GSGG - Globalisation Flashcards
Define globalisation
The world becoming more globally connected economically, politically, socially and culturally
What did the Canadian philosopher Marshall Mcluhan predict that the world will become?
A global village, where economic and labour flows are given free reign
Name the 5 dimensions of labour
Flows of:
- labour
- capital
- information
- services
- products
Describe the flows of capital between core/periphery regions, the IMF and the World Bank
Core to periphery regions:
- remittance payments
- FDI
- Aid
Periphery to core regions:
- repatriation of profits
- migration
Core to IMF/World Bank:
- fund the organisations so that they can give out loans
Periphery regions to IMF/World Bank:
- repayment
The World Bank:
- development loans
- disaster relief loans
The IMF:
- stabilising loans
What is the difference between the IMF and the world bank?
World bank
- focuses on reducing poverty and developing LICS and NEE’s
IMF
- ensuring the stability of economies around the world
Describe the flows of labour globally
- Europe has the highest migrant population out of every continent
- Asia has the most migration within its continent (most of the migration being towards the west since it is wealthier)
- Africa’s movement of labour stays mostly between neighbouring countries
- Central and south America have very high labour flows
Describe the flow of products (in the past, present and future)
- globalisation has made the flows of products international
Past:
- previously produced in HIC’s because they had the resources and the highest demand
Present:
- now increasingly being produces in LIC’s and NEE’s due to technological advancements
- also much lower labour costs, so profits will be higher
- fall in the secondary sectors in HIC’s
Future:
- increase in NEE’s mean and increase in wealthier consumers
- predicted to be an increase in demand for goods and services around the world
Describe the flow of the 2 types of services
High level services:
- require more skill and usually training
- example is financial services
- more concentrated in HIC’s
Low level services:
- usually don’t require any qualifications
- example is call centres
- becoming increasingly offshored due to lower labour costs (boosting globalisation)
Describe the flows of information globally
- social media allows people to connect with each other from all around the world
- fast data connections allow financial services to work quickly and for information to travel instantly
- increase in work from home jobs because people can research everything that they need using the information on the internet
Why is global awareness important for a brand?
- being familiar with the brands packaging, motto or anything else brings a sense of trust and creates a relationship with the consumer
- helps businesses grow if people begin to prefer their company over others due to that relationship
What is global marketing?
Keeping a marketing strategy that is recognises globally and therefore creates a trademark for that company
Give an example of a company changing their marketing strategy to adapt to the culture of their consumer
- Kit Kat adapted to Japans collectibles cultures and creates hundreds of new flavours
Give an example of a company changing their marketing strategy to adapt to the culture of their consumer
- Kit Kat adapted to Japans collectibles cultures and creates hundreds of new flavours
What is consumption like globally?
- highest demand for manufactured goods is in HIC’s
- low imports in LIC’s
- high demand for fuel in developing countries due to rapid industrialisation (BRIC)
What is the pattern of production like globally?
- the EU and US mainly export agricultural products
- China is the largest exporter of textiles
- office and technology is mainly exported by NEE’s such as China and India (Chindia)
What are the 8 factors affecting globalisation?
- financial systems
- financial technologies
- communication technologies
- transporting goods
- transporting people
- management and information systems
- security technologies
- trade agreements
How have financial systems affected globalisation?
- people buy and sell stocks from global cooperations
- countries borrow, lend and invest in other countries
How have financial technologies affected globalisation?
- people can create international bank accounts
- remittance payments can be sent around the world easily
How has the transport of goods affected globalisation?
Containerisation:
- allows large quantities of goods to be transported more efficiently
- can be moved between vehicles with much greater ease
- cheaper transportation since is takes a lot less time
Larger and faster aircrafts:
- more efficient and reduce costs
- accelerates globalisation
How has the transport of people affected globalisation?
High speed rail
- connects countries in Europe to allow for quick and easy transport
- enables flows of labour and high rates of migration
Cheaper and faster airlines
- cheaper flights make it more accessible for everyone
- enables flows of labour
- people can travel internationally for much cheaper
How have security technologies and systems affected globalisation?
- stricter regulations on entering countries due to increased security threats as a result of globalisation
- development of security technologies to tackle cyber security threats - advances in technology make it easier to pose threats from all around the world
- international customs such as X-rays to trace suspicious objects
How have communication technologies affected globalisation?
- services can be accessed online or through the phone due to an increase in footloose industries
- fibre optic connections has allowed flawless flows of information, services and capital
- people can maintain relationships from around the world
Name the 4 management systems for globalisation
- economies of scale
- outsourcing
- offshoring
- global supply chains
What are global supply chains and why are they beneficial?
- when the different factors of production are located in different countries
- e.g manufacturing in China, extracting in India etc
- minimises costs since each stage is specialised, which also saves time
What is outsourcing and why is it beneficial?
- hiring other companies to complete certain tasks
- saves money when the outsourcing is done in low income countries due to lower labour costs
How is outsourcing enabled further by globalisation?
- communication technologies allow the companies to work with each other from across the world
What is offshoring and how is it beneficial?
- when a company relocates part of its process abroad
- if the company relocates to a place with low labour costs or low taxes, they save money
How is offshoring enabled by globalisation?
- communication technologies and easier transport make the production process much more efficient
How are global supply chains enabled by globalisation?
- the ability to transport products quickly and cheaper means that the stages of production can be spread around the world
How are global supply chains enabled by globalisation?
- the ability to transport products quickly and cheaper means that the stages of production can be spread around the world
What are economies of scale and why are they beneficial?
- increasing profits by producing large amounts of a product in order to reduce costs
- buying raw materials in bulk to lower costs
- production lines can produce large amounts of goods for much cheaper, since there is less need for labour
How have trade agreements enabled globalisation?
- exports and imports between countries build international relationships
- deepen globalisation since they make trade cheaper and easier
Name and define 3 restrictions put on trade
- tariffs - taxes on imports/exports
- quotas - limits to how much of the good can be imported/exported
- bans - not allowing the product to be imported/exported whatsoever
What organisation overlooks all trade agreements?
WTO
Give an example of a trade agreement and how it has benefited its members
NAFTA (North American free trade agreement)
- between the USA, Mexico and Canada
- lowered and removed tariffs in imports/exports between the countries
