Human Flashcards
What are the four types of globalisation?
Economic
Environmental
Demographic
Political
Define globalisation
The growing interdependence of countries through trade, communications and technology
What are the impacts of globalisation on finance?
Some TNCs have higher turnover than some countries GDP
Millions exchanged electronically every day
Works wide reduction in consumer prices
What are the impacts of globalisation on politics?
Expansion of international political organisations
Governments may lose control of their countries to companies
What are the impacts of globalisation on people?
Global trade barriers removed
Cheaper mobile/Internet rates
What are the impacts of globalisation on culture?
Loss of national identity
Global tourism increased
Americanisation spreading
Briefly describe how four factors encourage globalisation
Free trade - removing trade tariffs promoted easier faster trade
TNCs - have shifted production to developing world and created global connections and trade links
Media - global media corporations have global reach and present a ‘world view’ of the news
Transport technology - cheaper air travel, containerisation led to cheap travel too (big ships can carry 9000+ containers)
What do the IMF do?
Channels loans from the worlds richest nations to countries that apply for help. In return these governments must be open to investment from outside (TNCs)
What are structural adjustment programmes?
Strict conditions imposed on countries reviewing loans from the IMF and world bank
Define international elite
A group of people who are economically and socially powerful
When was the photo earth rise taken and how did it help globalisation
1969
First time people had seen earth as a single entity
Globalisation is causing large scale rural-urban migration
Give two reasons for this shift
Television/radio/newspapers - knowledge of other places can trigger migration particularly of the young
FDI - FDI that TNCs invest in urban areas of poorer countries creates jobs so attracts migrants
What is FDI?
Foreign direct investment is a financial injection made by a TNC into a nation’s economy
What is OPEC?
Organisation of petroleum exporting countries
What is OECD?
Organisation for economic corporation and development
What is NAFTA?
North American free trade agreement
What is APEC?
Asia Pacific economic corporation
Give some examples of economic groupings
Least developed countries - a group of around 50 states that has sometimes been referred to as ‘fourth world’
OPEC - members display well above averages levels of wealth but it is often unevenly distributed e.g. Nigeria
OECD - organisation of 30 nations where high levels of wealth are evenly distributed and typical living standard is good, e.g. Uk, France, Germany, USA
Why are trade blocs a political grouping?
To trade freely agreements have to be made that allow national boundaries to be crossed. This requires an amendment of national laws
What are the benefits of trade blocs?
Greater economic security to members
Access to new customers
Increased demand - more production - lower cost
Tariffs often removed within them - Markets grow
What are the disadvantages of trade blocs?
Produces can lose out
Unfair distortion of prices
What is a TNC?
A transnational corporation is a company that has operations in more than one country . They link together groups of countries through the production of goods.
Why do TNCs go global?
Operate where labour is cheaper/less regulated
Operate inside local trade barriers
Gain grants from governments who are trying to attract inward investment
How do TNCs go global?
Outsource production
Sell products in new countries
Foreign direct investment