P2 - Globalisation Flashcards
what is the definition of globalisation?
deepening and widening of global connections, interdependence and flows.
what types of globalisation are there?
- demographic globalisation
- economic globalisation
- cultural globalisation
- political globalisation
- environmental globalisation
what is an example of cultural globalisation?
118 countires have mcdonalds
what is an example of political globalisation?
The G8
- group of 8 countries making global decisions
what is environmental globalisation?
increasing prevalence of global environmental issues, eg. climate change
- countries have environmental issues caused by others
what is the shrinking world?
- the world is becoming more and more connected
-Pre-1800s- goods and info transported by ships and horses
-1800s- goods and info transported by steam bats and trains
-1900s- goods and info transported by air travel
-Now- info transported by the internet
How did transport accelerate globalisation?
-Containerisation- standardisation of shipping containers in the 1960s making it easier and cheaper to transport goods.
How did TNC’s accelerate globalisation?
-TNCs have invested in others in other countries and built links between the places they manufacture and where they sell their goods
- statistics:
today: 63,000 parent companies and 690,000 subsidiaries
How has computers and internet technology accelerated globalisation?
manufacturing can be doe in diverse locations and can be coordinated easily from a central headquarters.
Has also created ‘the digital economy’
- estimated to be worth $1.5 trillion in 2015
-Massive companies take away profit from smaller businesses
How have international organisations accelerated globalisation?
-UN keep peace between trading companies
world bank provides loans for developing countries
What are proportional flow diagrams?
an arrow showing something going from somewhere to somewhere else.
The thicker the line the bigger proportion/number of the thing being researched
How have international organisations accelerate globalisation?
Trade relies trust and cooperation, and the global economy has rue and referees
How have new markets accelerate globalisation?
Companies invest in new markets in order to make profit
The success of investment and sales is reflected in global stock markets and share prices
When was the shipping container created?
1955
What was so special about the new shipping container?
Low maintenance- 20-30 crew
Made of metal- strong
Universal- can go on ships, lorries, planes, trains, etc
Leads to increased products being shipped
Always the same measurements- stackable
When was Easy Jet founded?
1995
How many aircrafts did Easy Jet have in 1995?
2
How many aircrafts did Easy Jet have by 2014?
200
How many passengers did Easy Jet have in 1995?
30,000
How many passengers did Easy Jet have by 2014?
65,000,000
What was Easy Jet’s revenue in 2014?
£4 billion
What was the cost to fly one way to Edinburgh with Easy Jet in 1995?
£29
What was the cost to fly to Estonia with Easy Jet in 2014?
£40
When were the first telegraph cables across the Atlantic put in?
1860s
What year was the first satellite launched?
1970s
When was the World Trade Organisation (WTO) set up?
1994
What does the WTO promote?
International commerce (details in trade)
When was the International Monetary Fund (IMF) set up?
After WW2 (1940s)
What is the IMFs primary purpose?
Ensure stability of the international monetary system, increasing living standards and alleviate poverty
When was the World Bank (WB) set up?
After WW2 (1940s)
What does the WB provide?
Low interest loans to developing countries and advice to member states, acting as a bank
Free-trade
A policy where a gov. does not interfere with imports or exports by applying tariffs, subsidies, or quotas
Tariffs
A tax imposed on exports
Trade bloc
A voluntary international organisation that exists for trading purposes, bringing greater economic strength and security
Advantages of trade blocs
Bigger markets but no extra taxes
National firms can merge to form transnational companies
Protection from foreign competitors and political stability
Disadvantages of trade blocs
Loss of sovereignty
Interdependence
Privatisation
Where a gov. owned company changes to a privately owned company. Therefore, ownership of a business, agency, service, property from the public, to the private.
When did privatisation first occur?
1979
Special Economic Zones (SEZs)
Often large areas of land set aside by a gov. in locations well placed for international trade
Aim of Special Economic Zones (SEZs)
Companies can import raw material and export finished products
Benefits of Special Economic Zones (SEZs)
Provides employment for locals, individuals pay taxes, technology transfer, domestic industries can work with/alongside the TNC. This overtime strengthens the domestic economy in the zone
How many people moved and escaped poverty due to the Pearl River Delta?
300 million
Date of China’s Open Door Policy
1978
What was life like in China before its Open Door Policy?
China was a poor and politically isolated country, ‘switched off’ from global economy
Number of people who migrated to cities after China’s Open Door Policy?
300 million
Number of cities with a pop. of over 1 million after China’s Open Door Policy?
200
Total pop. in the Pearl River Delta
120 million
Nickname of the Pearl River Delta?
Workshop of the world
CASE STUDY: Pearl River Delta
% of China’s GDP generated in SEZs in the 1990s
50%
CASE STUDY: Pearl River Delta
Average wages in 2015
US$40 a day
CASE STUDY: Pearl River Delta
TNCs located in the area
Foxconn in the Shenzhen SEZ and Apple
CASE STUDY: Pearl River Delta
Number of people in China who have escaped poverty since 1978
400million
Offshoring
Moving manufacturing to another country, normally for cheaper labour
Glocalisation
Choosing to maximise profits by adapting tosuit the taste
Outsourcing
Another company is paid to manufacture products for TNCs
Examples of glocalisation
Disney
McDonalds
Switched on
Places like nations, regions or cities that are strongly connected to other places through the prosuction and consumption of goods and services
Switched off
Places that are poorly connected