Globalisation Flashcards
definition of globalisation
it involves widening and deepening global connections, interdependence and flows through commodities, capital, information, migrants and tourism
economic globalisation
- the growth of TNCs accelerates cross-border exchanges of raw materials, components and shares
- ICT supports the growth of complex spatial divisions of labour for firms and a more international economy
- online purchasing using amazon on a smartphone
social globalisation
- 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 life expectancy and literacy levels, although the changes are no means universal
- social interconnectivity has grown over time thanks to the spread of ‘universal’ connections such as mobile phones, the internet and email
political globalisation
- the growth of trading blocs (EU, NAFTA) allows TNCs to merge and making acquisitions of firms in neighbouring countries, while reduced trade restrictions and tariffs help markets to grow
- global concerns suc has free trade, credit crunch and the global response to natural disasters
- the world bank, IMF and the WTO work internationally to harmonise national economies
cultural globalisation
- ‘successful’ western culture traits com to dominate in some territories, e.g. westernisation, the ‘mcdonaldisation’ of tases and fashion
- glocalisation and hybridisation are a more complex outcome that takes places as old local cultures merge and meld with globalising influences
- the circulation of ideas and information has accelerated thanks to 24 hour reporting, people also keep in touch using virtual spaces such as facebook and twitter
explain the role of planes in globalisation
- cultural globalisation, the movement of people
- movement of knowledge
- they have accelerated globalisation as it has allowed people to move all over the world, easier and quicker, they have contributed to the ‘shrinking world’
explain the development of containerisation
- the ‘backbone’ of the global economy since the 1950s, with around 200 million individual container movements taking place each year, lowering costs of transport is beneficial for businesses and customers
- process is easily mechanised, containers are unload by crane, increasingly automatically. previously it was loaded manually in crates or stacks, much quicker
- dramatically sped up goods trade and reduced costs, making consumer goods cheaper , dramatically lowered the costs of ‘break bulk cargo’ (when products have to be loaded individually) as there is less time spent when products change transport type (e.g. at. dock = more trade = cheaper)
- container ships are so efficient that the transport costs of moving an iPhone or television form china to the uk is less than £1.
- shipping cost reduced as fewer days are wasted queuing at a port waiting to unload, 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.
explain the effect of the shrinking world
the physical distance between places remains unchanged but new technologies reduce the time taken to transport goods/people/communicate information
explain how the internet has contributed to globalisation
- connects people and places across the globe
- 40% of the world’s population have access to it.
- social media has led to the rapid spread of news, knowledge and opinions
- the development of social media has led to space-time compression were the cost of communicating over distance has fallen rapidly, so people can communicate regardless of distance
- social networks have allowed people to communicate instantly and without charge
explain how electronic banking has contributed to globalisation
the ease of transferring money abroad
- digital economy is worth $1.5 trillion
- investment, links between other countries
- in real areas, fishermen and farmer use mobiles to check market parties before selling produce
- e banking allows migrants to transmit remittance sos money back to their own home countries
what is ghettoisation?
when large groups of people from similar backgrounds (e.g. ethnicity, religion, race) locate next to each other
explain china’s open door policy
- it was created in 1978 after the death of Chairman Mao
- rural farmers were given land could run it for profit
- there was a huge surge of rural to urban migration (300 million people)
- exports soared from $2 billion in 1980 to $200 billion in 2000
- SEZs were created and by the 90s, 50% of FDP was created in them
- by 2006, China was receiving $60 billion in FDI per year
- cheap rural migrant workers created the ‘workshop of the world’
explain china’s open door approach to global flows
FDI from china and its TNCs is predicted to total US$1.25 trillion between 2015 and 2025 (of this, over $100 billion is for the UK)
- china agreed to export ‘more rare earths’ minerals to other countries in line with a WTO ruling
- foreign TNCs are allowed to invest in some sectors of China’s domestic markets, including its rail freight and chemical industries
explain china’s closed door approach to global flows
- google and facebook have little or no access to china’s market (instead, Chinese companies like Youku provide social network services)
- china’s government sets a strict quota of only 34 foreign films to be screened in the cinema each year
- there are strict controls on foreign TNCs in some sectors, China’s government blocked Coca-Cola’s acquisition of Huiyan Juice in 2008
what is the global shift?
the relocating of the global economic centre of gravity to Asia from europe and North America , over the last 30 years
what encouraged the global shift?
- improvements in transport (intermodal containerisation allowed people to easily cross the Pacific to SE Asia ) and improvements in communication and the rise of the internet
- 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
- flow of money around the world, online banking
explain the change in GDP across the world
- the GDP is growing at a faster rate in the east than in the west
- chin has maintained its very high GDP growth rates and Indonesia has seen a very steady growth rate, highlighting the lack of globalisation
- the world’s GDP growth rate saw a large fall in 2009 due to the housing crisis in America, leading to the global financial crisis
explain the global shift
1) service and admin jobs moved mainly to India, such as Bangalore.
- close links to the Uk, speaks English
- 24 hr service, time zones
2) manufacturing jobs went to China
- cheap labour, quicker, transport links, government incentives (SEZ)
- no human rights in china, exploit people
what are the costs and benefits to the global shift in china
benefits
- investment in infrastructure
- reductions in poverty
- increased in urban incomes
- better education and training
costs
- the loss of productive farmland
- an increase in unplanned settlements
- pollution and health issues
- land degradation
explain china’s investment in infrastructure
China has invested heavily in its infrastructure:
• 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
• China is expected to spend another $19bn USD on the Hong Kong-Zhuhai-Macau brindle, it follows and crosses the Pearl River Estuary, with two artificial islands and submarine tunnels to allow travel underneath the busy shipping route
• China spends more on economic infrastructure annually than North America and Western Europe combined
explain the reductions in poverty that china have seen
• 300 million Chinese people are now considered to be middle class (pop of the USA!)
- china has contributed to over 70% of the poverty reduced across the world, making itself a country with the most people lifted out of poverty in the world
• Over the past 40 years the number of people in China living below the international poverty line has dropped by more than 850 million
• Extreme poverty has reduced from 84% in 1980 to 10% in 2016
• China created employment opportunities for 2.59 million people in china and established more than 30,000 poverty alleviation workshops
explain the better education and training that china has encountered
- largest education system in the world, lots of international students coming to study in china
• 94% of Chinese over 15 are literate compared to 20% in 1950
• In 2014 7.2 million Chinese graduated from university – 15 times higher than in 2000.
• Investment in education accounts for about 4% of total GDP in China, in 2009 the Chinese government passed a compulsory education law, making nine years of education mandatory for all Chinese children. it is free for all
• Spending still varies between rural areas (£2200 to £300), through an increase in migrants coming to the city there are fears that gov spending on schools in rural areas will be neglected
• “rural migrants skills development and employment project”, supported by the World Bank has been implemented in three provinces in China.
explain the loss of biodiversity in china
- 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
explain the increase in urban incomes in china
- Urban incomes have increased by 10% a year since 2005.
- From 2000 to 2018, disposable income per capita in China increased by around 600% for urban and rural households alike
- growing urban / rural divide, In 2018, the annual per capita disposable income of rural households in china was around a third of the income of urban households
- China now has more billionaires than in the US
- The number of high net-worth individuals has doubled between 2010 and 2014
explain the land degradation in china
- Over 40% of China’s farmland is now suffering from degradation.
- The costs of actions to address land degradation in China is equal to about $24.5 billion.
- With just 7.2% of the world’s cultivated land area, China needs to feed 22% of the world’s population, this has led to the rise in over-intensive grazing has created degradation and then desertification
- The costs of cropland degradation for the three crops: wheat, maize and rice is estimated to be about $12 billion annually.
explain the overexploitation of resources and resource pressure in china
• Supply cannot keep up with demand so the Chinese government are having to seek additional resources
o Amazon rainforest cleared for soy production
o Venezuela is being exploited for oil
o Coltan mining in Congo
• It consumers 4 times as much resources as the US, the second-biggest user
• China is perhaps the largest source of overfishing and illegal fishing globally with only 9% of the 4.1 million tonnes of fish that is caught off the coasts of other countries being reported for
• the largest importer of timber and the largest importer of stolen wood. An estimate says that as much as 20% of Chinese imported wood is illegally sourced.
• HOWEVER, to ease environmental strain, China has adopted measures including massive tree-planting and coral restoration campaigns, reducing the amount of illegal wastewater discharge and treating polluted rivers
explain the pollution and health problems encountered in china
• 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, the outdoor air pollution that china is exposed to has led to just under 300,000 deaths, 20 million cases of respiratory illness and therefore a health cost of around 3% of GDP annually
- 2018 study estimated that China loses $38 billion a year due to early deaths and lost food production due to air pollution
explain the loss of productive farmland in china
• The environmental protection ministry has estimated that 12 million tonnes of grain are polluted by heavy metals every year
• 3 million hectares (the size of Belgium) has been polluted by heavy metal.
• Only 7% of farmland is arable land. This is emphasized through the overuse of fertilizer, intensive grazing and the reliance on biomass for rural energy.
• Rural farmers are 40% more likely to suffer from liver cancer due to their exposure to heavily polluted land and water.
- rise in middle class has led to rise in demand for meat, 70% of China’s corn is used to feed livestock rather than the population.