GS&GG Bk2 - Dimensions of Globalisation Flashcards
What are capital flows?
The movement of money for the purpose of investment, trade or to product goods / provide services
What is international trade?
The exchange of capital, goods and services across international boarders
What are imports?
Goods brought into a country
What are exports?
Goods and services sent out of a country
What is labour?
Factors of production defined as the aggregate of all human, physical and mental effect used to create goods or provide services
What are the 4 factors of production + an explanation of what they are?
- Land
> all natural resources - Labour
> quality and quantity are a key consideration - Capital
> includes buildings / machinery (flows of capital investment - capital flow) - Enterprise
> take the risk to establish businesses and organise production
What are the 3 focuses of globalisation?
- International trade
- FDI
- International capital flow
What are the wider range of dimensions that globalisation encompasses?
Media, culture, social, political, environmental, biological (pandemics / climate change)
What is the global economy?
Interconnected elements and scales
What % of green house gases come from clothing and fast fashion?
12%
What are international flows of capital?
All money that moves between countries which is used for investment, trade or production
What has allowed activities of financial institutions to be no longer confined within national boundaries?
Deregulation of world financial markets
What does the Frank and Wallerstein Model (1970) show?
Movement between core and periphery regions
What are some of the examples of flows of capital?
- FDI
- improvements in technology
- repatriation of profits
- AID
- migration
- remittance payments
How much FDI was given in 2016?
$1500bn
3 main systems of aid?
- Bilateral aid
- given directly from one government to another - Multilateral
- given by governments to international organisations e.g. UNESCO (ODA Official Development Assistance) - Non-governmental organisation
- charities e.g. Oxfam (aid given directly to the people who need it)
What are the 4 types of distribution of aid?
- Short term
- emergency aid following a disaster (natural or political) - Long term
- development aid > healthcare (decr IMR) + infrastructure - Top down
- organisations direct operations - Bottom up
- grass roots decisions > local people involved in the planning stage
What are some of the key issues with aid?
- % of money that actually goes to the cause
- Usefulness of projects
- Number of people being helped
- If it aligns with their values (ethics)
- Time lag
- Family background ‘negative impressions’
- Unstable/corrupt governments
- Poor infrastructure limits distribution
- Aid requires trained personnel
- Overdependence on aid
- Unsustainable
How is Somalia a good example of aid?
- 40% rely on remittance payments
- 80% of all investment is aid
- corruption > terrorist groups
- informal economy
What is different between flows of labour and flows of capital?
Not as free flowing as financial markets due to restrictions on immigration
Where are the key movements of labour from and to?
FROM
- South Asia
- Latin America
- Africa
TO
- North America
- Europe
- Oil rich gulf states (UAE + Saudi Arabia) due to construction jobs
What are the key characteristics of the bulk of migrants?
Not the poorest but those with some education and financial means
What is distance decay?
The negative correlation between distance and number of migrants that make the journey
How many migrants have come from both India and China?
1.3 bn
Why are labour flows less extensive than flows of capital?
- Migration controls > tightening > HIC focus
- Quality of life and family > most mobile = late teens + early 20s
How did flows of production work historically?
- only use of domestic goods
- based on location of raw materials, skills and the market
What are the current patterns of the flows of production?
Movement between NEEs and HICs e.g. Asia
What is the effect of NEEs on the flows of production?
- international movement of products is facilitated especially for LICs/NEEs by reduction in the cost of trade
- transaction costs > ICT
- transport + time > airfreight and containerisation
- WTO
What are flows of services?
Services are economic activities that are intangible > finance and tourism
What are the two key processes driving flows of services?
- ICT improvements
- Deregulation and the opening up of markets (spatial variation)
> high level service - services to business e.g. finance, investment and advertising
> low level services - services to consumers e.g. banking, travel and tourism, call centres and communication services
What are flows of information?
Transformed by digitalisation and satellite technology (high tech R+D)
What is global marketing?
- process of promoting, advertising and selling products and services
- aim to create a global brand > economies of scale
- spatial + temporal adaptations of marketing
What is division of labour?
- highly skilled > highly paid
- unskilled > poorly paid
What was the global division of labour in the 1950s?
- fragmentation of production process across national boundaries
- international trade becoming increasingly complex
- emergency of NEEs e.g. Singapore (1), Malaysia (2), India (3)
- opening up of large economies of India and China to the outside world
What are the 3 phases of movement of labour?
- Japan (first place where TNCs moved to)
- 4 Asian Tigers > South Korea, Taiwan, Singapore, Hong Kong - Wage levels incr in these countries > incr regulations
- new countries have seen improvements in physical + human infrastructure (still low wages) > Malaysia and Thailand - China and India have emerged as FRI targets by TNCs
- 1990s rapid sustained growth (China = 10%)
Advantages of the development of manufacturing?
- Fewer production costs > work ethic + wages (efficiency)
- Pollution elsewhere
- Fewer legal limits and policies > regulation + working conditions
- More of global markets available
- Technology - operate from origin country
- Resources available / physical factors (climate)
- Location more central > growing domestic market
- Tax avoidance > maximisation of profit
- Infrastructure > all industries (direct + indirect employment)
What are some statics of China in terms of flows of info?
- 10% growth rate
- 1.3bn potential workforce
- now outsourcing to many African countries e.g. Nigeria
- political issues > cheap EVs and security of iPhones
What are the 3 aspects of changing consumer wants to domestically produced goods?
- Reducing carbon footprint (transport)
- Quality
- Supporting local economy
What are the 5 types of flows in terms of the dimensions of globalisation?
- Flows of capital
- Flows of labour
- Flows of production
- Flows of services
- Flows of information
How was production distributed in 1954?
95% of manufacturing concentrated in industrial economies
> W Europe, N America, Japan
What happened between 1960 and 1981 linking to UK production?
UK economic decline
- 1.6mn manufacturing jobs lost (75% of national losses)
- growth of services > didn’t compensate
- different skills
What happened within the car industry in 1995 compared to now, showing changes in production?
1995
- Ford and GM (US) transferred components assembly to Mexico
Now
- Nissan (Japanese) built in Sunderland to avoid EU tariffs
Who is buying the goods and services?
HICs (incr disposable income) + NEEs
Who is making the goods and services?
NEEs (shift to Africa by USA + China)
Factors of globalisation?
- Trade
- Migration
- Containerisation
- Travel
- Global marketing
- Communication
- Collapse of communism
- Transnational corporations
- Capital / investment
- Transport
What is an example of a UK government department and what do they do?
UKTI (Trade and Investment Department)
- support for first time exporters
What are dry ports and who are they used by?
Inland intermodal terminal directly connected by road or rail to seaport
- used by LICs and NEEs
What is an example of a financial process in causing globalisation?
Government bonds
SECURITY
What is the WCO and what are some of the facts about it?
World Customs Organisation
- mission to enhance the effectiveness of and efficiency of customs administration
- 182 customs administrations
- 98% of world trade
- stimulating growth of trade
- characterised by instability and the ever-present threat of terrorist activity
SECURITY
What is The Maastricht Treaty (Treaty on European Union) and what do they do (3) ?
- free movement between member states
- common foreign and security policy was established
- closer cooperation between police and the judiciary in criminal matters was agreed
SECURITY
What is the C-TPAT (Customs-Trade Partnership Against Terrorism) and what do they do?
- US governmental business initiative (2001)
- designed to strengthen overall supply chain and border security
- works with members in the supply chain > importers + carriers
SECURITY
What is the National Cyber Security Centre and what does it do? and what is the importance?
- provide incidence response
- supports most critical organisations in the UK, the wider public sector, industry, SMEs as well as the general public
IMPORTANCE
- loss of taxes paid to governments
- terrorism
- biological hazards
- pests + disease
- health + safety
- medicines + hazards (WHO)
Who are WHO and what are their 3 roles?
- global issue examples?
- Eradicate diseases > T.B, AIDS, HIV, Malaria
- Reduce inequalities > decr IMR
- Deal with pandemics
EXAMPLES
- incr migration > incr security risk
- shared knowledge > efficiency
- viruses
What is containerisation and what does it mean for security?
+ environmental impacts of them
- able to be packaged, sealed, and unsealed > good for security
- 17mn globally + make 200mn trips a year
- worth 18-30% of global nitrogen oxide pollution
- 85% of pollution is in N Hemisphere + 4% of all climate change emissions
What are some examples of UK developing ports?
- Tonnage > Southampton
- Freight e.g. cars > Dover
- Containers > Felixstowe
What is the London Gateway?
- new port facility on the N shore of the Thames Estuary
- funded by a UAE company
- “multi-modal hub” (30% goes by rail)
- large distribution hub for the midlands
How has air travel had to play a part in globalisation + an example of recent advancements?
incr aircraft size + low cost airlines
Heathrow expansion?
What is an example of high speed rail networks?
HS2
1st phase > London to Birmingham
2nd phase > Birmingham to Leeds + Manchester
- need more private investment
- part of levelling up + The Northern Powerhouse
Globally minded companies invested in: (3)
- Large production / assembly plants > robotics + automotive
- Global marketing and distribution
- Global capable management
What are global value chains?
Organised where different stages of production are located across different companies
Examples of how different corporations organise themselves to gain a competitive advantage?
- Fast fashion in Asia
- Robotic automotive industry
- Information technology
- free telecommunication + video conferencing
- integrated ICT management systems
What is JIT technology?
Just In Time
- productive management + greater efficiency
> reduced waste
seasonal
