Globalisation and Governence Flashcards
What is globalisation?
- The world becoming economically, politically and socially more connected.
What are 2 examples of economic connections?
- Goods and services
- Global supply chains
What are 2 examples of political connections?
- EU
- United Nations
What are 2 examples of social connections?
- Culture
- Global shrink
Why has globalisation happened?
- Due to the increasing flows of people, services and information.
What is global societies?
- Refers to all nations being influenced by other nations.
What are flows of labour?
- Where highly skilled or unskilled workers move across countries, bringing cultural influences with them.
What are flows of information?
- Where news spreads via the internet on social media and through emails.
What are flows of capital?
- Where money can be invested into one country from another called Foreign Direct Investment.
What are flows of products?
- Where NEEs produce raw goods for sale in HICs (E.G. China).
What are flows of services?
- Where NEEs provide services for HIC customers.
What is global marketting?
- The promotion and sale of goods and services across the world.
What is an example of single marketting strategy and why are they useful?
- Coca-Cola (People across different countries recognise a brand, this acts as globalisation)
What is the global shift?
- The shift from manufacturing being concentrated in the industrialised countries to emerging economic countries.
- Manufacturing has shifted in order to make use of the cheap labour.
What are 5 factors that contribute to globalisation?
1) Rise in Technology
2) Rise in Finance
3) Rise in Transport
4) Rise in Security
5) Rise in Trade Agreements
Why is the rise in technology a factor for globalisation?
- The internet allows people to communicate quickly across the world via messaging and facetime.
- Satellites and fibre optics enable large volumes of data to be transmitted long distances at high speeds.
Why is the rise of finance a factor for globalisation? (PROS/CON)
- The financial system allows easier flows of money, goods and services between countries.
- Financial institutions such as the City of London is located in the UK, an HIC.
- The disadvantages could be that financial crashes impact the world.
Why is the rise in transport a factor for globalisation?
- The shift from steam trains to jet aircraft reduces journey times significantly.
- Larger volumes of goods are transported between countries more quickly.
Why is the rise in security a factor for globalisation? (PROS/CONS)
- The introduction of NATO after WW2 to promote peace.
- Globalisation can bring about criminal activities such as fraud, counterfeiting and terrorism.
- Nationalist ideas may arise from the introduction of different cultures.
Why is the rise in trade agreements a factor for globalisation? (PROS/CONS)
- Trade blocs are groups of countries that work together to increase economic growth.
- Trade blocs remove tarrifs and facilitate free trades.
- Countries may feel a loss of sovereignty such as (BREXIT)
What are the 4 ways countries rely on each other because of globalisation? (EXPLAIN)
1) Politically - countries have to come together to solve issues that a single country cannot solve alone.
2) Environmentally - countries have to agree on how to look after the environment.
3) Socially - As more people move around, social interdependence is created.
4) Economically - Countries rely on each other’s resources for economic growth.
What are 3 benefits of flows of people?
1) People leave countries to escape war, famine and persecution.
2) Immigrants can do jobs that the native population can’t do or don’t want to do, which boosts economic growth.
3) Migrants send back money to their home country, allowing people in the local community to spend money in their area. (REMITTANCES)
What are 4 inequalities of the flows of people?
1) People from HICs can live in more countries without a visa than people from LICs (UK - 173 countries Afghanistan - 24 countries)
2) Less developed countries suffer a ‘brain drain’ as immigrants leave, taking valuable knowledge with them.
3) Migrants replace local people in employment which causes conflict.
4) Migrant workers are made to work in extremely dangerous conditions often leading to consequences (An example being the 2022 World Cup)
What is the benefit of flows of money through FDI?
- FDI allows companies to take advantage of the cheap labour and materials, allowing the host country to also gain capital.
What are 5 inequalities of the flows of money?
- HICs have the ability to invest in LICs whilst LICs don’t have the ability to invest in HICs.
- Foreign aid causes dependency as governments feel less of a need to improve their country.
- Foreign aid may find its way into criminals which funds conflict.
- TNCs pressurise the Governments to change laws to benefit profit.
- TNCs and FDI can remove the locality of businesses, forcing local people to give up jobs and income.
What are 3 inequalities in technology?
1) Developed countries have access to the latest, best technology, whereas less developed countries do not.
2) In 2016, 97% of the Netherlands’ population had access to the internet whilst only 20% of Myanmar’s population had access to the internet.
3) Repressive governments use weapon technology to stop mass protests.
Why is there overall inequality within globalisation?
- Developed/emerging countries drive global systems and control the global economy and political events.
- On the other hand, less developed countries are only able to respond to events due to the lack of money and control.
What is the role of the IMF?
- The IMF monitors global economy, offering advice on how to improve an economic situation through the use of loans.
What is the role of the World Bank?
- The World Bank provides loans to less developed countries in areas like health, education and infrastructure.
Why do global institutions potentially cause inequalities?
- The IMF and World Bank are based in the USA which means higher income countries have more of an influence on decision making than lower developed countries.
What is the role of the WTO?
- To reduce trade barriers between countries to keep trade flowing.
What is global trade?
- Global trade is the import or export of goods and services between countries.
How much has the value of global trade increased?
- 8 times in 28 years.
What is the trend we are seeing with global trade?
- Developed countries remain as the biggest traders, however, emerging economies are catching up.
What is a reason for the rise in trade?
- Due to the removal of trade barriers between countries.
How much has the volume of FDI risen in 20 years?
$400 billion to $1500 billion.