Going Global Flashcards
Define globalisation
The processes by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers.
Explain how EasyJet is a global company
It’s a budget airline that has regional airports, e.g. Bristol (South-West) to allow people to fly for cheaper.
Explain how Tesco’s is a global company
They outsource a lot of their products from abroad, where production is cheaper, to where it’s then transferred to locations where there’s a higher demand.
Explain how language barriers link with globalisation
They have broken down due to the increase in numbers of people speaking more than one language. This can help businesses with Foreign Direct Investment (FDI).
Explain the role of globalisation in the ‘migrant crisis’
- Strain on housing, services etc…
- 283, 532 arrivals in 2014 to seek asylum.
- Rising numbers of refugees and economic migrants from areas such as, the Middle-East, Africa and the Balkans, towards the EU via the Mediterranean Sea.
- Syrians ‘DDD’ jobs which nobody wants to do, less exporting and this reduces oversea trade.
- Refugees coming from Syria, Afghanistan and Eritrea, causing multiple conflicts.
- Migrants aiming for richer EU countries, e.g. Germany, France etc…
Why are more and more people aware of events happening in Syria?
People may know about life outside Syria through the media and products that have been exported there.
Why may people want to migrate out of Syria?
Prospects of a better life with a better economy, which has spread from technological developments and politics in Western Europe.
What is colonialism?
When one country, takes over another country, with force.
What is thought to be the start of globalisation?
Colonialism.
What is the British Empire and who was under it?
Countries ruled under Britain in the 1920’s. This includes: Canada, India, Australia, Nigeria, Egypt, Nambia, South Africa, Zambia, New Zealand and Papua New Guinea.
Why would countries want to colonise?
- Power
- To spread the British culture
- To gain more people for the army
- To have more resources to sell and more links
- Thought to be the right thing to do
- Gain much more land
What is neo (modern) colonialism?
Due to colonial empires being broken up, new trade routes have developed which had lead to a wealthy core and a less wealthy periphery.
Does Britain still have links with Egypt? (who used to be owned by Britain)
Yes, because they celebrate similar events, e.g. Christmas, Easter and Good Friday. There is also a direct plane from the UK to Cairo (Egypt’s capital).
What term is used to describe the impacts of the world becoming smaller as a result of globalisation?
A shrinking world.
Since the British Empire broke up in the 1950’s, how are the other countries still connected to the UK?
- Air travel
- Media/technology
- Communication improvements
- Tourism/migration
- Aid/investment
What are the top three biggest, world-wide TNC’s?
- Coca-Cola
- McDonald’s
- Disney
How many satellites and cable companies does Disney have?
230
How many film/TV production and distribution centres does Disney have?
6 - all 7 continents apart from Antarctica.
How many magazines and newspapers does Disney have?
15
How many shops worldwide does Disney have?
728
How many theme parks does Disney have?
5
How many theatre production companies does Disney have?
2
Where did Disney all begin?
California.
What 4 strategies have helped Disney to grow?
- Expansion
- Mergers
- Take-overs
- Diversification
Give 5 facts about Tesco’s TNC’s growth and development
In 2007…
- £1 in every £8 spent in the UK was spent in Tesco’s.
- Tesco’s operates in 12 countries.
- It had 10,000 shops.
- It has expanded from groceries to technology, home stores, insurance, services and clothes etc…
- In April 2007, it’s profits exceeded £10 billion.
What benefits are there to Tesco’s customers?
- Cheaper alternative
- Larger range of goods
- Everything in one store
- Accessible
- Better deals
- Own brands for lower-income families
- 24 hour opening times
- Club card loyalties
- Efficient and effective online shopping
What problems are there to Tesco’s customers?
- Variety of competitors
- Undermines smaller businesses
- Lower quality from own brands
- Other coffee shops (Costa Coffee)
- Horse meat scam!
What benefits are there to Tesco’s suppliers?
-Guaranteed income
What problems are there to Tesco’s suppliers?
- Shed load of waste
- Needs to be good quality, otherwise Tesco won’t buy
- Mange toutes compared to a child and is ‘more important’
- Suppliers pay for visit
- Dependent on Tesco’s
- Tesco’s asserting their power
Define expansion
A business strategy in which growth is obtained by increasing the number of stores in which customers can buy a company’s products and services.
Relate expansion to Disney
Disney used to be known for their films, and not for their parks, merchandise and restaurants. They look for other business gaps.
Define merger
The combination of one or more corporations.
Relate merger to Disney
Disney owns Pixar and Vans now, where Disney have combined their ideas and clothing, as they are two separate businesses that have come together as one, but keep their separate names. Disney interacts with Disney consumer products and now have a combined revenue.
Define take over
When an acquiring company makes a bid for a target company.
Relate take over to Disney
Disney took over Marvel, but they kept their separate names. This may be due to the reputation of Disney and their audience.
Define diversification
A corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that market.
Relate diversification to Disney
Disney was previously focused on ‘family entertainment’, but now gets a lot of revenue from theme parks and merchandise. They tend to swing between audiences; 2001 Mulan and 2005 Nemo. Film types now appeal to a wider audience - children and adults as they have grown up, newer films are aimed at them.
Define outsourcing
Where businesses send part of their business to elsewhere to where production is cheaper and sent to where consumption and demand is higher.
Define innovation - ideas over mass production
More diverse and limited edition products, diversifying products and keeping customers interested.
Define the just-in-time policy
Where they order the stock when they need it, not in advance.
Is Disney Fordist or Post-Fordist?
Post-Fordist.
Define fordism
Large batches, lower prices, same line of goods.
What are the positives of fordism?
- Straight forward
- Workers are very skilled
- Constant designing, then exporting
What are the negatives of fordism?
- Design rarely changes
- Supply is ‘basic’
- Same production
Define post-fordism
Small batches, higher prices, different line of goods - limited edition goods.
What are the positives of post-fordism?
- Workers can multitask
- Great quality/style of goods
- Limited edition goods (higher demand?)
What are the negatives of post-fordism?
- Much more expensive
- Hard for workers to keep up with design changes
- More time-consuming to make/design
Explain LEDC’s
- Less Economically Developed Country
- A developing country
- Economy not developed to the extent of the UK
- Limited power
- South America and Africa mainly
- Producers of raw materials, then sell them to MEDC’s
Explain NAFTA
- North American Free Trade Agreement
- Introduced in 1994
- Headquarter in Mexico City
- A comprehensive trade agreement that sets the rules of trade and investment
- Signed by Canada, Mexico and the United States, creating a trilateral rule-based trade bloc in North America
- One of the world’s largest free trade zones, which lays the foundations for strong economic growth
- Demonstrates how free trade increases wealth and competitiveness
- Systematically eliminated most tariff and non-tariff barriers
- Brought in strong economic growth, job creation, better prices and selection in consumer goods
Explain OPEC
- Oil Petroleum Exporting Countries
- Permanent, intergovernmental organisation
- A cartel, that aims to manage the supple of oil, to set the price on the world market
Explain OECD
- Organisation for Economic Corporation and Development
- 34 democracies, that work together to promote economic growth, prosperity and sustainable development
- Seen as a ‘Global Think Tank’
Explain WTO
- World Trade Organisation
- 123 nations joined, including all those in the EU and USA, Russia and developing countries
- Very powerful
- Deals with regulations of trade
- Resolves problems
Explain UN
- United Nations
- Group of 193 countries
- Encourage international cooperation and stops wars and conflict
- Headquarters in Manhattan
- Very powerful group
Explain IMF and WT
- International Monetary Fund and World Trade
- Promote international financial stability and monetary cooperation
- Facilitates international growth, tackles high unemployment and encourages sustainable growth
- Most of the world, apart from Russia are members
Explain G8
- Group of 8
- Annual meetings between leaders from the 8 most powerful countries in the world
- Tries to tackle global problems by discussing issues and taking action
- Members are: Canada, France, Germany, Italy, Japan, Russia, UK and USA
- Very powerful
How do McDonald’s diversify their products?
By glocalising their products to adapt to cultures and to make products more seasonal, in turn reducing food miles.
How do McDonald’s merge their products?
They merge with Disney for example, in happy meals with the purpose of primarily advertisement.
Why do McDonald’s outsource their products to elsewhere?
They export goods to where labour is cheaper, also creating connections with other countries.
Define trade bloc
A group of countries which work together to trade, they engage in international trade together, and are usually related through a free trade agreement or other association.
Relate free trade to trade blocs
Free trade is prevented by trade blocs as members look after themselves.
Relate trade tariffs to trade blocs
Trade tariffs are taxes imposed on certain goods to companies or countries trying to import goods into a trade bloc where to good exists.
Relate subsidies to trade blocs
Subsidies are financial incentives given to companies/farmers within a bloc to encourage them to produce and sell goods with other countries within the bloc.
Relate trade quota to trade blocs
Trade quota is the amount of a good that is allowed to enter a country. A trade bloc may be strict on setting these to external countries/companies to protect their own markets.
Relate a global economy to trade blocs
A global economy is the type of trade that is allowed amongst the members of a trade bloc.
Relate OPEC to trade blocs
OPEC is the most powerful trade bloc.
Define trade surplus
Where the value of the imports is lower than the value of the exports = MONEY
Define a trade deficit
Where the cost of imports is greater than the value gained from exporting goods = DEBT
Which countries are involved in the trade bloc Mercosur?
Argentina, Uruguay, Paraguay, Brazil, Chile.
Which countries are involved in the trade bloc NAFTA? (North American Free Trade Association)
Canada, Mexico, USA.
Which countries are involved in the trade bloc EFTA? (European Free Trade Association)
Iceland, Sweden, Norway and Switzerland.
Which countries are involved in the trade bloc EU? (European Union)
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, UK.
Which countries are involved in the trade bloc ASEAN?(The Association of Southeast Asian Nations)
Brunei, Indonesia, Malaysia, Philippines. Singapore, Thailand, Vietnam.
Which countries are involved in the trade bloc OPEC? (Oil Petroleum Exporting Countries)
Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezuela.
Explain how OPEC countries got into debt
- In 1970, they raised petroleum prices, increasing earnings.
- OPEC saved these earnings.
- Then lent this money to developing countries for infrastructure.
- in 1980, interest rates doubled, so loan repayments increased.
- now the developing nations are heaving debited.
- The IMF (International Monetary Fund) constructed SAP’s (Structural Adjustment Packages) which helps to schedule loans, but also making them more affordable.
- Without the IMF, no further credit could be made, SAP’s were compulsory.
- Then, spending was predominantly on health and education, so IMF cutbacks affected poorer people.
What was the main reason African countries got into debt?
The power of OPEC.
N.I.C’s (Newly Industrialising Countries) are the Asian Tigers, who are they?
South Korea, Thailand, Taiwan, Indonesia.
What four things allow TNC’s to locate where they do?
- Transport
- Government
- Workforce
- Market
Explain some of the characteristics of Singapore?
- Lots of businesses set up
- ‘Playground for the mega rich’
- Low taxes and stable governments
- Rising costs of living, some struggle
- 5% of the world’s wealth
- 17% taxation
What are the disadvantages of this Tiger Growth?
- Locals are living in poverty
- Lots of money leaks back over to other countries, e.g. China
Is Singapore a winner or a loser in the gloablisation process?
A winner.
What causes countries to become switched-on/connected?
- Technology
- TNC involvement
- Trade barriers
- Wealth
- Transport
- Government
- Markets
- Good links
- Trade increase
- Willing/able workforce
- Infrastructure
- Trade Blocs
Explain the problem with copper in Zambia
- Copper is a readily available resource.
- It is mined from underground.
- Extraction and sale increased in the 1940’s.
- By 1950, Zambia was extracting 400,000 tonnes a year.
- At this time, governments brought in a high percentage stake in all of the mines.
- This brought in a lot of money.
- This was their Primary Product dependency.
- This was their FOOLISH DECISION.
- By 1965, other African countries were also extracting copper.
- But they sold it for cheaper prices.
- This undercut the Zambian miners.
- This then lead to inflation.
- Poverty levels rose.
- Zambia still struggles today.
What was the main problem with Zambia’s production?
Poor governmental decisions meaning that all their time, effort and resources was spent on developing their copper industry.
Explain the problem with groundnuts in Senegal
- Groundnuts a big industry.
- In 1960, Senegal was their main crop.
- They then launched a groundnut resource development, whereby they asked the world bank.
- Their focus was on exporting groundnuts.
- In 1980, other nations started to produce nuts, prices fall and more borrowing.
- Trade liberalisation and privatisation lead to cuts on spending.
- This put Senegal in debt.
What was the main problem with Senegal’s production?
The initial World Bank loans.
Explain how Zimbabwe became disconnected
Their president is Robert Mugabe and their country was very politics focused, whereby conflict was often and this was against Mozambique. Therefore, the didn’t focus on becoming connected.
Explain how Bolivia became disconnected
It is a landlocked country, very mountainous with a population of around 10 million and this is a multi-ethnic society. But racial and social segregation arose from Spanish colonialism. In terms of their development, they’re developing, with a medium ranking in the HDI and with poverty levels of 53%. Industries predominantly tend to be primary and secondary sector and they are very wealthy in minerals, especially tin. They are a secular state and they guarantee freedom of religion.
Explain how Niger became disconnected
It is a landlocked, developing country and they are the lowest ranked in the UN’s HDI. The country is threatened by drought and desertification. Their economy is concentrated around subsistence and some export agriculture. They face issues due to their landlocked position, desert terrain, over population, poor education, poverty, lack of infrastructure, high fertility rates, poor healthcare and environmental degregation.
Explain how Nepal became disconnected
It is the least developed of the developing countries. This is due to their low income economy and their high levels of hunger and poverty. They are prone to severe deforestation, leading onto erosion and degregation of ecosystems.
How have Costa Rica tried to reconnect themselves to development?
They became in debt, so therefore, in order to repay their debts they had to cut spending on services. Environmental debt resulted from around half the trees in the forest being destroyed and the financial debt was $4 billion. Now the UK and USA restrict imports in Costa Rica and there is much harsher import quotas. They are the largest importer of ornamental plants, therefore new actions have been implemented. There’s now education and training in sustainability, in the hope this this will cause a ‘chain reaction’. They are also renegotiating international debt and the World Bank and IMF are helping the yield cycle, to try and get Costa Rica out of it, however this will cost $1.6 billion.
Should the rest of the world ‘drop the debt’ for Africa?
Yes - because we’d be doing them a favour because it’d mean that they can focus on developing their industries, rather than focusing on trying to pay back the debt they owe.
No - because they need to be taught a lesson; if they get into debt again, they might think we’ll let them off again, when that’s not right. Also this may enable them to develop their industries more than ours and overtake us.
What do the patterns in connectivity show between 1857 - 2010?
If on a timeline, more has taken place towards most recent times and much fewer towards the start.
How did China grow so quickly?
- Since the 1970’s, economy doubled every eight years.
- Largest sustained GDP growth as it’s no longer a low-income country.
- Shanghai has developed massively.
- There’s a new manufacturing sector, with new knowledge and information.
Local reasons for China’s growth
- 1949-1976: Mao Zedong’s Peoples Republic made China separate and disconnected.
- 1976: He died, new rulers created an open-doors policy, which is investment from overseas from 1986 on wards.
- 1990’s: China became a capitalist economy.
- Population and natural resources provide employment, with raw materials fro industrialisation.
- Spending on health and education.
- As a result, Export Processing Zones create cheap mass manufacturing.
Global reasons for China’s growth
- In 2001, China joined WTO.
- TNC’s invest and take advantage of low labour costs and the EPZ’s.
- Since 2000, China produces major investment as 53% of exports are produced by foreign-owned companies.
- As a result, there has been a 60% increase in world trade since 2004.
State some positive points about China
- Population over 1.3 billion
- Export Processing Zones
- Shanghai has new businesses
- Industrial development
- TNC’s operate there
- Economy doubling every eight years
- World’s fastest growing economy
- Growth based on manufacturing industry
- Low international commodity prices
- Worlds fourth largest economy
State some negative points about China
- Increased in-migration
- Lack of access to clean, safe drinking water
- Huang He River dried up
- 85% of trees cleared along the Yangtze, causing erosion and dust storms
- Over 140 million Chinese people left since the 1980’s
- 70% of China’s lakes and rivers are polluted
- 20% of the population live on less that US$1 a day
State some positive points about India
- Population over 1.1 billion
- Bangalore is the countries fastest growing city
- Increasing economic activity
- Outsourcing
- Growth based on service industry
- The internet is the root of the rapid rise
- Since the 1990’s, economic growth has averaged 6% a year
State some negative points about India
- Farmers still make up 70% of the population
- Some rural farmers do not earn enough, so they live in slums
- Indian rural areas remain switched off
- Roadside tents, overcrowding and squalor sit next to the bright lights of a flamboyant city centre
- TNC’s take advantage of the lower wages and well-educated workforce
- Largest rural-to-urban migration ever recorded
- Shocking levels of deprivation
- Most of the economic growth has taken place in urban not rural areas
Explain Chongqing, China benefits
- Population of 10 million and is expected to grow in size by 2020
- 50% of the population are migrants
- Half a million new workers arrive each year
- Since 2000, over US $250 billion was spent on roads, bridges, dams and power supplies
- Living conditions were often overcrowded
- Incomes were three times higher than on farms
- One of the dirtiest cities on Earth
- Very bad air quality, as they didn’t reach governments safety standards in 2005
Explain Wenzhou, China benefits
- Rapidly industrialising city, of 7.7 million
- Poor rural area, with dynamic Export Processing Zones
- Exports rose from $5 million to $29.4 billion, between 1978 and 2002
- ‘Small-commodity - big market’
- Governments ‘1000 project’
- Incomes have risen, education is compulsory for 9 years and literacy is 100%
Explain Lishui, China benefits
- A factory zone was established in 2002
- By 2006, over 200 factories were there and 30,000 migrants had arrived
- Population rose from 1.6 million in 2000, to 2.5 million in 2005
- $8.8 billion has been invested in the areas infrastructure
- New migrants work for low incomes, below local minimum wage of 40 cents an hour
What 4 factors cause changes in the UK’s population?
- Birth rate
- Death rate
- Immigration
- Emigration
What is census data?
Data collected ever 10 years, starting in 1801, whereby people are given a form/document to fill out
What problems are there with gathering population data?
- Time-consuming
- Expensive
- Environmental destruction
- Some households may be missed
- Homeless people not included
- Literacy or misunderstanding of the form
- People might not register births
- Remote parts may be difficult to survey
- People may be reluctant to give information
How do you work out the dependency ratio?
Population under 16 + population over 65
/ population 15-64
What was the impacts of the Great Depression of the 1930’s on the population?
This is a severe worldwide economic depression, whereby worldwide GDP fell by 15% from 1929 to 1932. This had devastating effects in both rich and poor countries. In the UK, unemployment reached 70% in some areas. But, the main cause of the financial instability was Europe’s debt for their involvement in WW1. They then financed this through sales of foreign assets, however, they had a net loss of £300 million in foreign investment.
What was the impacts of the post-war baby boom on the population?
In the US, 1946, live births in January were 222, 721 and then in October they were 339,499, which shows a phenomenon of increased births in post-war America. Then, in 1954, annual births reached 4 million, and didn’t drop below this figure until 1965, when 4 out of 10 Americans were under the age of 20. As a result, family sizes increased sharply throughout the baby boom.
What was the impacts of the decline in heavy industry in the 1980s in Northern England on the population?
Developments in technology and other social factors have changed the way we work and the types of work we do. National statistics show that in 1841, manufacturing was 36% of the workplace and services was 33%. In comparison, in 2011, manufacturing was 9% of the workplace and services was 81%.
What was the impacts of the drift of people to the South East of England in the 1990s on population?
Population drifts from jobless North to the overcrowded South East. Officials have underestimated demand for housing caused by a continuing shortage of Northern jobs and an expansion of work in the South. Projections now show from official governments, England will need an extra 3.8 million new homes between 1996 and 2021.
What was the impact the growth of consumerism throughout the 20th century on population?
Production between 1860 and 1920 increased by 12 to 14 times in the US while the population only increased 3 times. Supply outstripped demand and problems of scarcity were replaced by problems of how to create more demand.
What are the strengths of ageing populations?
- Disposable income (grey pound), where the elderly population will spend their money more willingly.
- A support network, less feeling of isolation as there’s more of them.
What are the weaknesses of an ageing population?
- Increased retirement age
- Paying pensions
- Pressures of services
- Hold stereotypes and have some negative perceptions
- Increasing population and life expectancy
- High unemployed population
What are the opportunities of an ageing population?
- More older specialised business needed
- More cruising companies in use
What are the threats of an ageing population?
- Poorer driving
- Need for specialised housing
- Larger voting force in political decisions from elderly, so governments may change policies to suit their target voters.
- More population in service sector
- Rising tax rates
