Globalisation EQ1 (3.1) Flashcards
what is globalisation ?
a process of global integration of economies, politics, products, ideas and other aspects of culture
why has globalisation increased so much in recent years ?
increase in technology e.g better communication and cheaper and quicker travel
what are the different forms of globalisation ?
- economic such as TNC’s
- political
- cultural such as food, clothes, music and media
- demographic such as migration and tourism
what is time-space compression ?
heightened connectivity changing our conception of time, distance and potential barriers to the migration of people, goals, money and information
what is the shrinking world effect ?
due to faster travel times places feel closer together
what where the breakthroughs in trade during the 19th and 20th centuries ?
- railways in the 1800s
- steam ships in the 1800s increase the speed of cargo and the amount that could be transported
- jet aircraft in the 1960s
- containerisation sped up goods transportation
how have comunications developed over the years ?
- the invention of the telegraph allowed the first long distance communications
- mobile phones became widespread
- internet access in the 90s meant you could communicate anywhere in the world
- fibre optic cables are a recent discovery and transfer signals quicker then ever
how has world trade changed since the 70’s ?
- it increases slowly from 1970-2000
- at 2000 it suddenly shoots up
- it dips at 2008 due to the financial crisis and then returns to normal
how have countries protected their own industries in the past ?
- taxes and tariffs on imported goods
- quotas
- banning foreign firms
- banning foreign companies from investing in their country
what does the IMF do ?
It is set up to stabilise currencies, economies and encourage more open economies. Loans are given from rich to poor countries. It has however been criticised of working in favour of developed countries and their TNC’s.
what does the world trade organisation do ?
It sets rules for the trading of goods. It removes government interference and removes taxes off of goods. Also it creates a free global economy.
what does the world bank do ?
lends money on the global scale for emergencies like natural disasters or to help reduce poverty.
what threats do global flows posses ?
- imports of raw materials and commodities can threaten a nations industries
- information can provide citizens with threatening knowledge
- migrants can bring cultural change
how can countries promote globalisation ?
- joining free trade blocs such as the EU
- privatistaion of previously nationalised sectors e.g in the UK gas, electricity, water
- grants and loans offered to start ups
why do the IMF and world bank require its countries receiving loans to make cuts ?
to reduce the role of government in a country which opens up private investment which can increase globalisation. Also the cuts allow the country to pay back the loan.
