globalisation overvie Flashcards
what were the developments in transport and trade in the 19th century
-railways
-telegraph (replaced boat journeys that could take weeks)
-steamships which replaced sailing ships
what were the developments in transport and trade in the 20th century
-jet aircraft
-containerisation
what were the developments in ICT and global communication in the 21st century
-mobile phones
-internet
-fibre optics
-social networks
-electronic banking
has led to time space compression
state stuff abt the EU trade bloc
-guarantees the free movement of goods, capital and people
-28 members
state stuff abt the ASEAN trade bloc
-working towards the elimination of tariffs
-didn’t achieve a single market by 2015
how can trade blocs lead to cultural erosion
trade blocs allow for cheap products to replace expensive, local ones which leads to cultural erosion
what policies can national govs put in place to speed up globalisation
-prompt free market liberalisation (reduces gov intervention in the economy (foreign comp in goods may occur leading to globalisation)
-prompt privatisation (gov selling industry to foreign companies= FDI)
-encouraging business start ups (new foreign businesses encourages globalisation)
how do SEZs contribute to globalisation
used to attract FDI, spreading globalisation to new regions
what did ASIAN tigers do to achieve rapid economic development
what did ASIAN tigers do to achieve rapid economic developmentwhat did ASIAN tigers do to achieve rapid economic developmentASIAN tigers chose export led growth and received fast economic development
what are subsidies
subsidies= payments by the gov to a company to promote a particular activity- can be used to attract FDI
How are TNCs important in globalisation
-when TNCs operate in multiple countries, it creates international connections leading to globalisation
what is growth in size of TNCs affected by
growth in size of TNCs is influenced by the creation of trade BLOCs, removing international barriers and encouragement of economic freedoms and SEZs
why do firms become TNCs
because its cheaper to operate abroad (offshoring and outsourcing)
how have TNCs taken advantage of chinas economic liberisation
TNCs are locating in SEZs (here there are pools of cheap labour)
what are the 4 reasons why a country can be switched off
-political reasons
-economic reasons
-physical reasons
-environmental reasons
whats a political reason why a country may be switched off
-In North Korea, people dont have access to the global internet or social media
-There are high levels of censprship
whats an economic reason why a country may be switched off
-Sahel: poor infrastructure and low literacy levels of the working age population make it unattractive for offshoring FD
-ow income levels mean it lacks market size to attract retail outlet FDI
whats a physical reason why a country may be switched off
landlocked countries= resulting high transport costs may make exports unattractive in foreign markets and deter FDI
whats an environmental reason why a country may be switched off
- harsh desert climates and extreme polar cold will limit development of transport and trade.