Globalisation enq 1 Flashcards
Define flows
connections between countries can be tangible(goods) or non tangible(ideas)
What has an increase in flows lead to
More interconnectedness and integration within the world
What is meant by the lengthening of connections
Between people and places with products sourced from further away e.g. Fiji water in UK
What is meant by the deepening of connections
Between people and places which now are in all aspects of our lives
e.g. films, food
What is meant by the faster speed of connections
People being able to talk to one another using Skype in real time or the faster speed of travel between countries using aeroplanes
What are the four examples of globalisation
socio-cultural
economic
environmental
political
Give three examples of economic globalisation
Imports and exports
aid and loans
brands and logos
growth of trade blocs
growth of tncs
stock market
Give three examples of political globalisation
intergovernmental decisions
war
conflict
foreign aid
trade deals
Give three examples of socio-cultural globalisation
films
sports
attitudes and values
migration
travel
Give two examples of environmental globalisation
targets for climate change
organisations working together on environmental issues
What are the 6 factors that have lead to a more globalised world
- development of transport
- development of finance networks
- development of management and IT
- growth in TNCS
- growth in communications
- agencies and ngo’s
What are the three political and economic groups that can impact globalisation
WTO
IMF
WORLD BANK
Ghana cocoa trade case study - the three factors that now dictate global cocoa prices
- commodity traders, TNC’s and the future market guarantee supply, price and delivery date of the product months ahead
- overseas tariffs force Ghana to export raw cocoa beans limiting extra income and employment
- unequal power, WTO imposed joining condition that Ghanian farmers shouldn’t be subsidised. So Ghana can’t compete with imported and subsided Western foods.
What are two examples of the governmental impact on globalisation
Trading blocs and membership of IGO’s
- EU as a trade bloc
- OECD - IGO, organisation for economic cooperation and development
What are three factors in the role of national governments in global trade
TAX
TARIFF
QUOTA
Define tariff
a tariff is a tax imposed by one country on the goods and services imported from another country
Define tax
a tax is levied by the government on the cost of some goods, services and transactions
Define quota
a limit on the quantity of a particular product which can be imported
What are five large-scale decisions the government can make and impose in the role of globalisation
- Free market liberalisation
- Privatisation
- Business start ups and subsidies
- SEZs
- FDI
Define free market liberalisation
A country ‘opening up’ to the rest of the world for trade and business e.g. Chinas shift from communism and open door policy
Define privatisation
Transferring business from government to non government owned. This allows competition and can lead to cost increase and cuts to services. e.g. British rail was privatised in 1990s
Define business start ups and subsidies
governments can offer loans, grants and tax incentives
Define SEZ’s - special economic zones
areas with low tax rates and exemption from tariffs attracts investment
Define FDI - foreign direct investment
capital flows from one country to another to construct physical capital such as a factory e.g. Tata Steel
What is the concept of glocalisation
The idea of adapting a global product or brand to fit around local culture, laws and religions. e.g. Indian McDonalds
What are the two ways to measure globalisation
the KOF index
the AT Kearney index
Explain how the KOF index measures globalisation
- economic globalisation measured by FDI, tariff rates, money flows
- social globalisation measured by international telephone calls, tourists
- political globalisation measured by IGO membership, trade and agreements with foreign countries
What are the issues with the KOF index
it doesn’t consider international trade so large countries like the USA appear less globalised. Also uses outdated indicators and been accused of cultural bias
Explain how the AT Kearney index measures globalisation
scored between 0-1
four categories
- economic - amount of trade, FDI
- Personal - travel, telephone
- Technological - internet users
- Political - influence in IGO’s, treaties
