Globalisation- Enquiry Q2

Question 1

Types of globalisation

x5

Answer 1

Economic
Cultural 
Political
Demographic
Environmental

Question 2

What is economic globalisation?

Answer 2

Growth of TNCs, which had a global presence and global brand image. Also, the spread of investment and rapid growth of world trade interdependence

Question 3

What is cultural globalisation?

Answer 3

People leading increasingly similar lives with regards to food, clothes, music, religion, values and lifestyles. The emergence of a global culture which is predominantly of western origin

Question 4

What is political globalisation?

Answer 4

The dominance of western democracies in political and economic decision making.
The spread of the view that democratic, consumerist societies are the most successful

Question 5

What is demographic globalisation?

Answer 5

Occurs when migration and tourism increase which leads to a population becoming more mixed/ fluid

Question 6

What is environmental globalisation?

Answer 6

A new concept, the realisation that the global threat requires global solutions

Question 7

What is free trade liberalisation?

Answer 7

Ending the monopoly provision of some services like telephones, broadband, gas and electricity so you can choose a supplier of goods based on quality and price

Question 8

What are special economic zones and why do they attract FDI?

Answer 8

They are:
Free trade/ export processing zones

Eg:
China FDI open door policy 1978

Reasons for FDI:
No tariffs or quotas
Unions are usually banned
Tax free period for 10 yrs post investment 
Limited environmental regulation 
Infrastructure subsidised be government

Question 9

Costs of SEZs

Answer 9

Lack of workers unions means the voice of workers is all but silenced
Poor working conditions 
Low pay
High environmental impact 
(2010 Apple workers scandal)

Question 10

Benefits of SEZs

Answer 10

The West benefits from high quality, low cost goods
Profits can return to the companies country of origin
Encourages trade and provides local employment
Investment can lead to a better quality of life for locals

Question 11

Aspects involved in the KOF Index

Answer 11

KOF measures degree of globalisation annually based on:
1)Economic Globalisation: cross border trade, investment + money flows

2) Social Globalisation: international calls, tourism, resident foreign population + access to foreign media
3) Political Globalisation: foreign embassies in a country, number of international organisations, involvement in trade blocs and international agreements

Question 12

The role of TNC’s in Globalisation

Answer 12

TNC's have global reach
Wal-Mart has a higher turnover than the GDP of Poland
Often manufacture in SEZs 
Develops new markets 
Glocalisation 
Erosion of local culture
Worker exploitation

Question 13

What is out-sourcing ?

Answer 13

Usually administrative work and data processing which is handed off by a TNC to a third party company

Question 14

What is off-shoring ?

Answer 14

Putting parts of a TNC in cheaper foreign locations, opening factories and coordination centres in countries other than that of their origin

Question 15

Positive impacts of TNCs

Answer 15

Improved literacy rate
Increased employment and spending power
More tax
Glocalisation
Developing new markets
Improved political stability 
Transfer of technology 
Increased environmental awareness

Question 16

Negative impacts of TNCs

Answer 16

Decline of local custom
Damage to environment
Job loss due to outsourcing
TNCs out compete local suppliers
Worker exploitation
Decline of agriculture causing food shortages 
Worker health degradation
TNC tax evasion/ avoidance means government losing money and can't provide for local needs

Question 17

Why is Africa in so much debt?

5 Steps

Answer 17

1)
Price of oil increased in the 1970’s
2)
Middle East made a lot of money which they invested in western banks. This money was then loaned to Africa in order to built power plants and dams
3)
In 80’s, global interest rates doubled, loan repayment increased and Africa couldn’t afford to repay
4)
To prevent collapse of WB, repayment date was pushed back
5)
Africa had to make cuts in health and education to repay which created a vicious cycle of poverty

Question 18

What is the heavily indebted poor countries initiative?

Answer 18

Set up to reduce debt of poorer countries
Only eligible if your debts cannot be reduced via traditional methods
Critics suggest that the parameters are too strict
14 African countries will have their debts completely written off

Question 19

Social impacts of global shift in China (Manufacturing)

Answer 19

300 million middle class citizens of China
Longest Highway network in the world
45% expected to be urban middle class by 2022
Poverty reduced by 74% since 1980’s
Growing rural/ urban divide
Increase in unplanned settlements

Question 20

Environmental impacts of global shift in China (Manufacturing)

Answer 20

70% of lake and river water is now polluted, some isn’t even clean enough to irrigate farmland

100 cities suffer extreme water shortages

40% of farmland suffering from severe degradation

China’s terrestrial vertebrates have declined bu 50% since 1970

Question 21

Social impacts of global shift in India (Services)

Answer 21

Overall rich-poor divide expanding rapidly
More people living in absolute poverty than all of Africa
Global recognition for “Process Innovation” leading to better paid, more specialist jobs
Upto 350 million middle class
2.5 million technical professionals
Stable democratic environment

Question 22

Environmental impacts of global shift in India (Services)

Answer 22

“GDP has a direct, proportional relationship with the extent of CO2 emissions in India”- WB
Higher average income leading to higher consumption of fossil fuels
Consumerism leading to more unnecessary waste
Slum Housing

Question 23

Definition of deindustrialisation

Answer 23

The mass closure of industries in regions traditionally associated with secondary industrial production, also features high levels of unemployment. Partly due to a global shift in production from developed to developing nations

Question 24

Impacts of deindustrialisation

Answer 24

Spiral of decline
High unemployment
Crime
Depopulation
Dereliction

Question 25

Examples of unemployment (Deindustrialisation)

Answer 25

Leicester (7.9% unemployment)
2200 steel workers laid off, their specialism made it difficult to find a new job (Red Car Plant)
Male unemployment nearly 100% directly after liquidation

Question 26

Examples of crime (Deindustrialisation)

Answer 26

April 2018- crime increase by 40%

Cable theft in NE from industrial estates

Question 27

Examples of depopulation (Deindustrialisation)

Answer 27

Newcastle Upon Tyne population fell 12% in 1970’s

Teeside’s Redcar described as a Ghost Town after many wasted their redundancy money and were forced to move.

Question 28

Examples of dereliction (Deindustrialisation)

Answer 28

Steel factory furnaces cannot be restarted once they cool as they begin to break down
Restoration would cost upwards of £1 Billion

Question 29

Definition of Cultural Diffusion

Answer 29

Globalisation presents an opportunity for cultural exchange, where the movement of goods, services, capital, technology, people and ideas, culture will influence others, and in turn be influences themselves.

Question 30

What causes cultural diffusion? (x2)

Answer 30

Coercion/ Military Power: This forced assimilation of culture is sometimes called cultural imperialism where languages, religions and customs were spread around the world using force by the Roman and British Empires

Soft Power: No force is involved, powerful wealthy states shape global cultrue through their disproportionately large influence over global media and entertainment

Question 31

Affects of cultural diffusion

Answer 31

Death of languages
Decay of meaning
Pressure on healthcare
Deforestation
---1/3 of cereal+ 9/10 of soya used to feed cattle
Perpetuation of stereotypes
Divorce of governance and religion
Liberalism