Section A.1 - Globalisation Flashcards
Define globalisation
Process by which people, culture, finance, goods and information transfer between countries with few barriers
Define manufacturing
Production of products for use or sale using labour and machines
Define commodities
Products / goods that we all buy in shops, many of which were made in a different place
Define capital
Financial resources that businesses can use to fund their operations like cash,
machinery etc
Define GDP
Total value of goods produced and services provided in a country during one year
Define interdependency
State of being dependant on one another
Connections between countries are known as global flows: what are the 5 flows?
- Capital
Money between people - Commodities
Goods we purchase - Information
Data transferred between businesses - People
Tourists, migrants from one place to another - Migrants
Permanent movement of people from one country to another
What are the 4 strands of globalisation?
- Economic globalisation
- growth of TNC’s
- information and communication tech
- e-commerce and m-commerce - Social globalisation
- international immigration
- global improvements in education healthcare
- social interconnectivity - Political globalisation
- growth of trade blocs i.e EU, NAFTA
- global concerns i.e credit crunch
- organisations i.e IMF, WTO, World Bank - Cultural globalisation
- successful western traits dominate
- glocalisation and hybridisation
- circulation of ideas and info
Define interdependence
Success of one country is dependant on the success of anotjer
What is time-space-compression?
Messages can be obtained much quicker now. Things feels much closer as we can access them much faster
Advantages and disadvantages of globalisation
Advantages:
- free markets have spread
- capitalism spread into once communist states
- fair trade has mobilised against global food corporations
- faster transactions due to submarine cables
- migrant workers can have more than 1 vote in the EU
Disadvantages:
- worlds rich tend to employ worlds poor
- TNC’s more powerful than governments
- cultural erosion
What has accelerated globalisation in the past and led to a ‘shrinking world’?
- Steam power: 1800’s
Britain became leading world power in 1800s using steam technology - Railways: 1800’s
By 1904, 9000km trans-Siberian railway connected China with Japan
HS2 will halve journey times - Jet aircraft: 1960’s
Boeing 747 in 1960’s made international travel easier
Expansion of cheap flights industry - Container shipping: 1950’s
200 million individual container movements take place each year
These have contributed to a ‘shrinking world’
What is containerisation
Shipping methods which a large amount of material I.e merchandise is packaged into larger standardised containers
Life before containerisation: cargo loaded manually in crates — slow
Modern day:
- containers loaded / unloaded by crane
- containers are intermodal
- 9500 container ships in the world, carrying 18000 containers each
Why is trade key to globalisation?
As transport and communications have improved, government and firms have been able to extend their reach into other countries
Trading of imports and exports earns countries income; firms become competitive and innovative — provides jobs, stimulates economy
How technology aids the 4 global strands for globalisation
- Economic globalisation
- ICT allows managers to keep in touch more easily from remote locations - Social globalisation
- Maintaining long distance relationships through ICT use - Cultural globalisation
- cultural traits I.e language or music are adopted, imitated, hybridised faster than before - Political globalisation
- social networks used to raise awareness for fighting to change political issues on a global scale
Mobile phone Revolution?
Mobile phones have changed lives for the better:
In 2005 6% Africans owned a mobile phone
In 2015 it had risen to over 70%
I.e M-Pesa launched in 2007: mobile phone service allowing credit to be transferred between phone users
Define tariff
Tax imposed on imports
Define subsidy
Financial assistance to a business by government go make it competitive or prevent collapse
Define quota
Limit on quantity of a good allowed into a country
Define protectionism
Policies to protect businesses and workers in a country by restricting / regulating trade with foreign countries
Define free market economy
Market economy based on supply and demand with little Gov control
Define free trade
Gov policy where there is no interference with exports or imports by applying tariffs, subsidies or quotas
Define privatisation
Transferring ownership of a public service / agency / property into private ownership run for profit
Define neoliberalism
Political philosophy of free markets, free trades, privatisation and increasing the role of business in society (while decreasing the influence of government, more wealth, less poverty
Do all countries have same ability to attract investment?
No!
- landlocked countries have more difficult access (ports — can’t import or export)
- countries with lower labour costs are good for TNC’s to outsource from
- political agenda of country: corruption, terrorism; money lost rather than invested
Name of 3 key global players who advocate trade, financial stability, protectionism and to end poverty?
- WTO (world trade organisation):
162 countries involved in 2016
- aims for free trade between members without subsidies / tariffs (barriers)
- trade liberalisation - IMF (international monetary fund):
188 members pay money into it — gives loans to countries
Holds $755 billion - World Bank:
189 countries
- aims to end extreme poverty by decreasing 1% of people living on $1.25 per day
- advocates trade liberalism
-promote shared prosperity
Define subsidies
Grants given by governments to increase the profitability of meg industries
What is FDI?
Foreign Direct Investment:
Investment made by overseas company
What is SEZ
Special Economic Zone:
Set up by national governments to offer financial or tax incentives to attract FDI
What does EPZ stand for?
Export Processing Zone
Advantages of trade blocs?
- improves foreign relations
- no tariffs or subsidies — more profits
- redistribution of wealth
- larger market
- less outside competition
Define what a switched on place is
Region strongly connected to other places through production and consumption of goods and services
Define what a switched off place is
Poorly connected place
Define privatisation
Transfer of assets from the public to private sector
Process towards moving away from a state-owned economy -> mixed economy
What is a business startup?
Grants and loans are often made available to new companies
What does SAP (SAP’s) stand for?
Structural adjustment programmes
Economic policies for developing countries such that have been promoted by the World Bank and IMF since the early 1980’s by the provision of loans conditional on the adoption of policies
What are the 4 barriers to trade?
- Tariffs
- quota
- embargo
- subsidies
What does SEZ’s offer?
- huge skilled workforce
- tax incentives
- factories
- technology / machinery
Define offshoring
Process of moving part of a companies own production process to another country
Define outsourcing
Process where a firm contracts with another company to obtain goods or services
— more flexible than offshoring
— TNC can quickly switch supplier if cheaper alternative is available
In what 2 ways can we measure globalisation?
- KOF Index
Measures globalisation along economic, social and political dimension for almost every country in the world since 1970
— economic globalisation
Cross border transactions and volume of FDI: actual flows, restrictions
Weighting 37%
— social globalisation
Expressed as spread of ideas - cross border contacts: calls, emails, tourists (information flows: tv, news)
Weighting 39%
— political globalisation
Membership of international organisations
Number of foreign embassies
Participation in international treaties
Weighting 24%
- AT Kearney Index
Looks at FDI confidence and the economy of cities - defines 4 main indicators from which to calculate its index
- political engagement
- technological connectivity
- personal contact
- economic integration
How is it ranked / scored?
Rank 1-64
Score 0-1
AT Kearney Index criticisms?
Smaller countries tend to take top spaces in the index due to higher proportion / importance of FDI, therefore suggesting an over importance or the size of the country
Define TNC
Transnational Corporation:
Operates in more than one country at a time
Distribution of TNC’s?
Headquarters:
HIC’s I.e USA
Manufacturing for them:
LIC’s I.e SE Asia
What is the role of TNC’s
- import / export goods
- make significant investment
- develop new markets
- production networks
Why are TNC’s so important for globalisation?
- Investment:
- jobs
- infrastructure: transport, education, factories etc - Production networks:
- connections between countries / exploitation of natural resources: more stock - Contract manufacturing:
- Nike; outsourcing to LIC / NEE
- jobs / profit — reinvest in other countries
- less expensive for TNC’s — no factory costs
Positive and negative impacts of TNC’s?
Positive:
- raised living standards
- technology transfer
- political stability
Negative:
- tax avoidance
- growing global inequalities
- environmental degradation
What 3 factors have led to the expansion of TNC’s globally?
- Motive:
- Profits maximised so reduced costs - Means:
- banking free flow of money globally, unrestricted flows of finance connects businesses and countries - Mobility:
- Faster + cheaper transport
- rapid communication
- improved production + technology
Why may TNC’s decisions be controversial?
Have little regard for workers conditions; production can be pulled easily to find a cheaper alternative
Pollution
Define global production networks
Where interconnected nodes and links extend spatially across national boundaries
Define reverse colonialism
After centuries of Eurocentric cultures exploiting the rest of the world, the rest of the world is now colonising these first world countries back
What is economic liberalisation?
- ending the monopoly provision of some services
- promoting free markets
- created competition in once restricted markets
Advantages and disadvantages of outsourcing to India
Advantages:
- some workers earn middle class incomes
Disadvantages:
- workers lost limbs due to poor health and safety
- pollution damages
Where are the 6 problems with outsourcing
- Cross-cultural differences
- Communication problems
- Cost vs value
- Offshore outsourcing cost
- Retention of key personnel
- Non compliance with gov regulations
Define glocalisation
Mixture of words globalisation and localisation
Products or services designed to benefit a local market whilst being developed and distributed on a local level
Define deindustrialisation
Removal of industrial activity resulting in social and economic problems
Define dereliction
State of having been abandoned or dilapidated
I.e Glasgow’s shipyard
I.e Sheffield suffered when it’s steelworks closed
Define contaminated
Containing hazardous substances which are bad for the environment-
- brownfield sites
What 3 main things does the closing of manufacturing jobs create in cities?
- Unemployment
30,000 jobs reliant UK - Depopulation
Due to factories closing many people leave the area
- old people / minorities left behind - Crime
Poverty / lack of money
- lack of funding for regeneration
Define mega city, how many are currently in the world?
Population > 10 million
24-27 depending on the source
Define a push factor
Factor that makes people want to leave their existing area
Define a pull factor
Factor that attracts people to an area
Define natural increase
When global population increases as
BR > DR
Examples of push and pull factors?
Push;
- poor healthcare
- lack of services
- crop failure
- conflict
Pull;
- goods jobs
- increased connectivity
- family ties
- higher QOL
Issues with mega cities?
- poverty
- lack of green spaces
- environmental pollution
- lack of taxes
- poorly built, rushed services
- lack of housing leading to slums
Define internal migration
Movement of population within a countrr
Define international migration
Movement of people between countries — immigration + emigration
Define economic migration
Migrant whose primary motivation is to seek employment / better employment
Define rural-urban migration
Moving from countryside to city within a country
Define urbanisation
Increase in proportion or people living in urban areas
Define intervening obstacles
Challenges to a migrant
Define centripetal migration
Moving towards the centre of an urban area
What social and environmental challenges are created by rapid urbanisation?
- lack of quality implemented services
- difficult access
- creation of slums
- lack of green spaces
- informal economy
Define global hubs
Settlement or wider regions providing a focal point for activities that have a global influence
I.e Tokyo, New York, London, Dubai
Name 4 types of connections global hub cities have
- Transport
- Communications
- Industrial
- Financial
Name the 3 types of population movement
- Elite internationals
- Low-wage international
- Internal (rural-urban)
Define remittances
Money received by migrants which is sent back home
What is global culture?
People from the same culture share common values and beliefs:
- religious beliefs, attitudes, morals, ethics
- shared language, art, dress, symbols
- various behavioural norms and laws
State the 5 cultural traits (LFCRT)
- Language
- Food
- Clothing
- Religion
- Traditions
Define cultural diffusion
Powerful civilisations have brought cultural change to other places for thousands of years
Happens as a result of globalisation
Define cultural traits
Culture can be broken down into individual component parts (LFCRT)
Define cultural imperialism
Practice of promoting the culture / language of one nation in another
Define soft power
Global influence a county derived from its culture, its political values and diplomacy
Define global homogenisation
Erosion of cultural diversity with everywhere becoming the same
Define westernisation
Joint role played by Europe and america bringing about cultural change
What influence does TNC’s have on global culture
Distribution of food, clothes and other goods has played a major part in shaping a common culture
What influence does migration / tourism have on global culture?
Tourists can bring about cultural change to places they visit
Migrants can affect the culture of an area, but the change may only be partial
By what methods has cultural diffusion been spread?
- Migrants
- Tourism
- TNC’s
- Global media
Example of global culture homogenising?
Globish
4 billion people speak Globish (basic English, 1500 words)
Globish isn’t replacing local languages but is learnt in conjunction to their native tongues
Define cultural erosion
Process of a culture losing many of its core elements — LFCRT
Define hyper globalisation, and name some advantages and disadvantages
Emergence of a largely westernised culture has resulted in global erosions
Advantages:
- breaks down language barriers
- freedom of expression
- reduced discrimination
Disadvantages:
- erosion of tradition
- exploitation of natural resources
What resistance / opposition is there to globalisation?
Environmental:
- exploitation of environmental laws
- air pollution
Social:
- gentrification
- exploitation
Economic:
- deindustrialisation; loss of jobs of local people
What kinds of people hold contrasting views about globalisation?
- hyper-globalisers
- transformationalists
- sceptics
What are single indicators and composite measures?
Single indicators:
Measures ones variable i.e life expectancy: easy to use and understand
Composite measures:
Consists of more than one development indicator I.e HDI takes into account life expectancy, GNI and years in education
What are the economic development indicators?
- Economic:
- GDP
- GNI
- Economic Sector Balance - Environmental:
- global urban ambient air pollution
- ecological footprint - Social:
- HDI
- GII (bender inequality index)
What is HDI?
Scale of 0-1;
0= less developed
1= more developed
Combination of life expectancy at north, income (GNI) and years in education
1st highest is Norway (0.957)
What is GII?
Scale of 1-0
1= most unequal
0= most equal
Combines reproductive health of women, their participation in the workforce and empowerment
What is the environmental quality index?
Measures how environmental quality decreases as economic development progresses:
- poorer air quality
- eutrophication
- deforestation
- quarrying
Define inequality
Where something is not shared equally within society or a country
What is the development gap?
Gap between rich and poor
Social and economic disparity between wealthy and poor
It can be between countries or within countries
Growing wealth divide can be measured by the Gini Coefficient
-mathematical measure which looks at wealth and whether it is easily spread across a nation
What does the Lorenz curve show?
Distribution of income
0= equal
1= unequal
I.e Sweden - 0.23
Botswana - 0.63
Latin America is the most unequal region in the world (0.52)
Asia and Europe the most (0.37) and (0.32) respectively
Who are the winners and losers of globalisation?
Winners:
- the elites
- TNC’s
- developed countries
Losers:
- isolated rural populations
- indigenous tribes
- sweatshop workers for TNC’s
How can we measure the environmental impact of globalisation?
Ecological footprints:
Ecological < planets bio = sustainable
Footprint Capacity
Define open borders
Border that enables free movement of people between different jurisdictions with limited restrictions
Define deregulation
Removal of regulations or restrictions
What is FDI?
Investment made by a company or individual in one country
Define diaspora
Dispersion or spread of any people from their original homeland
Define melting pot
Variety of people cultures or individuals who assimilate into a cohesive whole
I.e londons melting pot
Define extremism
Quality or state of being extreme
I.e trans-boundary water conflicts in Southeast Asia
What is the case for and against migration in London?
For:
- investment by migrants
- working population increased
- cultural diversity
Against:
- religious/ cultural tensions
- strain on resources
- cultural erosion
How has globalisation been controlled?
- Censorship
- Limiting immigration
- Trade protectionism
What is censorship:
Suppression of speech, public communication or other information
I.e in China
2 types:
- State-controlled; publishing or broadcasting via tv or radio is ran by official state media
- State-monitored; overseas contacts of media is monitored or censored including tv media etc
What is trade protectionism
Limiting trade between countries via tariffs on restricted goods, quotas /!; regulations that disadvantages foreign companies instead of domestic ones
Why protectionists believe there is a need:
- protect the economy
- protect their culture
- preserve their standard of living
Define natural resources
Material source of wealth — natural state and has economic balie
Define consumer society:
Buying and selling goods and services is the most important social and economic activity
Define ecological footprint
Crude management of the area of land or water required to provide a person with the energy, food and resources needed to live
Define water footprint
Measure of the amount of water used in the production and transport to market of food and commodities
Define carbon footprint
Amount of CO2 produced by an individual or activity
Define food miles
How far a product has travelled from its origin to its final destination
What are the benefits of local sourcing?
- cheaper - lower transport costs
- less CO2 emissions
- shorter lead times
- supports local economies
- isn’t reliant on other countries
Shay are the costs of local sourcing?
- may be of lower quality
- limited choice for local consumers
- higher prices for local products
- shortages of production at certain times
Define local sourcing
Where goods or products are sourced more locally
Define transition towns
Communities step up to address big challenges they face by starting local solutions
They seek to nurture a caring culture
Define fair trade
An ensured set of standards which are met in the production and supply of a product or ingredient.
For farmers and workers, fairer pay and better working conditions are guaranteed
What are 2 disadvantages of the fair trade scheme? (For producer and consumer)
- Producer:
As the scheme keeps growing, it becomes increasingly difficult to ensure profits are distributed properly to producers - Consumer:
Higher prices for ethical consumption is the trade-off of ensuring environmental degradation is minimised and working conditions for people are maximised
What is recycling?
Recycling materials from waste products reduces the extraction of new materials and decreases consumption and amount of waste sent to landfill
What is cultural diffusion?
Spread of cultural beliefs and social activities into different cultures
What is cultural erosion?
Reduction of a culture due to globalisation
What is cumulative causation?
Like a multiplier effect, “success begets success”. As the core regions increase in prosperity the periphery regions will too due to their links with the core
Define downward transition zones
A country or city with predicted economic decline, industrial reduction or switched off from globalisation i.e. Scotland, Cornwall
What does it mean to be a hyper-globaliser?
Someone who believes that globalisation and cultural diffusion is a positive process, which will lead to the formation of a homogenous culture (super, global culture)
What does a skeptic believe?
Someone who believed globalisation only occurs within a core, therefore anyone living outside of it will receive no benefits from globalisation
What do transformationalists believe?
That globalisation won’t lead to the formation of a homogenous culture. Instead, the flow of culture is two way
What is an upward transition zone?
A country or city with predicted industrial and economic increase I.e China, India
