Globlisation

Question 1

globalization?

Answer 1

worldwide interconnectedness; flow of ideas, capital, commodities and people form one nation to another is globalization. it has three dimensions - economic, cultural, political.

Question 2

economic globalization?

Answer 2

integration of national economies into the international economy through trade, investment, and flow of capital.

characterized by growth of MNCs, trade liberalization, and expansion of global markets.

Question 3

political globalization?

Answer 3

refers to the growing role of international organizations like UN and WTO in shaping global politics.

characterized by emergence of transnational alliances.

Question 4

cultural globalization?

Answer 4

refers to the spread and sharing of ideas, values and cultures across national borders.

Question 5

cultural diffusion?

Answer 5

refers to the spread of cultural beliefs, social activities, and ideas.

leads to the adoption of new practices, beliefs and technology.

can occur via trade or migration

Question 6

cultural homogenization?

Answer 6

process of different cultures becoming more similar and identical to each other due to globalization and spread of dominant culture values.

see: westernization - society adapts to western culture - Democracy, American pop culture

mcdonaldization - the spread of the idea of fast food

Question 7

cultural assimilation?

Answer 7

local cultures are transformed or absorbed by a dominant culture; adaptation of minority groups to the dominant culture.

ex. after the US was formed, European immigrants were quickly assimilated into the culture.

Question 8

homogenization vs assimilation?

Answer 8

homogenization describes the process by which cultures become more alike. Assimilation occurs when one culture is absorbed into another culture.

Question 9

causes of globalisation?

Answer 9

technology (communication) and transportation are the main causes of globalization.

Question 10

is globalization a 20th century phenomenon?

Answer 10

no, consider silk routes, roman empire, columbian exchange. trade exchange between the harappan and mesopotamian civilization. colonial trade between european and oriental nations and european and south asian nations.

in the 20th century, frequency, size, and scale of globalization has increased due to advancements in technology; the concept itself is an old one.

Question 11

transnational corporations?

Answer 11

headquarters in multiple nations

Question 12

TNC vs MNC?

Answer 12

make pen sell in 10 countries - MNC

if business increases so much that you need to higher people in the other countries and offices for your company are built in other countries - TNC

Question 12

multinational corporation

Answer 12

headquarters in one nations, but business opportunities in others.

Question 13

outsourcing?

Answer 13

a company may choose to outsource certain tasks to low cost countries (LEDCs) where labour maybe be cheaper or more skilled.

ex. apple assembling products in china, ford and jeep manufacturing their cars in india. nike, adidas having sweatshops in countries like bangladesh and indonesia.

a company might decide to outsource its customer support team to a location in India where the cost of labor is much lower than it is in the company’s home country

Question 14

economic negatives of globalization? (loser)

Answer 14

LEDCs have raw materials which they sell to MEDCs for low prices. MEDCs create high value goods from those materials and accumulate excessive profits. LEDC gets nothing.

Question 15

free trade?

Answer 15

agreement b/w two or more nations to reduce trade barriers to import and export b/w them.

protects traders against unhealthy compeition.

regulated by the government.

Question 16

objective of free trade?

Answer 16

to boost economic growth of countries; to generate more profit

Question 17

how is free trade done?

Answer 17

lower tariffs, quotas, embargoes, and regulatory trade barriers. delicensing and deregulation. – allows for unrestricted export and import

this enhances efficiency of global markets by increasing economic growth, while also lowering prices for consumers.

this lower price, however, means that there are workers are exploited and trade violations exist.

Question 18

fair trade?

Answer 18

when producers in developing countries are paid a fair price for their work by companies in developed countries.

it is a trading partnership based on transparency, dialogue, and respect.

regulated by Fairtrade International and FLO-CERT

Question 19

objective of fair trade?

Answer 19

to develop more equitable trade relationships; focused on creating product w/o exploitation of environment and workers.

seeks to regulate trade based on concerns about environmental conditions and violation of human rights and labour laws.

focused on favoring rights of workers (improving working conditions and eliminating pay discrepancies)

Question 20

how is fair trade done?

Answer 20

firms work w/ peasants and artisans, which ensures suitable financing and wage - regulations exist so that companies don’t take advantage of farmers.

Question 21

similarity between fair and free trade?

Answer 21

both are policies that focus on the regulation of commercial activities across countries

both aim to increase wealth globally

Question 22

pros of free trade?

Answer 22

lower prices (for govt. and consumer)

increased efficiency because it creates competition (best product at lower price), ultimately increasing the buying power for all consumers.

under Ricardo’s theory, countries can produce more goods collectively by trading on their respective advantages - leads to economic growth.

Question 23

cons of free trade?

Answer 23

increased job outsourcing (so job losses); competition with foreign exports may cause local unemployment and business failures.

unequal distribution of benefits

countries may become reliant on the global market for key goods, leaving them at a strategic disadvantage in times of crisis.

worker’s rights not taken into consideration

Question 24

pros of fair trade?

Answer 24

better wages for producer
worker’s rights is taken care of

Question 25

cons of fair trade?

Answer 25

higher prices of products

less product choice

limited consumer customer base around the world

not all producers can access fair trade due to the high certification fees and due to the focus of the model on developing countries.

Question 26

need for foreign aid?

Answer 26

arises from challenges faced by developing countries

challenges include wards, famines and health crises.

it is instrumental in saving lives but there is debate about aid dependency and self-sufficiency.

Question 27

is aid a product of globalization?

Answer 27

not a direct product of globalization (market driven phenomenon), but closely related to globalization.

it is a response to uneven distribution of the benefits of globalization.

Question 28

institutions involved in providing foreign aid

Answer 28

international donor agencies

government institutions of developed countries

UN agencies like UNDP, UNICEF, UNESCO

WHO

the world bank

international monetary funds (IMF)

vertical funds

NGOs

Question 29

types of aid?

Answer 29

bilateral

multilateral

Question 30

bilateral aid?

Answer 30

aid that is given directly from one country to another.

military aid is a type of bilateral aid used to assist a country in its defense efforts.

Question 31

multilateral aid?

Answer 31

aid that is given by a donor country to an international organization like the world bank, which then distributes it to developing countries.

humanitarian aid is a type of multilateral aid provided in response to natural or man-made disasters such as famine, disease, or war. often channeled through international organizations and NGOs.

for example, humanitarian aid from wealthy nations poured into the coastal regions in South Asia after a 9.0 magnitude earthquake triggered a tsunami in the Indian Ocean, killing more than 200,000 people.

Ukraine received the most money through development and humanitarian response programs as of September 2023. The country received more than $1.7 billion. Syria and Yemen were the second- and third-highest recipients with about $1.5 billion and $1.4 billion in aid, respectively.