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)
How does globalisation pose a threat to the global commons?
New tech has made it easier to get to areas like Antarctica. This can ruin habitats. Also, global warming is making ice caps melt. Mining/whaling causes problems too
Antarctica: 4 main threats
Climate change
Fishing + whaling
Search for minerals
Tourism and research
3 rules laid down in Antarctic Treaty (1959)
Should be only used for peaceful reasons
•Countries should cooperate on scientific research
4 benefits of globalisation
Integration
Development
Stability
Economic growth
How can globalisation caused injustice?
Improved transport + communication systems have made human trafficking easier. Many people in less developed countries must work in sweatshops to make products for people in MEDC’s
4 ways globalisation has a negative impact on environment?
Inequalities
Conflict
Injustice
Environmental consequences
How have shifting flows of ideas affected cultural characteristics of a place?
Flows of people bring their cultures with them, which can change the characteristics of the place.
Creation of multi-ethnic communities. Also, fast food companies from the USA
2 examples of how shifting flows of money has affected economic characteristics?
Flows of people- e.g. Cornwall used to be a fishing settlement but is now a popular tourist destination
Flows of resources- outward flow of local products or natural resource from a place can have a large impact on local economies
One example where decision of an MNC has affected the character of a place
Detroit was a major centre of car manufacturing in early 20th century
•MNC’s gave city an economic v boost. Population peaked at 1.8m in 50s, by 2010 it was 700,000 with 24% unemployment.