Globalisation And Migration Flashcards
What are TNCs
Large transnational corporations, that are companies that operate in different countries
What are regional economic and trading blocs
A group of countries drawn together by trade agreements promoting free trade between them e.g. the European Union (EU) and the North American Free Trade Agreement (NAFTA)
What is globalisation
A primarily economic process by which the countries of the world are being gradually drawn into a single global economy or market
What does globalisation result in
Countries becoming increasingly interconnected and interdependent, this means that economic decisions and economic activity in one part of the world can have important effects on what happens in other parts of the world
What has changed about globalisation in recent decades
The scale of international trading and of the other economic links
What four significant developments have helped to scale up the scale of international trading and of the other economic links
- Emergence of TNCs
- Growth of regional or economic trading blocs
- Development of modern transport networks (air, land and sea)
- Advances in information and communication technology (ICT)
How is modern transport networks significant for globalisation
The development of modern transport networks (air, land and sea) to become capable of moving people and commodities quickly and relatively cheaply. Air travel has made physical distances worldwide much less significant, causing a ‘shrinking world’. Ocean transport and containerisation has sped up the global movement of goods
How has advances in information and communication technology influenced globalisation
The use of computers and software allow the faster management, processing and communication of information
What is the outcome of the developments in globalisation
Today’s global economy i.e. almost all of the countries of the world (both HICs and LICs) becoming increasingly economically interdependent. This has been driven by the international spread of capitalism
What is capitalism
An economic system in which the means of production of goods or services are privately owned and operated for a profit
What is the five different forms of flow for the global economy
- Trade
- Aid
- Foreign Investment
- Labour
- Information
What is evidence of the global economy
- Production chains (also commodity or supply chains). They consist of a number of stages (often in many different countries) involved in the making of a particular product. At each stage, value if added to the emerging product
- Call centres for HIC countries are now largely located in LICs and Emerging Economies such as India, the Philippines and Thailand
What is the role of global institutions
Large influence over the workings of the global economy like Transnational (TNCs) & Multinational Corporations and:
- World Trade Organisation (WTO)*
- International Monetary Fund (IMF)*
Both of these play an important role in global trade and foreign investment
* Inter-Governmental Organisations (IGOs)
- World Bank
- Non-Governmental Organisations (NGOs)
These two tend to focus on development aid
Impacts of globalisation
Overall, the world has got significantly richer during period of modern globalisation. However, with TNCs focused on maximising profits, their actions can often be exploitive - ignoring environmental and social impacts. The development gap between the world’s richest and poorest - the world’s richest 1% own 44% of the world’s wealth
Pros of globalisation
- Inward investment
- TNCs bring wealth and foreign currency to local economies where they buy local resources, products and services
- Increases awareness of events in faraway parts of the world
- Makes people more aware of global issues
Cons of globalisation
- No guarantees that the wealth from inward investment will benefit the local community
- Often profits are sent back to the HIC where the TNC is based
- TNCs may drive local companies out of business
- Absence or strictly enforced international laws means TNCs may operate in LICs in a way that’s not allowed in HICs, they may pollute the environment, run risks with safety or impose poor working conditions and low wages on local workers
- Viewed as a threat to the world’s cultural diversity, it’s feared that it might drown down local economies, traditions and languages and simply recast the world in the mould of the capitalist HICs
What is inward investment
Inward investment (e.g. building facilities, services and infrastructure) by TNCs helps countries by providing new jobs and skills for local people
Pros of globalisation explained
- The extra money created by investment from TNCs of local resources, products and services can be spent on education, health and infrastructure. The sharing of ideas, experiences and lifestyles of people and cultures
- The increased awareness of global events like the 2004 tsunami where the UK was made aware of the situation and sent help rapidly in response
- Makes people more aware of global issues like deforestation and global warming and alert them to the need for sustainable development
What is birth rate
The number of live births in a population per year per 1000 population
What is death rate
The number of deaths in a population per year per 1000 population
What is natural change
The balance between birth rate and death rate in a population per year
What is net migration
The balance between the number of people entering and the number of people leaving a country or region
What is circulation
This includes all temporary absences from a permanent residence. These tend to be subdivided as daily, weekly or seasonal circulation. This might also include travel for medical treatment
What is migration
Although definitions of a migrant vary from country, they all involve a permanent change in residence