certain jobs meaning that they can be deported once done.
- they also need workers for construction and rapid infrastructure development (e.g. tourism to diversify the economy)
- World Cup stadium in Qatar needed 1.4million migrant workers.
73
benefits for the host location
- receives skilled foreign workers to fill about shortages for difficult, dirty and dangerous jobs
- can sustain a growing leisure industry through gaining workers for tourism but also because migrants can contribute to the economy as consumers
- can balance an ageing population
- observing the advantageous contributions foreign workers have made to the economy, the population will inadvertently be more accepting of other ethnicities, perhaps creating less xenophobia within society.
74
benefits for the source location
- workers can channel savings home to their families through remittances. These funds can not only increase the affluence of domestic families, but it can also decrease unemployment in construction and retail industries if funds are used to build homes or to improve one's lifestyle
- returning migrants can share their professional, social and political experience whilst also providing an improved work ethic, perhaps fuelling production and ambition in the source country.
- fewer unskilled migrants being unemployed in the source country, a government now has to invest less money into welfare benefits and so can generate a larger margin to invest into other forms of social spending such as improving services like education or healthcare.
75
drawbacks for host location
- high demand for property has led to property price inflation, making it overly expensive for native Londoners to buy into the housing market, thus forcing them into cheaper suburbs further away from the centre of London and their work or lifestyle.
- increasing resident population in particular cities like London, services such as education are under unprecedented levels of pressure. If demand for services like education cannot be solved then it may lead to a vast proportion of the population being uneducated and so unable to fill future employment, abating industrial profit in the long term.
- larger population density in urban areas, congestion is likely to increase, creating a proportionate rise in air pollution levels, damaging the natural environment and contributing to a series of respiratory conditions.
76
drawbacks for source location
- if elite migrants continue to move out of the country then the area may face a brain drain, losing the country’s most skilled and dynamic workers. For higher sectors of the economy this may limit productivity and competitiveness in the national and international market, limiting profit.
- with fewer domestic workers, the government may struggle to sustain a high tax revenue and so there may be a lesser ability to invest into the country - exacerbating the gap between the rich and the poor as those who have family overseas benefit from remittance schemes whilst those who don’t are left with limited government support.
- the country may also suffer through an imbalanced population as the majority of migrants who emigrate tend to be of a young working age. This not only leaves a current ageing population but also poses implication for reduced birth rates and therefore higher dependency ratios in the future, thus making the costs to the source country more long term.
77
cultural traits of immigrants
- language - some countries have a single national language with local dialects or several languages belonging to different indigenous ethnic groups
- traditions - everyday behaviour and manners are transmitted from generation to generation from parents to their children (shaking hands)
- religion - several world religions each with their own local variants
- clothing - national and local traditions may reflect traditional adaptations to the climate such as wearing fur in polar climates
- food - national dishes and diet traditionally reflect the crops, herbs and animal species that are locally available
78
cultural diffusion
the spread of one's culture to another by various methods
79
westernisation
happens as a result of cultural diffusion
- if is when societies cone under or adopt western culture in areas such as industry, technology, politics, lifestyle, religion or values
- issue with westernisation is that it implies change only goes one way. we eat sushi and drive Honda Prius
- it also has an air of cultural superiority, progressing to a more civilised world. this doesn't account for corporate greed of hyper consumption
80
the pork industry in China
- makes up 65% of all meat consumed in China and half of the world pork
- example of a western influence
- high hog population has led to tightened supplies
- pig production accounts for 42% of nitrogen flows into the South China sea
- diseased pigs aren't always disposed of properly (16,000 carcasses found in the Huangpu river in 2013)
81
how has globalisation provided increased opportunity for disadvantaged groups - Paralympics
- drives social inclusion and challenges attitudes, spreading a message of respect and equality
- changes the perception of the disabled to one of capability
- global media coverage
82
how has globalisation provided increased opportunity for disadvantaged groups - girls
- 62 million girls who should be in school aren't
- economic barriers such as schools fees and uniform but also attitudes in certain societies whereby it is a long held believe that women shouldn't get an education and work
- if girls are more educated then they are likely to get married later and have healthier children
- it also means they can work for longer and achieve greater financial security, boosting national growth
- major organisations such as Let Girls Learn helps this
- according to hindu religion marriage must be done before the age of 12 (when girls hit puberty and sin). organisations are set up to see this and stop this
83
cultural erosion
- when a culture loses many of its core elements/ emerging countries have the least ability to protect their ethnographic landscapes as they are at the mercy of western globalisation
- can change both the built and natural environment
- UNESCO helps to preserve heritage, protecting nearly 1000 sites worldwide. developed countries can do this on their own (40 registered historic battle fields, 20,000 ancient monuments)
84
opposite to cultural erosion/ globalisation
- structuralists believe inequalities arise form globalisation (e.g. capital vs about, men vs women). they argue inequality in the global economy will only be solved by structural change
- others argue it is a necessary product of winning and losing in global competition, promoting free trade as a way of eradicating inequality
- depends if you look at it from social or economic perspective
85
how had Papua New Guinea been affected by cultural erosion
- the island became a British colony in 1884
- administrators suppressed tribal welfare to allow freedom of movement and integrated villagers into the colonial economy as plantation workers
- this led to the spread of christianity and western education
- increasing intermarriage between different cultural groups meant they failed to pass on their native language. English is now the most common second language globally
- used to do shift cultivation but can no longer as they live in designated clearings. this means the natural environment Is views only as a resource for development
- discovery of copper in 1964 encouraged Rio Tinto (British TNC) to enter
- Papau New Guinea workers brought in Bougainville revolutionary army (BRA), inducing conflict and making it difficult for police to fight its own citizens
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how have developed countries resisted cultural erosion
- france have limited the amount of foreign culture (music, films, TV) that can be broadcasted and 40% of broadcast must be in French with no more than 55% of American film imports
- 2000's Iran led by the islamic government confiscated all barbie dolls from toy stores due to their un-islamic image
- North Korea has also slowed erosion by preventing western influences accessing the population through rigorous censorship
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what was Papua New Guinea like before globalisation?
- 7000 cultural groups most of whom have their own language
- many different cultural forms of art and dance
- typically live in dispersed villages reliant on subsistent framing
- technological advancements that has allowed for greater communication and the introduction of a global culture. For instance, in Papua New Guinea, communities used to play traditional Korowai music using pig-skin drums but because of globalisation, their music culture has now been replaced with contemporary artists and genres.
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economic benefits and problems of globalisation
- job creation and increased tax
- products can be produced quicker and cheaper and so become more affordable
- footloose industries can take advantage of cheap land and labour
- increased FDI
- economies of scale and greater competition
- trade doesn't always benefit poorer countries (Rostow's model)
- leakages to country of origin
- interconnections can lead to economic weaknesses (e.g. financial crashes)
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socio cultural benefits and problems of globalisation
- freedom and movement of people and liberal immigration laws allows people to work abroad, greater opportunities
- overall increase in QOL
- better access to external financing
- more opportunities for International travel and tourism
- worldwide entertainment in music, sports, FADS
- rapid spread of consumer products
- capacity to communicate globally
- less cultural diversity, instead creating cultural homogenisation
- brain drain in many countries
- exploitation of local people, especially in emerging countries.
- cultural erosion meaning areas lose values previously at the core of their development
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political benefits and problems of globalisation
- greater collaboration can lead to strong international communities (G6, UN). these are often committed to spread values lie freedom
- access to international aid and support in the event of a disaster and this can help to mediate world peace
- reduces risk of invasion due to limits on nationalism
- governments can learn from each other. e.g. how best to deal with the COVID-19 virus
- some TNCs become more powerful than government in certain decision making (HSBC and taxes)
- states sovereignty is reduced
- the functioning of international communities isn't often democratic in terms of representation and accountability
- coordinations is difficult and expensive
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environmental benefits and problems of globalisation
- greater understanding of the issues due to increase communication and equation (e.g. climate change)
- TNCs can often invest into projects (e.g. BA and Amazon rainforest) and renewable energy
- international pressure can force change environmentally. e.g. China and pollution.
- increased transport and industrial emissions leading to global warming
- water shortages and desertification as the population increases.
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economic measures of development
- GNI (formerly GDP). the value of goods and services earned by a country including oversea earnings
- GDP (mostly made within a country)
- PPP relates the average earning to local processes and what they will buy. it is spending power within a country and reflects the local cost of living
- economic sector balance (composite) gives the % of employed in each sector. the primary sector balance for the uK is 0.6% compared to 30% in Malawi
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social measures of development
- HDI (composite measure) takes into account life expectancy, education and GDP per capita
- GII gender inequality index combines the reproductive health of women, their participation in the workforce and empowerment to measure gender-based development.
- GHO global health observation
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do economic measures of development contradict social?
Economic indicators can give a distorted impression of how developed a country is as they focus on the general wealth of a nation rather how this money has affected inequality and how spending has been prioritised to foster development.
- For example, if you analyse the GDP of a nation, China appears to be the second most developed country, yet in reality wealth is concentrated for a small few leading to widespread social inequality as reflected by its high Gini Coefficient.
- majority of economic indicators only reflect development up to a certain point as they aren’t reflective of factors that money can’t buy such as trust in government and freedom – something that China lacks both of.
- one could argue that social indicators may give a more holistic impression of development as to be social developed you need to be relatively economically developed.
- tend to be reflective of how a country’s wealth has impacted social inequality. For example, the Human Development Index is a composite indicator that takes into consideration GDP per capita, life expectancy and education. Therefore, if a country has a high HDI it is likely to reflect high levels of development as it would require a good standard of education, good quality healthcare and shared wealth (stable government).
- This may contrast with economic indicators as countries like China which have a high GDP often have a relatively low HDI score due to their communist government and lack of social spending.
- This means that economic indicators are more reflective of a country’s quantitative wealth rather than its overall development.
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example of happy countries
Nordic countries have a range of supportive benefits from medical to education and transport
-during economic crisis, happiness levels dropped in Germany, Portugal and Spain but remained high in Iceland due to strong social capital (people come together to resolve the problem)
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protest groups to globalisation
- Occupy Wall Street and the Global Justice Movement argue that globalisation has dramatically increased resource consumption by exploiting the natural environment, exploited workers in emerging countries, passed political power to the hands of TNCs and uncaring governments.
- it has increased inequality and caused cultural erosion, degrading traditional lifestyles
- other groups like Greenpeace have similar opinions
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gini coefficient
- measures national and international inequality
- it is a number between zero and one that measures the degree of inequality in the distribution of inequality and wealth
- the number would be one in a society where each member received the exact same amount. a coefficient of one would be the opposite
- therefore the higher the coefficient the more unequal the distribution of wealth
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Lorenz curve
- the Lorenz curve can be used to graphically represent the distribution of income. The percentage of households is plotted on the X axis and the percentage of income on the Y axis
- it represents income distribution
- the line of equality shows what an equal distribution of wealth would look like. Lorenz curve shoes the actual distribution
- the closer the curve is to the line of equality, the more evenly distributed wealth is
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what did the 2016 Oxfam report say about wealth distribution?
- wealth of the worlds richest 1% is equivalent to the wealth of the other 99%
- Haiti is the most unequal country as the richest 20% of people have 65% of the wealth.
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reasons why globalisation has created inequality
- about 1800 billionaires worldwide in 2016 most of which have their wealth through TNC ownership
- has isolated the rural populations of subsaharan Africa as global connections are thin
- workers in old industrial cities have lost their jobs in the developed world due to the global shift
- workers in sweatshop factory conditions in the developing world are exploited.
- slum dwellers in cities like Lagos
- GDP increases but not per capita
- distribution of wealth tends to become more unequal in the initial stages of a country's globalisation as outsourcing allows some people to become exceptionally wealthy. when this wealth is utilised for social spending inequality starts to decrease.
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reasons why globalisation has not created inequality
- Europeans tend to be egalitarian believing that in a fair society there should be no big income gaps. USA places emphasis on equality of opportunity
- provided people can more up the social ladder, they believe that a society with wide income gaps can still be fair
- the income gaps of everyone on the plant have started to fall as poorer countries develop (BRIC)
- rising middle class in Asia (e.g. call centres) has led to a rise in incomes due to outsourced jobs
- trade liberalisation has helped areas like North Korea
- overtime less inequality as wealth is used to fund social spending
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trends in economic development
- since 1970, the average income per capita in Asia has left the absolute poverty threshold(driven in particular by the modernisation of Japan and South Korea)
- Asia's 2010 figure sits at US $7000 per capita which is equivalent to $20 a day compared to the absolute poverty threshold of $1.25 a day
- incomes in Africa have remained closer to the poverty line, but this differentiates between regions
- large income gains have been made in Tunisia, Algeria and other parts of the Maghreb region in general N Africa is much more switched on (outsourcing of French TNCs)
- there are also other coastal areas such as Lagos, Nairobi and Cape Town. they are hotspots for imports and are estimated to have a growth in middle class if their government remains stable
- central Africa remains in poverty, in part due to geographic isolation (Brundi and Central African Republic)
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environmental impacts of globalisation
- climate change (carbon emissions china = 27.2% and the US 14.6%)
- loss of biodiversity (40% of earth's terrestrial surface has been turned into productive agricultural land)
- intensive cattle farming can deplete ground water supplies
- Vietnam lost 78% of its primary forest
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rare winners of globalisation
- Africa is starting grow. new government may be open to investment for example
- South Korea's economy has also grown since 1970
- developed and emerging countries are experiencing rapid growth (more trade partners, cheaper sources goods, increased sharing of ideas)
- growth in countries like Burkina Faso is much slower (landlocked, lack necessary infrastructure, corruption)
- world bank invested in Owogaodo airport
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pros of open flows
- investment is injected into the UK allowing for regeneration that the go doesn't need to fund
- movement of highly skilled workers (doctors for the NHS) allowing services to sun more effectively
- freedom to transfer capital (in the UK any bank or individual can trade in shares without having to use the London Stock Exchange)
- London attracted 35% of all companies who moved their European Headquarters to the UK. it was also the leading recipient of FDI investment from France, Japan, Australia, Canada, India and Ireland
- establishes diverse groups in the UK (polish in Lincolnshire) which can encourage ethnic tolerance but also spread of food, values and culture
- safer world with greater cooperation
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cons of open flows
- immigration can cause resentment in the host country. migrants have become victims of harassment, abuse and exploration
- since 2004, streams of refugees from areas like Syria have cause tension in Greece and Balkan countries
- trans-border water conflicts (4200km through Asia) as a number of dams have been built causing controversy. in 1995 the Mekong river Agreement required the gov of all countries it ran through to agree to any proposals (e.g. the Land testified against the Xayaburi dam)
- pressure on housing and services
- rise of extremist groups
- cheap migrant workers undercut local wages
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islamic extremism
- presented by radical groups such as Isis.
- the movement of Islamic communities into the western world and countries such as the UK can lead to cultural clashes.
- western countries tend to have a more liberal way of thinking and this may threaten the religious ideals of Islamic societies.
- For example, gender equality and the revealing clothes that women stereotypically to wear today is at complete variance with the reserved and patriarchal culture that these immigrants are accustomed to, perhaps giving rise to conflict in the form of extremism.
- For example, it is reported that the bombing of the Ministry of Sound Night Club in 2004 was not due to imperialism but to murder ‘those slags dancing around’.
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far right extremism
- clear in Europe
- the EU’s free movement policies actively encourage the spread of people into different countries, applying pressure to existing housing and services whilst also meaning that many sign up to government led welfare schemes.
- This has meant that some people now resent immigration seeing it as a negative process that drain state funds and a nation’s economic stability.
- this had given rise to far-right extremist groups who seek to impose more stringent immigration laws to limit the issues as previously mentioned.
- This is particularly true in areas like Sweden who are now faced with the consequences of having one of the most generous asylum policies, thus giving rise to political beliefs that verge on neo-Nazism.
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how can censorship control globalisation?
- most Govs do this to try and protect the culture and remain in control the free flow of ideas is presented as a threat and the Chinese Gov look nervously as global events like the Arab Spring with its ideas about democracy
- China censors internet connection and published material
- the first type is state controlled (e.g. Chinese News) where print publishing or broadcasting is run by official state media
- the state also monitors overseas contact (e.g. video games and how many western moves can be seen)
- estimates that nearly 2 million are involved in this process
- North Korea does a similar thing
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how does limiting immigration control globalisation?
- across the western world there have been debates about immigration.
- Australia has a points system coming from jobs, age and savings (e.g. teachers and hairdressers are needed). this ensures productive and skilled people can enter
- UK immigration ranks in top 5 UK issues in IPSOS MORI survey. transatlantic trends found 72% were in favour of admitting more doctors, nurses, 51% supported admitting more care workers to manage the burden of an ageing population. This is difficult with free movement of people in the EU.
- Japan faces about shortages but isn't open to migration
- USA wanted to build a wall
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how does trade protectionism control globalisation?
- restrictive quotas and regulations
- cheap goods can undercut local prices (e.g. in 2016 cheap Chinese steel was being dumped onto global markets ay prices heavily subsidised by the Chinese government in order to protect domestic manufacturers)
- this had an impact on the UK. the owners of Tata Steel manufacturer was losing 1 million a day, forcing them to put all of their UK steel plants up for sale
- a solution would have been to raise tariffs on imported goods but this is prevented by World Trade Organisation rules
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Canada's first nations
one of the only indigenous populations thy have been given their own rights and government
- this gives them power to determine healthcare, education, culture and their own decisions
- Assembly of First Nations with aims to protect rights and culture (634 First Nation government meet)
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Fort Mckay First Nations in Alberta
- worked with a Canadian oil sands industry to help protect their land and culture but they also benefitted by providing services to the oil industry
- they created an agreed 20km exclusion zone between the oil industry and reserves land
- they negotiated contracts to provide services for the oil sands industry from First Nations companies worth more than $100 million annually
- the economic opportunities provide new ways to develop and a way out of poverty
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Bever lake cree
- Alberta Tar sands is the largest known reservoir of crude bitumen oil in the world (larger than area of England)
- most has been leased to oil industry without the gov following in the duty to consult the local people
- 2013 there were a series of spills were elders had been buried as well as destroying 300,00 kg of vegetation
- in 2008 they filed a lawsuit taking the gov to court based off a treat signed in 1876 (agreement to share land if they can continue their way of life)
- WWF raised £250,000 for their case. the area is one of the largest carbon sinks
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Tasmania indigenous populations
- educating younger generations about who they are and how they are connected to their country
- in 2017, 338 hectares of property near the Arthur River were retuned to a original ownership
- they want the environment to have intrinsic worth not quantified by economic value
- Tarkine in NW Tasmania is one of the last tracts of old growth rainforests yet is currently at the mercy of destructive extraction industries like logging
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will corona virus reverse globalisation?
- alternative local supplies sources ahead of foreign potentially contagious goods (re-shoring)
- re-shoring gives the opportunity to diversify supplied base
- service sector/tourism has fallen meaning there is less movement of people
- universities not longer have the same quantity of Chineses students
- international cooperation (e.g. finding a vaccine)
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what must governments d too be sustainable
- meet the needs of the present without jeopardising those of the future
- satisfy economic, social and environmental concerns
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localism
-describes a range of political philosophies which prioritise the local. Generally, localism supports local production and consumption of goods, local control of government and the promotion of local history/ culture
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transition towns
- settlements were individuals and businesses have a adopted a bottom up approach with the aim of making their community more sustainable and less reliant on global trade.
- Totness Devon is an example of this.
- resilience (the ability to bounce back form external crisis
- relocalisation (actively promotes the idea of going beyond the concept of localism
- regenerative development = development of Totness and the district for public benefit of it's citizens by reducing reliance on shared resources.
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benefits of transition towns
- stronger bonds created amongst the community especially between consumers and businesses allowing for social networking to take place
- residents have a shared sense of belonging and purpose, feeling more empowered
- money circulates locally helping independent businesses in the area. (80% of money spent un supermarkets leaves the area immediately)
- transport costs are reduced meaning there is reduced CO2 emission
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costs of transition towns
- can be very insular, outsiders are excluded from small community based projects
- consumers can miss out on price benefits through competition and wider options. Chains like Lidl would offer lower prices
- small scale production especially in agriculture can be damaging (e.g. Eutrophication)
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ethical consumption
choosing a purchase because of the products ethical nature or morally boycotting because of concerns of it's ethical nature
-reduce the inequalities of global trade to improve the living and working contains for disadvantaged groups
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nestle and ethical consumption
- subject to boycott calls around the world for its irresponsible marketing of baby milk formula 'contributing to unnecessary deaths and suffering of infants' as it promote baby milk as being superior to breast milk
- nestle continues to pump millions of litres of water from watersheds despite serious droughts in recent years
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fashion and ethical consumption
- Rana Plaza factory complex on the outskirts of Dhaka fell down million over 1000 workers. Primark used this factory
- H&M were the first to sign the safety accords
- considered the first step towards cleaning up the supply chain
- Gap is an ethical trailblazer, source of sweatshop scandals
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issues concerting palm oil
- iceland removed palm oil from all own bran products until forest destruction as the hands of palm oil is zero
- over 300 football fields are destroyed each hour in SE Asia, at least 56 animals are facing extinction in Kalimantan
- 50 orangutang killed each week
- many plantations are in peat soil, the drainage causes massive GHG emission
- palm oil is high in saturated fats to leading to health damage
- palm oil can be found in over 50% of supermarket items
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ecological footprint
- the impact of human activities measured in terms of the area of biological productive land and water required to produce the goods consumed and to assimilate the waste generated. the amount of land to support a given lifestyle
- inefficient consumption at the moment as 17% of the world's population consumers 80% of resources
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UAE and ethical consumption
- in 2006 was the country with the largest per capita consumption collaborated with global footprint network and partnerships to ensure sustainable future
- new energy standards (lighting regulations reduce energy consumption by 340-250 megawatts per years)
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BA - ethical consumption
- creating more fuel efficient aircrafts and more sustainable fuels (converting household waste)
- carbon offsetting b investing in a range of carbon reduction projects (reforestation)
- making planes more efficient by washing engine frequently and decreasing aircraft weight
- Airbus A350 is 25% more fuel efficient
- carbon fund opportunity to reduce flight impact on consumer level (e.g. Ol Pejata conservancy in Kenya is a wildlife conservation that consumers can contribute to)
- even if they make these attempts aviation industry will still be one of the largest contributors to GHG emission.. perhaps gov action to limit air travel is what is needed
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M&S - ethical consumption
- since 2008, over 2million clothes have been shwopped giving OXFAM £16,000 to help end poverty (they are reused and recycled clothes)
- in 2007 aimed to tackle every environmental, social and animal welfare retail's issue (made 100 commitments split into 5 divisions)
- working with reducing supply chain emissions (60%) and also the 35% in consumer homes. clothes are being designed to wash at lower temperatures
- m&s is 34% more energy efficient and 27% more water efficient since introduction in 2014
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fairtrade - ethical consumption
- farmers are powerless in the face of the free market, this is a cooperation that works more democratically
- they know the value of their products making easier to negotiate. they have access to credit, premiums to create a stable income and regulations like minimum prices and outlawing child labour are established
- protects the environment (genetically modified foods are forbidden and resources are used as sparingly as possible)
- starbucks 100% fairtrade and 125 countries are part of it worldwide.
- however farmers can make more if they grow their own and get a specialised coffee beans status
- initial joining fee
- just because a plantation is fair-trade, doesn't mean evert workers benefits
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drawbacks to ethical consumption
- we as a society crave cheap clothing as oppose to ethical products and therefore unless we challenge this orthodoxy through increased education and awareness, change will in all likelihood not only be slow but also minimal. ethical consumption trends can't be used on their own, they cannot address all of the negative consequences of globalisation as not only does the notion lack momentum and support, but it is also more expensive meaning it doesn’t meet peoples’ desires for cheap commodities
- it could be argued that ethical consumption trends only work when there is a degree of development . This is because, despite schemes like Fairtrade having the right intentions they still charge an initial joining fee – something that is beyond reach of those who need it the most, thus forcing them back into sweatshop working conditions and a cycle of poverty. Therefore, it could be argued that unless extreme poverty is addressed in the developing world through schemes such as the Millennium Development Goals, ethical consumption can only benefit a small minority and therefore only partially alleviate the consequences of globalisation.
- government action needed
- take a long time
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why is recycling sustainable?
- economically as don't need to extract new resources, preserving supplies (some components of electronic goods are sparse). can Aldo generate national energy through energy recovery and incineration
- creates employment
- less green house gases
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Keep Britain Tidy
- NGO
- encourages people to pick up litter
- helps animals to safety if entangled in waste
- raising awareness to set a precedent for future action
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recycling examples
- can be used as a commercial transaction but the value of recyclable paper and plastic has dropped by 80%
- half of Australia's waste products were sold to China where they were repurposed into new products
- China have now banned this as the demand is gone
- stockpiling of waste can catch fire in Australia's climate leading to health issues
- repurposing of glass into sand can be used for construction
