Globalisation EQ1 Flashcards

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1
Q

Define globalisation

A

A process of global integration of politics, products, ideas, and other aspects of culture

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2
Q

how can global flows be used as threats? ( list 3 reasons)

A

any of the following:

  • racial tensions
  • overpopulation
  • data corruption
  • cyber attack
  • business competition
  • conflict
  • co2 emissions
  • dominant companies = small companies lose business
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3
Q

3 benefits of globalisation…

A

+ trade easier
+ active exchange of goods between countries
+ more jobs

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4
Q

3 costs of globalisation…

A
  • less jobs
  • people and then environment suffer from it
  • adds to global warming ( transport goods> release more greenhouse gases
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5
Q

What were the three main transports in the 19th century?

A
  • steam power
  • railways
  • telephone and telegraph
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6
Q

why was steam power good in the 19th century?

A

Steamships and trains transport food and armies alone trade routes to Asia and Africa

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7
Q

why was railways good in the 19th century?

A

1800s railway networks expanded globally
> railways connected Moscow with China and Japan
> high speed railway half the journey time from London to northern England

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8
Q

why were telephones and telegraphs good in the 19th century?

A

telephone = core tech for connecting long distance

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9
Q

what are the two main transports in the 20th century?

A

Jet aircraft

Container shipping

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10
Q

why are jet aircrafts good in the 20th century?

A

recent expansion of cheap flights > mass rich in nations

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11
Q

why is container shipping good in the 20th century?

A
  • 200 million container movements every year

- has been the backbone of global economy since 1950

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12
Q

how do developments in transport contribute to a shrinking world?

A
  • changes our concept of time and distance
  • travel time falls due to improved transport
  • begin to feel closer then in the past
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13
Q

what are the three technologies which have contributed to the time space compression?

A
  • broadband
  • GIS &GPS
  • internet and social networks
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14
Q

how has broadband and fibre optics contributed to the time space compression?

A
  • 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
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15
Q

how has GIS and GPS contributed to the time space compression?

A
  • global positioning system launched in 1970s
  • 24 situated 10,000 above earth
  • deliveries can be tracked by companies
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16
Q

how has the internet and social networks contributed to the time space compression?

A
  • connectivity has grown exponentially

- designed during the 1960s

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17
Q

define the time-space compression

A

A heightened connectivity which has changed our concept of time and distance and potential barriers to the migration of people, goods, money

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18
Q

what has been the change in transport between 1930-2000?

A
  • general decrease in costs

- air transport, satellite charges, transatlantic phone calls and sea freight have all fallen

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19
Q

what are the three organisations which has contributed to globalisation?

A
  • world trade organisation
  • imf
  • world bank
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20
Q

what does the world trade organisation do?

A

> 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

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21
Q

one advantage and disadvantage of the world trade organisation?

A
  • exposes local economies and destroys local businesses

+trade is free so good for the global economy

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22
Q

Example of how the world trade organisation have helped a country

A

India -> American rice brought in

Ghana -> Italian tomatoes brought in

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23
Q

what does the IMF do?

A

-gives loans to poor countries and in return they ask to run free market economies

24
Q

One advantage and disadvantage of the IMF

A

-divide small countries
-represents US interests
+main purpose is to stop communism
+helps our poor countries in the short term

25
Q

What does the world bank do?

A

Lends money on a global scale

26
Q

One advantage and disadvantage of the world bank

A

+ provides funds

- has some bad conditions

27
Q

what are the different types of trade blocks?

A
  • preferential trade area
  • free trade area
  • customs union
  • common market
  • economic union
  • full integration
28
Q

what are trade blocks?

A

groups of countries which make trade barrier-free between member states

29
Q

how can governments promote globalisation? (give all 4)

A
  • joining free trade blocks
  • opening up markets to competition
  • privatisation
  • grants and loans to other countries
30
Q

what are special economic zones? (SEZ)

A

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

31
Q

benefits and draw backs of SEZs (2 of each)

A

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
32
Q

example of a trade block…

A

NAFTA

33
Q

What 3 countries are in NAFTA

A

USA, Canada, Mexico

34
Q

One benefit for USA of being in NAFTA

A

+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

35
Q

One drawback for USA of being in NAFTA

A
  • American manufacturing jobs lost to Mexicans = higher unemployment
  • Mexican trucks allowed full access to US roads
36
Q

One benefit for Canada of being in NAFTA

A

+visible trade with America increased be 80% during the first 5 years
+US investment in Canada grew largely
+more then 1 mil jobs created

37
Q

One drawback for Canada of being in NAFTA

A
  • environmental groups concerned about damage

- Canadian jobs are lost to Mexicans = higher unemployment

38
Q

One benefit for Mexico of being in NAFTA

A

+keeps Mexico as politically modern

+part of membership they gave zero or reduced tariffs with most countries in the world

39
Q

One drawback of Mexico of being in NAFTA

A
  • 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
40
Q

name the three policies the UK government used to globalise

A
  • free market liberalisation = government intervention in markets impends economic development
  • privatisation = investors gain a stake in privatized national services
  • encouraging business start-ups
41
Q

name two policies china used to globalise

A
  • agricultural commutes

- urban mega = millions of people have grown around the River Bata

42
Q

how is globalisation controlled in the UK?

A
  • allow foreign investors to gain a stake in privatised national services
  • important services owned by state
43
Q

how is globalisation controlled in China?

A
  • goggle and facebook have little/no access to Chinas market
  • strict contros by TNCs
44
Q

What are the two measures of globalisation?

A

KOF index

AT Kearney Index

45
Q

what does the KOF index measure? (three factors)

A

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
46
Q

what does the AT Kearney index measure?(4 factors)

A

how economically successful cities are:

  • political engagement
  • technological connectivity
  • personal contact
  • economic integration
47
Q

what is outsourcing?

A

business makes a contract with another company to complete some of the work, rather then doing it within the company

48
Q

what is offshoring?

A

company moves part of its operation to another country often because labour costs are lower

49
Q

what is glocalisation?

A

when TNcs adapt and change their product for their target market

50
Q

what does it mean when a country is switched on?

A

places most connected to the world economy through consumption and production of goods

51
Q

what does it mean when a country is switched off?

A

places more poorly connected to the global network

52
Q

example of switched on country

A

east USA, Europe, japan, N&S korea

53
Q

example of switched off country

A

asia, antartica

54
Q

give 2 physical reasons why a country would be switched off?

A
  • vunerable to climate change
  • poor resources
  • physical isolation
55
Q

give 2 human reasons why a country would be switched off?

A
  • lack of skills
  • politically isolated
  • ethnic clashes
  • fighting over resources