HUAMN Flashcards
(Globalisation)
What is globalisation?
Process of the world’s economies, political systems and cultures becoming more strongly connected
Factors which have driven globalisation since the 80s?
Globalisation is caused by movements of info, capital, products, services and labour between different countries. 5 factors have promotes
G: flows of info, flows of capital, flows of products, flows of services and labour
What is global marketing?
It involves treating the world as one single market and using one marketing strategy to advertise a product to customers all over cover the world.
Outline how changes in patterns of production have promoted globalisation?
Manufacturing has decreased in MEDCs. Lower labour costs overseas have caused many companies to relocate
What are 3 factors which have led to increased global trade?
Info, tech, internet, allows investors greater access to info. Govs can take financial deregulation, where they relaxes rules about what banks could do. Also involves removing barriers to capital coming in and out
Which ORG is responsible for governing global trade system?
WTO (1995) sets rules on how countries can trade with each other - can stop unfair tariffs
How have management systems changed due to globalisation?
Companies supply chains have become more global
Large companies can benefits from EoS
Outsourcing is when a company pays another to do work to save costs
How have changes in tech contributed to globalisation?
Internet usage is common, mobile phones, better reception + satellites
(Global systems)
What is interdependence?
All countries flying on each-other in exchange for goods + services to support one another. This could be in he case of exports like food or oil. Orgs such an UN + NATO establish trade links + groups to help remove high tariffs
How can unequal flows of tech create inequality?
MEDC’s can afford the best tech, so they can produce more cheaply, with EoS. Whereas LEDCs are lagging
(International trade)
How has it changed since true 80s?
Volume of global trade has increased value x8 from 1980-2008
What are 2 ways trade blocs affect countries access to markets
To remove trade barriers. Other trading blocs are based around specific industries, e.g oil exporters are member of OPEC
(TNCs)
2 factors that influence where TNCs locate their factories
Often LEDC’s where production costs are lower. Many also have factories where their markets are. If a product is made in the country where it’s sold, the company can save paying import/export taxes.
What is intra-firm trading ?
When a division of a TNC trades with another part of the TNC, e.g: Intel assembles some of its micro chips in Costa Rica but sells in USA
How has development put stress on the global commons?
Increasing demand for resources (e.g. food, oil, minerals) Can also create waste that is pumped into the atmosphere (Co2) or into oceans (chemical waste)