GSAGG: Globalisation Flashcards
Define Globalisation:
The increasing interdependence between countries through flows e.g. capital, trade, goods, services, cultures
Define acquisition:
A transaction where a TNC buys another company in order to expand (usually a smaller company)
Define a core region:
Wealthier developed countries that benefit and control global markets.
Define cultural diffusion:
The spread of cultural beliefs and social activities into different cultures.
Define cultural erosion:
The reduction of a culture due to globalisation.
Give examples of economic globalisation:
- Trade blocs create economic integration between states and promote development.
- Global transactions of money e.g. buying something that is shipped from China.
- TNCs trading products internationally and use international offshoring and outsourcing to lower labour costs.
Give examples of political globalisation:
- Deregulation of policies allow markets to grow with an international reach.
- International organisations exist to harmonise national economies and political relations.
- Governments form connections to encourage trade, such as trade blocks and deals.
Give examples of social globalisation:
- International immigration is creating multicultural societies, encouraging social diffusion.
- Social networking has revolutionised human connections, as tech platforms enable international connections.
- Global NGOs and charities are involved in the global improvement of health and education.
Give examples of cultural globalisation:
- Exposure to media sources such as television and social media allow a recognition and understanding of other cultures.
- Individuals have a greater awareness and understanding of global events due to education and news sources.
- Western areas have dominated non-western areas with Western influences e.g. Western brands like Starbucks being seen in Asia.
What are the 5 flows of globalisation?
- Capital
- Labour
- Products
- Services
- Information
What is a periphary region?
Less wealthy and developed countries that have less power.
What is the international monetary fund (IMF)?
An international cooporation that aims to facilitate international trade, promote high employment and reduce poverty globally.
What is the world bank?
A group of global insitutions that give out loans for development or relief.
What is bilateral aid?
Money sent from one country to another with the intention of providing help to a country in need.
What are stabilising loans?
Low interest loans used to stabilise economies and prevent economic collapses.
What are remittance payments?
Money transferred from workers in core regions back to their home country e.g. to family.
What is foreign direct investment (FDI)?
Investments into a foreign country with the intention to make a lasting interest.
- The investor has a significant influence over operations.
Outline global marketing:
- Globalisation has allowed businesses to market their products on an international scale- increasing global recognition and profit.
- Global awareness of a brand allows for a trademark to be recognised by consumers internationally. Familiar, worldwide brands are more likely to sell as their products are considered trustworthy e.g. Nike, Coca Cola.
- Global marketing campaigns will often keep the same idea for marketing but adjust it to the cultures the marketing will be shown in. E.g. McDonalds produced an international campaign, with clear cultural differences in the campaigns produced for North America compared to Asia made it more appropriate and interactive for consumers from the two different cultures.
Outline the production of agricultural products:
- The EU and US are the top exporters
- Many emerging economies contribute significantly e.g. Brazil, Argentina
Outline the production of fuels and mining products:
- The EU is the top exporter.
- This is likely to change due to the significant production by many emerging economies e.g. Russia, Saudi Arabia.
Outline the production of steel and iron:
- The EU is the top exporter.
- Many LICs contribute significantly e.g. China, Brazil
Outline the production of textiles:
- China is the top exporter.
- Many LICs contribute significantly e.g. India, Vietnam
Outline the production of chemicals:
- The EU is the top exporter.
- Many HICs contribute significantly e.g. Switzerland, Canada.
Outline the production of clothing:
- China is the top exporter.
- Many LICs that are too poor to be considered an emerging economy contribute e.g. Vietnam, Bangladesh
Outline the production of office and telecom equipment:
- Emerging economies make up the top exporters e.g. China, Singapore.
- This is likely due to the cheap labour costs and ability to produce and ship products in bulk.
Why do HICs consume more products than LICs?
- Higher population = more resources needed.
- Many wealthy middle-class societies are consumerist.
How have financial systems affected globalisation?
- Allowed for the development of the World Bank, and for loaning and investing money to become a global process.
- Multinational companies will invest a large proportion of profits into banks to accumulate interest.
- Money within banks will be loaned for relief or development, where it will be repayed with interest- developing the relationships between countries.
How have financial technologies affected globalisation?
- Made financial information and support globally accessible.
- Companies are able to operate even when relocating to other cultures, as money can be sent to the investment country and profits can be sent back to headquarters.
- Allows for easy transfer of money e.g. purchasing products online, remittance payments, cryptocurrency.
- The ability for individuals to access offshore bank accounts allows them to obtain more personal wealth.
How has development in transportation of products affected globalisation?
- The development of containerisation allows for products to be shipped in bulk, therefore costing less and more efficient.
- Larger and faster aircrafts with increased capacity have made it easier and quicker to transport goods internationally e.g. cargo planes allow for a large amount of product to be shipped over a short period of time.
How has development in transportation of people affected globalisation?
- New technological innovations has allowed for more flows of labour.
- High speed railway systems provides easy transport between neighbouring countries, and urban and rural areas. Allows for easy and cheap flows of people between countries.
- Development in air travel technology means flight tunes are quicker and can travel to a range of countries. Development and management of air travel has lowered prices, allowing for easy and quick flows of people between countries.
How has development of security affected globalisation?
- Globalisation has meant that countries now face threats from other countries.
- Development in security technology helps to minimise this risk e.g. x-ray technology at international customs helps minimise the risks of illegal activity between countries.
- Cybersecurity allows for potential security threats to be stopped e.g. through the use of CCTV, search histories.
How has development in communication technologies affected globalisation?
- Allowed for flows of capital, information and services to accelerate.
- Sattelites and fibre-optic communication has enabked the growth of the internt, in turn allowing for money and information to be transferred internationally.
- Services can be accesses virtually, allowing for thousands of jobs to be created that can be accessed through communication technology alone e.g. call centres.
- Relationships are able to be maintained internationally. This has deepened global connections and increases flows of labour as people are more likely to migrate if they can still communicate with their families abroad.
How has development in management and information systems affected globalisation?
- Allows for economies of scale to develop- where profits are increased by producing a large amount of product, meaning the average price to manufacture each product is lowered e.g. by purchasing resources in bulk.
- Allows for global supply chains to develop- where products are manufactured in different countries to where they are consumed to minimise costs e.g. minerals are sourced from Vietnam where they are cheap.
- Allows for outsourcing - where other companies are hired by a larger company to complete tasks that are essential, but not necessary for the larger company to complete themselves e.g. call centres.
- Allows for offshoring- where a company relocates abroad, often to minimise costs or to avoid tax.
How has development of trade agreements affected globalisation?
- Trade agreements accelerate globalisation through making international trade less expensive and easier.
- Allow for restrictions (quotas, tarrifs) to be removed or lessened to benefit all parties involved by encouraging trade.
- E.g. North American Free Trade Agreement (NAFTA) has lowered and removed tarrifs on imports and exports between Canada, the USA, and Mexico.
