Globalisation

Question 1

What is globalisation?

Answer 1

The process which has accelerated because of rapid developments in transport and communications. World is being connected socially, culturally and economically.

Question 2

What are networks?

Answer 2

System of connected points that are linked together by flows.

Question 3

What are the 5 flows?

Answer 3

1) Capital
2) Commodities (raw materials)
3) Information (the internet)
4) Tourists (temporary-leisure)
5) Migrants (long term, economic refugees)

Question 4

What are the types of globalisation?

Answer 4

1) Social
- Tourists + migrants
- Personal information (images)

2) Economic
- Data and personal information (adapt to your tastes to sell more)
- Commodities (food)
- Capital (money)

3) Political
- Capital for loans
- Financial aid (lend money)
- Movement of labour within the EU

4) Cultural
- Media and movies (language–> Netflix)
- Commodities of TNC (Mc Donalds)

Question 5

How has development in transport and trade accelerated globalisation.

Answer 5

Development in transport leads to spatial division in labour. This means that there is a more efficient production and cheaper labour and therefore lower production costs which results in TNCs gaining more profit.

Question 6

Give an example of a development in transport/trade which has accelerated globalisation.

Answer 6

Railways- In the 1800s accelerated globalisation as it facilitated accessibility - railway expanded globally (by 1904, 9000km Trans-Siberian railway connected Moscow with China and Japan). This increased global trade. Connection with countries and movement of people.

Question 7

What is the shrinking world?

Answer 7

Thanks to technology, distant places start to feel closer and take less time to reach.

Question 8

What is the time-space compression + shrinking world effect?

Answer 8

• The concept and feeling that the world is getting smaller.

- Places feel together (better transport and more movement of people)

Question 9

Case study of shrinking world effect:

Answer 9

Easy jet.

• Founded by Stelios in 1995
• Low cost airline –> travel more accessible
• Now connects most of Europe’s major cities (first flight to Barcelona 1996)
• By 2014 there were 300 flight routes and the company owned 200 airplanes carrying more than 65 million people to destinations.
• Brings revenue of nearly 4 billion pounds.

Question 10

What is the time-space compression?

Answer 10

Increasing sense of connectivity as a result of technological advances which seems to bring people closer despite the distance.

Question 11

What is the spatial division of labour?

Answer 11

The common practice among TNCs of moving low-skilled work abroad to places where there are low labour costs.

Question 12

What is leap frogging?

Answer 12

Areas which have poorly-developed or economic bases can move themselves forward rapidly through modern systems (mobile tech.) without going through intermediate steps.

Question 13

Case study for developments in ICT and mobile communications:

Answer 13

Mobile phones: telegraphs successor. Method for long-distance communication. Its invention led to countries leapfrogging. Increased social and economic globalisation (people could keep in touch with people worldwide and facilitated spacial division of labour). E.g. in 2005, 6% of Africans had mobile phones and in 2015 it increased to 70%.

Question 14

What is the WTO?

Answer 14

It is the World Trade Organisation. It is concerned with the regulation of international trade between nations. Took over agreement on trade tariffs in 1995 (164 members). Asks countries to abandon protectionism attitudes which is dangerous for farmers in LECs.

Question 15

What are the four ‘policies’ that national governments can use for trade?

Answer 15

1) Free market liberalisation
- Margaret Thatcher in the 1980s is an example of the reduced trade restrictions as government intervention in market stops economic development and as wealth increases, trickle-down effect will take place.

2) Privatisation
- Privatised national services + infrastructure that were expensive and sold them to private investors to reduce government spending and raise money (thatcher in the 1980s).

3) Encouraging business start-ups: lower corporation tax, businesses make more profit with less tax & is more attractive to foreign investors.
4) Tax incentives: decrease in costs for businesses will attract FDI (tax holidays - why attracts FDI - lower costs= higher profits). Encourage business start ups with tax incentives and loans, which causes more competition leading to innovation and more variety.