GS&GG Bk6 - Globalisation Critique Flashcards
Who are the main beneficiaries of globalisation?
- Newly industrialising countries
- TNCs
- International organisations
- Regional trading blocs
Why are newly industrialising countries beneficiaries of globalisation?
Rapid development (inward investment) + emergence of strong economic powers
Why are TNCs beneficiaries of globalisation?
Large companies have grown in different industrial and service sectors (previously based in developed countries but now also emerging)
Why are international organisations beneficiaries of globalisation?
E.g. the IMF, WTO, and World Bank have contributed to globalisation, consolidated their position and control in world affairs
Why are regional trading blocs beneficiaries of globalisation?
More agreements benefit their members > expense of the nation state
What are some economic consequences of globalisation
- developing countries are fastest growing economies
- risks of economic interdependence
In 2015 what continents were the top 10 fastest growing economies from?
Asia and Africa
What is the risk of economic interdependence and give an example of it?
Influence of an economic shock of many countries > banking system
2008-2009 global financial crisis due to US sub-prime housing market
What are the social and cultural impacts?
- Greater sharing of ideas, lifestyles, foreign culture etc and access to other goods and services not produced domestically
- Overstandardisation of goods + services > cultural homogeny
- damaged traditions + less diversity so the distinction between countries has faded > diminishing the world with one ‘corporate identity’
- glocalisation initiative > McDonalds - Increased awareness of global issues e.g. climate change or propaganda
Environmental impacts of globalisation (8)
- More transportation > incr GHG
- Depletion of non renewable resources
- TNCs outsourcing > less strict environment standards
- Weak or non extinct controls allowing pollution of air, land, rivers and seas
- More paste from packaging
- IMF forced spending cuts > reducing nations’ spending on the environment
- Greater movement giving a higher risk of invasive species being introduced
- Pressure on finite resources
Benefits on growth and development of developing countries? (7)
- incr investment, improved infrastructure
- Generates jobs + incr S of L
- Incentives to specialise
- Transfer of skills, technology + capital
- Higher value exports
- Jobs incr taxes, incr G, incr multiplier effect
- Become more diverse economies
Costs of growth and development of developing countries? (6)
- TNCs profits taken (leakages)
- Low pay by TNCs forces wages down
- Inequalities in incomes increase
- Small local producers suffocated by foreign investment
- Too reliant on TNC investment
- Overspecialisation > vulnerable
