human globalisation Flashcards
what is globalisation
the process by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers
what are the historical connections (3)
Trade
colonialism
co-operation
what are the types of globalisation (4)
political
economical
cultural
social
what are the effects of globalisation (3)
it increases global awareness
increasing global responsibility
increasing global village
what is containerisation
is the use of countries using containers of the same size for trade and less chance of theft
what is the effects of improving transport technology (2)
enables the physical movement of goods and people to travel further and more cheaply
container ships have become so large it is now cheap to ship goods around the globe
what’s a player
anyone with a vested interest or involvement with a particular process or event
what is IMF and what do they do
- International monetary fund
- they issue short term loans and recommend policies for sustainable growth
what do the world bank do
reduce poverty by lending money to governments of its poorer members to improve their economies and to improve the standard of living of their people
what is WTO and what do they do
- world trade organisation
- improve the welfare of people around the world by ensuring that trade flows smoothly
what is a trading bloc
countries which group together to improve their economic interests and trading patterns (by reducing barriers)
advantages of trading blocs (2)
- producers focus on making what they are good at
- smaller nations have opportunity to merge to form TNCs
disadvantages of trade blocs (2)
- loss of sovereignty
- interdependence: disruption of trade within a trading bloc. become dependent on each other
what does ASEAN stand for and what’s in it
- association of south-east asian nations
- 10 countries
- seventh largest economy in the world
What is the EU and its policies/contents
- European Union
- 27 countries
- is a free trade zone
- free migration across borders
What is FDI
Foreign direct investment- financial injection made by a TNC into a nation’s economy, either to build new facilities (factories or shops) or to acquire, or merge with, an existing firm already based there.
what are the types of FDI
- foreign mergers
- transfer pricing
- offshoring
- foreign acquisitions
what is foreign mergers
two firms in different countries join forces to create a single entity
what is transfer pricing
the setting of a price for the transfer of products or services between controlled (or related) sections of a TNC
what is foreign acquisitions
A TNC launches a takeover of a company in another country
how do the government promote FDI
- free-market liberalisation
- privatisation
- encourage business start-ups
what’s free-market liberalisation
restrictions being lifted on the way companies and banks operate
what is privatisation
transferring ownership of a business, agency, service or property from the public (government- controlled) sector to the private sector
what’s encouraging business start-ups
methods range from lower business taxes to changes in the law allowing both local and foreign-owned businesses to make profit
how do you measure globalisation
- A.T Kearney Index- look at: political engagement, personal contact, economic integration, technological connectivity
- the KOF Index- works out a score for each country based on interaction in categories: economic globalisaton, social globalisation, polictical globalisation range is 1-100
what is a TNC and how does it grow
- trans national corporation- is a company that has operations in more than one country
- grow by buying up foreign firms in mergers and acquisitions
how do TNCs link groups of countries, and ferge connections between people in different countries
- through the production of goods
- by shaping common patterns of consumption
How do TNCs influence globalisation
- by using global production networks
- by creating new places to do business (new markets)
- by making global products more local (glocalisation)
why do some countries benefit more from FDI and TNCs
- not all places are suitable sites of productikion for goods
- not all places have enough market potential to attract large retailers
- TNCs can build instead business partnerships with existing companies in other countries
- biggest brands outsourcing
what is glocalisation and what’s it used to address
- adapting the goods or services or a business to increase consumer appeal in diferent local markets
- religious or cultural objections, or regulatory or design restrictions
examples of economic liberalisation
- offshoring
- outsourcing
what is offshoring
TNC’s move parts of the production process (factories or offices) to other countries to reduce labour or other costs (eg. import tariffs)
what is outsourcing
when a TNC contracts another company to produce the goods and services they need rather than do it themselves. this can create a very complex supply chain.
what is the global economic shift
significant global economic shift in the centre of gravity from the ‘West’ to Asia (economic core) from the mid 20th century
global shift from 1950/60s, 1970/80, 1980 onwards was what
- growth of Asian tigers
- rise of japan (electronics etc)
- rise of china (manufacturing)
why is there a global shift
- manufacturing and labour intensive industries have been relocated to Asia by TNCs. Due to lots of cheaper labour and land and resources tend to be cheaper
- TNCs from the West have also outsourced services to Asia to export cheaper labour and more lax laws
- Asian nations have high population so an attractive emerging market
what are the benefits of economic growth
investment in infastructure, poverty reduction, waged work and an improvement in education and training
what are the costs of economic growth
loss of productive land, unplanned settlements, pollution and health problems, land degradation, pressures on resources and less biodiversity
what is deindustrialisation
is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially of heavy industry or manufacturing industry
what is the core
is where the most wealth is produced.
what do the core do
- owns and consumes 80% of global goods and services
- earns the highest incomes
- makes decisions about the global economy
- provides most global investment
what is the periphery
meanwhile the poorer periphery is usually distant from the core markets
what do periphery countries own and do
- they own and consume 20% of global goods and services despite having 75% of global population
- earns lower income- 2.5 bill live on US $2 a day
- make few decisions about the global economy and provides little investment
what’s a global city
defined not by number but by influence
what’s a million city
a city with over a million residents AKA millionaire cities
what’s a megalopolis
a chain of roughly adjacent metropolitari areas in one specific country
what is a super city
a vast urban area, often incorporating several smaller cities
what is low wage migration
low wage (for that country) jobs in sectors like cleaning, catering or construction
what is interdependence
globalisation has meant that many people move freely around the world. this increases interdependence between regions
what is a host country
the country where the migrant goes to
what is remittances
money sent back to the migrants source country
what is a source country
the country where the migrant comes from
what is high wage (elite) migration
highly skilled and influential individuals eg Russian oligarchs in London
what is a hub city
a city that is a focal point for activities with a global influence eg business in London
what is a brain drain
when the educated workforce leave a country, as they have the skills another country needs
what is elite international migrants
highly skilled professionals or influential people. their wealth has come from their profession or inheritance. They are highly desirable to international governments. some elite migrants live as ‘global citizens’ and have multiple homes in different countries
what is low-waged international migrants
legal or illegal immigrants that work in jobs with low wages for example in construction, kitchen and cleaning
what is culture
the ideas, customs and social behaviour of a particular people or society
what are cultural traits
religion- there are several main world religions, each with its own local variants
food
language
clothing
traditions- behaviour and manners
what is cultural diffusion
is the spread of one culture to another by various means.
what is cultural erosion
is the loss of traditional language, food, music, clothes and social relations often associated with specific cultural groups
how can globalisation lead to cultural erosion
through people wanting same things as everyone else around the world, traditional and cultural traits are being ‘watered down’ and ‘eroded’ by globalisation
what is hyperglobalisation
the idea that a largely westernised global culture is emerging as a result of cultural erosion in different places
what is the negatives of hyperglobalisation (2)
languages around the world are disappearing
the global culture of consumerism is fundamentally at odds with sustainable development goals
what are the positives of hyperglobalisation
values equality
freedom of expression
reduced discrimination
what’s the time space compression
is in the 21st century caused by mass migration (improvement in transport technology)
what does HDI include
human development index
life expectancy
education (literacy rate and average number of years in school)
GDP per capita
what does GII include
gender inequality index
reproductive health
empowerment
education and employment
what is OECD and what does it contain
Organisation for Economic Co-operation and Development
* greenhouse gas emissions
* waste water generation
* intensity of forest use
* intensity of fish resources
* amount of threatened species
what is the lorenz curve
graphical representation of the distribution of income or of wealth plotted using the cumulative percentage of population (x axis) agains the cumulative percentage of income (y axis)
what is gini coefficient
a number between 0-100 the higher the value the greater the degree of income inequality
what are the effects of globalisation- who gained (3)
- the very rich gained a lot
- the growing middle class in emerging economies
- the very poorest were no better off
what is open border
implies that peole may travel to and from a country without presenting a passport, visa or another form of legal documentation
what is freedom to invest
individulas and firms would be allowed to move their resources intoand out of specific activities, both internally and across the country’s borders, without restrictions
what is FDI
foreign direct investment
an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest.
what is dispora
the dispersion or spread of any people from their original homeland
what is post-accession migration
the flow of economic migrants after a country has joined the EU
How to control the flows associated with globalisation
- limiting immigration- limit flow of people
- trade protectionism- limit flow of goods
- censorship- limit flow of information
what is trade protectionism
the attempt by the domestic government to limit imports from foreign competitors or promote domestic exports to other nations
what is censorship
the suppresion or prohibition of any parts of books, films, news etc that are considered obscene, politically unacceptable, ora threat to security
* North Korea have no access to the internet
* google withdrew its services from China in 2010 when the governmetn insisted the search engine results should be censored
examples of prohibited flows
illegal and criminal flows
world to China-(information flows)
Nepal to India-(people trafficing)
what is ecological footprints and what are they measure in
a measure of how much biologically productive land and water an individual population or activity recquire to produce all the resource it consumes, and to absorb the waste it generates
ecological footprints normally measures in global hectares
what is sustainability
meeting the needs of the present without compromising the ability of future generations to meet their own needs
what is economic stability
individuals and communities should have access to a reliable income over time
what is social sustainability
all individuals should enjoy a reasonable quality of life
what is environmental sustainability
no lasating damage should be done to the environment; renewable resources must be managed in ways that guarantee continued use.
What are the environmental insecurities
Food, water, energy, climate
How might globalisation affect food
Food demand is likely to double worldwide, middle-class diets are characterised by their consumption of meat and dairy and have a larger ecological footprint
How might globalisation affect water
Animal husbandry and crop production can be water insensitive activities. Many increasing popular global commodities such as chocolate, coffee and wine, have a high water footprint
As society develops every day household water use increases significantly
how might globalisation affect energy
a 50% increase in global energy use is preditced by 2035 unless significant innovation in renewable or nuclear energy is achieved, increased use of fossil fuels in inevitable.
how might globalisation affect climate
the global diffusion and adoption of manufactured items, has increased the average carbon footprint size of the Earth’s population
what is localism
purchasing locally sourced food and commodities. however it can sometimes be more expensive
cheap imports of food and goods are not actually cheap, as they generate long term costs to society
what is a transition town
a settlement where individuals and businesses have adopted ‘bottom-up’ initiatives with the aim of making their community more sustainable and less reliant on global trade
what is ethical shopping
a deliberate choice of products for ethical reasons considering the social and environmental costs of the goods purchased
what are the social concerns of ethical shopping (4)
- exploitation of workers (unfair pay, unsafe health and safety conditions)
- child labour
- gender inequality
- human rights abuse
what are the environmental concerns of ethical shopping (3)
- food miles and carbon emissions
- sustainability (deforestation, carbon…)
- natural vs harmful/ manmade chemicals
what is fairtrade
is a social movement whose stated goals is the help producers in developing countries achieve better trading conditions.
what is the costs and benefits of fairtrade (5)
- by having a higher fair trade price it actually leads to more overproduction of the goods
- there is little evidence that fair trafe has lifted many producers out ff poverty
- consumers pay premium prices but most goes to supermarkets and only 10% trickles down to the producer
- can lead to overreliance and dependency
- consumers are also often confusd by what is and isn’t free trade
what is the circular economy
is an approach to sustainable development calling for careful management of materials. the ultimate idea is to ‘design out’ waste all together
what are arguments for ethical consumerism (4)
- empowers ordinary people to offset their environmental damage
- impact could be massive, lots consumers
- can force firms to change and cause bottom up pressure
- doesn’t require government intervention
what are arguments against ethical consumerism (3)
- consumers easily get confused (so many labels + messages)
- people often opt for the unethical choices ( higher prices)
- buying from HICs and less from LICs as reliable ethical products
