Globalisation - EQ1 Flashcards
What is globalisation?
The growing interdependence of countries worldwide through the increasing in volume + variety of cross border flows.
Name the 4 flows of globalisation
Commodities
Capital
Information
Migrants and tourists
What did global exports increase from?
$2 trillion (1980)
$24 trillion (2019)
What did foreign direct investments increase from (capital) ?
$50 billion (1985)
$1.5 trillion (2018)
What did internet users increase from?
413 million (2000)
4.9 billion (2021)
How many migrants were there in 2014?
232 million.
Name the 4 types of globalisation
Economic
Social
Political
Cultural
What does the shrinking world theory refer to?
Perception of geographical distances becoming less significant by a reduction in the friction of distance.
What 2 developmenets contributed to an increase in the flow of people?
Containerships
Jet aircraft
What words refers to containers being flexible for transportation?
Standardised intermodal containers.
What do standardises intermodal containers reduce?
Loading and offloading times.
How much do containerships contribute to the trade of goods?
90%.
How many landlocked countries are there?
44.
How much has air travel reduced by?
50% from 1970 to 2015.
What 2 developments contributed to an increase in the flow of information?
Fibre optic cables
Mobile phones
What percentage of data is transported across fibre optic cables?
99%.
What has the invention of fibre optic cables reduced?
Cost of transfering data by 99% from 2000 to 2020.
How many people have mobile phones as of 2023?
5 billion.
Where was the growth of mobile phones signifcant?
Sub-Saharan Africa (5% in 2005 to 50% in 2020)
What has the development of mobile phones and fibre optic cables facilitated the growth of?
Social media and online banking.
What has online banking facilitated the flow of?
Cross border flows of capital in forms of FDI.
What does social media facilitate?
Cross border communication + real time sharing.
By how much did social media user grow by?
970 million in 2010
4.9 billion in 2023 (60% of population)
What proportion of e-commerce was via social media platforms in 2022?
57%.
Name 3 international organisations which have accelerated globilisation
International Monetary Fund
World Bank
World Trade Organisation
Which organisation provides loans to countries in economic crisis?
International Monetary Fund.
What country received a $918m loan in 2015?
Ghana due to a drop in commodity prices and an over inflated civil service.
Nmae 2 examples of structural adjustment programmes from the IMF
- Reduce government spending (austerity)
- Agree to open borders to FDI (to increase flows of capital across borders)
Which organisation provides loans to developing countries to encourage economic development?
World Bank.
What will countries invest in to encourage development?
Education and infrastructure.
Which country in 2014 received a $470m loan from the World bank?
Philippines.
Why did the Philippines receive a loan in 2014?
- Post Typhoon Haiyan recovery
- Strengthen rural infrastructure (farm to market roads)
Which organisation promotes trade liberilisation?
World Trade Organisation.
What does the World Trade Organisation try to remove?
Protectionist measures (tariffs and subsidies).
What does removing tariffs do?
Reduces the cost of trade which encourages an increase in the flow of certain goods.
What did the value of goods traded worldwide increase by?
$5 trillion in 1995
$22 trillion in 2021
What are trade blocs?
Multi-lateral agreements between nation’s governments to facilitate free trade by abolishing tariffs.
What type of market does a trade bloc bring?
Common market.
What alternative name is given to producing in bulk?
Economies of Scale.
What organisation brings the freedom of movement?
EU with the Schengen Area.
What does the Schengen Area increase?
Consumer potential and encourage FDI.
Name 2 trade blocs
EU and ASFAN.
How many member states are there in the EU?
27.
By what proportion did the EU contribute to global trade?
15%, however 64% of this was intra-EU.
How much FDI flowed in the EU in 2022?
$450 billion.
How many member states are there in ASFAN?
10.
How much did ASFAN’s contribution to global trade increase by?
19% in 2000
25% in 2020
In what year did Deng Xiaoping introduce the Open Door Policy?
1978.
What does the Open Door Policy allow?
Foreign companies to invest in special economic zones
What is a special economic zone?
An area with specific economic policies which differ from the rest of the economy (tax incentives, reduced export duties).
What is the economic zone is China?
Shenzhen.
What did Shenzhen’s GDP increase from?
$78 million in 1979
$447 billion in 2020
What is the role of TNCs?
Establishing integrated supply chains that span multiple countries to source materials, manufacture goods, and manage operations.
Where are TNC HQs located?
Developed countries.
Where are manufacturing operations located?
Developing countries with cheaper costs of production.
What is the most isolated country in the world?
North Korea
What proportion of North Korea is mountainous?
80%.
