paper 3 Flashcards
definition of globalisation/global interactions
growing economic interdependence (incr vol and variety of cross border transactions)
- world bceomes more functionally integration and interdependent
economic global interactions 6
- Increase in international trade and flows of global capital (icl FDI)
- Development of global financial systems
- creation and incr influence of international orgs
- Prevalence of international banks eg Citiabank, standard chartered
- Incr of transnational econ activities (such a joint ventures and outsourcingby transnational corporations (TNCs)
- Functional integration of internationally dispersed econ activities
socio-cultural global interactions 7
- incr international cultural exchange eg hollywood, bollywood
- incr international travel, tourism
- incr immigration
- worldwide fads and pop culture
- devt of a global telecomms infrastructure and incr transborder data flow
6.incr in no of global standards eg patents - spread of local food
what is soft power
the use of economic or cultural influence to approach international relations
how to define depth of interconnection 3
- bilateral agreements vs creation of econ grp
- functional integration (eg apple outlets and factories)
- mutual interdependence
index for quantification of global itneractions 3
KOF index of globalisation
- score out of 100, assessing econ flows, social globalisation, degree of political cooperation
Ernst and Yound Globalisation index
- measure 60 largest countries by GDP (degree of economy globalisation)
New Globalisation index
- composite indicator w 21 econ, social and political variables
- factors geographical dist
usefulness of KOF index of globalisation
- observe shortcomings for govt to implement policies
- TNCs know where to invest
- measure how well country is involced in global econ
9 characteristics of globalisation
- Flows of trade
- Flows of FDI and portfolio investment
- Level of barriers to trade and flows
- International telephone traffic
- Tourism to and from a place
- Size of foreign population
- information flows (internet users, tv owners)
- Number of embassies
- Membership in international orgs
define superpower
state with a LEADING POSITION in the international system and ability to INFLUENCE EVENTS and own interests and PROJECT PPOWER ON A WORLDWIDE SCALE to protect these interests
4 economic factors making a state a superpower
GDP per capita (% of earnings in global economy)
Extent of market share
control/availiablity of natural resources
Number of patents
8 cultural factors that make a country a superower
Number of cultural festivals
Extent of tourism, number of tourist arrivals
Film: awards, box office earnings
Music: artist rankings, tours
Cultural festivals (eg coachella, Holi – festival of colours in India)
Brand influence
Popularity of local cuisine, presence of local cuisine overseas
Fashion – fashion week
4 geopolitical factors that make a state a supwerpower
Participation of international groups and discussions (UN)
Military power, ability to extert power for their own interests (number of bases)
Voting and veto power in bodies eg UNSC
No. of embassies and alliances
advantages of global interactions 6
Through (towards a more equitable) spread of wealth to developing countries via financal flows/loans
Improves global relations thorugh the vehicle of global organisations, improved diplomatic relations, cooperation regarding global issues
Economic growth from tourism
Promoting econ growth and development through trade – FDI – jobs and employment, contributes to tax base
Promoting cultural diversity – globalisation, TNCs, consumer welfare incr
economic interactions incr employment and econ dev in LICs
human trafficking scale examples
- 70% international, most within same region
- 2010-2012: >27k victims
- most from LICs
- high level of org required
- measures: plan, prevention, prosecution, protection
5 disadvantages of globalisation
Homogenisation of culture in developing countries – cultural influence of superpowers dilute the domestic cultural fabric – cultural dilution, cultural imperialism
Global interactions may result in political tenions owing to
Concentration of wealth and power – some countries exploit LDCs for their own material gain
Global interaction in the form of soft power and media leads to dilution of local culture
Trade = incr wastage of resources, environmental degradation
counterfeit goods example
- imports worth 1/2 trillion /year
- most originate from emerging econs (china)
- can endanger lives (auto parts, medical instruments)
- infra for large scale trade BUT GOVERNANCE GAPS
- postal parcels are top method
FDI definition
overseas investment in PHYSICAL capital by TNCs
TNCs definition
a firm with the power to coordinate and control operations in >1 country
characteristics of TNCs 7
Operate in more than one country – coordinate and control the stages in a production chain thats scattered across several countries
Large firms
Primary, secondary, tertiary sectors
Footloose: Able to switch their resources and operations between locations at a global scale to take advantage of labour costs and local tax policies
Spatial division of labour
Found in diverse sectors
Are powerful, key movers in global econ. – can influence a countries economic growth – thru employment creation, expanded labour market, incr FDI
economic benefits of TNCs
- emplyment
- improved balance of trade (Exports > imports): incr investment = incr prod capability
- diversifies invester portfolios
- promotes stable long term lending
- financing and tech to DCs
cultural pros of TNCs
exposure to other cultural products = incr choice and consumer welfare
econ cons of tncs
- stiff/unfair competition with local firms (TNCs subject to diff tax laws?)
- jobs arent secure, able to relocate
social cons of tncs
issue of labour exploitation
environmental cons of TNCs
massive environ degradation bc large scale of operations
TNC structure 3
- hq
- research and dev centres
- production units / branch plants
what affects location of TNC hqs
Connectivity: need developed global transportation and communication networks
Accessibility to External services: need access to high quality external services (Eg banks) + skilled labour (possibly to bypass labour/export laws)
Agglomeration (collection of things): needs to facilitate interaction with head offices of other organisations
