Impact of Covid on Globalisation and dimensions and factors of globalisation Flashcards
Give an example of a major impact of globalisation on a major supply chain?
Bangladesh lost estimated $3.2 billion from cancelled exports in 6 months
What other factors challenged globalisation before Covid?
2008 financial crisis - start of ‘slowbalisation’
Nationalist policies - Trump’s protectionism - ‘Make America Great Again’, leaving EU
What is the future of Globalisation?
IMF forecasts that Global GDP could fall by 4.9%
Post globalised world - more fractious and regionalised.
Growth in the online shopping model
Who created the Core-periphery model?
Frank and Wallerstein
Define the core periphery model?
A model based on Frank’s dependency theory and Wallerstein’s World systems theory. Show general pattern in major flows of capital, labour, products, services and information.
Why is the core periphery model limited?
Arguably oversimplifies multifaceted economic relationships between countries or regions.
What are the elements / factors of globalisation?
economic, society, technological, environmental and political.
What are the 5 flows of globalisation?
capital, labour, products, services and information
How have flows of capital changed?
Deregulation of world financial markets (the removal of laws and regulations in the market to increase competition)
What is ODA?
Aid / official development assistance
financial support for poor nations
What’s the difference between repatriation of profits and remittances?
Repatriation of profits - TNCs investing in overseas production take profits back to their own country. ‘leakage’.
Remittances - money sent back to home country by migrants.
How have flows of products been changed?
CONTAINERISATION!!
Demand from wealthy populations
low wage economies and mass production.
What does footloose mean in business?
Can locate anywhere
What are the new trends in services?
Outsourcing from developed to developing countries.
What are conglomerates in business?
Combination of two or more businesses that fall under one corporate group.
How do TNCs relate to global marketing?
Glocalisation
Economy of scale - cheaper to have one marketing campaign for whole world.
What is the international division of labour?
Skilled - highly paid research and managerial jobs - developed countries.
Unskilled- little pay - industrialising countries.
What are NICs?
Newly Industrialised countries.
What was the effect of the global shift?
Emerging economies could become strong and competitive.
Why did they outsource?
Lower labour costs.
Tax breaks.
Transfer of tech, improved transport communications have facilitated this.
Give 3 future predictions for distribution and consumption.
Distribution and consumption will shift to the east.
As Asian exports grow, most of Asia’s exports will shift to go to other countries in Asia.
Who are the Asian tigers?
The first NEWLY INDUSTRIALISED ECONOMIES (Hong-Kong, Singapore, South Korea, Malaysia, Taiwan, China)
