Globalisation EQ1 Flashcards
Define globalisation
A process of global integration of politics, products, ideas, and other aspects of culture
how can global flows be used as threats? ( list 3 reasons)
any of the following:
- racial tensions
- overpopulation
- data corruption
- cyber attack
- business competition
- conflict
- co2 emissions
- dominant companies = small companies lose business
3 benefits of globalisation…
+ trade easier
+ active exchange of goods between countries
+ more jobs
3 costs of globalisation…
- less jobs
- people and then environment suffer from it
- adds to global warming ( transport goods> release more greenhouse gases
What were the three main transports in the 19th century?
- steam power
- railways
- telephone and telegraph
why was steam power good in the 19th century?
Steamships and trains transport food and armies alone trade routes to Asia and Africa
why was railways good in the 19th century?
1800s railway networks expanded globally
> railways connected Moscow with China and Japan
> high speed railway half the journey time from London to northern England
why were telephones and telegraphs good in the 19th century?
telephone = core tech for connecting long distance
what are the two main transports in the 20th century?
Jet aircraft
Container shipping
why are jet aircrafts good in the 20th century?
recent expansion of cheap flights > mass rich in nations
why is container shipping good in the 20th century?
- 200 million container movements every year
- has been the backbone of global economy since 1950
how do developments in transport contribute to a shrinking world?
- changes our concept of time and distance
- travel time falls due to improved transport
- begin to feel closer then in the past
what are the three technologies which have contributed to the time space compression?
- broadband
- GIS &GPS
- internet and social networks
how has broadband and fibre optics contributed to the time space compression?
- large amounts of data moved quickly through cyber space
- 2 flows of data are conveyed across the ocean floor
- 1 million km of flexible undersea cables
how has GIS and GPS contributed to the time space compression?
- global positioning system launched in 1970s
- 24 situated 10,000 above earth
- deliveries can be tracked by companies
how has the internet and social networks contributed to the time space compression?
- connectivity has grown exponentially
- designed during the 1960s
define the time-space compression
A heightened connectivity which has changed our concept of time and distance and potential barriers to the migration of people, goods, money
what has been the change in transport between 1930-2000?
- general decrease in costs
- air transport, satellite charges, transatlantic phone calls and sea freight have all fallen
what are the three organisations which has contributed to globalisation?
- world trade organisation
- imf
- world bank
what does the world trade organisation do?
> asks countries to remove tariffs/ taxes on foreign imports
for a country to get help and receive loans they have to agree on following the rules
one advantage and disadvantage of the world trade organisation?
- exposes local economies and destroys local businesses
+trade is free so good for the global economy
Example of how the world trade organisation have helped a country
India -> American rice brought in
Ghana -> Italian tomatoes brought in
what does the IMF do?
-gives loans to poor countries and in return they ask to run free market economies
One advantage and disadvantage of the IMF
-divide small countries
-represents US interests
+main purpose is to stop communism
+helps our poor countries in the short term
What does the world bank do?
Lends money on a global scale
One advantage and disadvantage of the world bank
+ provides funds
- has some bad conditions
what are the different types of trade blocks?
- preferential trade area
- free trade area
- customs union
- common market
- economic union
- full integration
what are trade blocks?
groups of countries which make trade barrier-free between member states
how can governments promote globalisation? (give all 4)
- joining free trade blocks
- opening up markets to competition
- privatisation
- grants and loans to other countries
what are special economic zones? (SEZ)
refers to the designated areas in countries with special economic regulations tat differ from other areas in the same country, tend to contain measures that are conductive
benefits and draw backs of SEZs (2 of each)
benefits:
- tariff and quota free
- workers cannot strike or complain
- taxes are usually very low
- infrastructure are provided by the government (port facilities, roads, power, water)
drawbacks:
- all profits sent to the HQ company overseas
- environmental regulations are usually limited
- unions banned - cant complain
example of a trade block…
NAFTA
What 3 countries are in NAFTA
USA, Canada, Mexico
One benefit for USA of being in NAFTA
+comparative advantage
+US firms can set up factories in Mexico and get low labour costs
+environmental costs ae not as strict
+TNCs gain high profits
+profits are made in Mexico and returned to the USA
One drawback for USA of being in NAFTA
- American manufacturing jobs lost to Mexicans = higher unemployment
- Mexican trucks allowed full access to US roads
One benefit for Canada of being in NAFTA
+visible trade with America increased be 80% during the first 5 years
+US investment in Canada grew largely
+more then 1 mil jobs created
One drawback for Canada of being in NAFTA
- environmental groups concerned about damage
- Canadian jobs are lost to Mexicans = higher unemployment
One benefit for Mexico of being in NAFTA
+keeps Mexico as politically modern
+part of membership they gave zero or reduced tariffs with most countries in the world
One drawback of Mexico of being in NAFTA
- many jobs created by foreign TNCs are poorly paid
- many jobs created by foreign TNCs require employees to live in squalor
- don’t put high standards of health and safety
name the three policies the UK government used to globalise
- free market liberalisation = government intervention in markets impends economic development
- privatisation = investors gain a stake in privatized national services
- encouraging business start-ups
name two policies china used to globalise
- agricultural commutes
- urban mega = millions of people have grown around the River Bata
how is globalisation controlled in the UK?
- allow foreign investors to gain a stake in privatised national services
- important services owned by state
how is globalisation controlled in China?
- goggle and facebook have little/no access to Chinas market
- strict contros by TNCs
What are the two measures of globalisation?
KOF index
AT Kearney Index
what does the KOF index measure? (three factors)
how economically successful countries are:
- economic globalisation = investment, money flows
- social globalisation = tourist flows, TV media, brands, inter telephone calls
- political globalisation = no of foreign ambassadors, organisations
what does the AT Kearney index measure?(4 factors)
how economically successful cities are:
- political engagement
- technological connectivity
- personal contact
- economic integration
what is outsourcing?
business makes a contract with another company to complete some of the work, rather then doing it within the company
what is offshoring?
company moves part of its operation to another country often because labour costs are lower
what is glocalisation?
when TNcs adapt and change their product for their target market
what does it mean when a country is switched on?
places most connected to the world economy through consumption and production of goods
what does it mean when a country is switched off?
places more poorly connected to the global network
example of switched on country
east USA, Europe, japan, N&S korea
example of switched off country
asia, antartica
give 2 physical reasons why a country would be switched off?
- vunerable to climate change
- poor resources
- physical isolation
give 2 human reasons why a country would be switched off?
- lack of skills
- politically isolated
- ethnic clashes
- fighting over resources
