globalisation ai Flashcards
what is globalisation ?
it involves widening and deepening global connections, interdependence and flows through commodities, capital, information, migrants and tourism
what are the 5 flows that result from globalisation?
commodities toursim capital information migration
explain the flow of commodities in globalisation
- these are things being sold and bought within different countries
- it is the flow of goods
explain the flow of tourism in globalisation
- improvements in aircraft made trips quicker and cheaper
- low-cost airlines have raised aspirations
- emerging nations are travelling more than ever, westernisation
explain the flow of migration in globalisation
the most restricted flow unless there is deemed to be a need
- if there is a need for a person with your job they will accept you
- brain drain vs brain gain
- impact of remittances
explain the flow of information in globalisation
- goes to the cloud
- real time communication
- buying at the click of a button
- information exchange and access 24/7 via the internet
explain the flow of capital in globalisation
- money, global capital flows through global stock markets
- companies buy and sell currency to make a profit
- these companies can be investment banks or TNCs
- moves in a data sense, fibre optics
what are the developments in transport and trade in the 19th century?
- railways
- telegraph
- steam ships
what are the developments in transport and trade in the 20th century?
jet aircraft
- containerisation
explain the development of railways
- in the 1800s, railway networks expanded globally, today railway buildings remain a priority for governments across the world
explain the development of telegraph
first telegraph cables were laid across the Atlantic in 1860s which allowed for almost instantaneous communication and revolutionised how businesses operate
- the transatlantic telegraph cable in the 1960’s replaced a 3 week boat journey with instant morse code nmessages
explain the development of steam power
in the 1800s, Britain was leading the world in the use of steam technology. this allowed the British to move their goods and armies very quickly into key areas like Africa and asia
explain the development of jet aircraft
- newer and more efficient aircraft have allowed goods to be transported quickly between countries
- increasing competition between affordable airlines has led to more people being able to travel abroad, arrival of the intercontinental jet aircraft in the 1960s
- the Boeing 747 introduced I the 1960s lowed the cost of international air travel, bringing international tourism within the purchasing capabilities of the middle class
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 the technology that has led to globalisation
- telephone and the telegraph
- broadband and fibre optics
- GIS and GPS
- internet
- electronic banking
explain how the telephone and telegraph contribute to globalisation
- core technologies for communicating across distance
- allowed for better global communication
- reduced mobile phone costs expanded usage from an expensive business tool to an essential consumer product
explain how broadband and fibre optics have contributed to globalisation
- since the 1990s, enormous flows of data are converted across the ocean floor through the use of fibre optics
- fibre optic cables has allowed for instant, global communication
explain how the internet has contributed to globalisation
- connects people and places across the globe
- as of april 2022 63% 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
explain the work of the world bank
it has the role of lending money and giving grants to the developing world to fund economic development and reduce poverty.
- most of the world bank’s funds come from the world’s financial markets by selling world bank bonds to investors
- it has 189 member countries who share ownership, the US has a controlling voting interest
- they encourage free trade by removing legal restrictions and capital controls along with adopting structural adjustment programmes to reduce government budget deficits.
it involves government spending cuts, privatisation of state-owned firms and opening up to foreign competition
- since 1947, they have funded over 12,000 projects
- the WB provides low-interest loans, interest-free credit and grants. it focuses on improving education, health and infrastructure
- it has helped developing countries develop deeper ties to the global economy but has been criticised for having policies that put economic development before social development.
explain the work of the IMF
- aims to maintain a stable international financial system and this promotes frees trade and globalisation
- their funds come from quota subscriptions paid by member states and loans. quotas are pooled funds of member nations and the size of a member’s quotes depends on its economic and financial importance in the world
- it is made up of 189 member countries
- since 1945 the IMF has worked to promote global economic and financial stability and encouraging more open economies, and encourage more open economies through trade liberalisation programmes and opening up to FDI
- as of January 2012, the largest borrowers from the IMF in order were Greece, Portugal, Ireland, Romania and Ukraine)
- the IMF has been criticised for promoting a ‘western’ model of economic development that works in the interests of developed countries and their TNCS
explain the work of the world trade organisation (WTO)
an international organisation that works to reduce trade barriers (both tariff and non-tariff) and creating free trade leading to an increased movement of goods and increased interdependency
- their funds come from the WTO’s regular budget, voluntary contributions from WTO members and cost-sharing either by countries involved in an even tor by international organisations
- the WTO has 164 members. in addition to states, the EU and each EU country in its own right, is a member. members that have joined after rate original members were the result of negotiation
explain the EU
- composed of 28 members
- they aim to a political and economic organisation and it operates a distinct political entity with its own parliament and laws
- it is the largest free trade bloc in the world today
- holds 500 million people and 20% of global GDP
- the issues it faces are: the euro not being used in all countries, migration and open borders, brexit
- it guarantees the free movement of goods, capital and people
