Globalisation Starter sheets Flashcards
Define globalisation
The process of countries becoming more connected
Widening, deepening and speeding up of global interconnectedness.
Give an example of economic globalisation?
Imports and outports
MNC/TNC
trade
finance
Give examples of social globalisation?
Social media
Tourism
Migrants- remittances
Give another dimension of globalisation?
Politics
culture
Biological (covid)
Define ‘Glocalisation’
A combination of ‘globalisation’ and ‘localisation’ describing products or services that are developed and distributed globally but also adjusted to accommodate the user of consumer in a local market.
What is the core-periphery model?
A world economic system approach that divides the world into a hierarchy. This consists of the dominant core which benefits through exploitation of the semi-periphery and the periphery.
How have changes to financial systems contributed to globalisation?
Deregulations to financial markets
What does the IMF do?
International Monetary fund
Gives loans to countries in economic crisis
Gives two ways international trade has changed since the 1980s?
Changed from trans atlantic to trans pacific
Increases 8x
Gives 3 points describing current patterns of international trade?
Triadic nature; 40% intra-corporate; LICs remain sidelined; TNCs dominate
What is interdependence?
Countries relaying on each other
When changes to one place will impact on another (they rely on each other)
Give 3 positives impacts of free trade
Economies of scale
Multiplier effect
Purchasing power
Give 3 negative impacts of free trade
Over specialisation
Protectionism
Deskilling
Define ‘global shift’
Manufacturing from HIC – LIC/NIC
What is primary product dependency?
Dependent on primary products
Share of GDP
Give 3 disadvantages of primary product dependency?
Finite
Don’t diversity
Price volatile (demand the same)
Resource curse
Give 3 ways trends in international trade have changed since 1980.
8x more
Trans-pacific
Triadic
Who is in NAFTA?
USA
Canada
Mexico
How do NAFTA operate?
What are their aims?
Elimination or reduction of barriers to trade and investment
employment, environment, economic growth
What relationships does NAFTA have with others?
India
EU
What are the advantages of NAFTA
be specific
Increased economic output -> Us growth up by 0.5% Tripled trade between countries Created Jobs ->directly supported 5.4 million Foreign investment tripled Lowered prices Helped with government spending
What are the disadvantages of NAFTA
be specific
Suppresses wages -> companies threatened to move to mexico Mexican farmers out of business ->1.3 million farmers Degraded the mexican environment Mexican farmers were exploited
How does the IMF promote inequality?
The amount of money you can receive is based on how much you put in
removes sovereignty
conditions on the loan
Give 3 negative impacts of trade blocs?
Trade diversion= lower cost goods from outside substitute to thoses inside
Loss of sovereignty
pressure to adopt central regulation
Give 3 positive impacts of trade blocs?
Encourages trade
greater negotiating power
Protects member powers from external competition
Give one way the world bank promotes inequality?
Loan
Top down development
Give 3 examples of trade blocs?
EU
NAFTA
CARICOM
Why is primary product dependency a problem?
Price volatile
don’t diversity
resource curse
What is G20?
Annual meeting of 20 largests/fastest growing countries
What factors contribute to certain countries being considered ‘emerging economies’?
Industrial In demand resources cheap labour export heavy large or growing market well educated (india)
What does limited access to global markets limit economic development?
Limits exports less wealth less foreign investment no services not developed manufacturing reliant on primary products
What is outsourcing?
Paying another company to carry out a task
What is special and differential treatment?
Non-reciprocal
Less developed countries special access to markets
What is a SEZ?
Special economic Zone
One city
Give a positives impacts of the international movement of labour?
fills labour shortages
more job opportunity
reduce wage inequality
remittances
Give a negative impacts of the international movement of labour?
dependant on remittances lose skilled workers less investment pandemic risk structural unemployment
How have management systems changed as a result of globalisation?
Global supply chain meres/takeovers outsourcing economies of scale just in time production
Give 2 issues with special and differential treatment (WTO)
HICs expect something in return
8 to 10 years to join
primary products
Define horizontal integration?
Bought the same level company as them
eg. one airline buying another
Outline patterns of global banana trade
ACP
EU & USA import
Chiqiuta, Del monte, dole
What is global governance?
dealing with global issues that can’t be dealt with with one country
How have changes in patterns of production promted globalisation?
Outsourcing
merges
global supplu chains
economies of scale
tariffs
tax on imports
Quotas
limit of imports
subsidies
money to domestic producers
Give 3 barriers to trade
Tarrifs
quotas
embargoes
