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)

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

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

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 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.

Question 14

Describe 2 security features of globalisation

Answer 14

Use of X rays in airports
Wikileaks of government information. Focus on cybersecurity.

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 commoners. 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.