Globalisation: HG Flashcards
Define Globalisation.
Increased interconnections between countries, influencing the exchange of goods and services.
Define TNC.
Transnational corporations are those companies which operate in at least two countries.
What is the shrinking world effect?
The idea that the world is becoming metaphorically smaller as places become more interconnected.
What are FOUR ways Easy Jet is reliable?
- Helped create global networks as its used internet for flight bookings. This means flights are accessible, quicker and reach a broad audience (switched off regions).
- Travels to places primarily European and Middle Eastern.
- It has connected to global cities through cheap and quick flights.
- Easy Jet has adopted AI solutions to save fuel, reduce carbon emissions and reduce food wastage.
How has economic globalisation increased?
Increased ICT and TNCs, expanding sales.
How has Social globalisation accelerated?
Skype has provided cheap online communication since 2003 , maintaining strong links.
How has cultural globalisation accelerated?
Cultural traits (music, food) are being hybridised faster than ever.
How has Political globalisation accelerated?
Environmental charities (Greenpeace) spread messages online.
Define Lengthening connections.
This is when people connect over further distances.
Deepening connections. (examples)
Connections are broadening deeper into all aspects of life: food, goods & services.
Faster Connections.
People are able to talk faster and get to places.
What are the FIVE flows of Movement?
- Money: businesses, trade & marketing.
- Commodities: fossil fuels, food & minerals.
- Information: social networks, delivery teams & online news.
- Tourists: budget airlines = cheaper travel, easy flights.
- Migrants: migrants are used for specific.
THREE ways in which Mobile Phones assist development.
- Online payments & contactless payment.
- Rural areas are developing through farmers& fishermen using pricing digitally.
- Communication long distance & overseas online.
Two ways in which TNCS promote globalisation.
- TNCS encourage the broadening of businesses around the world, increasing popularity of businesses. Help them to become known in less developed regions and online.
- TNCS encourage economical globalisation as they allow for more businesses to be planted worldwide, increasing global income. The increased income allows them to locate more broadly as TNCS are cheap.
TWO Advantages of International Migration.
- Preventing Americanisation > instead it broadens culture & deepens the connections of diverse food & culture.
- Extends Knowledge > unique knowledge, extending the knowledge economy.
TWO Disadvantages of International Migration.
- Some people don’t appreciate cultural diversity.
- Migrants being in unique & extended knowledge which the government doesn’t want people to know.
Define Subsidies.
Grants given by governments to increase the profitability to key industries.
Define Tax Breaks.
A benefit the government offers that reduces your total tax liability.
Define FDI.
Investment made by an overseas company or organisation which is based in another country.
How has China used the ‘Open door Policy’?
Promoted culture and new employment as China needs Western technology & investment to develop its economy.
How has China used ‘Special Economic Zones’?
They’ve offered tax incentives & huge pools of cheap Labour.
What is Off shoring?
Some TNCS build their own new production facilities in “off shore” low wage economies.
What are Foreign Mergers?
Two firms in different countries join forces to create a single entity.
What are Foreign Acquisitions?
When a TNC launches a takeover of a company in another country.
What is Transferring Pricing?
Some TNCS such as Starbucks & Amazon have channeled profits through subsidising a company in a low-tax country.
FIVE Main benefits of TNCS.
- Economical, financial & political power.
- Gain access to new markets.
- Cheap Labour
- Increase employment
- Multiplier effect
THREE TNC drawbacks.
- Financially demanding to host.
- Environmentally damaging
- Local companies are avoided.
Benefits of Internal Tariffs.
- Market grow
- Lower Manufacturing costs
What are the FIVE types of Trade blocs?
- Preferential: lower tariffs but not eliminate.
- Eliminate internal tariffs but maintain external tariffs.
- Eliminate internal tariffs but agree on common external, allow labour.
- Eliminate internal tariffs, adopt external, allow labour.
- Eliminate internal tariffs, adopt common external tariffs, free labour & set of economic policies.
Qualities of a Switched on Country.
- Global networks create flows > trade, money, workers & information.
- Connected to world economy.
Qualities of a Switched Off country.
- Global networks and flows having little contact with hubs that make places switched off.
- Not connected to world economy.
How does KOF measure globalisation?
Calculated in groups:
- social globalisation
- economic globalisation
- political globalisation
What does KOF measure?
Measures international interactions.
How does AT Kearney Index measure globalisation?
Four main indicators to calculate index
- Political engagement
- Technological connectivity
- Personal contact
- Economic Integration
What does AT Kearney Index use to measure globalisation?
Use holistic indicators & countries that are players on the political stage.
What are some PHYSICAL factors that cause places to remain switched off?
- Vulnerable to climate change
- Poor resources of agriculture
- Physical isolation, preventing imports and exports