Globalisation Set 1 Flashcards
1
Q
Measuring Globalisation
A
- Use of Global technology e.g. number of internet users
- Political engagement e.g. number of international organisation memberships
- Personal contacts e.g. number of passport holders and volume of international telephone calls
- Economic integration e.g. amount of FDI attracted and volume of trade
- Cultural integration e.g. degree of multi-cultural people and attitudes to immigration
2
Q
Impact of Globalisation
A
- Economic - World trade has expanded rapidly
- Socio-cultural - western culture has diffused around the globe
- Linguistic - English is dominant language globally at the expense of native languages
- Political - Power of states has diminished at the expense of trade blocs
- Demographic - More migration = more multi cultural communities
- Financial - Global network of cities has evolved and global terrorism is financed by money laundering
- Environmental - problems such as global warming are worsening
- Media - Global village prevails with many sporting events being genuinely global e.g. the world cup and the Olympics
3
Q
Types of Globalisation - Economic
A
growth of TNC’s which have a global presence and brand image - also involves spreading of investment around the world and growth in world trade
4
Q
Types of Globalisation - Cultural
A
People eating the same food, wearing similar clothes etc with many being western in origin
5
Q
Types of Globalisation - Political
A
dominance of western democracies in decision making
6
Q
Types of Globalisation - Demographic
A
migration and tourism increase = populations becoming more multi-cultural
7
Q
Types of Globalisation - Environmental
A
realisation that global environmental threats require global solutions
8
Q
4 global flows - Capital
A
Flows of money between people, banks, businesses and governments
9
Q
4 global flows - Commodities
A
Valuable raw materials e.g. fossil fuels, food and minerals have always been traded between countries
10
Q
4 global flows - Information
A
- Real time communication e.g. the news
- Social networking e.g. Facebook
- Data
11
Q
4 global flows - People
A
- Tourists can travel cheaper with budget airlines
- Migrants = the permanent movement of people
12
Q
Free trade
A
Eliminates taxes and tariffs when trading goods so products can be sold at lower prices
13
Q
Bretton wood institution
A
made up by the World bank and The International Monetary Fund and established after WW2 - Set up to re-stabilise economy after the great depression in the 1930s - removes taxes and tariffs from trade to make products cheaper
14
Q
International Monetary Fund (IMF)
A
- Channels loans from rich nations to poorer ones - the poor countries must agree to run a free market economy that is open to investment meaning TNC’s can easily enter these countries
- Based in Washington DC
- Controversial as there are strict financial conditions for the borrowing country - can cause the governments of these countries to cut back on healthcare etc to pay back the loans
15
Q
World Bank
A
- Based in Washington DC
- Lends money on a global scale - 2014 $470 million was donated to the Philippines for poverty reduction
- Also gives grants to developing nations e.g. to DRC for construction of a new Dam
- Total donated = $65 billion
- Imposes strict conditions on it’s grants
- Mission = reduce extreme poverty by 3% by 2030
16
Q
World trade organisation
A
- Took over from the general agreement on trade and Tariffs in 1995
- advocates trade liberalisation for manufactured goods
- wants un-taxed trade
- Failed to stop rich countries from subsidising their own farmers - harmed farmers in developing nations
- Located in Switzerland
17
Q
How does free trade increase globalisation
A
removal of barriers attracts TNC’s as costs will be lower, resulting in these companies generating wealth which will lead to an improvement in quality of life for those living in the area
18
Q
Foreign Direct Investment
A
financial injection is made by a TNC into a nations economy in the ABSENCE of any political barriers
19
Q
Offshoring
A
- TNC’s build manufacturing facilities in low-wage economies e.g. Fender opened factories in Mexico in 1987
- Pros = Low labour costs = lower prices for consumers
- Workers may be exploited
20
Q
Foreign mergers
A
- Two firms in separate nations join to create a single entity
- Cons = Creates Job losses
21
Q
Foreign Acquisitions
A
- TNC takes over a foreign company e.g. USA’s Kraft took-over UK’s Cadbury’s in 2010
- Pros = less competition = prices can be reduced
- Cons = loss of businesses = job losses
22
Q
Transfer pricing
A
Some TNC’s channel profits though a low-tax country e.g. Starbucks channelled profits through Ireland
23
Q
Development of steam power
A
allowed for the movement of goods and military goods along trade routes in Asia and Africa e.g. Britain moved weapons into Asia
24
Q
Railway networks
A
started to expand in the 1800s, and by 1904 the 9000km long Trans-Siberian railway was completed which connected Moscow with China and Japan
- Remains a priority today as it allows for the easy movement of people and goods across borders
25
Development of Jet aircraft
- Made Global Travel affordable and quicker - helped speed up globalisation
- Easyjet has made flying 'as affordable as a pair of Jeans' - added to the shrinking world effect
26
Impacts of Container shipping
200 million container movements annually - 'backbone' of the global economy
- can transport most goods
- Chinese ship 'Cosco' is able to carry 13,000 containers
27
Shrinking world effect
Improvements in travel = able to get around quicker and cheaper making the world feel smaller
28
Telephone and Telegraph effects
replace week long journeys with instant communication - Phones help develop places such as Africa
29
Internet and Fibre Optics effects
Large amounts of data moved quickly which means travelling to locations is not necessary
30
Social Networking effects - Social globalisation
Helps migrants stay in touch with loved ones and makes money easy to transfer etc
31
Social Networking effects - Cultural globalisation
Language and music are modernised to appeal to younger audiences
32
Social Networking effects - Political Globalisation
Networks are used to raise awareness on issues - allows for the spreading of ideas and messages
33
Electronic Banking
Farmers in rural areas use apps to check the stock market in order to maximise profits - Others use phones to take out small loans etc
34
Phase 1 - Incipient Globalisation
- 1850-1950
- Emergence of the technology (1850)
- Development of air travel
- Emergence of international organisations e.g. League of nations (1923)
- Olympic games (1896)
35
Phase 2 - Onset of full scale globalisation
- 1950-2000
- Development of Internet (1980)
- Development of trade blocs
- Emergence of TNCs
- Development of international organisations such as the UN
36
Global Shift
Movement of manufacturing and similar economic activity from More economically developed countries to Less economically developed countries e.g. USA to China
37
Reasons for Global Shift
- TNCs can get around Tariffs
- work in areas with less environmental restrictions and lower costs
- Transport revolution has meant that large amounts of goods can be moved quickly
38
Which Industries affected by the Global Shift
- First = Textile industry
- Steel only recently moved as transport revolution is recent
- Car manufacturing has stayed in developed countries e.g. USA
39
Effects of Global Shift on Emerging countries
Pros:
- Generates income and promotes investment
- Wealth can 'trickle down' into the poorer communities
Cons:
- Inequality is unlikely to decrease
- Rapid urbanisation
- Loss of Farmers = loss of food production
40
Effects of Global Shift on Developed countries
Pros:
- Cheaper imports and exports
- Loss of factories = better environmental quality
- Growth in Poorer countries = higher demand for exports
Cons:
- Job losses - unskilled workers cant find jobs
- Higher crime rates in poorer areas = areas become less desirable
41
Hyper - Globalises
Celebrate how cultures are mixing and reductions in poverty etc
42
Pessimistic globalises
Fear the effects of globalisation are negative - Fear Cultural Homogeneity (uniform high streets)
43
KOF Index - What?
- Completed by the Swiss Economic Institute
Indicators:
- Economic - Volume of FDI etc
- Social - Cross border contacts
- Political - No. of foreign embassies etc
44
KOF Index - Pros
- Updated annually
- Each indicator is scaled as some are more important than others
45
KOF Index - Cons
- Shows 13 of the top 15 most globalised countries are European which contrasts results for best GDP of manufacturing output
- Less criteria compared to the AT Kearney Index
46
AT Kearney Index - What?
Indicators:
- Political - Participation in international treaties
- Technological - No. of internet users etc
- Personal Contacts - Telephone calls and remittance payments etc
- Economic - Volumes of trade etc
47
AT Kearney Index - Pros
- Takes into account international treaties
- Uses more Holistic measures such as no. of web users
- Shows countries that are 'players'
48
AT Kearney Index - Cons
Point system is very complex
49
Reshoring
Moving factories back to the to the country's where the headquarters are located
50
Global hubs
Settlement or region that has become a focal point for activities with a global influence - recognised by influence rather than population
51
Global hubs - effects for the host location
Pros:
- Receive skilled workers - Fills labour gaps
- Balances an ageing population with young adults = increases the birth rate
Cons:
- Experiences pressure on housing, healthcare and schools etc
52
Global Hubs - effects for the source location
Pros:
- Remittance payments can boost the economy - Can grow employment as the money is invested into local businesses etc
Cons:
- Loss of skilled workers
- Imbalanced population - Young people migrating leaves a dependent population made up of the elderly and children
53
Where are Global Hubs located
Asia, the Americas and Europe with Africa only having one global hub in Johannesburg which could lead to a more switched off society
54
Elite Migrants
Governments welcome elite migrants who are highly skilled - encounter few obstacles when moving across borders e.g. Katy Perry bring money into an area
55
Low Wage Migrant
Drawn to Global Hubs in large numbers to work in low paying, labour intensive jobs such as construction - e.g. over 2 million Indian migrants live in the UAE making up 30% of the population - $13 billion is sent back to India in Remittances
56
Causes of Rural to Urban migration
- Bright lights - Family members move to the city and send money back home - attracts others to move also
- Education - Allows those from rural areas to get better jobs etc
57
Impacts of Rural to urban migration
- Loss of cultures
- Loss of agriculture etc
- Rapid urbanisation - poorer infrastructure
- Gaps in the job market will fill
58
Lees push-pull theory
explains the factors that cause migration in terms of positive and negative characteristics of the origin and destination ares.
59
Lees push-pull theory Example
Moving from UK to Spain
Push factors:
- British weather is poor
- Political views
- Deprivation in parts of Britain
Intervening obstacles:
- Family
- Language barrier
Pull Factors
- Good weather
- Lower cost of living
60
How is shrinking world technology intervening obstacles to rural-urban migration
- Internet = research areas before you visit
- Mobile phones = Face time etc
- Transport = Quicker and easier to move between places
61
Trends in mega city growth from 2011 - 2025
- 15 megacitites
- majority found in Southern Asia e.g New Delhi and Tokyo
- Europe, African and Oceania have no megacities
- expected to see the most growth is Dhaka at 53%
