Globalisation Knowledge Flashcards
What is globalisation?
The increasing inter connectivity of countries worldwide eg. The movement of goods/services across the world
What are types of globalisation?
Cultural eg. Migration
Economic eg. TNC’s
Environment eg. Climate change
Social eg. Tourism
Political eg. War
What is globalisation?
The increasing interdependence between countries through flows of capital, trade, goods and services, as well as culture and ideas.
What is the trend regarding LEDCs and MEDCs in globalisation?
LEDCs are becoming more involved in global markets and forums, while MEDCs are becoming increasingly interdependent on one another.
Which companies have significant influence on globalisation?
Transnational companies (TNCs) have increased in volume and influence, with many having incomes higher than the GDPs of several countries.
What role do trade blocs play in globalisation?
Trade blocs, such as NAFTA and the EU, have become more influential and have reduced tariffs and other protectionist measures.
How does online purchasing contribute to globalisation?
Online purchasing between countries is becoming increasingly common.
What is the role of IGOs in globalisation?
IGOs like IMF, WTO, and the World Bank work to harmonise economies and promote democratic ideology.
What is Foreign Direct Investment (FDI)?
FDI refers to countries investing in each other.
What impact does migration have on globalisation?
International migration leads to extensive family networks living across the globe, spreading culture and finance through remittances.
What is one effect of international tourism on globalisation?
International tourism has increased as more people can travel abroad for holidays due to lower transport costs.
What does Americanisation and Westernisation refer to?
The influence of American and Western culture on other (often developing) parts of the world.
How does the flow of commodities affect countries?
Goods can easily be imported, increasing countries’ interdependence on one another.
What are the advancements in technology that have facilitated globalisation?
The internet has allowed rapid spread of information and knowledge; social networking sites have become popular.
What are the three dimensions of globalisation?
The three dimensions of globalisation are capital, labour, and products.
What is meant by ‘flows’ in the context of globalisation?
Flows refer to the movement of things, including people, products, capital, services, and information between countries.
What does capital flow refer to?
The movement of money for the purpose of investment, trade, or business production.
What are ‘footloose’ industries?
Industries that can locate anywhere without constraints from resources or other obstacles.
What is the significance of containerisation in global trade?
Containerisation has led to over 200 million container movements every year, crucial for the global economy.
What technological innovation revolutionised communication in the 19th century?
The telegraph allowed for almost instantaneous communication.
What role does GPS play in modern globalisation?
GPS allows tracking of goods across the world and is essential for navigation.
True or False: The internet is now accessible to approximately 40% of the world’s population.
True
Fill in the blank: The _______ of globalisation refers to the movement of people who move to work in another country.
labour
What are switched-off areas?
Regions that are excluded from global flows of trade, capital, labour, and information.
What are landlocked countries dependent on for trade?
Their neighbors for travel through.
Landlocked countries cannot independently participate in international trade.
How can the political agenda of a country affect global flows?
It may limit flows of people or culture through policies, censorship, etc.
Anti-migration policies can restrict cultural exchange.
What economic limitations do LEDCs face regarding trade?
They cannot afford to invest in ports, infrastructure, and incentives for trade.
LEDCs often struggle with limited financial resources.
What environmental factors can reduce a country’s ability to produce commodities for trade?
- Poor fertility of land
- Mountainous or arid conditions
- Limited land space
These factors can severely impact agricultural and industrial output.
What vulnerabilities do some countries face due to climate change?
Natural environment changes to unfavorable conditions like sea level rise and desertification.
Climate change can threaten food security and livelihoods.
What impact can terrorism or active conflict have on a country’s global connectivity?
It can be hugely detrimental.
Conflicts can disrupt trade routes and deter foreign investment.
How does corruption within a government affect its economy?
Money is lost rather than invested.
Corruption can hinder development and public service funding.
What market conditions deter investment in a country?
Unstable markets or weak currencies.
Investors seek stable environments for their capital.
Why might global flows be seen as a threat in some countries?
- Importing raw materials could hurt domestic suppliers
- Migrants may create tensions
- Foreign information could undermine local control
These concerns can lead to protectionist policies.
What is the role of Inter-Governmental Organisations (IGOs) in globalisation?
They aim to enable switched-off countries to become more globalised.
IGOs can be controversial in their methods.
What is the main function of the IMF?
Loans money to poorer developing nations with conditions to open markets and privatise.
This can lead to increased foreign investment but also debt.
What criticism is often directed at the World Bank?
It is said to increase debts and limit government sovereignty in developing countries.
Critics argue that the World Bank’s approach may not effectively benefit these nations.
What is the purpose of the WTO?
To liberalise trade by removing tariffs, subsidies, and quotas.
The WTO has faced criticism for not enforcing equal trade opportunities.
What does free market liberalisation advocate?
That government interventions hinder economic growth.
This concept was notably supported by leaders like Reagan and Thatcher.
What is privatisation?
The transfer of state-owned industries to private ownership.
Critics argue it can compromise service quality.
What are some government incentives to encourage business start-ups?
- Grants
- Tax breaks
- Infrastructure construction
These incentives can attract foreign businesses.
What are the types of Foreign Direct Investment (FDI)?
- Offshoring
- Foreign mergers
- Foreign acquisitions
- Transfer pricing
TNCs often engage in these activities to expand their operations.
How can censorship limit globalisation?
By restricting the flow of information and knowledge.
This can prevent populations from accessing foreign ideas and cultures.
What does trade protectionism involve?
- Subsidies
- Tariffs
- Quotas
These measures protect domestic industries from foreign competition.
What are the benefits of trade blocs?
- Larger potential markets
- Increased production leading to more business opportunities
- More reliable trade of essential materials
Trade blocs can facilitate economic cooperation among member nations.
What are the disadvantages of trade blocs?
- Exclusion of non-member countries
- Potential unfair treatment within the bloc
Trade blocs can limit global trade opportunities.
What are the components of the KOF Index?
- Political indicators
- Economic indicators
- Social indicators
The KOF index measures globalisation on a scale from 1 to 100.
What does the AT Kearney Index measure?
The globalisation of cities based on various factors.
It considers economic integration, personal contact, technological activity, and political engagement.
What is Gross National Income (GNI)?
The value of goods and services produced by a country, including overseas earnings.
GNI provides a broader perspective than GDP.
What does the Gender Inequality Index (GII) measure?
- Reproductive health
- Empowerment
- Employment
The GII assesses female participation and treatment in society.
What measures are included in the Human Development Index (HDI)?
- Life expectancy
- GDP per capita
- Education levels
HDI provides a composite measure of social development.
What are Transnational Corporations (TNCs)?
Companies operating across multiple countries.
TNCs are crucial to globalisation and economic activity.
What impact can natural disasters have on TNCs?
They can disrupt supply chains and affect production profits.
This can lead to scrutiny over TNC practices.
What is outsourcing in the context of TNCs?
Hiring other companies to perform tasks or services.
TNCs often outsource to reduce costs and increase efficiency.
What are the key issues associated with TNCs in terms of labor?
Exploiting workers and providing unsafe working conditions.
How do TNCs use global supply chains to reduce costs?
By investing in the source of raw materials and outsourcing manufacturing.
What is outsourcing in the context of TNCs?
The practice of TNCs hiring other companies to perform tasks to save money and time.
What is offshoring?
Relocating factories to LICs to benefit from lower labor costs and weaker regulations.
Define glocalisation.
The adaptation of goods or services by a TNC to meet local needs or tastes.
Give an example of glocalisation in the food industry.
McDonald’s menu in India excludes beef and pork burgers.
What significant global shift occurred after the 1960s?
Manufacturing industries relocated from the West to East, particularly China and India.
What are some benefits of outsourcing services to India?
- Workers receive middle-class wages.
- Increased disposable incomes.
- Positive multiplier effect for local businesses.
What are some costs associated with outsourcing?
- Workers may feel exploited.
- Demotivation due to repetitive work.
- Increasing inequality.
What is deindustrialisation?
The process where TNCs relocate manufacturing, leading to job losses and social impacts.
What are urban pull factors that attract migrants?
- Employment opportunities.
- Better access to services.
- Improved infrastructure.
List some rural push factors that drive migration.
- Poverty.
- Conflict.
- Land reform issues.
- Agricultural modernisation.
- Climate and natural disasters.
What challenges do growing cities face?
- Strain on services.
- Overcrowding and slums.
- Rising crime rates.
- Poor sanitation.
- Lack of green space.
What are elite international migrants?
Skilled or wealthy individuals who move to global hubs, such as Russian Oligarchs in London.
What are some benefits of international migration for host countries?
- Filling skills gaps.
- Economic contributions through taxes.
- Increased cultural diversity.
What are the costs of international migration?
- Rise of far-right organizations.
- Brain drain of skilled workers.
- Strains on services.
Define cultural imperialism.
The dominance of one culture over others, often through media and government control.
What is cultural erosion?
The reduction or loss of a community’s culture due to exposure to new cultures.
How has the Chinese diet changed due to globalisation?
Meat consumption per capita rose from 5kg to 50kg, leading to health and environmental issues.
What does the Gini Coefficient measure?
The inequality of wealth distribution within a population.
What is the impact of globalisation on environmental and political conflicts?
Increased tensions over resources like fossil fuels and water, and rising far-right sentiments.
What strategies have countries used to resist cultural change?
- France restricts foreign language media.
- China employs the Great Firewall.
- Iran banned Barbie dolls.
What role do TNCs play in local economic development?
They introduce new production methods and create job opportunities.
What are the environmental costs associated with TNCs?
High carbon emissions and pollution affecting local ecosystems.
What does localism advocate?
A way of life that emphasizes local production and consumption to minimize environmental impact.
What is localism?
Localism is the reduction of globally sourced goods and instead purchasing locally-sourced, sustainable products to protect the environment and vulnerable individuals.
What are some advantages of localism?
- Local suppliers can generate more revenue
- They can provide more jobs for locals
- Lower carbon emissions due to shorter transportation distances
- Deliveries can be quicker and may cost less
What are some disadvantages of localism?
- Foreign suppliers in developing countries may lose out
- Jobs may be lost abroad
- Overall cost is higher due to higher wages and manufacturing costs
- Low income families may not afford local produce
What is the significance of Totnes in the context of transition towns?
Totnes, in Devon, is the world’s first transition town which has its own currency (the Totnes Pound) that encourages spending in independent stores.
What are the aims of transition towns?
- Reducing consumption through reusing and recycling
- Reducing waste, pollution and environmental damage
- Meeting local needs through local production
What is the purpose of Fairtrade?
Fairtrade aims to secure better pay for producers and growers, including those of coffee, cocoa, and bananas.
What does Fairtrade certification provide to consumers?
Fairtrade certification provides consumer confidence that suppliers are being paid a fair price for what they produce.
True or False: Localism aims to increase reliance on globally sourced goods.
False
Fill in the blank: TNCs have developed global production networks through _______ and low transport costs.
[cheap labour]
What environmental issue is linked to globalisation?
Growing insecurity over energy, food, and water.
What challenge does Fairtrade face as it continues to grow?
It’s increasingly difficult to ensure profits are distributed properly to the growers and producers.
