globalisation key info Flashcards
what is globalisation
The increasing interconnectedness of the world
The integration of economies industries markets cultures from around the world
what are some examples of globalisation
Global trade increased massively over last 50 years
Communications times and cost reduced dramatically
Huge increase in global immigration
Containerisation
What is the historical overview of globalisation
• stage one- after World War II trade rules relaxed making it easier for countries to trade with no restrictions
• stage two- nineteen fifties to sixties increase in personal wealth increase in desire for personal goods and growth of consumerism starts in US and spreads to Europe
• stage three- new economies in Southeast Asia called tiger economies manufacture products to meet the demand in Europe
• stage four- 1970s 80s western TNC start moving production to Asia
• stage five- late 1980s- collapse of communism opens markets with Russia and Eastern Europe
• stage six-1990s rapid growth in global communications and cheaper air travel rapid growth of China and India
What are the factors that accelerate globalisation
TNCs
Low transport cost
Communication revolution
International organisations
New markets
what are tariffs
Taxes applied to goods when traded internationally
what is protectionism
Controlling trade between countries by means of tariffs
what is FDI
Investment within a country originating from outside
What are special economic zones
Zones in areas designed to attract FDI
What is privatisation
The transfer of ownership from state sector to private sector
What are trade blocks and what are the positives and negatives
into governmental agreement where barriers to trade are reduced or removed
Creates bigger markets
Attracts FDI
Protection from foreign competitors
But can cause interdependence
what is outsourcing
Where Business makes a contract with other company to complete some work often abroad
What is offshoring
Company moves part of operations to another country
What are TNCs
companies that produce goods and services in more than one country
Mostly research and development in AC , manufacturer in EDC, and raw materials from LIDCs
what is glocalisation
Adapting goods or services to local markets and cultures e.g. right hand drive cars for UK
Why may countries be switched off and what does it mean
areas do not have access to global economy
Due to long distance from market
Poor quality natural resources
Political instability
Poor transport and communications
Over dependence on an industry
What are the global positives of globalisation with facts and figures
Life expectancy increased from 32 to 69 in 100 years
illiteracy has reduced from 70% to 20% since 1950
One billion lifted out of poverty
Decline in malnutrition rates
What are the global negatives of globalisation with facts and figures
unsustainable
Increasing pollution
Increasing global warming
Economic growth not the only measure
Rates of mental illnesses increasing
Richest 1% owns as much as poorest 50%
Richer 600 people have more personal wealth than entire continent of Africa
what is deindustrialisation
The mass closure of industries in regions traditionally associated with high levels of secondary employment
What is a mega city and what are the issues
omega city is a city with a population of over 10 million ( there were 28 in 2017)
Overcrowding
Poor housing
Traffic congestion
Air pollution
What are common push factors in an area
less job
Unhappy life
Lack of services
War and conflict
Natural disasters
Food shortages
what are key pull factors for an area
access to services
Better job opportunities
Improved living conditions
Family links
What are the cost snd benefits of migration for the source country
costs-
loss of young labour
Circle of decline
Culture of out migration
Loss of skilled labour
Unbalanced population pyramid
Returning on retirement which puts a burden on services
benefits:
Remittances
Returning migrants bring skills back
Less pressure on resources
Lower birth rates and population pressure
What are the costs and benefits of migration on the destination country
costs:
displaced local labour
Money sent to country of origin
Pressure on resources
Racism
Loss of culture identity
benefits :
Skills gained
fill undesirable post
Creation of multicultural societies
Increase in cultural awareness
Growth in ethnic retail
What is cultural diffusion
The spread of cultures