Globalisation exam questions Flashcards
EQ1
3.1 Assess the contribution of transport and technology in facilitating globalisation
High contribution- planes
Jet aircraft developments act as shrinking world technology, whereby since the development of the Boeing 747 in the 1960s, international travel has become a lot more common due to efficiency and cheap costs from brands like Ryanair. This means it is easier for people to migrate elsewhere or visit other countries through flights. This facilitates increasing global connections through culture and ideologies becoming more widespread with the travel of people
Relatively high contribution- internet
The development of the internet means that goods and information can be spread globally more easily. Goods are spread by the opening of e-commerce markets and worldwide shipping e.g., Amazon, making economies more interconnected to facilitate globalisation. Information can be spread without travel, through online and calls and meetings e.g., via Facetime. Although, the internet could reduce economic migrants, somewhat reducing interconnectedness by reducing cultural diversity of places in the future possibly.
Counter- IGOs larger role
IGOs may play a larger role than transport and technology in facilitating globalisation as without IGOs like trade blocs reducing tariffs, international shipment would be reduced and more restricted. Blocs like the EU have no tariffs, enabling high amounts of trading and economic interdependence, facilitating globalisation
3.2 Assess the role of international political and economic organisations in facilitating globalisation
Large role- Political IGOs
Trade blocs such as the EU, with 27 member states, play a large role at facilitating globalisation as they allow for more interconnected economies between member states. This is because they facilitate trading with no/low tariffs so it is cheaper to trade between countries. In turn, this opens up international markets so trading of products plays a role in cultural diffusion. the EU are very interconnected as well with many countries also existing in the schengen area, so there is movement of people, sharing culture
Relatively large role- Economic IGOs IMF
Bretton woods organisations have acted as ‘brokers’ of globalisation through promotion of free trade and FDI. For example, the IMF work to promote financial cooperation between countries to reduce poverty. 190 members pay into it which is used to give loans to those in crisis. They promote globalisation as recipients must agree to run free market economies open to outside investment, which allows TNCs to enter more easily. Although, those in SAPs may have reduced interconnectedness if required to cut back on social spending as will need to focus on rebuilding education and healthcare systems
Small role- political IGOs
Political IGOs may increase interconnectedness for those involved, however, they exclude certain countries that have struggled to specialise e.g., due to poverty, instability or accessibility. This can limit their globalisation. For example, Chad are left out of trade blocs due to being landlocked and not being able to specialise their economy and so they have challenges with trading, leading to them being a ‘Switched-off’ nation. This suggests economic IGOs may facilitate globalisation more than political IGOs as they are less exclusive.
3.2 Assess the role of trade blocs in contributing to the growth of global and national economies
Large role- reduction of trade barriers
Reduction of tariff costs leads to market expansion and then this leads to benefits from economies of scale. This means countries costs are overall reduced, and so prices can be set lower making them more competitive. this makes national economies stronger
Large role- transfer of technology
Integration of economies promotes collaboration, leading to innovation and technology transfer. Countries in blocs often share technology, improving productivity snd economic performance. This is evident with technological advancements within ASEAN. This can make more developing countries more competitive and enhance global economies.
Small role- global markets
IGOs like WTO aim for opening of borders on a global scale. However, the actions of trade blocs mean that only certain countries regionally benefit so they may benefit national and regional economies more than global economies
Small- outside investment
outside of trade blocs, countries often have investment and so economic growth isn’t reliant on trade blocs. for example, a large FDI investor to the UK is India
3.2 Assess the role of different economic IGOs at accelerating globalisation
Large role- WTO
The WTO aims for free trade between all members by reducing tariffs. It provides a framework for all164 members to negotiate deals and settle disputes on terms of trade. It accelerates globalisation by reducing tariffs, promoting free flow of goods and services to foster economic interdependence. Although, they have failed to stop protectionism of countries like the USA and UK whereby they haven’t subsided domestic farming, harming farmers in developing countries who cannot then compete and want to trade on a level playing field.
Relatively large role- World bank
The WB give advice, loans and grants to reduce poverty and promote economic development for countries in the long-term, rather than crisis support. they provide low interest loans and assistance to developing countries. This accelerates globalisation by driving economic growth to help enhance economic interdependence and countries roles in the global economy.
Smaller role- IMF
The IMF work to promote financial cooperation between countries to reduce poverty, whereby 190 members pay money in, which is used to give loans to countries with infrastructure issues or those needing financial help (crisis support). This is problematic as although it might accelerate globalisation by enforcing that recipients agree to run free market economies, SAPs can hurt countries ability to trade internationally. this is due to cut spending socially on things like infrastructure, which may limit trading routes.
3.2 Assess the role of national governments in the acceleration of globalisation
National governments have been at the heart of policies that have allowed TNCs to grow in size and increase their influence. These policies include free market liberalisation, privatisation and encouraging business start-ups.
National governments play a very significant role in accelerating globalisation through free-market liberalisation. This is the removal of restrictions in the economy that are set in place by governments, to open places up. This allows TNCs to expand their operations across borders more easily. As a result, it encourages competition and increases economic interconnectedness, accelerating globalisation. An example of this is the removal of red tape in London in the 1980s, which paved London into being a world leading financial hub
National governments have alos played a large role in accelerating globalisation through privatisation. this is the transfer of business, industry or service from public to private ownership. This is a way of allowing foreign investors to gain a stake in privatised national services, increasing interconnectedness. Before the 1980s in the UK, important assets like railway were state-owned, but these were costly so privatisation occurred. This has promoted globalisation as many assets have passed overseas through privatisation, including EDF energy which is a UK company now owned by Electricite de France
Another way national governments accelerate globalisation is through encouragement of business start-ups. This is because using methods like lowering business taxes or changing laws to make businesses more profitable can increase FDI. For example, UK became more attractive to foreign retailers like Disney when it introduced Sunday trading in 1994. This accelerates globalisation by increasing international connections
Although, it can be argued that whilst national governments play a relatively large role, trade blocs play a larger role as they create frameworks enhancing economic cooperation
3.2 Assess the role of SEZs in accelerating globalisation
SEZs are industrial areas, often near the coast, where favourable conditions are created to attract TNCs and FDI. Conditions that attract these include being tariff free, unions banned so workers cannot strike, and a lack of environmental regulations.
Large role- Attracting FDI
SEZs attract FDI with being tariff and quota free, unions being banned and environmental regulations being limited. this provides a favourable environment for FDI and so cooperation open there, expanding interdependence of economies by opening in new markets. For example, Chinas SEZs creating in 1980 significantly increased their FDI, and by 2006 they received approx $60 billion in FDI per year
Large role- Economic migration
SEZs create favourable environments for TNCs to move industrial work. As a result, economic migrants move both from internally and internationally due to higher wage jobs in manufacturing factories e.g., Apple factories in china. This can enhance economic interdependence if economic migrants send back remittances, as well as bringing cultural fusion.
Small role- requirements
SEZs require good infrastructure and close proximity to trade routes so underdeveloped or remote areas which stand to benefit most from globalisation, are often excluded from hosting SEZs due to inability to meet requirements. This therefore limits the number of places that can open SEZs, so they cannot play a significant role in accelerating globalisation.
3.3 Assess the relative importance of human and physical factors in explaining why some countries are more globalised than others
Geographic location/accessibility-
Most important as is an issue which is very difficult/impossible to combat. Inaccessibility often coincides with being landlocked, due to lack of trading ports. For example, Niger is landlocked so has difficulty trading and so its economy is less interconnected, making it a switched-off country. Whereas, countries like Singapore have lots of coast in order to trade and make deep economic connections within areas like electronics and machinery.
government policy-
strict government policies can reduce ability for international communications. For example, north Korea have very strict censorship of the internet by the government whereby ordinary citizens aren’t allow internet or social media access as the government don’t want them to see any western ideologies. this restricts movement of information across borders and so there is a lack of cultural diffusion and interconnectedness.
being an IGO member-
This allows increased connectedness between members with enhanced economic interdependency due to more exports/imports within a bloc. Those excluded then have reduced trade due to lacking benefits of being involved
3.3 Assess the contribution of TNCs in accelerating globalisation
Large- Glocalisation helps them tailor global products to better penetrate with diverse markets. helping them open in new markets by adapting to local culture. This helps TNC growth and enhances economic interdependence. For example, Mcdonalds in India have addressed high vegetarianism with a vegetarian menu to fit in with local culture
Relatively large- Offshoring and outsourcing
Offshoring is the relocating of business processes overseas due to cut costs or increased efficiency. This facilitates integration of economies
Outsourcing is where another company is contracted to produce goods and services, creating very complex production networks and supply chains of multiple countries e.g., the Mini car having wheels made in Italy and Germany, windscreen made in the UK etc.
Small- protectionist policies such as tariffs and import quotas are implemented by governments in order to protect private industries. This reduces the ability of TNCs to operate freely and expand global reach. For example, in the US, Trump implemented protectionist policies with tariffs on countries like China.
3.3 Assess the view that TNCs produce more winners than losers
Agree- job creation
Gain increased job opportunities in new areas where they can learn new skills. Long hours and low pay, however higher than the average in the country. For example, China car ownership has gone from 1 in 100 families in 2000, to now around 1 in 5. Over 770 million people in China have been lifted out of poverty since opening up to TNCs and investment
Agree- technology transfer
The transfer of technology can occur where local companies adopt technology and management techniques brought by TNCs. This means countries can begin to produce their own products and make more profits. in china, companies are increasingly developing their won products such as Xiaomi, a smartphone company
Disagree- loss of autonomy
There is the risk that smaller countries may lose the ability to self-govern if it becomes too heavily reliant on the TNC. TNCs may deliberately prevent development in countries so that this dependency is maintained. Many critics have suggested that US TNCs have wielded too much influence in Canada so Canada remain more industrially backwards than the US.
3.3 Assess the view that globalisation can be accurately measured
Agree-KOF
The KOF index can be used to measure globalisation where data sets are divided into 3 categories: social, political and economic globalisation. Every variable measured is given an index value on a scale from 1-100 (100 being most globalised). It can be suggested as accurate as it takes multiple variables into account.
Agree somewhat- AT Kearney index measured cities and countries globalisation. Analyses business activity, cultural experience and political engagement. Each indicator is given a score from 0-1. Although, only 62 countries are involved so it doesn’t measure worldwide globalisation.
Disagree- out of date and invalid factors
In the KOF index, factors taken into account include international letters per capita, however most people use emails now and sending letters could actually indicate lower globalisation, so this could invalidate results. Other factors hard to measure include trade as it is hard to know the true size of markets due to the black market.
EQ2
3.4 Assess the extent to which the benefits of the global shift of manufacturing outweigh the costs
High- benefits to countries manufacturing is moved to
Job opportunities increased, with higher than average pay. In China, 1 in 5 families now have cars, and this was 1 in 100 in 2000. Disposable incomes are therefore increasing.
Relative- benefits for environment in source
Developed countries have reduced pollution which benefits them and can help in increasing their tourism industries etc. as makes them more attractive. However, this is not fixing the issues with pollution, only moves them to new places whereby China now suffer. This is causing health issues where life expectancy is reduced by 5 years in china from poor air quality.
Low- huge costs to where manufacturing is moved to.
Unsafe working conditions often exist due to cheap labour and lack of regulations in place. in Bangladesh, the ran plaza closed killed 1100 people who were making clothes for huge TNCs like Walmart. This also has costs to the TNCs due to reputation damage.
3.4 Assess whether the economic benefits of globalisation outweigh the social costs
Agree- TNC economic growth
By opening up in new markets such as through glocalisation, TNCs benefit from economies of scale and so products are created more cheaply, so they have more profit. This alongside cheaper labour from a global shift in manufacturing help TNCs growth. Social costs may include cultural erosion, however benefits to global economies may outweigh this.
Agree- global shift of manufacturing.
Good job opportunities are created for countries manufacturing is moved to. Many people are also lifted out of poverty.
In China, many of the population lived under $1.25 USD a day, but by working in TNC manufacturing, approx. 500 million people have escaped poverty and are now enjoying capital gains. Although, working conditions are often unsafe creating huge social costs e.g., Bangladesh Rana Plaza
Disagree- social cost in cultural erosion
Globalisation and the widening of deepening of global connections involves spread of information and ideologies. This can lead to westernisation as western TNCs and media spread globally e.g., Disney. As a result, local culture can become lost, including language. It is estimated that every 2 weeks, a mother tongue language goes extinct.
Disagree- social costs for rust belt outweigh economic benefits. Rust belt areas have closure of industry, so people move out and social costs include poor education due to a lack of opportunities after it and hospitals closing, which could cause spiral of decline. In Detroit, the population dropped by 50% from 1970-2015, leading to a decline in schools where approx 30% graduated.
3.5 Assess the social and environmental challenges caused by the rapid growth of mega-cities
Megacities are cities with populations over 10 million people. Developing cities like Lagos often have very high growth. In 1970, Lagos had a population of 1.4 million, and this is now 16.5 million
Social challenge- housing
housing is in short supply leading to a growth in slums and shanty towns that lack sewers, water and power supplies. This can then lead to a reduction in health and very vulnerable populations
Environmental challenge- sprawl
Sprawling slums at city edges causes deforestation and loss of farmland. This contributes to global warming as well as increasing flood risk, which in turn creates social challenges if infrastructure and buildings are flooded.
Social challenge- Jobs
Poverty is increasing due to wages being low and jobs being in shirt supply. Many people get informal jobs like street selling. As a result, there are a lack of taxes and so city governments may struggle to supply essential social services due to strain.
3.5 Assess the extent to which the benefits of migration outweigh the costs
Agree- host benefits
Migrants have social benefits in reducing impacts of ageing populations in host countries. this in turn has economic benefits due to a large economically active community to run national economies
Agree somewhat- source benefits
Remittances boost the income of families. 25% of Nepals GDP in 2014 came from remittances. Although, they suffer brain drain and an ageing population
Disagree- costs for host
Cultural tensions can often be developed due to high migration where there are culture clashes. Germany received the highest number of asylum seekers in 2015 in Europe, and in 2016 experienced on average 10 hate crimes a day
3.6 Assess the positives and negatives of a westernised culture (2023 question)
A westernised culture is caused by cultural diffusion, whereby the exchange of ideas between countries as they mix leads to the spread of western ideologies.
Positives- opportunities created e.g., Paralympic games, celebrating disabilities. Although, doesn’t benefit all- USA abortion rights overturned roe vs wade.
Negatives- Diets
Traditionally, Asian diets are low meat and high in vegetables but global culture is leading to more fast food by glocalisation of businesses like McDonalds. This is bad for health. This also increases emissions are crops are imported from around the world to feed farm animals. China is now among the worlds largest fast-food markets
Negatives- language extinction
Destruction of minority languages can diminish national identity. Every 2 weeks a mother tongue language disappears. It is estimated half the worlds languages will be extinct in the next 100 years. Although, can be good at making more efficient communication in trade.
