Globalisation EQ1 Flashcards
What’s is globalisation?
Globalisation is the process by which people,culture, capital, commodities and information are becoming increasingly interconnected
What are the four flows of globalisation?
Commodities
Information
People (tourists + migrants)
Capital
What are the four strands of globalisation?
Political
Cultural
Economic
Social
What is the shrinking world concept?
The physical distance between places remains unchanged but technology reduces the time taken to travel between
2 years, 8 days, 31hours
What is containerisation?
System of standardised transport, reducing costs as traveling in bulk, quicker as not manually unloading and reloading, less theft
Mechanised- cheaper
When was containerisation introduced?
20th century
Why was the introduction of jet aircrafts important?
Reduced passenger travel time to hours
Easier goods transports
Less steam ships
When were jet aircrafts introduced?
20th century
What was important about railways, telegraphs and steam ships?
Made communication easier, steam power helped the Industrial Revolution
What are global production networks?
The functions, operations and transactions through which a specific product or service is produced, distributed and consumed
How important are global production networks?
GPNs make up 80% of world wide trade
What does outsourcing mean?
Is the practice of hiring an organisation outside of a company to preform services or create goods that were before done by the company itself
Who are the key players in globalisation?
world trade organisation- WTO
world bank-WB
International Monetary Fund- IMF
National governments
What does the WTO do?
Encourages globalisation through advocating trade liberalisation especially for manufactured goods
Asks countries to abandon protectionist attitudes
What does the IMF do?
Accelerates globalisation through channeling loans to poorer countries
Allows TNCs to enter countries easier
What does the WB do?
Accelerates globalisation through lending money on a global scale
Gives direct grants to developing countries
What is privatisation?
The transfer of ownership of property or business from government to a privately owned entity
What are trade blocs?
An agreement where countries involved have free movement of goods
What are advantages and disadvantages of trade blocs?
Cheaper goods
Expensive for countries not involved
What are tarrifs?
A tax placed on goods that are imported from other countries
What are subsidies?
A sum of money granted by the government to help an industry or business keep the price of goods low
What is an embargo?
A ban placed on certain goods imported from other countries
What is protectionism?
Method of protecting a countries domestic industries from foreign competition
What are quotas?
A limit placed on the number of goods that are imported from other countries
What is the role of national governments?
Free-market liberalisation- restrictions lifted on the way companies and banks operated
Privatisation
Encouraging business start ups
What is the KOF index?
A measure of globalisation combining 24 indicators across economic, social and political globalisation
What is the AT Kearney measure?
Uses 12 indicators spread across 4 categories
Economic integration, tech connectivity, political engagement, personal contact
Why is North Korea politically switched off?
Political corruption
Their ideology
Cannot emigrate, go on holiday or access the internet
Why is Nepal physically switched off?
Isolated by its terrain and winter snow
Makes trade harder so has limited connections
Why is Sahel economically switched off?
Poor infrastructure
Low literacy levels of working age population make it unattractive
Can’t afford to trade
What are TNCs?
Transnational corporations
Eg Shell
What are the advantages of TNCs?
Lower labour costs
Bigger markets in different regions
Source of employment for host
Improves tech and skill set
What are the disadvantages for TNCs?
Networks vulnerable to international distasters
Loss of job investment
Threats to local business
Exploitation of work force
Significant impacts on local and global environment
What does off-shoring mean?
Practice of outsourcing work and operations overseas usually less developed countries to reduce business costs
What are SEZs?
Special economic zones
Region designed within a country to have more liberalised business policies and other gov investments
What is neo-liberalism?
Ideology and policy models that emphasises the value of free market competition
What are IGOs?
International inter-governmental organisations
