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
Reasons why North Korea is switched off to globalisation
Citizens don’t have access to social media
There are no undersea data cables connecting North Korea with anywhere else
Dictatorship
Politically isolated
KOF index
Measures the extent of which countries are socially, politically and economically linked
Measures globalisation in three main dimensions:
1. social globalisation- telephone traffic, tourism, etc
2. economic globalisation- trade and FDI
3. political globalisation- membership of international organisations and political cooperation
Advantages of KOF index
Wide range of globalisation data avaliable
Allows comparisons between countries
Info freely avaliable
Disadvantages of KOF index
Bias- smaller countries are over-represented
Illegal migrants not included
AT Kearney
US management consultancy AT Kearney produces a Global Cities Index which uses measures of buisness activity, human capital, info exchange, cultural experiences and political enagement to rank cities in terms of the quantity and quality of their global connections
Advantages of AT Kearney
Covers 96% of world’s GDP
Covers 84% of world’s pop.
Allows for comparison between countries
Allows for comparison over time
Disadvantages of AT Kearny
Not all countries and cities are included
Does not consider any measurment of restriction on trade and capital
‘Global shift’ in economic activity
Describes the international relocation of different industries, especially manufacturing
Number of people who have escaped $1.25 a day poverty since 1990 in Asia
1 billion
Number of people who have escaped poverty in China
500 million
Average earnings per day in Asia
US$10-US$100
Number of unis in China, India and Korea
2500
% of forest loss in Togo and Nigeria
60%
Employment number in China in 1978 vs 2000
1978- 400 million
2000- 700 million
China’s FDI in 2002 vs 2006-2010
2002- $52.7 billion
2006-1010- $100 billion
Global outsourcing of services to India
By 2040 India is expected to be 2nd largest economy in 🌎
Many Indian citizens are fluent English speakers (legacy of British rule which ended in 1947)
Broadband activity is unusually high in Bangalore (long established tech hub
🔴some call centre workers complain their are exploited
🟢call centre workers earn good middle class wages by Indian standards
CASE STUDY: China workshop of the world
300M increase in ppl in employment between 1978-2000
6 SEZs
4% contribution to world trade ⛴️
Produces over 50% of worlds shoes 👟
High speed rail. $24B. Reduces train travel time from 2 cities from 23hrs to 10hrs
Pearl river delta costs and benefits:
🟢$10B worth of exports in a month
🟢30M employed (increasing)
🔴increased pollution
🔴urban sprawl
What are the envi impacts of development?
Water pollution:
Contaminated rivers
Deforestation:
Due to urbanisation and industry eg. In Malaysia
Air pollution:
Airpocypse. 460M affected. Ppl can’t leave houses (20M). Medical complications eg. Asthma and lung cancer which affects QoL
Light and noise pollution:
Due to factories
Yangtze River dolphins were found along worlds busiest shipping lanes
Flooding:
More greenhouse gases cause ice burgs to melt
Environmental challenges for communities in developing countries: Indonesia
Area of rainforest as big as 100,000 football pitches is lost each year. Room is being created for palm oil plantations Burning of forests creates smoke pollution
BUT govs aren’t stopping anything
Define deindustrialisation
Amount of industrialisation has decreased —> due to the decline and closure of the manufacturing industry
What is the spiral of decline?
Industry shuts down
⬇️
People lose jobs
⬇️
People move away to find jobs
⬇️
Public services shut. Eg. Skls/ hospitals
⬇️
More ppl leave
⬇️
Older ppl stay and ppl who can’t afford to leave
⬇️
Becomes deprived and crime increases. Decreased QoL
⬇️
Abandoned buildings - vandalised
⬇️
Businesses don’t want to set up due to lack of highly qualified people
⬇️
DEPRIVATION
CASE STUDY: Developed areas experiencing dereliction
DETROIT, USA
1920s = 4th largest city in USA —> thriving 🚗 industry
Industrial restructuring from global shift (eg. Car industry moving to Japan) resulted in dereliction, depopulation, crime and high unemployment
City lost 1/4 of pop.
Now 18th largest city in USA
20,000 abandoned properties
Reduction in tax revenue resulted in declared bankruptcy in 2013
Highest murder rate in us (45 per 100,000)
2/3 murders = drug related
Cities in developing world urbanise more rapidly compared to cities in the developed world —> what problems might this cause?
Greater air and noise pollution
Gov invests more in tourism sector or other things in the city rather than what is actually essential
Poorer housing quality
Not enough schools for no. of children
Increase crime rates
What is a mega city
Urban area
Population of more than 10M
Forming due to in migration and natural population growth
What are elite international migrants?
Minority pop. group with:
High levels of wealth, social status, political influence, cultural influence. Most common in developed regions
Eg. Footballers
Define low waged international migrations?
Few formal qualifications
Ppl working in low waged positions
Exploited by ‘people traffickers’. Found in developing regions
Eg. Working in construction
What is internal migration?
Rural to urban migration
Live temporarily or permanently
More common in developing countries as they have a larger proportion of the population living in rural areas
Rural Urban migration case study
N’DJAMENA, CHAD
N’Dajmena (capital of Chad) is growing fast:
—> 1950: 37,000
—> 2015: 2M
Rural push factors ➡️
Years of drought
Poverty
Temps top 45°C
100-200 cattle die annually due to drought
Can’t afford schooling due to lack of money made from agricultural farming
Urban pull factors ⬅️
Urban convenience - can buy essentials nearby and sell produce at markets
Clean water
Define global culture
The shared customs and traditions that the world join in participating in
How does glob affect ppl?
Migration
Jobs
Higher wages
Better healthcare and education
More human rights
How does glob affect the envi?
Negative affects —> eg. Habitats being destroyed
Air, water, noise pollution
More envi laws
Introduction of new species
Consequences of the growing global culture
Becoming more westernised
Countries like USA have particular influence (‘Americanisation’)
This is happening through cultural diffusion which has been able to occur due to media, migration, tourism, TNCs.
Has many effects, eg. new global language emerging (globish)
Define cultural erosion
Loss of local and national global traits (eg. Food, religion, traditions, clothing, language)
When these local and national cultural traits are replaced by westernised global culture, it’s called hyper-globalisation
Eg. Disney. SE Asia wore red wedding dresses. Disney princesses wore white. Now brides wear white worldwide. Western culture has spread and taken over a very traditional custom
What are the impacts of global culture in China?
Traditional to cycle. Due to cars, no longer the case
Fast food eg. McDonald’s :
100M obese in China which has x5 since 2002
9.7% China has diabetes (America = 11%)
Change in diet caused an increase in obesity due to 1978 open door policy
China used to be very healthy —> lots of veg, little meat
2000-2006 chocolate sales x4 in China
Wealth deficit problem:
Getting obese —> educated middle class —> fuelled by Chinese obsession with academic achievement—> no time for exercise —> spend money on food —> rural poor = still thin
CASE STUDY of a megacity
MUMBAI, INDIA
4th largest city in 🌎
13M pop. 🧍
Global financial hub 💵
Main seaport of Arabian Sea since opening of Suez Canal 🌊
Growing due to inward migration and natural pop. growth 🧍
Large areas of slums and informal housing 🏠
Driven by rural to urban migration resulting in depressed wages and scarcity of goods 💰
Public services are easier to fund in densely populated areas so cities have better healthcare and education services which increases productivity and incomes and attracts migrants 🏙️
Commercial capital of India 💵
What is green peace and what are their 6 major campaigns?
Reactions to global culture —> taking action
- STOP CLIMATE CHANGE 🛑
Reduce fossil fuels, rainforest destruction - SAVE THE ARCTIC 🧊
Trying to stop the oil rush - DEFEND OCEANS 🌊
Home to 80% life on earth
Species are being driven to extinction
They’re campaigning for marine reserves - PROTECT FORESTS 🌳
80% destroyed/degraded
Working to end logging of worlds ancient forests (protecting indigenous ppl who’s lives depend on them) - ELIMINATE TOXINS 🏴☠️
Threaten land, air, water, oceans - WORK FOR PEACE ☮️
Elimination of nuclear arsenals for 9 nuclear countries
Reasons for France objecting to to glob and cultural diffusion (and actions taken) 🇫🇷
They’re worried the French will speak English and French will no longer be a language
Actions taken:
The academie (council of 40 writers + artists) = entrusted with protecting French from “Anglo Saxon attacks” and writing an official dictionary
This will urge French speakers to drop Anglo Saxon superlatives
Reasons for Iran objecting to glob and cultural diffusion (and actions taken) 🇮🇷
Barbie dolls are sold wearing swimsuits and mini skirts in a society where women must wear headscarf’s in public
Actions taken:
Police have closed down dozens of toy shops in Iran due to them selling Barbie dolls
Authorities started confiscating them in 2002 due to the un Islamic characteristics
The campaign was dropped
Iran that year made their own dolls (Dara and Sara) designed to promote traditional values with modest clothing
Who are pessimistic abt glob?
Envi activists eg. Green peace 💚 ☮️
Who are optimistic abt glob?
TNCs as global provides business opportunities
What is cultural appropriation?
The adoption of elements of a minority culture by members of the dominant culture
It is a reaction to glob and only happens because of it
Also called cultural misappropriations
The richest _% of the globe owned __% of global wealth in ____
By ____ they owned __%
1%
44%
2009
2016
99%
Define absolute poverty
Extreme poverty, where people have barely clean water, limited clothes/ if any and no electricity
Define relative poverty
Severe poverty in a specific area compared to other people in that area, but could be seen as a good QoL by someone in absolute poverty
What are a few development indicators?
GNI per capita
Drs. pp
Mortality rate
Life expectancy
No. ppl w/ access to clean water
Birth rate
Infant mortality rate
HDI
Literacy rate
Death rate
HIV/AIDs
What are econ indicators of measuring development
Focus on the wealth of country. To standardise them they are measured in US dollars
What are social (human) indicators of measuring development
Used to assess the wellbeing of a nations ppl
What does a composite indicator measure?
Multi dimensional concepts
What does a single indicator measure?
Economic value
Measuring development:
HDI
What organisation created it?
UN development programme
When did it begin being used?
2010
Indicators used:
Life expectancy, GDP, Literacy rates
Who were ranked highest in 2014?
Norway
Who were ranked lowest in 2014?
Niger
What does GEM stand for?
What country is at the top?
Gender Employment Measure
Norway
What is the trend between GEM and HDI?
Higher the GEM the higher the HDI apart from Japan
How does the representation of women in politics compare between Rwanda and UK?
🇷🇼 = 56%
🇬🇧 = 21%
How can gender equality encourage development? (x5)
Promotes econ growth
Benefits household
Improves health
Leads to reduced pop. growth
Better gov
What is the environmental performance index?
Created by: Yale University
Devel indicators used: pollution outdoors, quality of air inside people’s homes
Eg. Bangladesh had a score of 9
Benefits: improves as econ and social development occurs and places make the transition from industrial to post industrial forms of econ activity
CASE STUDY: RANA PLAZA
RANA PLAZA, BANGLADESH
Factory producing clothes for brands like Mango, Primark, Zara
23rd April cracks appeared and all evacuated. Later in day they were told it was safe to work so all returned
24th April building collapsed with 3,122 workers inside
The building was planned for shops and offices - not factories so the structure was not strong enough to bear the weight and vibration of heavy machinery. Floors were also illegally added
Impacts:
Deaths: 1,134
Injured: 2,500
CASE STUDY: MALAYSIA
Area as large as Denmark was deforested between 2000-2013
67% of Malaysia covered in forest
1980s became largest exporter of tropical wood
700km - area of forest flooded by Bankun Dam
What is the gini coefficient?
Specifically designed to measure income distribution which has implication for the economic and health and national policy of a nation
It’s a statistical dispersion measurement
1 = complete inequality in incomes
0 = Everyone earns same amount
The closer the curve is to the line = the closer to 0
What is the Lorenz curve?
What is the gini coefficient?
Lorenz curve - The visual graphical indicator (the curve)
Gini coefficient- the mathematical indicator (no. between 0 and 1)
What is a limitation of the Gini Coefficient?
🔴 while low numbers represent greater equality they aren’t always a perfect indicator of economic health
Define diasporas
The dispersion or spread of a group of people from their original homeland
Define extremism
Vocal or active opposition of fundamental British values
Define migration
The movement of people from one place to another
Define immigration
The process of moving to a new country or region with the intention of staying and living there
Define trade protectionism
Gov policies and actions taken to restrict or limit international trade in order to protect domestic industries from foreign competition
CASE STUDY: London melting point
London has lots of cultures within it
It is the most culturally diverse city in the world
By 2050, Britain will be the most ethnically diverse nation
By 2066, white Britons will be in the minority
What are the positives and negatives of immigration?
🟢Work. Pay taxes. Help make Britain wealthy
🟢Do work that locals dont want to do
🔴Crime
🔴Tensions between immigrants and different racial groups
🔴Political riots - usually against racism
Examples of extremism in Europe
Nationalist parties often oppose migration; some reject multi-culturalism and openly embrace fascism
In the 1990s the UKs British National Party voiced its opposition to the continuing presence of post colonial migrants and their families
Define censorship
the suppression of speech, public communication, or other information. This may be done on the basis that such material is considered objectionable, harmful, sensitive, or “inconvenient”.
CASE STUDY: Internet censorship in China and North Korea
For nearly 70yrs the people’s republic of China has been ruled by the communist party. Chinas gov are intolerant of any criticism amounted against them by their own citizens
Google withdrew services in 2010
SIMILARLY
North Korea have no access to internet as a result of state controls
CASE STUDY: Makong River
MAKONG RIVER, CHINA
Key players:
China, Myanmar, Laos, Thailand, Cambodia, Vietnam
—> they want to build dams in order to have access to a reliable water source from the river
BUT if one country makes a region in the river it results in other countries having less water as there will no longer be a reliable water source from the river
Controlling glob: censorship
Free flow of info and ideas is seen as a threat to China —> gives ppl ideas (eg. Arab spring)
Chinese gov enforces censorship of internet context
State controlled censorship = print publishing/ broadcasting is run by official state media
State monitored = overseas contacts or media are monitored and censored
Eg. China censored Covid 19 news and weren’t told until 2020
Controlling glob: limiting immigration
Trump —> ‘Make America Great Again’ approach doesn’t want migration from Mexico/anywhere
Controlling glob: trade protectionism
Trade protectionism is the deliberate attempt to limit imports or promote exports by putting up barriers to trade
Eg. USA and China —> protect trade in USA by placing v high tariffs on Chinese products so ppl in America use American products —> estimated to cost China $200B
Define resource nationalism
A growing tendency of gov to take measurements to ensure that domestic industries and consumers have priority access to national resources
Define ethical consumption
The consumer has considered the social and envi costs of production of the goods purchased. Type of consumer activism.
What is the fair trade foundations certification scheme
Offers a guaranteed higher income to farmers even if market price changes
What is supply chain monitoring
Occurs when large businesses increasingly accept the need for coorporate social responsibility
Eg. Apple investigated its iPhone touchscreen supplier when workers were poisoned by a chemical cleaning agent
Current recycling initiatives
Recycling bins from council
Bottle caps attached to bottles
Paying for plastic bags
Examples of how much countries recycle:
UK
Portugal
Germany
Italy
🇬🇧 39%
🇵🇹 19%
🇩🇪 62%
🇮🇹 80%
Limitations of landfills
Hazard to wildlife
Can cause water pollution/ contamination
Releases harmful gases - methane, CO2, CFC
Plastic doesn’t compose quickly (300yrs+)
Visual pollution - local area value decreases
What is the circular economy ?
Production —> consumption —> waste management —> from waste to resources
- approach to sustainable development calling for careful management of materials
CASE STUDY: sustainability
‘Zero Waste City’ SAN FRANCISCO
Zero waste by 2020 - achieved
Law to recycle - gives incentive
Composting - reduces production of greenhouse gases, used to feed farms and produce new crops and keeps materials out of landfill
Sustainability and localism:
How many people are involved in the ‘new global middle class’
🔴What is the problem with this?
Almost 1B in Asia, Africa and Latin America in last 30 years
A further 2B are on the cusp of it
🔴more are expected to live this lifestyle even if they can’t afford it
🔴prices go up as more are buying it
🔴middle class standard is lowered
Define economic sustainability
Access to reliable income over time
Define social sustainability
Good QoL
Define envi sustainability
No lasting damage should be done to envi
CASE STUDY: brands being sustainable
FIJI WATER 🌺 🩵
🔴20,000km = distance transported to UK
🔴envi costs
🟢current solution —> ppl purchase locally sourced products without high food miles and envi pressure groups promote awareness of local sourcing
Costs and benefits of local sourcing
🟢🧍Easier to satisfy local preferences and source specialised products
🔴🧍policy issues around encouraging competition and positive discrimination of local suppliers
🟢🌳 easier to travel to suppliers for development management and site inspection purposes
🟢💵 shorter supply chains and therefore greater predictability of delivery times and lower costs
🔴💵 supplier may depend too much on buyer leading to complacency
KEY:
💵 - economic
🧍- social
🌳- environmental
🟢 - benefit
🔴 - cost
