Globalisation Flashcards
Glocalisation
when you adapt a product to meet the demand of the local market which may be different to the businesses market
Globalisation
involves widening and deepening global connections, interdependence and flows (commodities, capital, information, migrants and tourists)
-A process by which national and regional economies, societies and cultures have become integrated through the global network of trade, communication, immigration and transportation’ The Financial Times
Economic globalisation
this includes the growth of TNC’s which have a global brand image and presence, this accelerates cross border exchanges of raw materials, components, finished manufactured goods, shares, portfolio investment and purchasing.
- The spreading of investment around the world; rapid growth in world trade.
- Information and communication technology supports the growth of complex spatial divisions of labour for firms and a more international economy
- Online purchasing using Amazon on a smartphone
Political globalisation
includes spreading ideologies, global organisations, the dominance of western democracies in political and economic decision making.
- The growth of trading blocs allows TNC’s to merge with firms in neighbouring countries while reduced trade restrictions and tariffs help markets grow
- Global concerns such as free trade, credit crunch and the global response to natural disasters – 2011 tsunami
- The world bank, the IMF and the WTO work internationally to harmonise national economics
cultural globalisation
unifying and diversifying and people using increasingly similar food, clothes, music and values
- ‘successful’ Western cultural traits come to dominate in some territories e.g Americanisation and Mcdonaldisation
- Globalisation and hybridisation are a more complex outcome that takes place as old local cultures merge and meld with globalising influences
- The circulation of ideas and information has accelerated due to 24 -hour reporting
- People also keep in touch using virtual spaces such as Twitter and Facebook
social/ demographic globalisation
increasing migration and tourism makes populations more fluid and mixed
- International immigration has created extensive family networks that cross-national borders – world city societies become multi-ethnic and pluralistic
- Global improvements in education and health can be seen over time, with rising world life expectancy and literacy levels, although the changes are by no means uniform or universal
- Social interconnectivity has grown over time due to the spread of ‘universal’ connections such as mobile phones, internet and emails
environmental globalisation
-agreements between countries (Paris agreement), pollution affecting other countries, global warming being a global threat
What are the past ways global connection was achieved?
Trade - in 1492 when Columbus reached USA and traditional world economy began
Colonialism - end of the 19th century, British Empire controlled 1/4 of the world
What are commodities?
- things that are sold
- previously valuable raw materials
- more recently manufactured goods
- grown by low production costs and low wage economies (china)
How is capital linked with globalisation?
-businesses buy and sell money in different currencies to make profit
How is information linked with globalisation?
- internet has brought real-time between countries - allowing goods/services to be bought quicker and easier
- social media increased influence
- info stored in large ‘server farms’
How are people and tourism linked with globalisation?
- air passengers are holiday makers
- budget airlines have brought a ‘pleasure periphery’ of distant places within easy reach fro tourists of high-income nations
- increasing growth of people from emerging countries
How are people and immigration linked with globalisation?
- becoming harder due to border controls and immigration laws
- many governments have pick and mix view
- embrace trade flows but resist migrant flows
- the combined n.o. economic migrants and refugees reached almost a quarter of a billion in 2013
- same year $500bn of remittances were sent home by migrants = interdependency
What are the flows of globalisation?
commodities information capital migration tourism
cons of remittances
- money is taken from economy - not going to host economy
- jobs are taken which results in unemployment
pros of remittances
- higher aspirations of actual population
- fill job shortages
- increase cultural ideas in host country
Transport factors accelerating globalisation
- steam ships
- fibre optics
- containers
- jet aircraft
- railways
Role of planes in accelerating globalisation
- cultural globalisation
- movement of people leads to the movement and speed of culture
- allowed people to move taking with them businesses and knowledge
Role of containerisation in accelerating globalisation
- far east to Europe
- intermodal containerisation - when you have standardised containers that fit on lorries, boats and trains saving lots of time and making process more efficient
- saving time and money as you don’t have to load or unload
- shipping is the cheapest and efficient way of transporting goods and intermodal containerisation has accelerated this
How has technology and transport influenced globalisation?
- tech developments in transport and communication in the 19th century promoted globalisation and led to the development of TNC’s
- 19th century - developed of the railway, telegraph and steam ship
- the 20th century saw the development of the jet aircraft and containerisation
- these increase globalisation by reducing transport cost per unit output -so products are affordable for customers in a distant market - setting up a new flow of goods/info
How has development of energy influenced globalisation?
- harnessing new forms of energy allows larger loads to be transported
- larger loads produce an economy of scale - a reduced cost per unit output
e. g. coal in the railway steam engine, oil in internal combustion and jet engines in Lorries and aircraft
What have developments in transport technology been encouraged by?
- encouraged by growth in trade - the exchange of goods and services between people and companies which is increasingly cross-border between countries rather than just within a country.
- Transporting goods and people around the world has become cheaper over time.
How did transport change in 19th century?
-Faster steam trains replaced horse-drawn and canal transport
-1830s public railways (Liverpool and Manchester))
The electric telegraph was the first long-distance instant communication technology (1830s).
-Steam ships replaced sailing ships and increased speed and cargo capacity dramatically (1840s)
How did transport change in 20th century?
-jet aircraft
- The Boeing 747 ‘jumbo jet’ introduced in the 1960s lowered the cost of international air travel, bring international tourism within the purchasing capabilities of the middle class.
- They reduced travel time for passengers to hours, rather than days, replacing steam ships.
How did transport change in 20th century?
-containerisation
-less time spent when products change transport type, e.g. at a dock = more trade = cheaper
-Dramatically sped up goods trade and reduced costs, making consumer goods cheaper
-Process is easily mechanised; containers are unloaded by crane, increasingly automatically. In the past, cargo was loaded manually in crates or stacks.
-Fewer losses from theft.
The world’s fleet if 9500 container ships can carry up to 18,000 twenty-foot shipping containers each. -Faster transport times increase the distance perishable products can be transported, e.g. cut flowers from Kenya, opening up more distant markets and reducing losses.
What is meant by ‘the shrinking world’?
- the physical distance between places remains unchanged, but new technologies reduce the time taken to transport goods/people/communicate information
- the process of time-space compression
What is the process of time space compression?
-an effect of increased connectivity with more distant place and an effect of the shrinking world
How has ICT influenced globalisation?
- they have reduced communication costs and increase global communication flows, since the late 20th century
- developments have been very rapid since 1990
- banking (electronic apps), booking hotels (online), shopping online
How have mobile phones influenced globalisation?
- mid-1990s, even in many developing countries.
- extended information flows to locations beyond landline networks
- Reduced mobile phone costs expanded usage from an expensive business tool to an ubiquitous consumer product
- Used even in countries with a lack of communications infrastructure. By 2015, 70% of people in Africa owned a mobile phone.
How has the internet influenced globalisation?
- Internet access became common from the mid 1990s, followed by fast broadband.
- Close to 50% of the world’s population uses internet.
- Broadband internet in the 1980s and 90s meant that large amounts of data could be moved quickly through cyberspace.
How have social networks influenced globalisation?
- Social networks and Skype allow people to communicate instantly
- The development of social media (Facebook 2006, Instagram 2010, WhatsApp 2010) enabled much cheaper communication between friends and family than landline telephone.
- This has led to space-time compression, where the cost (time or money) of communicating over distance has fallen rapidly, so people can communicate regardless of distance.
How has economic banking influenced globalisation?
-The rise of mobile phones means they can be used for economic banking, revolutionising life for individuals and businesses.
-Electronic banking extends capital flows beyond the physical banking network
-E-banking allows migrants to transmit remittances of money back to their home countries.
-It has been a huge benefit to businesses, since they can:
Keep in touch with all parts of their production, supply and sales network, locally and globally.
-Transfer money and investments instantly.
Instantly analyse data on sales, employees and orders from anywhere within their business.
How have fibre-optic cables influenced globalisation?
Land-based and sub-sea fibre optic cables in the 2000s increased the speed and volume of data transmission through cyberspace, and allow instant, global communications.
- Global positioning systems (GPS) use continuously broadcasting satellites as beacons to triangulate information.
- Satellite-based television has meant that popular channels are available worldwide, in many languages.
How has ICT developments lead to cultural globalisation?
MP3 players and iPhones enable a rapid global transfer of music and video.
TNCs bring foreign styles and products, e.g. McDonalds, Starbucks, possibly creating a global ‘McCulture’?
How has ICT developments lead to political globalisation?
Social networks can be used to spread political messages, e.g. an environmental campaign or enhanced impact of a terrorist atrocity.
What are some economic effects of globalisation?
-specialisation
- Globalisation allows economic specialisation where the country focusses on production of certain goods/services it can produce most efficiently, lowering production costs.
- The focus of specialisation determined by the country’s mix of natural resources (land). people (labour) and technology (capital)
- Specialisation and trade allows for an increase in global output and increases choice, raising quality of life.
What are some economic effects of globalisation?
-interdependance
Globalisation reduces self-sufficiency and increases interdependence - mutual reliance on inputs from other countries.
Increased complexity of global flows may reduce resilience as it increases vulnerability to shocks anywhere in the world, e.g. a natural disaster, economic recession, war, or political conflict.
What does the world bank do?
Its an International financial institution that provides loans and grants to the governments of poor countries for the purpose of pursuing capital projects
-working for sustainable solutions that reduce to poverty and build prosperity in developing countries
how many members does the world bank?
189 countries
-don’t want to give money to developing countries who have bad human rights
How is the world bank funded?
- borrows the money it lends as it has goof credit because it has well managed financial services
- can borrow money ay low interest rates from capital markets
- fees paid by member countries
- borrowing from countries
How does the IMF work?
international monetary fund
- maintain economic stability in emergencies
- organisation that aims to promote global economic growth and finical stability, encourages international trade and reduce trade tariffs and taxes
how many members does the IMF have?
- 189
- each have a representative on the IMF executives board in proportion to its financial; importance
- most powerful countries have most economic voting power
How is the IMF funded?
- quotas - pooled funds from member nations
- larger economic importance = larger quotas
- Loans - multilateral and bilateral borrowing -some countries ready to lend money
What does the WTO do?
world trade Organisation
- deals with the rules of trades between nations
- role is to help producers of good/services, export/importers conduct their businesses
- help facilitate global trade through the removal of taxes and tariffs
- allows globalisation and easier movement of goods
- allows fyi and foreign firms to set up
how is the WTO funded?
- contributions from members
- cost sharing by countries involved in an event or by international organisations
What does the WEF do?
world economic forum
-organisation that brings together its membership on a year basis to discuss major issues concerning the worlds political economy
How is the WEF funded?
-funded by its own members[which includes industry leaders, politicians, and companies
How can national governments accelerate globalisation?
- by joining trade blocs
- free market liberalisation
- privatisation
- encouraging business start ups
How do trade blocs accelerate globalisation?
- specialisation
- Countries specialise in goods being produced which have a comparative advantage (e.g. can produce at the lowest cost) and trade these products for other members’ specialisms
- Firms producing a country’s specialisation become TNCs as they sell outputs through the bloc.
export tax
companies set up in foreign countries must pay export tax, high export taxes = low fdi
import tax
companies bringing in goods, import taxes must be paid
high import = less fdi
Quota
- what is the aim?
an agreed amount of stock that you can bring into a country per month or per year
-this aims to protect domestic producers
Protectionalism
import taxes, export taxes, high quotes to protect domestic market
Subsidies
allows producers to sell it cheaper to protect domestic market
Trade surplus
when you make more money from your exports than you have to spend on your imported goods
trade deficit
when you spend more money on your imports than you make on your exports
trade Liberalisation
free trade - remove taxes, tariffs and any barriers
How do trade blocs accelerate globalisation?
-EU
-A single market trade bloc composed of 28 members and a population of 512 million.
-guarantees the free movement of goods, capital and people.
the euro has been adopted by 19 members.
-Integrated economic policy areas, e.g. Structural Funds to assist regions within member countries with a GDP per capita of less than 75% the EU average
-The original political aim was to integrate economies, so that interdependence prevents war.
Benefits of trade blocs for businesses
- removing barriers to intra-community trade allows markets for the firm to grow
- firms have a comparative advantage in the production of a product that should prosper
- an enlarged market increases demand, raising the volume of production and thereby lowering manufacturing costs per unit
- an improved economy of scale results, meaning products can be sold more cheaply and sales rise
- national firms can merge to form tnc’s - they need large domestic markets to generate economies of scale - increased sales = low production costs =high profit
How do trade blocs accelerate globalisation?
-ASEAN
- A free trade area with 10 members with a population of 625 million
- A uniform low tariff is applied between members for specified goods. It’s working towards the elimination of tariffs sector by sector.
- Political globalisation: ASEAN aims to co-ordinate response to regional political issues. It’s more political than economic.
- ASEAN pledged to remain nuclear weapons free in 1995
How does the movement of business lead to cultural diffusion and enrichment?
- bring people
- causes clustering of ethnic groups
- encourages more migrants of that ethnicity
- ghettoisation
- more power of ethnic people in area
- services adapt to people
- cultural diffusions and enrichment
Drawbacks of trade blocs
- loss of sovereignty
- interdependence
- compromise and concession
- cultural erosion
- trade distortion
- short term unemployment
Drawbacks of trade blocs
-loss of sovereignty
the EU deals not only with trade matters but also with human rights, consumer protection, greenhouse gas emissions
Drawbacks of trade blocs
-interdependence
-they increase trade between countries, the countries become dependant on each other, a disruption of trade may have severe consequences fro the economies of countries
Drawbacks of trade blocs
-compromise and concession
-countries must allow foreign firms to gain domestic market share, sometimes at the expense of local companies - they do this in the expectation that their consumers will benefit from better products and keener prices as well as company expanding abroad
Drawbacks of trade blocs
-cultural erosion
-cheap uniform products across the bloc replace more expensive local variants
Drawbacks of trade blocs
-trade distortion
-Imposition of common external tariff makes goods from non-members expensive. Trade distorted as the switch from cheaper non-member producer to more expensive member producer. Prices rise
Drawbacks of trade blocs
-short term unemployment
-Specialisation shifts resources to industries which have a comparative advantage.
-Firms being specialised away from will shut down. Workers’ employment lost (though there are new jobs in the expanding specialised industry and in new demand areas from increases purchasing power)
new jobs likely to benefit new workers and older ones less likely to retrain
Sovereignty
governments ability to make designs without any others getting involved
What is free market liberalisation?
- This involves promoting free markets and reduces government intervention in the economy
- make it easier and more attractive to fdi
- deregulation of capital markets
- It means ending the monopoly provision of some services like telephones, broadband, gas and electricity, so you can choose your supplier based on quality and price.
- Foreign competition can be encouraged by removing legal restrictions on foreign ownership and removing capital controls, allowing inflows of FDI (and outflows)
Advantages of free market liberalisation
- Competition between firms leads to innovation and lowest cost production
- Outcome is higher output, lower prices and greater choice - higher SOL
- It has created competition in once restricted markets.
- It involves removing price controls, breaking up monopolies (e.g. trade union monopolies of labour supply) and encouraging competition - including foreign competition, which increases efficiency further and promotes globalisation.
Disadvantages of free market liberalisation
- structural unemployment - often leads to a shift in the balance of an economy. Some industries grow, some decline. Therefore, there may often be structural unemployment from certain industries closing.
- Environmental costs -could lead to greater exploitation of the environment, e.g. greater production of raw materials, trading toxic waste to countries with lower environmental laws.
2 examples of foreign investment by TNC’s and sovereign wealth funds in the UK
- e.g. Hinkley Point C Nuclear Power Station in Somerset will be 40% owned by Chinese SWF’s
- e.g. China owns 10% of Heathrow Airport and Qatar owns 10% of BA
What is privatisation?
It is the transfer of a business, industry, or service from public to private ownership and control.
- sold services to private companies to reduce govt spending and to raise money
- allows injection of foreign capital as it increases technology and information
Example of privatisation
- Since the 1980s many governments have sold of industries they once owned (so-called ‘nationalised industries)
- In the UK the steel, car, electricity, gas and water industries were all state-owned but are now privately owned
Advantages of privatisation
- It may increase efficiency as the profit motive minimises loss (government reluctant to sack workers, leading to higher labour costs)
- Permitting foreign ownership allows an injection of foreign capital through FDI, introduces new technologies and promotes globalisation - innovation
- lack of political interference - It is argued governments make poor economic managers. They are motivated by political pressures rather than sound economic and business sense - may employ too many people and increase inefficiency
- Often privatisation of state-owned monopolies occurs alongside deregulation – more firms to enter the industry and increase the competitiveness of the market. It is this increase in competition that can increase efficiency
- allows countries to specialise in goods where they have a comparative advantage
Disadvantages of privatisation
- public interest - There are many industries which perform an important public service, e.g., health care, education and public transport. In these industries, the profit motive shouldn’t be the primary objective of firms and the industry
- Many of the privatised companies in the UK are quite profitable. This means the government misses out on their dividends
- Privatisation creates private monopolies, such as the water companies and rail companies. These need regulating to prevent abuse of monopoly power
How do governments accelerate globalisation through encouraging business start ups?
- Grants and loans are often made to new businesses especially in areas that are seen to be globally important growth areas such as ICT development, pharmaceuticals or renewable energy.
- There could also be low business taxes, well-enforced contract laws, minimum regulation and efficiency bankruptcy procedures, which encourage new firm creation.
Advantages of encouraging business start ups
- It creates innovation and competition in new production techniques, erodes excess profit of monopolies, lowers prices and increases household purchasing power
- Where legal restrictions on foreign ownership and capital controls are also removed, foreign new businesses will be attracted to start up, promoting globalisation.
- incentives such as grants, tax break attract foreign businesses - provides jobs, lower level of unemployment
What is FDI?
- a financial injection made by TNC’s into a nation’s economy, either to build new facilities or to acquire, merge with an existing firm already based there
How has FDI increased over the years?
50s-70s - many new independent countries rejected fdi as being exploitative - low labour wages and polluting environment
80s - most countries were pro fdi - new jobs, better pay and working conditions
Horizontal fdi
a business expands its domestic operations to a foreign country
-conducting same activities but in foreign countries
Vertical fdi
a business expands into a foreign country by moving to a different level of the supply chain
- outsourcing/offshoring
- different activities that still relate to business
Conglomerate fdi
a business acquires an unrelated business in a foreign country
entering a new industry/market and foreign country
platform fdi
a business expands into a foreign country but the output from the foreign operations is exported to a third country
-occurs in low-cost locations inside free trade areas
Benefits of fdi
- creating new jobs
- introduces new technology
- economic growth by opening it up to new markets
Drawbacks of fdi
- long term capital movement - once fdi becomes more profitable capital flows cut off host country to investors country
- disruption of local industry - attracts the highly-skilled workers which creates income disparities
What are attitudes to fdi? - Asian countries
four Asian countries (Singapore, Taiwan, South Korea, Hong Kong) chose export led growth.
-They experienced much faster economic growth than countries following import substitution, and became known as ‘Asian Tiger economies’.
What are special economic zones?
an industrial area, often near a coastline, where favourable conditions are created to attract foreign TNC’s. These conditions include low tax rates and exemption from tariffs and export duties
-SEZs are used by some countries to attract FDI, spreading globalisation to new regions.
What do successful SEZ’s need?
Successful SEZs need good infrastructure, close proximity to trade routes or emerging markets, minimum bureaucracy and rule of law (contract security, minimal corruption, freedom from crime and violence.)
Why are SEZ’s attractive to FDI?
- They are tariff and quota free, allowing manufactured goods to be exported at no cost.
- Unions are usually banned, so workers cannot neither strike nor complain.
- Infrastructure such as port facilities, roads, power and water connections are provided by the government, providing a subsidy for investors and lowering their cost.
- All profits made can be sent to the company HQ overseas.
- Taxes are usually very low, and often there is a tax-free period of up to 10 years, after a business invests.
- Environmental regulations are usually limited.
What was China like before it was an SEZ?
-China was switched off from global economy and many people were living in poverty in rural areas
When did China change its open door policy?
- Open door policy created in 1978 after death of chairman Mao
- slowly introducing economic liberalisation and opening up to FDI
- rural farmers were given land and could run it for profit
What happened when China changed to open door policy?
- exports soared to $2bn in 1980 to $200bn in 2000
- China then joined WTO -allowing low tariffs for exports for countries
- huge surge of rural to urban migration - 300m people
- 400m people escaped poverty
What happened when China changed to open door policy?
-sovereign wealth fund
- legal restrictions were relaxed on fdi is some sectors of China’s domestic market - rail freight, chemicals
- Chinese sovereign wealth fund and TNC’s are now major sources of FDI in other countries
Open door approach to global flows in china
- FDI from China and TNC’s is predicted US $1.25 tn from 2015-2025
- China agreed to export more rare earth minerals due to WTO rules
- Foreign TNC’s are allowed to invest into some of China’s domestic markets - rail freight and chemicals
Close door approach to global flows in china
- Google and Facebook have little access to China’s markets
- Governments set strict quota of only 34 foreign films to be screened in cinemas per year
- strict controls in some sectors
What is a subsidy?
A sum of money granted by the government to help an industry or businesses keep the price of a commodity or service low
WTO usually prohibits subsidies to domestic firms as this acts as a trade barrier
-the government payment allows a firm to accept a lower market price, undercutting the price of imports
Types of subsidy
- production subsidy
- consumption subsidy
- export subsidy
- employment subsidy
What is a production subsidy?
encourages the production of a product
-compensates for some manufacturers expenses to increase production output
What is consumption subsidy?
-offsets the costs for food, water, healthcare and education
What is export subsidy?
-subsidies the costs for exports
What is employment subsidy?
-given to companies and organisations in order to enable them to provide job opportunities
Advantages of subsidies
- lowering costs and controlling inflation
- preventing long-term decline of industries - farming
- increases overall supply of goods and lowers the price of product
Disadvantages of subsidies
- hard to quantify the success of subsidies
- high taxes
- can act as a trade barrier - the government payment allows a firm to accept a lower market price, undercutting the price of imports
3.3B What are TNC’s?
firms with operations in more than one country
3.3B How does a TNC accelerate globalisation?
-When a firm changed from a national company to a TNC by opening operation in another country (FDI), it creates international connections, spreading globalisation.
3.3b What is the growth in size and number of TNC’s encouraged by?
-by the creation of trade blocs, removing international barriers, and changing government policies to encourage economic liberalisation, including removing capital controls and legal restrictions, and creating SEZs.
3.3b why do firms become TNC’s?
- Firms aim to maximise profit, becoming a TNC helps to do this by reducing costs, or generating higher revenues from new markets.
- New foreign operation may be part of production process in a lower cost location, or a retail outlet to access new markets and increase revenue.
3.3b what is offshoring?
- This is the process of moving part of a company’s own production process to another country
- e.g. building a new factory in China, where wage rates are lower - Nike
- Especially to SEZs in Asian countries.
- It reduces costs as wage rates are lower, tax rates are lower, proximity to raw materials reduces transport costs, less environmental regulation.
3.3b What is outsourcing?
-This is the process where a firm contracts with another company to obtain goods or services from it.
-Apple - Foxxcon
-Outsourcing is more flexible than offshoring as the TNC can quickly shift supplier if a cheaper source becomes available.
However, less direct control over the production process can lead to problems, e.g. in 2013 Tesco discovered that its Romanian supplier was mixing horsemeat into budget beefburgers.
This is usually administration and data processing - Bangalore in India is known for this.
3.3bNegatives of outsourcing
However, less direct control over the production process can lead to problems, e.g. in 2013 Tesco discovered that its Romanian supplier was mixing horse-meat into budget beef burgers.
3.3b How do offshoring and outsourcing accelerate globalisation?
- Outsourcing and offshoring lead to the production of global production networks. These reduce costs, allowing TNCs to make larger profits, and/or lower prices.
- increased interconnections = increased flows of commodities and people
3.3b How has offshoring and outsourcing affected China?
-Much of China’s rapid economic growth has been fuelled by western TNCs locating manufacturing plants in its SEZs, creating jobs and boosting exports, taking advantage of China’s economic liberalisation since 1978.
3.3B What does it mean by TNC’s develop new markets?
Opening new outlets in another country increases revenue for TNCs.
3.3b How have TNC’s helped acceleration?
- Some TNCs sell identical ‘authentic’ products in all countries, e.g. Lego, Louis Vuitton handbags
- Glocalisation is the process of adapting brands and products to suit the local market conditions, such as taste, laws or culture.
3.3B What are the drawbacks of TNC’s?
- Global production networks may make TNCs more vulnerable to shocks in different parts of the world that halt production. 2011 Japanese tsunami halted component supplies to offshore Nissan factory in Sunderland.
- In 2013, the Rana Plaza textile factory in Bangladesh collapsed, killing 1,100 workers and halting supplies of outsourced garments to Benetton and Wal-Mart.
- TNCs have been accused of exploiting workers in the developing/emerging world by paying them low wages.
- Outsourcing jobs can lead to job losses in the home country.
- Local cultures and traditions can be eroded by TNC brands and western ideas.
3.3b why may governments not want TNC’s?
- leakages - go back to another country
- bring foreign workers don’t benefit unemployment of host country
- cultural dilution
- protect domestic market
What does increased interconnections result in?
- increased interconnections= increased flows of commodities and people
- creates large digital footprint
- spread of cultural globalisation
3.3c What are the economic reasons why some locations are switched off from globalisation?
- lack of investment in infrastructure
- government debt
- over dependance on a single industry
- natural resource curse
- 3c What are the economic reasons why some locations are switched off from globalisation?
- lack of investment in infrastructure
- poorly developed transport and teleconnections infrastructure
- can’t increase interconnections, information flow of commodities/people
- 3c What are the economic reasons why some locations are switched off from globalisation?
- government debt
-high level of government debt meaning there is a lack of money to invest into interconnections and teleconnections infrastructure
- 3c What are the economic reasons why some locations are switched off from globalisation?
- over dependance on a single industry
- over reliance on one industry due to natural resource cycle and commodity cycle
- 3c What are the economic reasons why some locations are switched off from globalisation?
- natural resource curse
- when you specialise in one industry in one natural resource
- high risk - external shocks can affect countries economy
- lack of interconnections
3.3c An example of an area where it is switched off due to economic reasons
e. g. Sahel Region
- poor infrastructure and low literacy levels of the working age population make it unattractive for offshoring FDI
- low income levels mean it lacks market size to attract retail outlet FDI. Few households other than elite can afford to purchase imported goods or engage in foreign tourism.
- dominated by a subsistence farming economy with food produced to eat, not sell. These places are also poor, and their capacity to create connections is limited.
3.3c What are the political reasons why some locations are switched off from globalisation?
- governments may want complete control over the country and do not allow movement into or out of the country - they reject westernisation, globalisation and capitalism (North Korea)
- unstable governments as a consequence of Neo-colonilalism
- corruption/organised crime/terrorism
- excluded from trade blocs/not allowed to trade fairly
- 3c What are the political reasons why some locations are switched off from globalisation?
- unstable governments as a consequence of Neo-colonilalism
- indigenous populations were isolated during colonialism
- after interdependence = civil wars for land and resources
- constant fight for power within African countries
3.3c What are the environmental reasons why some locations are switched off from globalisation?
- arid conditions
- desertification - clouds keep area cool, no trees means sun bakes ground which kills land and nutrients removed and no rapid run off
- lack of natural resources
- landlocked countries
- isolation from market
- 3c What are the political reasons why some locations are switched off from globalisation?
- North Korea
- North Korea is a hereditary autocracy ruled by Kim Jong-Un.
- It’s run as a one-party system with a command economy organised on the communist system.
- Since 1955 it has followed the policy of Junche ‘self-sufficiency’, minimising trade with other countries.
- Emigration and foreign tourism by ordinary North Koreans is prohibited.
- Ordinary North Koreans have no access to internet or social media. There are no undersea data cable connections.
- This is because there is a personality cult where all successes are attributed to the wide leadership of Kim, and the internet and foreign travel would not maintain this.
- 3c What are the environmental reasons why some locations are switched off from globalisation?
- The Sahel
-Sahel region countries have a semi-arid climate with 200-400 mm of precipitation p.a., making agricultural exports reliant on a good rainy season.
-Climate change is increasing aridity, leading to desertification as savanna gives way to desert.
-This reduces land area available for producing agricultural exports.
Harsh desert climates, extreme polar cold and dense tropical forests all limit the development of transport and trade connections meaning continental interiors and polar regions are less well connected than coastal locations
3.3b What are the roles of TNC’s?
- outsourcing
- offshoring
- global production markets
- glocalisation
- investment into new markets
3.3b How have TNC’s changed overtime?
- outsourcing and offshoring due to economic liberalisation
- global production markets due to transport advancements
- investment in new markets due to trade blocs
- advancements in tech and transport = TNC’s able to access global markets
- 3c What are the physical reasons why some locations are switched off from globalisation?
- the Sahel
- All four Sahel region countries are landlocked, rely on poor quality roads, and freedom of passage through neighbouring countries to access coastal ports.
- Resulting high transport costs may make exports unattractive in foreign markets and deter FDI
3.4a What is the global shift?
-is the relocating of the global economic centre of gravity to Asia from Europe and North America
3.4a What was the shift of jobs?
- the shift of manufacturing from Europe, Japan and North America to China
- the shift of service and administration jobs to India (Bangalore)
3.4a what was the global shift driven by?
- Global shift was driven by improvements in transport and communications, plus the lowering of trade barriers and economic liberalisation, opening up to FDI.
- Labour-intensive manufacturing was attracted to Asia by the large pool of workers willing to work for low wage rates.
3.4a What is the general impact on eastern countries from global shift?
- countries in the east are growing at a faster rate than western countries
- overall increasing the wealth of all regions of the world but some increasing at a faster rate
3.4a The global shift in the 50s
-began in the 50s with cheap mass-produced goods relocating to Japan
3.4a The global shift in the 60s/70s
Asian Tiger Economies (South Korea, Taiwan, Hong Kong, Singapore) quickly followed in the 1960s and 70s.
-They all went through rapid growth by going through industrialisation since the 1960s when TNCs looked for areas with cheap labour and low costs for other things.
3.4a The global shift in the 60s/70s
- In the 1980s and 90s most other Asian countries opened up to globalisation, as well as South America and the communist bloc.
- However, there is a time lag of 10-15 years between the removal of trade barriers and large FDI flows.
3.4a What were the advantages of TNC’S locating in Asian Tiger economies
- A reasonably well-developed level of infrastructures such as roads, railways and ports.
- Relatively well-educated population with existing skills.
- Good geographical location - Especially for Singapore as it is situated between the Indian and Pacific Ocean, which made it perfect for trading, imports and exports.
- Government support, for example, offering low-interest rates in bank loans.
- Less rigid laws and regulations on labour, taxation and pollution than in home countries of TNCs, allowing more profitable operations. (Low-cost manufacture with cheap labour)
3.4a What are the benefits of the global shift?
- waged work
- poverty reduction
- education and training
- investment in infrastructure
- increase in urban incomes China
3.4a What are the benefits of the global shift? - waged work
- Factory work provides a reliable, regular wage, since subsistence farming income is vulnerable to weather and disease.
- Low wages of $2-3 per day are still double or triple rural income.
- The long 12 hour working day, six days a week may be ‘sweatshop’ conditions, but subsistence farming required even more.
- Over time, as education levels rise and the supply of rural labour decreases, wages rise and there is a shift to more capital intensive production of higher-technology products, e.g. cars and computers. Wage rates of $10 per day.
3.4a What are the benefits of the global shift? - poverty reduction
- The world bank defines extreme poverty as an income less than $1.25 per day (2005)
- Since 1990, 1 billion people have been lifted out of extreme poverty, primarily due to global shift
- Incomes rise either due to waged work in factories, or a rise in incomes for commodity producers supplying Asian factories.
- Some 600 million Chinese were lifted out of poverty between 1992 and 2015
- 300m considered to be middle class
- Extreme poverty has reduced from 84% in 1980 to 10% in 2016
- Remittance payments have decreased rural poverty
3.4a What are the benefits of the global shift? - education and training
- TNCs invest in training and skills development to improve workforce productivity, and some skills are transferable.
- Economic growth generated by global shift in manufacturing used to finance investment in education and training
- Households use higher income to pay for more of children’s schooling.Increase income tax and corporation tax used by government to fund state education.
- this was a plan by the government to create an educated and innovative workforce
3.4a What are the benefits of the global shift? - investment in infrastructure
-Attracting manufacturing FDI requires initial investment in basic infrastructure, e.g. ports, power, water supply, sewers.
-Initially investment in a few coastal locations (SEZs) but this later expands to link up SEZs to cities inland.
China built 11,000 km of new motorways in 2015 alone.
-It has the world’s longest highway network
-Its rail systems links ALL provinces and cities
-Its HRS has doubled in length in 10 years linking its major cities
- Shanghai’s Maglev is the fastest commercial train (268mph) taking 8mins from the CBD to the airport
- 82 airports have been built since 2000 (now 250 in total).
8 of the world’s top 12 airports by freight tonnage
3.4a What are the benefits of the global shift? - increase in urban incomes in China
- Economic growth and slow population growth has led to urban incomes rising as pay has increased.
- Urban incomes have increased by 10% a year since 2005.
- In 2014 the average urban income had risen to $9000 a year.
- The urban workers also receive good terms and conditions – 40hour working week, overtime payments and paid holidays
- There is a big and growing urban / rural divide.
3.4a Disadvantages of The Global shift
- loss of productive farmland
- unplanned settlements
- environmental or resource pressure
- loss of biodiversity
- land degradation
- over-exploitation of resources and resource pressure
- pollution and health problems
3.4a Disadvantages of The Global shift -loss of productive farmland
-China’s rapid industrialisation has led to an increasing loss of farmland
-Most farmland is lost due to pollution. 3 million hectares (the size of Belgium) has been polluted by
heavy metal.
- Farmland close to rivers has been taken out of action due to the risk of pollution from fertilisers and
pesticides
- Rapid urbanisation has created a loss of farm workers which has decreased production
- Overproduction in some areas (Loess plateau) has created desertification and a further loss of
productive land.
-Rural farmers are 40% more likely to suffer from liver cancer due to their exposure to heavily
polluted land and water.
3.4a Disadvantages of The Global shift - unplanned settlements
-Rapid industrialisation and then urbanisation has created a need for more housing resulting in an increase in informal homes.
-An increase in land process has made affordable housing hard to find. As a result two types of illegal housing are now common:
-Expanded housing in villages close to the edge of cities. Villagers add an extra storey to their house and rent it to migrant workers
- Farmland is privately developed for housing without permission
Increase in urban incomes
3.4a Disadvantages of The Global shift - loss of biodiversity
- A 2015 survey carried out by the 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
3.4a Disadvantages of The Global shift - land degradation
- Over 40% of China’s farmland is now suffering from degradation.
- Industrial emissions are creating acidic soils in the south.
- Land clearance for industry has led to deforestation.
- Over-intensive grazing has created degradation and then desertification
3.4a Disadvantages of The Global shift - over-exploitation of resources and resource pressure
-China has coal, 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
- Venezuela is being exploited for oil
- Coltan mining in Congo
- This search for additional resources is
creating widespread environmental degradation
3.4a Disadvantages of The Global shift -pollution and health problems
- China’s air pollution caused mainly by coal power stations is so bad that many cities have regular pollution alerts
- 70% of China’s rivers and lakes are now polluted. 207 tributaries from the Yangtze are so polluted they cannot be used for irrigation let alone to drink.
- 100 cities suffer from extreme water shortages and 360 million people don’t have access to clean water. Tap water in some areas has 80 out of the 101 forbidden toxins under Chinese law.
- A third of the Chinese population breathes in air that would be considered unhealthy by US or European standards
3.4a What encouraged manufacturing to China?
- China opened up to globalisation in 1978 with Deng Xiaoping’s Open Door Policy. Joined WTO in 2001.
- Special Economic Zones set up including Shenzen in Pearl River Delta, Guadong Province, and in Shanghai.
- Low wages attract initial FDI in the 1990s for cheap toys and textiles. Since 2000s also higher tech like computers and cars.
- huge population - large workforce
- natural resources
- accessible location
3.4a What encouraged services to India?
- India opened up to globalisation in 1991 with Prime Minister Manmohan Singh’s economic liberalisation.
- Much of initial globalisation through outsourcing rather than manufacturing.
- India had a comparative advantage as it is English speaking, a legacy of the British Empire.
- Early investment in Indian Institutes of Technology produced a large pool of IT literate workers.
- time difference - 24/7 access
3.4a Benefits of services in India
- Broadband access exceptionally high in Bangalore and other tech-city hubs.
- Technology workers earn $10 per day.
3.4a Drawback of services in India
Inequality increased. India has more billionaires per capita than the UK, and more people in extreme poverty than the whole of Africa.
3.4a Benefits of manufacturing in China
- Waged work lifted 680 million Chinese people out of extreme poverty since 1980.
- Extreme poverty rate in China has fallen from 84% in 1980 to 10% in 2016
- Car ownership increased from 1% in households in 2000 to 20% in 2015.
- Infrastructure expansion, e.g. Three Gorges HEP dam, high-speed rail (HSR) link Shenzhen-Shanghai-Beijing.
- Technology transfer as local companies adopt TNC techniques. New Chinese TNCs, like Huawei smart phones.
3.4a Drawbacks of manufacturing in China
- Workers face long hours at repetitive tasks. Foxconn (Taiwanese TNC) produces iPhones outsourced by Apple, and operated 70 hour weeks in a Shenzen factory. 14 suicides in 2010.
- Initially health and saftey standards are low. In the 1990s 2500 lost a limb or finger each year in Yongkang metal factories.
3.4b What are the major environmental impacts the global shift have had in China?
- air pollution
- groundwater
- deforestation and desertification
- biodiversity
- human health
3.4b What are the major environmental impacts the global shift have had in China? - deforestation and desertification
- Over 20% of China is subject to desertification and severe soil erosion, which can create major dust storms.
- Combined with deforestation, desertification has forced many farmers off their land and into cities as the farmland has been over-exposed.
3.4b What are the major environmental impacts the global shift have had in China? -air pollution
- Severe air pollution in cities like Beijing, where air pollution is regularly above the World Health Organisation safe limits.
- Beijing’s six million cars and coal-burning power stations are the source of this pollution, close to 50% of the world’s coal is burnt in China.
3.4b What are the major environmental impacts the global shift have had in China? - groundwater
-Around 50% of China’s rivers and lakes and 40% of its groundwater is polluted - so much that it is unsafe to drink untreated.
3.4b What are the major environmental impacts the global shift have had in China? - biodiversity
-The WWF reported that in the last 40 years almost half of China’s land-based vertebrate species have been lost and biodiversity has suffered.
3.4b What are the major environmental impacts the global shift have had in China? - human health
-These environmental issues have human consequences as people live in the polluted environment. Air pollution in northern China has been estimated to reduce life expectancy by nearly five years.
- 4b Example of developing countries environmental impacts from the global shift
- Abidjan, Ivory Coast
2006 Dutch TNC Trafigura disposed of hazardous waste in Abidjan, Ivory Coast (HDI 0.462) where costs lower than Amsterdam.
-Hydrogen sulphide in waste produced toxic gas. 17 people died, 30,000 required medical treatment for stomach pains.
3.4b Example of developing countries environmental impacts from the global shift - Togo
Togo (HDI 0.484) lost 60% of rainforest area to supply timber to manufacturing industries. Nigeria (HDI 0.514) forest area halved.
3.4c What is de-industrialisation?
- Deindustrialisation means the closure of manufacturing industries such as steel, shipbuilding and engineering.
- A positive aspect of this is lower pollution levels: it could be said that global shift has exported pollution to Asia.
3.4c Why does de-industrialisation occur?
-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
3.4c Deindustrialisation consequences in Redcar - social
- high levels of unemployment
- low aspirations and crime
- outmigration of skilled workers - less money for local economy
- may have to hire security paid by government
- re-offending rates higher in North East, youth crime, cycle of poverty and low aspirations
3.4c Deindustrialisation consequences in Redcar - environmental
- derelict industrial buildings
- abandoned building, graffiti
- highly contaminated derelict land
- leakages of waste into soil - could affect food chains
- vandalism, theft of derelict buildings
- would cost £bns
3.4c Deindustrialisation consequences in Redcar - part time employment
has risen from 13% to 15% as has the amount of economically inactive residents from 5.2% to 6.6%
- shows a lack of job opportunities for residents due to their limiting education from poor investment
- unemployment in Teeside is twice the national average
3.4c Deindustrialisation consequences in Redcar - what do high levels of unemployment lead to
- low aspirations
- outmigration of people to find better opportunities
3.4c Deindustrialisation consequences in Redcar - what does abandoned or derelict buildings lead to
- high level of crime - vandalism
- low standard living environment
- may increase outmigration of area
3.5a What is migration?
is a permanent move from one place to a new place, for one year or more
3.5a What is rural-urban migration?
means people moving from the countryside to cities
3.5a What is a megacity?
a city with a population over 10 million
3.5a Where does rural-urban migration have large affect?
- Rural-urban migration feeds the growth of the world’s megacities.
- In developing and emerging countries abuot 60% of urban growth is caused by rural-urban migration and 40% by high birth rates in cities (internal growth or natural increase).
- China has seen 150 million internal rural-urban migrants since the Open Door Policy leading to the creation of 7 megacities.
3.5a Give 2 examples of developing world cities with very high growth
e. g Lagos
- Lagos had 1.4 million inhabitants in 1970, but now has about 21 million.
e. g. Karachi
- Karachi had 400,000 in 1947, 9 million in 1998 and now has almost 15 million - Population growth due to rural-urban migration from the poor provinces of Punjab and Sindh.
3.5a What are some of the social challenges faced with high growth in cities?
- Housing is in short supply, leading to the growth of slums and shanty towns that lack water, sewers and power supplies.
- Poverty is rife, because wages are low and jobs are in short supply; many people have dangerous informal jobs.
- Lack of taxes means that the city governments struggle to supply essential health and education services.
- Lack of water and sanitation means disease and illness are common in slums.
3.5a What are some of the environmental challenges faced with high growth in cities?
- Sprawling slums at the city edge cause deforestation and loss of farmland and increases flood risk.
- Wood fires, old vehicles and industry means that air pollution levels are high.
- Rivers and lakes are polluted with sewage and industrial waste, making health problems worse.
- Critical resources, especially water, are in short supply because of souring demand.
3.5a General disadvantages of migration
- pressure on infrastructure
- pressure on housing - spontaneous housing, upwards buildings - diseases
- air pollution = health problems in water and food chains
- cultural diffusion
- low paid/unskilled jobs
3.5a What are the push factors for rural - urban migration?
- unemployment
- lack of safety
- lack of services
- poverty
- crop failure
- drought
- war, civil unrest
- hazards
- isolation
3.5a What are the push factors for rural - rural 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
3.5a what are the negative impacts of rural to urban migration?
- economically active move to urban
- deserted villages
- land degradation
- leaves a dependant population (very young or old)
- people left become isolated and marginalised in small towns
3.5a what are the positive impacts of rural to urban migration?
- remittances sent home to rural families
- information and arrangements
3.5a Why are there more megacities in the emerging world?
- due to global shift
- industrialisation
- increase in rural to urban migration
- however this has created more inequalities in emerging countries
3.5b What kind of cities are migrants more attracted to?
global hub cities that have:
- high density transport
- business
- political and cultural connections to the world - like London, Dubai and New York
3.5b What are different types of migrants are attracted?
- HQs and offices of TNCs are often located in global hubs, so high-paid professional workers (lawyers, stock-market traders, bankers) are attracted to these places and this creates huge wealth.
- These global elite migrants often employ maids, drivers, nannies and gardeners.
- This attracts low skilled migrants such as Indian and Bangladeshi migrants moving to the United Arab Emirates or Filipinos migrating to Saudi Arabia
- Further low skilled, low wage migrants are used as construction workers for office and apartment blocks in global hubs.
3.5c Source economic benefits
- remittances boost the incomes of families
- less unemployment
3.5c Source social benefits
-contact with other cultures
3.5c Source environmental benefits
- reduces pressure of large population
- more habitats, more sustainable, less demand for commodities
- less pressure on environment
3.5c Source economic costs
- loss of skilled and educated workers
- brain drain
- negative multiplier effect
3.5c Source social costs
- families are broken up as young makes tend to migrate
- older people can’t see family and may have no one to care for them
- leaves a dependant population
3.5c Source political costs
- mass emigration can be seen as a failure to provide for people at home
- governing party lose popularity and face difficult decision s
3.5c Source environmental costs
-deterioration of built environment
3.5c Host economic benefits
- migrants filing low wage, dirty or difficult work
- they fill skills shortages
3.5c Host social benefits
- contact with a different culture
- counteract ageing population
- cheap care, cleaning
3.5c Host political benefits
-government may benefit from popularity due to the increased economic benefits from migrants
3.5c Host environmental benefits
-value of the land
3.5c Host economic costs
-increase cost of education - staff need to be employed for those with first language not English
3.5c Host social costs
- social tensions
- demand for education, health and housing rises
3.5c Host political costs
-cultural tensions with migrant population
3.5c Host environmental costs
- can lead to demand for more housing and therefore loss of green space and possible overcrowding
- built environments deteriorate
- expansion of urban areas
3.6c economic benefits of globalisation
- job creation
- economy boost due to more jobs
- products are cheaper
- footloose industries can take advantage of cheap labour and land
- increases overseas investment in FDI
- economies of scale
- greater competition
3.6c economic drawbacks of globalisation
- trade doesn’t always benefit poor countries/ economies
- leakages to countries of origin
- interconnection can cause weakness e.g. financial crashes gg
3.6c socio-cultural benefits of globalisation
- freedom of movements
- increase global QOL
- more opportunities for international travel and tourism
- more opportunity to live abroad due to liberal immigrant laws and foreign worker programs
- greater consumption of worldwide entertainment
- rapid spread of consumer products to other countries
- capacity to communicate and defend values and ideas globally
- instant access to information
3.6c socio-cultural drawbacks of globalisation
- less cultural diversity as westernisation spreads
- brain drain in many countries most in need
- exploration of local people - low pay and poor working conditions
- some small cultures may lose their distinct features
- dangerous or violent ideals can spread faster
- spread of commodity based consumer culture
3.6c political benefits of globalisation
- greater collaboration can lead to stronger unites (G6, UN)
- access to international aid and support
- reduces risk of war, more checks to big powers and limitation to nationalism
- smaller countries can work together and gain more influence internationally
- international organisations are often committed to spread values like freedom and to fight abuses within countries
- governments can learn from each other
3.6c political drawbacks of globalisation
- some TNC’s are more powerful than the government
- state sovereignty to make
- big countries can shape decisions in supranational organisations
- coordination is difficult and expensive
3.6c environmental benefits of globalisation
- greater understanding of the issues due to increased communication and education
- TNC’s often invest in environmental projects in the host country
- investment in renewable energy sources has increased with shared ideas
- international pressure can impact pollution levels
3.6c environmental drawbacks of globalisation
- increased use of fossil fuels for production
- increased pollution from manufacturing
- increased pollution from movement of people and goods
- water shortages and desertification as the population increases
3.6A What kind of culture has globalisation spread?
A westernised culture which originates in North America and Europe
3.6a What is the westernisation culture based on?
- Wealth creation, earning money in order to buy consumer goods and high levels of consumption.
- Private enterprise, where people own business rather than the government owning them.
- Success, which is measured by how wealthy you are and how much ‘stuff’ you buy.
- Fashion, technology and trends, which are important in western culture.
- An attitude that the physical environment should be exploited for its natural resources to create wealth.
3.6A what is cultural diffusion?
the exchange of ideas between different people as they mix and interact as a result of globalisation.
3.6a how has the western culture been spread by cultural diffusion?
- Migrants move and spread their ideas and customs
- Tourism brings people into contact with new cultures
- TNCs spread their brands and products around the world.
- Global media organisations like Disney, CNN and the BBC spread a western view of world events.
3.6a what is the social impact of westernisation in emerging countries?
-The spread of a western diet (high fat, high sugar, fast food based) is changing diets around the world, especially in Asian cities, with the spread of McDonald’s, KFC and other fast food. This has been linked to rising obesity and diabetes in many emerging countries.
3.6a what is the environmental impact of westernisation in emerging countries?
-A fast-food, consumer culture is also very wasteful in terms of resources such as discarded fast food packaging and fashion items worn only once or twice. This can be linked to deforestation and excessive water use in industry, as well as air and water pollution.
3.6a How has the spread of global culture brought opportunities for disadvantages people?
-western culture has tended to improve opportunities for some traditionally disadvantaged and discriminated groups such as women, the disabled and LGBT. Global media coverage of the Paralympics, Gay Pride marshes and high profile cases of sex discrimination may help erode sexism and prejudice in developing and emerging countries.
3.6b What is cultural erosion?
Cultural erosion describes the process of a culture losing many of its core elements. This is often religion, language, intellectual interests, traditions and food.
3.6b What is the Korowai tribe, Papua, Indonesia
- A small tribe of 3000 people living in the Becking River area of the south-east Papua province in Indonesia.
- They are primarily hunter-gatherers, fishing in the Becking River and gathering sago from sago palm. They also practise shifting cultivation.
- They had their first contact with the world in 1974 via an expedition led by a US anthropologist, Peter Van Arsdale.
3.6b What is the Korowai tribe, Papua, Indonesia built environment?
- Traditionally Korowai live in wooden longhouses with palm-thatched roofs raised on ironwood stilts 10m above the forest floor, raised deep above the rainforest.
- Their built environment has changed since 1987 when they were encouraged to move into villages in a clearing by the river, such as Yaniruma
- These house several hundred people with buildings constructed from clay bricks with corrugated iron roofs.
- They contain schools and they are periodically visited by health care workers.
3.6b What is the Korowai tribe, Papua, Indonesia language
- Education in villages takes place in Indonesian
- Some Korowai migrated to the town of Jayapura and their children speak don’t speak the Korowai language
3.6b What is the Korowai tribe, Papua, Indonesia food?
- Sugary drinks, e.g. Coca-Cola, and alcohol, e.g. Bintang Beer, is available in the villages
- Korowai used to carry out cannibalism of captured members of other tribes as a criminal punishment - but this is thought to have been eradicated.
3.6b What is the Korowai tribe, Papua, Indonesia music?
-Traditional Korowai music uses pig-skin drums. Radio and television introduced the global music culture.
3.6b What is the Korowai tribe, Papua, Indonesia clothing?
-Korowai traditionally only wear a loincloth, however most people now wear shorts and t-shirts, including Manchester United and Barcelona football shirts.
3.6b What is the Korowai tribe, Papua, Indonesia social relations?
- Introduction of Christianity, by Dutch missionaries in the 1980s reduced the practice of polygamy and levirate marriage.
- Enforcement of Indonesian law eliminated slavery from inter-clan raids.
- Role of clan leader, traditionally the strongest warrior, diminished with a new elite system based on wealth.
3.6b What is the Korowai tribe, Papua, Indonesia natural environment?
- Ecosystem de-valued as sustainable shifting-cultivation abandoned for sedentary village life.
- Employment for logging companies or hunting of animals, e.g. tree kangaroo (now endangered), for sale as bush meat in villages or Jayapura town.
- Natural environment viewed as a resource for economic growth and higher income.
- Result is the over-exploitation of sago palms in the area around villages, deforestation for timber and agarwood exportation, and threatened species being overhunted to extinction.
3.6c What have protests groups such as Occupy Wall Street and the Global Justice Movement argued that globalisation has done?
- increased resource consumption through exploiting the natural environment, leading to problems like deforestation, water pollution, global warming and biodiversity loss.
- Exploited workers, especially in emerging countries, who suffer low wages, dangerous working conditions and lack any form of union representation.
- Passed political and economic power into the hands of TNCs and uncaring governments, especially at the expense of ordinary people.
- Created increased inequality, i.e. a small group of very rich, powerful people at the expense of others.
- Caused cultural erosion, meaning that traditional lifestyles are degraded by the spread of western culture, and local dress, art and architectural styles are lost.
3.8a What is a diaspora?
A diaspora is the name given to the dispersal of a population overseas; since 1700 about 10 million Irish have emigrated overseas, creating the Irish diaspora.
3.8a What are the factors that have increased the pace of migration?
- Open border to migration, such as within the EU since 1995
- FDI, encouraging TNC workers to move overseas
- Deregulation of some job markets, allowing foreign qualified workers/
- Humanitarian crises, like the Syrian civil war and war with Islamic State, which has created large numbers of refugees (5 million in the case of Syria) which have been fleeing to Europe since 2011.
What are the negative impacts of migration?
Migrants need housing, jobs, education for their children and other services. At a certain rate of immigration all of these will come under strain and this risks a rise in tensions with some of the host country population who may view the migration as ‘too many, too fast’. There is evidence in Europe that migration has increased social and political tensions and even led to a rise in extremism.
Evidence of increased social and political tensions - far right movement
- The UK Brexit vote in 2016 to leave the EU had the scale and pace of immigration as a key area of debate.
- Anti-immigration political parties have been rising in popularity since 2010, for example UKIP in the UK, the Front National in France, the Dutch Party for Freedom and Freedom Party of Austria.
- In 2014, 51% of the Swiss voted in favour of stopping mass immigration in a national referendum.
3.6c What has been the main influence of London growing in diversity?
- Open borders - EU citizens are allowed to move round freely
- in 2015 there were 250,000 French people living in the UK
- In 2011, the parents of 65% of the babies born in London were born outside of the UK
3.6c What is the freedom to invest in business of transfer capital in London?
- in the UK a bank or individual can trade in shares without having to use the London Stock Exchange
- individuals are free to invest without barriers
- no restrictions for financial institutions in setting up offices and no government approval is required
3.6c What is FDI like in UK?
- 2015, the UK attracted over 3,2000 jobs from overseas owned companies investing in software and financial services
- the UK has led the rest of Europe in attracting European research and development projects
- this process has led to a cultural mix
3.6c Why is immigration controversial?
-many migrants have become victims of harassment, abuse, violence and exploitation
3.8a What is the trans-border water conflict?
- The Mekong is one of South East Asia’s major rivers
- flows 4200km from China to Southern Vietnam
- Since 1990’s, dams have been built on river which has caused controversy
- 1995 treaty - the Mekong river agreement required governments with the river to all agree to any proposals for new dams before they go ahead
3.8a What is a transboundary water?
- Transboundary waters – the aquifers, and lake and river basins shared by two or more countries – support the lives and livelihoods of vast numbers of people across the world.
- Depleted and degraded transboundary water supplies have the potential to cause social unrest and spark conflict within and between countries
3.8a Who has the most power over a decision due to globalisation?
- globalisation has eroded the power of the state and players such as unions to protect citizens from social change
- decsions for best location for investment and therefore employment are taken by TNC’s and international financial institutions
3.8a What is the impact of governments having less control over migration flows?
- social security systems are being reshapes and the ability of governments being able to control migration flows is being reduced
- leads to insecurity at work
- greater inequalities within communities
- loss of confidence in elected governments to manage the negative impacts of globalisation
- right-wing parties that argue for control over globalisation are gaining more support
3.8a Who are against migration?
- economically insecure lower-middle class citizens, skilled and unskilled manual workers have a profound hostility towards immigration, multiculturalism and cultural and ethnic diversity
- they are less motivated by feelings of economic competition from immigrants and minority groups, than by the feeling the immigration and rising diversity threaten their national culture, the unity of the nation and the national way of life
3.8a What do some extremist parties suggest about minority groups?
- suggest that these groups pose an economic and major cultural threat to societies in EU
3.8a When may there be a water conflict, and how has this been controlled?
- may arise in any location that experiences rising demand, diminishing supply or conflicting user needs
- The UN has establishes the Helinski Rules to encourage management of transboundary resources on an equitable basis
- but pressures of development and population growth may prevent cooperation
3.8a Why has there been a rise in extremism?
- due to an increase number of migrants this has led in some countries to an increase in hostility towards them
- some believe they come to take countries jobs and homes and benefit system = leads to conflict
example of the migrant crisis
Why is there criticism of migrants?
- at least 550,000 migrants arrived in Italy and Greece alone in 2015
- most criticism of migrants is about their economic pragmatism explaining there is simply not enough money and jobs to go around
3.8a How has the migration crisis supported Europe’s Far Right movement?
-it gives new and old parties an opening to capitalise on the rising fear of voters that might never otherwise consider voting for them.
3.8a How has globalisation increased extremism?
e. g. Isis in Europe
- instant connections via the internet and social media, creates a growing popularity and knowledge of the Isis brand among spun Asian Islamists
- Asia is home to 11bn Muslims
3.8a What is the political insecurity caused by globalisation?
- deregulation is making global corporations and banks richer, while impoverishing governments
- as they are drained by heavy subsidies and tax breaks handed out to attract big businesses
- governments are left to cover heavy social and environmental costs of global growth
3.8a Three general cons of globalisation
- political insecurity
- job in security
- psychological insecurity - fragmentation of communities
3.8b What are the attempts to control the spread of globalisation?
- censorship
- limiting migration
- trade protectionism
3.8b What is censorship?
the suppression or prohibition of any parts of books, films, news, etc. that are considered obscene, politically unacceptable, or a threat to security.
3.8b What are the different types of censorship?
- State-controlled
- State-monitored
3.8b What is state controlled censorship?
- where print publishing or broadcasting via TV or radio is run by official state media
- (e.g. Chinese News)
3.8b What is state monitored censorship?
where over seas contacts or media are monitored and censored, including TV, print media, film, radio, theatre, text messaging, video game, literature and the internet
3.8b What type of censorship do North Korea use?
-internet is banned as the supreme leader Kim Jong Un doesn’t want his people to have access to Western ideas
3.8b Why do China use censorship to prevent the spread of globalisation?
- china is a single party communist state
- globalisation presents a psychological challenge for its leadership
- the free flow of information and ideas is perceived as a threat
- China enforces censorship of internet content, all published material in order to retain control
3.8b What are the two main arguments against immigration?
- cheap migrant labours undercuts local wages
- the government has not planned adequately for the increased demand in welfare, healthcare, housing and education caused by the influx of migrants
3.8b Which countries are limiting migration?
- Europe, Australia, USA have had debates about migration controls
- Right-wing candidates have referred to this topic
- 8b Which countries are limiting migration?
- USA
-Republican candidate Donald Trump during 2016 made a proposal at the US presidential election campaign to control the flow of immigrants from Mexico by building a high wall along the US-Mexican border
- 8b Which countries are limiting migration?
- EU and the UK
- debates in the UK have focussed on limiting net migration
- flows from the EU, skill shortages in the knowledge sector, a booming markets in overseas university students
- 8b Which countries are limiting migration?
- Australia
- use a points based system to match immigrants to actual economic needs and job vacancies
- the awards points to potential immigrants based on education, skills, language proficiency so migrants are matched to a country’s needs
3.8b What is trade protectionism?
The policy of protecting domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors.
3.8b Why do countries use trade protectionism?
if you allow free movement of goods into the country
- the market will become flooded with cheap imported goods
- governments need to protect their trade and domestic markets from cheap foreign goods
- they do this by putting tariffs on imports of foreign competition
- free markets can be a challenge for national governments
3.8b What is an example of where trade protectionism is being used in an industry?
e. g. the steel market
- in 2016, cheap Chinese steel was being put into global markets at prices heavily subsided by the Chinese government in order to protect its own manufacturers
- 8b What is an example of where trade protectionism is being used in an industry?
- consequences in the UK
- the Indian owners of Tata Steel (the UK’s largest steel manufacturer, which was losing £1m a day) put all of its UK steel plants up for sale and threatened to close if a deal could not be made e.g. Port Talbot
- the solution would have been to raise tariffs on imported steel to protect domestic producers - however this is forbidden by WTO
3.8c How do some people feel about maintaining their cultural identity?
some groups seek to maintain their cultural identity within countries and seek to retain control of culture and physical resources whereas others embrace its economic advantages
3.3 What indicators does the Kearney index use?
- Economic integration – trade and fdi
- Technological connectivity – number of internet users, internet hosts, secure servers
- Political engagement – membership of international organisation and treaties, contributing to UN peacekeeping, level of government transfers (aid)
- Personal contact – international travel and tourism, international telephone traffic, personal cross border transfers (remittances)
3.3 How is the Kearney index calculated?
For each indicator based on its relative position on the scale – with the highest actual score at 1.0 and the lowest at 0
FDI internet usage and international traffic telephone weighted double.
Overall index value calculated
3.3 Disadvantages of the Kearney index
- Only includes 62 countries, though these include 84% of the world’s population and 96% of global GDP.
- First published in 2008.
- Small European countries dominate the top 20, though the USA is 4th and Canada is 6th.
- Smaller countries have higher FDI indicators due to small domestic markets.
What is the KOF index?
- Produced annually by the Swiss Institute for Business Cycle Research
- It’s a composite index combining 24 indicators spread across three categories:
What are the indicators used for the KOF index?
Economic globalisation - Measured by indicators like cross-border trade, FDI, tariff rates and money flows.
Social globalisation - Measured by international tourist flows, resident foreign population and access to foreign internet, presence of international TNC retail outlets, international mail
Political globalisation - Measured by foreign embassies in a country, membership of international organisations, number of UN Peacekeeping missions participated in, trade and other agreements with foreign countries
How is the KOF index measured?
- Each indicator is converted into an index value.
- Scaled average calculated to give a separate index value for each country
- Mean of three category indices calculated to give the overall globalisation index.
- Economic globalisation has risen faster than political or social since 1970.
Advantages of KOF
- 2015’s data is available for 207 countries
- Index calculated since 1970 (158 countries 1970-2006)- This allows comparisons overtime.
- The USA and BRICs have lower index values because the KOF index measures international.
- Small countries have short distances to neighbouring countries, fewer domestic attractions and a smaller domestic market.
- High European indicator value reflects the very large interactions within the EU. Suggests the decision to join a trade bloc effective in promoting globalisation.
Disadvantages of KOF index
•The USA and BRICs have lower index values because the KOF index measures international
- Internal flows between diverse regions in large countries (each the size of a small country) are not recorded. Large parts of the interior of the USA are not well connected to the rest of the world.
3.3C why does Neo-colonialism prevent countries from globalising?
- Indigenous populations were isolated during colonisation - after independence there was a lack of leadership = civil wars for land and resources
- constant fight for power with African countries
3.7 what are the economic indicators of development?
GNI
GDP
PPP
Economic sector balance
3.7 What is GNI?
Gross national income - the value of goods or services earned by a country including overseas funding
3.7 What is GDP?
Gross domestic product - measures the total output of goods and services produced in a country over a year
3.7 What is PPP?
Purchasing power parity - this is the spending power within a country and reflects the local cost of living
3.7 What is economic sector balance?
Composite indicator
- this gives the % employed in each sector
3.7 Social measures of development?
HDI
GII
GHO
3.7 what is HDI?
Human development index
- life expectancy, education, GDP per capita
3.7 what is GII?
Gender inequality index
-reproductive health of women, their participation in the workforce, empowerment
3.7 What is GHO?
Global health observatory
3.7 World happiness report
- produced by the sustainable development solutions network
- subjective and hard to quantify
- Iceland, Norway, Finland, Denmark, Switzerland top 5 in 2018
3.7 what indicators are in the world happiness report?
- GDP per capita
- life expectancy
- social support
- freedom to make choices
- freedom from corruption
- trust in business/government
What are the factors needed by a country to be considered developed?
- Rich
- socially connected
- good governance
Why are US and China not considered to be socially developed?
- inequalities - unhappiness within population
- high pollution levels
3.7B what is gini coefficient?
measure of national and international inequality - the distribution of wealth within a country
3.7b link between inequality and globalisation
From 1970, income inequality both globally and nationally has increased as a consequence of globalisation
-globalisation has created a larger gap between rich and poor
Examples of winners
- emerging countries rising quicker than developed
- rising middle class of factory and call centre workers in Asia
- people working for TNC’s in developed countries - high incomes and job security, lots of stress
Examples of losers
- isolated rural populations in Asia and Sub Saharan Africa where subsistence farming still dominates and global connections are thin
- workers in deindustrialise industries
- workers in sweatshop factories in emerging countries - exploiting
- slum dwellers - urban life is much worse than they expected
What is the Lorenz curve?
- Shows the wealth distribution across a population
- 0 is completely equal
- the Lorenz value is used to calculate the Gini coeffiecnt value which shows inequality
Lorenz curve - x axis
-cumulative % of population
Lorenz curve - y axis
-cumulative % of income
What does the Lorenz curve tell you?
The closer the Lorenz curve is to the line of perfect equality the more equal the distribution of income is and vice versa
How do you workout gini coeffiecnt using the Lorenz curve?
Section A /Section A+B
What does section a show on the Lorenz curve?
the total area between the Lorenz curve and the line of perfect equality
What does section b show on the Lorenz curve?
The total area beneath the Lorenz curve
What does section a+b show on the Lorenz curve?
total area beneath the line of perfect equality
Has globalisation created inequality?
Yes
-marginalised and isolated places
-deindustrialisation has caused unemployment
No
-rising middle class
-caused global shift = more work in China and India
Emerging countries economic growth examples
Mexico - steady increase but fluctuates from 1970
China - 1990 slowly increased, 2008 rapid increase
Pakistan - much slower rate of development
How has globalisation lead to growth in the US economy?
- migration of people
- large TNC’s are American
- many interdependencies with trade with other people
Factors that can make losers of globalisation?
- landlocked
- connections and transport and poor
- rural isolation
- primary sector
- poor governance
What happened between 2003/2004 to increase development for Chad?
- airport for imports or exports
- new governance that embraces a more export led economy
- primary to secondary change due to investment from world bank
Overall economic growth from 1970:
- average income risen - some slower than other regions
- widening gap between rich and poor
- absolute poverty has fallen worldwide
trends since 1970
- mostly African countries haven’t benefitted
- coastal areas (Nairobi or Cape Town)
Impacts of globalisation on the environment
- Palm oil, logging, charcoal production can help people out of poverty - puts pressure on forests
- deforestation will remain a problem in developing countries until economic conditions improve
- intensive cash cropping, cattle ranching and aquaculture
Environmental management with globalisation
Since 1990-2015
-Sub-saharan Africa, Latin America and the Caribbean have lost the most forest
Brazils development of infrastructure has been crucial for its development - landscape is paying the price
What is the relationship between carbon emissions and environmental issues?
- China emits 27.2% of total carbon emissions and also has the most endangered plant species
- Poland only emits0.9% and has least number of endangered plants
Pro of open flows
-highly skilled migrant workers may fail gaps for skill shortages
Advantages of having culturally mixed societies and mixed diasporas:
- a wider range of ideas and innovation
- encourages tolerance and open mindedness
- allows the spread of food, music and religion
- greater workforce - key workers
- Safer world - greater cooperation on global issues - greater global safety as it means we can work with IGO’s to increase understanding of other cultures and prevent conflict
3.9a What is localism?
The idea that food and goods should be grown locally, supporting local jobs and reducing transport use, therefore being more sustainable rather than. be sourced globally
-promotes local culture, history, identity and community
3.9a Example of why global consumption is negative
e. g. Rana Plaza, Bangladesh
- a textile factory where hundreds of people were crammed into making cheap goods for western countries
- poor health and safety regulations, working illegally
- factory collapsed due to poor infrastructure - shows the consumer drive and the demand for cheap commodities
Environmental issues caused by globalisation
- climate change
- global population predicted to demand 50% more energy by 2030
What does the rise in consumer society result in?
- more production, processing and consumption
- extraction and use of natural resources
- use of commodities = pollution and waste
- increased wealth due to globalisation has increased demand for commodities
- exploitation of workers
Sustainability
must be socially, environmentally and economically sustainable
-meeting the needs of present without compromising the ability of future generations to meet their own needs
What are the 3 goals of sustainable development?
Social - all individuals should have a reasonable quality of life
Economic - individuals and communities should have access to reliable income
Environmentally - no lasting damage, renewable resources
Transition towns
A settlement where individuals and businesses have adapted bottom up initiatives with the aim of making their community more sustainable and less reliant on global trade
Example of transition towns
Totnes, Devon
-even have their own local currencies to encourage local trade
Resilience
the ability if a system to withstand shock from the outside
Relocalisation
actively promotes the idea of going beyond the concept of ‘localism’ towards localisation
Regenerative development
-development of an area for the public benefit of its citizens by reducing reliance on scarce resources
Social benefits of transition towns
- community resilience
- stronger community especially between customers and businesses
- share sense of belonging and purpose
- community engagement
Social costs of transition towns
-outsiders are excluded from small community based projects
Economic benefits of transition towns
-money circulates locally benefiting local businesses
PME
-benefit of QOL
-proposes new ways to regenerate the economy by making things more local
-economically advantageous - potential for more local skills and employment
Economic costs pf transition towns
- consumers can miss out on the price benefits of competition and wider range of choice
- chains would offer lower prices
Environmental benefits of transition towns.
- transport reduced - low pollution
- reduce energy. consumption
- less wastage
- cuts down on local fossil fuel dependance
Environmental costs of transition towns
-small scale, won’t have a large impact on environment
What is ethical consumption?
-choosing a purchase because of products ethical nature or moral boycotting so not buying a product because concerns over its ethical nature
Why do ethical consumption?
-to reduce the inequalities of global trade and to improve the living and working conditions for disadvantaged groups
What ethical and environmental concerns have globalisation caused?
- made using exploited labour
- may not provide farmers with a decent income due to low prices (tea and coffee)
- consumer goods use excessive resources during their production packaging and transport
- consumer culture is causing climate change as ecological footprint rise
Social impacts of palm oil production
- opportunity to bring communities out of poverty
- poor working conditions, lack of health and safety and low wages
Economic impacts of palm oil production
- unsustainable production has negative economic consequences at local and global levels
- it is a significant contributor to rural income - decreasing rural poverty
Environmental impacts of palm oil production
- threatens rich biodiversity by deforestation
- releases carbon in to atmosphere
- less roots = heavy rain washes aware nutrients away - crop yield lowers - farmers use fertilisers = damage to environment
Ecological footprint
The impact of human activities required to produce the goods consumed and to calculate the waste generated
-the amount of the environment necessary to produce the goods and services to support a particular lifestyle
Biocapacity
the amount of the biologically productive area that is available to provide the resources we use and to absorb our waste
Facts about biocapacity and ecological footprint
- worlds biocapacity is systematically decreasing
- wealthy people = larger carbon footprint
- global consumption is uneven and ineffcient
Factors that are used to measure ecological footprint
diet (meat, takeaway spend, waste)
travel (transport, type of car, public transport use)
home (heating, electricity)
What does recycling do?
Recycling materials from waste products reduces the extraction of new materials and decreases consumption and the amount of waste sent to landfill.
What is the local council’s role in recycling?
Recycling and councils’ waste collection service.
What are the limitations to recycling?
- different councils have different schemes with different results and reducing packaging may be a better way forward.
- Rate of recycling varies by product as not all materials are easily recyclable - these and valuable materials are recycled most (e.g. metals, paper, glass).
- Those that are difficult or dangerous to extract will not be (razor blades, medicines, cling film, crockery).
Give an example of an NGO that encourages recycling
Keep Britain Tidy is an NGO set up in 1954.
In 1969 they introduced the ‘tidyman’ logo on bins and packaging to encourage people to dispose of litter appropriately.
Their campaigns encourage households to recycle and firms to reduce packaging or the proportion that can be recycled.
