Lesson 3-Flows of globalisation Flashcards
What are the flows of globalisation?
-Flows of information, technology and capital
-Flows of products and labour
-Flows of services and global marketing
What occured in the late 20th century in relation to globalisation?
- In the late 20th century, financial institutions were no longer bound by national borderd due to the de-regulation that occured within global markets to allow more international trade
What do the terms core and preriphery mean?
Core- Developed countries
Priphery- less developed countries
-These are difficult to distinguish around the world as there has been lots of investment into priphery countries causing them to develop and grow.
E.g MINT countries
What are the 5 flows that can reduce disparities between the core and periphery?
-FDI due to foreign investment
-Repatriation of profits-leakage from FDI
-Aid as it means healthcare flows globally
-Migration as people move
-Remittance payments as they redistribute income globally
How have remmitance payments become a critical part of many developing countries economies?
India have a huge proportion of their GDP based on these payments as the country are bale to make a higher income abroad
-China, India and Mexico receive the highest quantity of these payments
How are the benefits of remittance payments reduced by banks?
- They introduce a fee to send money back home county to benefit from the transaction
What is a way to maximise the power of remittance payments?
- Through the use of Diaspora bonds as these allow the finance of development
Flows of labour
- People move around the world for employment with either specialised or unspecialised workers working on a long or short term basis
-Labour markets are not as free flowing as financial markets as people move less easily around the world as there have been restrictions on immigration
-Recently there has been a phenomenal rise in migrants crossing international borders mainly to seek better job opportunities
Flows of products
- High speed transport networks (land, air and sea) have revolutionised the movement of products
- Flows of manufactured goods have increased in recent years especially by developed affluent countries which consume a lot.
- Demand lots off of low wage countries
- International movement of goods is facilitated by low costs
Key facts about the flows of labour
- North America, Europe and the Gulf in western Asia attract migrants from furthest afield
-The bulk of economic migrants arent the porrest people but mainly the people with some educational or financial background
-Largest inter-regional flow of labour is in Asia as between 2010 and 2015 around 3-5 million workers moved from South Asia to West Asia
-Past 25 years, more people have migrated from Asia to North America and Europe, but at the same time both the Gulf states and tiger economies of South East Asia have become attractive destinations for those seeking employment
Factors affecting the flow of products
- Transaction costs
- Transport and time
- Tariffs
- Regional trading blocs
Factors affecting flows of products-Transaction costs
- Transaction costs have been reduced by the improvements in flows of data and the ease with which capital can be transferred to pay for transactions.
Factors affecting flows of products-Transport and time
- Transport and time costs have been reduced by the process of containerisation which has enabled more complex and long distance flows of products, and air transport, which can speed delivery and reduce costs of more valuable or perishable cargo.
Factors affecting flows of products- Tariffs
- The most obvious regulatory barriers to trade are tariffs, which with the encouragement of the World Trade Organization (WTO) have generally been reduced in global trade.
Factors affecting flows of products- Regional trading blocs
- Regional trading blocs provide tariff-free trade or other favourable trading conditions to fellow member nations within the bloc.
How has brexit affected the flow of products to the UK?
- Legislation has slowed the flow of products
- However, large TNC’s wont be affected as much as they have always had to sign lots of papers for international orders
Description of flows of services
- High level services- Services to businesses such as finance, investment and advertising
- Low level services- services to consumers such as banking, travel and tourism, customer call centres or communication services
-These are footloose as they dont need to be set in one location
Factors that have facilitated the flows of services
- Growth in the number of transnational conglomerates ( collections of companies which all respond to one parent company)
-Another is decentralisation of low-level services from the developed country to the developing world
Example of flow of service
TUI
-TUI is a TNC which has merged to become a conglomerate from individual companies like Thomson and Arke
Description of flows of information
- These flows are governed by the movement of people through migration and by the speed of data and communication transfers. Both are responsible for the transfer of ideas, language and technology
Factors that have facilitated the flow of information
- Satellite technology have transferred the flows of information, which are now supported by:
-Telephone networks
-Telecommunication technology
- Email and internet
- Live media coverage availability at a global scale due to satellite technology
