Human - Globalisation Flashcards
What is globalisation?
The growing economic interdependence of countries worldwide through increasing volume and variety or cross-border transactions in goods and services, freer international capital flows and more rapid and widespread diffusion in technology
Methods of transport
Railway, telegraph, steam ships, jet aircrafts, containerisation
How long did it take to get to Australia in 1914?
40 days
How long did it take to get to Australia in 2016?
1 and a half days
How have TNCs accelerated the process of globalisation?
They invest abroad, which allows FDI to create links between countries which produce and consume products
How have lower transport costs accelerated the process of globalisation?
- In the 9th century, methods of transport (railways, telegraphs, steamships) reduced the costs of moving goods internationally
- In the 20th century, containerisation further reduced transport and handling costs, and international air travel has allowed for a faster, common and more affordable method of travel
How has computer and internet technology accelerated the process of globalisation?
- Manufacturing in diverse locations can be suitable for the transfer of ideas using computer software
- Global communication has allowed for the creation of global brands
How have international organisations accelerated the process of globalisation?
Trade internationally is reliant upon trust and cooperation, so therefore there are rules and regulations of trade, which the international organisation sets up and enforces
How have new markets accelerated the process of globalisation?
Companies invest in the new markets to allow them to make better profits. The opening up of global trade into areas such as China and India had made businesses to invest money in order to generate more sales. This success is then reflected in stock markets and shares
When was containerisation created?
1956
Who created containerisation?
Malcom Mcclean
How many tonnes could by moved per hour by labourers in 1965 and 1970? (containerisation)
1965 - 1.7 tonnes per hour
1970 - 30 tonnes per hour
What percentage does container trade account for of world seaborne trade?
60%
When was the railway developed?
1804
When was the international railway developed?
1843
When was the jet engine created?
1928
When was the first steam train built?
1804
When was the first steam ship built?
1787
Methods of communication
Internet, social networking, electronic banking, fibre optics, mobile phones
When was the first commercial telegram created?
1837
When was electronic banking developed?
1980s
When was the first mobile phone created?
1973
When did the world wide web launch?
1990s
Political and economic factors that led to the acceleration of globalisation
Privatisation, deregulation, free trade (encouraged by trade blocs)
When were fibre optics first used?
1970s
How much more times can fibre optics carry than copper wires?
65,000 times more
What year was the first email sent?
1971
What company became the largest mobile telecommunications company in the world in 2000?
Vodafone
Who supported privatisation?
Margaret Thatcher, Tony Blair, IGOs
What is the population of the EU?
508 million
What is privatisation?
The transfer of business/industry from public to private ownership
Examples of privatisation in the UK?
- British Telecom in 1984
- Local bus services in 1985 (Transport Act)
- British Gas in 1986
- British Rail in 1993
What is a trade bloc?
A type of intergovernmental agreement where barriers to trade (e.g. tariffs) in a world region are reduced or eliminated among the participating states
Advantages to trade blocs?
Easier trade, cheaper prices, access to wider market
Disadvantages to trade blocs
Some places aren’t in trade blocs (e.g. due to physical barriers, such as The Sahel), stops trade elsewhere, loss of sovereignty, interdependence
Which policies promote free trade blocs?
Free-market liberalisation, privatisation, encouraging business start-ups
World Bank
- Its role is to provide loans in order to help rebuild economies, as well as alleviate poverty
- Its aim is to reduce the percentage of people living on less than $1.25 a day to no more than 3% of the world’s population by 2030, as well as reduce inequalities by encouraging income growth for the bottom 40% of every country
WTO
The role of the WTO is to reduce tariffs in order to allow the standardisation of products, reduction of trade barriers and the elimination of preferences. It was established in 1995
IMF
- Its role was to help governments balance their payments when they’re suffering from economic difficulties
- It gives loans to member countries if they are unable to pay their debts, as well as financial rating which reflect their economic power and they pay a ‘subscription’ dependent of their rating
How do British governments attract FDI?
- Privatisation
- Free-market liberalism (neoliberalism)
- Sovereign wealth funds (help fund new infrastructure projects)
- Trade blocs
- Sunday trading (1994)
How do Chinese governments attract FDI?
- ‘Open door’ policy
- Hukou system
- Agricultural communities dismantled (farmers can now earn a profit)
- ‘Instant cities’
- Special economic zones (Shantou, Shenzhen, Zhuhai and Xiamen)
What are special economic zones?
Areas of land set aside by governments in locations well placed for international trade
In what year was the KOF Globalisation Index founded?
2002
According to the KOF index in 2015, which country is the most globalised?
Ireland
