Key Knowledge Flashcards
Global systems
Refers to any organisation, groupings, or activities that link different parts of the world (for example TNC’s
Global governance
Refers to attempts to regulate global systems and activities. For example the UN, IMF, world trade organisations and world bank
Globalisation
A process which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transport and immigration
When did globalisation start
- first wave in 1492 as many countries gained empires form which they sourced raw matierisls and labour
- second wave in 1960’s due spatial breakdown of barriers
3 main forms/dimensions of globalisation
- economic globalisation: long distance flows of goods, capital and services as well as information that accompany market exchanges (largely caused by the growth of TNC’s, free trade, faster and cheaper transport)
- social globalisation: expressed as the spread of ideas, information, images and people largely (migration, impact of western culture)
- political globalisation: spread of government policies and the influence of international bodies such as the United Nations (growth of western democracies)
Core-periphery model
- the core includes wond powers and the countries that contain the wealth of planet, money, resources and people flow onto the core
- the periphery had those countries that are not reaping the benefits of global wealth of globalisation
KOF index
- an index of the degree of globalisation. It takes into account the three dimensions of globalisation (economic, social and political)
- The KOF index is a score each country is given out of 100, the higher the number the more Globalised the country is considered to be.
- the KOF index highlights the core-periphery model
Dimension/flows of core periphery model
- flows of capital (money and investment)
- flows of labour (migration)
- flows of product (trade and shipping)
- flows of services and flows of information
Globalisation: flows of products
- globalised world means more products need to be transported from their place of manufacture to thru chosen market -> greatly helped by containerisation-> millions of shipments being moved cheaply and quickly around the world each year.
- removal of taxes and tariffs + encouragement of global trade by groups such as WTO = greater levels of trade
Flows of services
- activities that aren’t based around producing material goods e.g. banking and insurance
-> improvements in ICT allowed services to become global industries in recent decades
-> during 1970’s and 1980’s there was also deregulation + opening up of national financial markets to the rest of the world -> easier for banks + other financial institutions to do business in other countries - services can be spilt into levels:
> low level (e.g. customer service)
> high level (e.g. financial services) - increasing flows of services are making the world more interconnected
Flows of information
- from January 2015 to January 2016, there has been 10% growth in number of active internet users and also in the number of active social media users
-> internet use change between 2012 and 2016 = - overall, everywhere has increased
- the largest increase was in Asia where in east Asia there was a 30% increase
- the core has continued growth at a decent speed and overall there is greater internet use in the core
Flows of capital
- what?
> international flows of capital refers to all financial transfers between companies for investment, trade or production
> capital is money invested
> flow boosted in late 20th century by deregulation of financial services -> allowing banks and companies to move freely across national boundaries
-where?
> 2002 = most flow from the USA&Canada to Western Europe
> Africa and Middle East less flows (mainly within the core)
> compared to 2012, 1.5% increase in quantity of flow of money around the world
-> less flow in comparison from 2002 from Western Europe and the US&Canada
-> more flows in Asia (greater flows)
-> however Southern Africa still have minimal flows of money
-> the money is expanding beyond the core
Flows of labour
- what?
> more people are moving to different countries, e.g. international migration has doubled since 1975 -> due to: conflict zones, skilled work
> most migration can lead to remittance (payment of money that is transferred to another party)
> easily observed links between the flows of labour and remittances which is no great surprise - where?
> between 2010 and 2015, NA, Europe and Oceania had a net inflow over 2 million immigrants a year
> NA receive the most migrants, mainly from Asia, Africa and Latin America + the Caribbean -> Europe receive the second most, from same places
> the main sender of emigrants are from Asia then Africa and then latin America + the Caribbean
> remittances are sent back -> 22.2 billion sent back to Mexico -> the main host nation from remittances so from the USA
> GDP: North west Africa and Central America have much of their GDP due to remittances
> every year the Somali diaspora sends home approximately $1.2 billion remittances account for 25-45% of Somalia’s economy
Factors that have facilitated the spread and speed of globalisation
- Communication developments
- Transport developments
- Financial developments
- Security developments
- Trade agreements
- Management systems
- Information systems
The shrinking world: flight, TV and the car
- flight
> 1919 = first plane BUT crash landed
> THEN: Airships (zeppelins) -> best was the 1920/30s Hindenburg regularly flying to NYC
-> 1937: hydrogen was holding them up but hydrogen is very explosive (this marked the end of airship era)
> 1950/60’s -> small planes around Europe
> 1969: Boeing 747 constructed -> $6000 for a return ticket -> died 2003
> fibre optics -> figure = 6 million phone calls at once - TV
> early news = had to be planned -> birthing instant -> all caught on reels (only 1)
Only shown in cinemas therefore massive delays
> 1936 = first TV broadcast
> WW2 = TV blackout (ended TV)
> 1952, queens coronation -> 1 million sold in 2 months - the car
> Ford model T = first mass produced car (1908) BUT can’t go uphill
> Ford cortina I’m 1962 -> mass produced, affordable = shrinks the country
> HELP: The motorway -> M1 first stretch opened in 1959 -> 70mph (eventually)
What is containerisation
A system of standardised transport that uses a common size of steel container to transport goods (20 or 40 ft) first introduced in 1956
What was global trade like before containers
- not standardised -> therefore slow, packaging = crates, boxes and sacks
- needed 100’s dockers (everything done by hand)
- boats idled on port for up to a week
- “made in Britain”
How have containers improved global trade
- 1956 - 1st container ports developed (less dockers)
- 1960’s - cellular container ship
- trucks + trains modified
- cheaper
- opened up new markets
- ‘MAERSK’ first containers and are the biggest brand
The development of the container
- Malcolm McLean, American truck driver in the 1950’s owned his own shipping company -> worked with engineer Keith Tantlinger to develop the modern container. Efficiently designed to be carried securely by cranes
-> Tantlinger convinced him to give the patented designs to industry -> this began standardisation of shipping containers
Container ports
- come into service in 1956 -> first used converted oil tanker to ship 58 containers from Newark, New Jersey to Houston, Texas -> originally planned to remain on trucks and trailers
- in first 15 years, many companies tried to copy but not its standardised measurements
- late 1960’s international organisation for standardisation (ISO) introduced standardised dimensions for shipping containers including 20ft and 40ft containers
- IMPACT: greatly reduced the expense of international trade and increased speed -> also increased unemployment in areas (also decline in some areas like Salford quays)
- 1965, dock labour could only move at 1.7 tonnes/hour -> in port for a week or more -> 1970, 30 tonnes/hour onto a cargo ship allowing bigger ships to be used and leave the same day
- FELIXSTOWE: uk’s most important trading port trading 2 million containers a year - 38.5 million TEU (twenty ft equivalent unit) situated 90 miles from NE London on Nirth sea coast if suffolk
> now possible to shift £500,000 worth of consumer electronics from Shanghai to Felixstowe for about £2000
> 2018: 40ty largest container port in the world and 7th in Europe
Container ships
- measured by number of containers they can carry (number of 20ft long containers known as TEU)
- largest ships known as ultra large container vessels (ULCV) and are up to 400m in length and can carry 15,000 TEU’s -> largest one being Marks lens ‘triple E’ vessels built in South Korea and can carry in excess 18,000 TEU, weighing 165,000 tonnes, nearly 60m wide and 73m high
-HOWEVER: cannot Saul everywhere: Panama -> people voted in 2006 to expand canal in 2016 it opened costing $15 billion however the nation is expected to increase to earnings - there are concerns that the worlds merchant fleet that contains oil tankers and bulk carriers are responsible for adding greenhouse gases into the atmosphere and contributing to climate change; large ships use ‘bunker fuel’ which is the dirtiest liquid fuel around, frequently so viscous that it barely flows -> has up to 2000x the sulphur permitted in the diesel fuel that’s used for road vehicles and therefore a major polluter of the atmosphere
Communication development
- 100 years ago: communication was by letter. By 1916, we had steam boasts crossing the Atlantic which took 2 weeks. A letter would take approximately a week to arrive
- 50 years ago: after WW2, planes began transporting mail across the globe. This took 10 hours in the air, and would arrive in a week
- today: 300 billion emails will be sent today, 4 billion people now have an email account, over 6 billion texts are sent each day, 91% of the world now use a mobile device -> communications has exponentially increased in volume