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
