Globalisation Eq1 Flashcards
Define globalisation
The process by which people, culture, capital, commodities and information are becoming increasingly connected
What are the four flows of globalisation
Commodities
Information
People (tourists + migrants)
Capital (money)
What are the 4 strands of globalisation
Political
Economic
Social
Cultural
How is Cuba switched off
History of USA trade embargo so there is limited access to new technology, transport, has become popular with tourists
How is North Korea switched off
Politically - censorship of social media and tv
How is the Himalayas switched off
Physically - isolated, mountains, difficult access
How is the Sahel region of Africa switched off
Economically - remote, difficult to travel and trade, poor infrastructure for trade, lack of resources to trade
what is the China Open Door Policy
China opened its doors to foreign businesses that want to invest in the country
What impact did the china open door policy have
Causes huge amounts of FDI, global shift of industry towards the East
IGO meaning
Intergovernmental organisation - organisations like WTO, WB and IMF which have a significant role in global economies
What is a quota
A limit placed on the number of goods that are imported from other countries
Space time compression meaning
While distances remain unchanged, developments in technology and transport make places feel closer than in the past
Special economic zone example
Shenzhen, China, created 30 million jobs, increased income in area by 30%
Special economic zone meaning
An area designed to encourage investment and create employment to promote economic growth
4 Things governments can do to encourage globalisation
- free market liberalisation
- privatisation
- encouraging business start ups
- china open door policy
Trade bloc meaning and examples
A tax placed on goods that are imported from other countries that aren’t members of the group
E.g EU, ASEAN (which also promotes peace as members pledge not to have nuclear weapons
What are the two measures of globalisation
KOF index, AT Kearney index
What developments have there been in ICT which allow globalisation to take place
- Telephones and telegraphs 1860s
- Broadband and fibre optics (more than 1.2 million km of undersea cables today)
- GIS and GPS 1970s
- Internet and social networks (58% now use the internet)
What developments have there been in transport to allow globalisation
- Steam power 1800s
- Railways 1800s
- Jet aircraft 1960s
- Containerisation - large capacity storage units which can be transported long distances using multiple types of transport
What do governments do to encourage business start ups
Low business taxes, changes in the law to allow more profit to be made
What factors does the AT Kearney index include
- political (membership of IGOs and trade blocs)
- communication (telephone traffic, tourists)
- technology (internet users + hosts, secure servers
- economic (imports, exports, FDI)
Measures globalisation of cities
What factors does the KOF index include
- political (membership to IGOs and trade blocs)
- economic (flows of FDI, flows of goods + services)
- social (information, phone calls, tourist numbers)
What impact have mobile phones had in Africa
- access to free insurance
- access to free online education
- communication with doctors
- mobile bank accounts M-Pesa
What is free market liberalisation
Government intervention in markets prevents economic development, as overall wealth increases, money trickles down
What is offshoring
Doing something through your own company but in a different country to increase profits
What is outsourcing
Hiring another company to provide a service
What is privatisation + example
Allowing foreign investors to gain a stake in privatised national services and infrastructure to help fund it
E.g UK railways
What is the IMF and what do they do
International monetary fund - offers emergency loans for short periods of time to it’s members e.g after natural disasters such as 2004 tsunami
What is the WTO and what do they do
World trade organisation - advocates for trade liberalisation, oversees rules of international trade
What is WB and what do they do
World bank - offers to help with infrastructure, education and health on a global scale, it’s main function is to ensure that trade flows smoothly, predictably and freely
What is wrong with the AT Kearney index
Only includes 62 countries, too much emphasis on ICT which allows USA to gain high score without political connections
What is wrong with the KOF index
Only measures international interactions, doesn’t include recent technological developments
