Globalisation/global systems

Question 1

Define globalisation

Answer 1

Complex to define but A process by which national economies and cultures have become increasingly interconnected due to flows of labour, capital, products, information and services.

Question 2

What are capital flows

Answer 2

Remittances, repatriation of wages from periphery to core, core regions pay to IMF/world bank who give low interest loans to periphery, mobile/investment banking, FDI usually in LDEs or EEs. Disaster relief. Stocks and links to information (trends to analyze before investing). Remit 40% of Tajikistan
FDI fell by 40% with covid
Deregulation of financial systems eg2008 shock

Question 3

What are labour flows. How did Covid impact?

Answer 3

Freer movement of people. Migration (in) or emigration (out).
Prior to Covid, quarter of a billion economic migrants (seeking higher pay). Maybe refugees. Though, millions returned due to Covid slowing it temporarily. Skilled or not? Blue collar to white collar industries? Ease of visas etc. for example knowledge of the working conditions at Foxconn producing iPhones.

Question 4

What are product flows

Answer 4

Merchandise sold internationally. Associated with low production costs of manufacturing in LDEs. Eg Dyson offshoring to Asia. Branding has to be managed. Locate near demand for reduced lag times.

Question 5

Service flows

Answer 5

By 2040, India supposed to be 2nd largest economy due to call centers outsourcing. Global marketing whereby one common theme is used worldwide. Glocalization can occur where it’s tailored for regional needs (including product). Growing service and quaternary/tertiary sectors. Follow labour. High vs low skill.

Question 6

Information flows

Answer 6

Telecoms./fiber optics. Social media. Time-space convergence where much more information can be transferred instantly. On-demand services such as Netflix. Cheap and reliable. Working from home.

Question 7

Give one of most globalized countries based on KOF index 2020

Answer 7

Switzerland

Question 8

Give example of China being highly globalized but also not

Answer 8

Is globalized in terms of trade. Some of It’s citizens don’t participate in global social media - use national WeChat. Great Firewall etc.

Question 9

How has developed transport technology helped globalisation? How many containers on some ships?

Answer 9

Containerisation allows large amounts of goods to be transferred in uniform intermodal containers. But, 2021 Suez Canal block highlights issues (critique). The Jumbo Jet creates in the 1960s has now made travel far faster and easier for tourists eg ryanair. From months to hours. Up to 24k containers per ship

Question 10

How can the time-space convergence effect link with changing places?

Answer 10

Far pleases may not feel as far. Can travel easier and share much more information. But, only for those with monetary access in HICS. Visas are hard to get too due to red tape.

Question 11

Financial systems impacting globalisation

Answer 11

2007-9 global crisis. America sneezes world catches cold. Faster international transfers. IMF funnels money from core to periphery. In return, periphery have to be free market and open to outside investment (critique).

Question 12

Trade agreements

Answer 12

WTO (26k pages) or USMCA. EU now a multi governmental organization with its own currency and some shared legislation.

Question 13

How have management systems impacted globalisation?

Answer 13

Vertical disintegration (break down production into several parts).TNCs have global production networks, EOS and outsourcing branches or offshoring. China joined WTO in early 2000s and GDP skyrocketed as a result after Mao was replaced

Question 14

Describe 2 security features of globalisation

Answer 14

Use of X rays in airports
Focus on cybersecurity.
Cambridge analytica using facebook data forphyscographic targeting of posts

Question 15

Define interdependence

Answer 15

What happens in one place increasingly has impacts on others

Question 16

Economic interdependence

Answer 16

Finance/shocks. Countries need flows of labour for their economy. Need remittances/support monetarily (links politically).
Eg some sectors of germanys economy rely on Eastern Europeans labour

Question 17

Political interdependence

Answer 17

Tariffs/quotas. Need countries to work together and get lots of support for key ideas eg COP21. Help with political unrest. Golden Arches theory (Friedman) states 2 counties with similar TNCs won’t wage war on one another. Though, Ukraine vs Russia proven this wrong.

Question 18

Social interdependence

Answer 18

Diaspora (large amounts of migrants located in another area). TV programmed from other countries.

Question 19

Environmental interdependence

Answer 19

Global commons. Countries must work cooperatively towards shared goals otherwise change is irreversible. However, some HICS still purchasing hardwoods from LICs.

Question 20

Argument against interdependence

Answer 20

Unequal flows of capital, labour, products, services and info can promote stability, growth and development but can cause inequalities, conflicts and injustices.

Question 21

When talking about patterns of production and consumption, what should you say?

Answer 21

-TNCs sweatshops. Locate in NEEs. Locate near demand. Locate in developed areas that were deindustrialised.
-Demand for LICs/NEEs from HICS.
-NEEs growing affluence.

Question 22

What is an emerging economy (MINT)

Answer 22

-Major in demand economy such as oil in Nigeria with profits to reinvest
-Well educated population that can produce high tech goods
-Low cost location with FDI incentives such as similar culture or language
-Close to an affluent market

Question 23

Capital flows: What do the IMF do and evaluate this

Answer 23

-Monitors economic and financial development of countries. Lends money/offers bailouts to states in financial difficulty to maintain stability eg Greece 2010, large bailout.
-USA/Europe HDEs exert too much influence over institution supposed to be politically neutral.

Question 24

Capital flows: Who are the world bank and evaluate them.

Answer 24

-Provides advice, development loans and debt relief on a global scale to reduce poverty and promote development. 65 US billion in 2014.
-Can impose strict conditions on loans and grants. Critics call it neo colonialism.

Question 25

Give issue with unequal flow of people, specifc to Qatar

Answer 25

World Cup Construction used migrants. 1200 died.

Question 26

Issue for host country with FDI in another

Answer 26

May reduce gov spending/TNC spending here.

Question 27

Benefits with unequal ideas

Answer 27

Help educate low-income countries to grow or reduce inequality. Deregulation/privatisation/free trade arguments.

Question 28

Where is increasing tech innovation occuring (what type of country)? Benefit to Indian people of call centres.

Answer 28

LICs/EMEs due to FDI.Indian call centre workers enjoy higher QoL than their parents (large difference, short temporal scale).

Question 29

Issues with unequal technology

Answer 29

Loss of jobs in host countries, workers paid little in relation to profits and can’t afford these in LICs usually.

Question 30

Benefits of FDI. What % of FDI to EMEs.

Answer 30

Average incomes in Asian Tiger economies soared eg European FDI.
1 billion people escaped absolute poverty defined by UN 1.90 per day
50% FDI to EMEs eg BRIC/MINT.

Question 31

Benefits of locating in Ireland for TNCs but then evaluate

Answer 31

Lowest business tax rates in Europe of 12.5%. But new global gov rules threaten this.

Question 32

Why might remittances not occur in long-run. 2022 India remittance value (highest).

Answer 32

Relatives feel less connected to one another or may have moved to the country instead.
$100 bil

Question 33

Beneficial flows of products such as weapons

Answer 33

Western Europe to Ukraine. But increased tensions with Russia.

Question 34

Increasing info: How has it helped with healthcare in Nigeria (the single-product economy with Dutch disease)

Answer 34

Successful campaigns for vaccinations against infectious diseases.

Question 35

Describe China’s silk road/belt initiative: What do they aim to do and what happens if country cannot repay debt?

Answer 35

Invests in foreign countries in Asia/Eurpoe/Africa to develop trade with transport infrastructure or ports (self-interest). If countries cannot repay debts for this, China can gain control over the assets/infrastructure paid for eg Malaysia.

Question 36

Describe Kenya and relationship with EU and UK

Answer 36

Kenya sell flowers to UK showing interdependence. Producers in Kenya rely on UK as a market and UK consumers rely on Kenya for products they can’t get elsewhere.
Though, this LIC has sturggled to trade wit EU due to impsotion of tariffs on non-member states.

Question 37

Uganda Mini Case Study:

Answer 37

​Has plenty of natural resources (copper and cobalt)​
Access to freshwater​
English is commonly spoken
Yet, after civil wars, corruption and HIV/AIDS epidemics, its development has been stunted. ​
Nearly 1/3 of the population) live under the poverty line amongst many other indicators of development (live expectancy, infant mortality, etc.)

Question 38

Inequalities/injustices:
Describe poverty, fishing in the Lake, main export, geographical position and main export partners

Answer 38

Poverty in Uganda is greatest in its rural areas, particularly the North where the majority of the population are smallholder subsistence farmers in Shambas.
Fishing Lake Victoria is also common practice for those living on its shores. The fishing is unregulated and has become very unsustainable (overfishing).​ Also new preadtory species Nile Perch reduced economic potential from fishing.
Main export of coffee due to previous British colonialisation. Env exploitation. Over-production in late 90s led to fall in income for farmers. Land-locked
China and India are 2 biggest improters.

Question 39

Stability/growth/development:
Describe the Village Phone Model 2007

Answer 39

There has been technological change taking place in the rural regions of Uganda. Mobile phone antennae are springing up from the rooves of farm houses. ​
Given installing telephone wires across these areas would be too expensive. The arrival of new cheap wireless technology has revolutionised how people communicate and how some make their living income.
This is called the ‘Village Phone Model’. People wishing to start a mobile phone business are given loans. This money is used to buy a mobile device (more so smart phones today), a car battery to charge it and a booster antennae that can pick up signal from 25km away.​ Paid back in months (short temporal for lon-run benefits).
This new accessibility to internet/communications and data has changed the way the economy works in the area making it much more efficient and competitive.

Question 40

Uganda Trade Bloc East African Community 8 countries

Answer 40

The EAC vision is ​
To set up a prosperous, stable united East Africa ​
To provide a platform to widen and deepen Economic, Political, Social and Cultural integration in order to improve the quality of the life of people of East Africa through increased competitiveness, value added production, trade and investments​
Free trade between member states
Country in future?

Question 41

3 issues with unequal power

Answer 41

HICs lead politcal conferences
HICs contribute msot to climate change and waste but LICs impacted most and can’t afford, financially, to deal with it.
LICs supported financially but often under strict conditions and repayment charges with interest.

Question 42

Information flow stat: How much of world have internet access?

Answer 42

Only 40% of people in the world have access to the internet, so we are set for these flows to become all the more influential.

Question 43

Censorship of info in China

Answer 43

China accounts for 25% of all internet users.
The Great Firewall – Set up in stages throughout late 1990’s
Banning of websites that the Chinese government did not approve of.
Bandwidth Throttling – intentional slowing of internet speeds when trying to access illegal websites

The Golden Shield – set up in 1998
A system of domestic surveillance
Those caught breaking the law would be subject to fines, arrests and imprisonment. In 2010 Lui Xiabao was imprisoned for 10 years for sharing illegal documents. The UN awarded him the Nobel Peace prize, this was not reported widely in China.

China has been relatively successful in controlling the information that its citizens are exposed to. Yet, they have found a healthy balance between censorship and exposure for trade. For example, Alibaba is a Chinese e-commerce company that connects Chinese exporters with companies all over the world, allowing for ease of trade between the east and west. Wholesale.