Section A.1 - Globalisation Flashcards

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1
Q

Define globalisation

A

Process by which people, culture, finance, goods and information transfer between countries with few barriers

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2
Q

Define manufacturing

A

Production of products for use or sale using labour and machines

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3
Q

Define commodities

A

Products / goods that we all buy in shops, many of which were made in a different place

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4
Q

Define capital

A

Financial resources that businesses can use to fund their operations like cash,
machinery etc

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5
Q

Define GDP

A

Total value of goods produced and services provided in a country during one year

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6
Q

Define interdependency

A

State of being dependant on one another

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7
Q

Connections between countries are known as global flows: what are the 5 flows?

A
  1. Capital
    Money between people
  2. Commodities
    Goods we purchase
  3. Information
    Data transferred between businesses
  4. People
    Tourists, migrants from one place to another
  5. Migrants
    Permanent movement of people from one country to another
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8
Q

What are the 4 strands of globalisation?

A
  1. Economic globalisation
    - growth of TNC’s
    - information and communication tech
    - e-commerce and m-commerce
  2. Social globalisation
    - international immigration
    - global improvements in education healthcare
    - social interconnectivity
  3. Political globalisation
    - growth of trade blocs i.e EU, NAFTA
    - global concerns i.e credit crunch
    - organisations i.e IMF, WTO, World Bank
  4. Cultural globalisation
    - successful western traits dominate
    - glocalisation and hybridisation
    - circulation of ideas and info
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9
Q

Define interdependence

A

Success of one country is dependant on the success of anotjer

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10
Q

What is time-space-compression?

A

Messages can be obtained much quicker now. Things feels much closer as we can access them much faster

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11
Q

Advantages and disadvantages of globalisation

A

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
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12
Q

What has accelerated globalisation in the past and led to a ‘shrinking world’?

A
  1. Steam power: 1800’s
    Britain became leading world power in 1800s using steam technology
  2. Railways: 1800’s
    By 1904, 9000km trans-Siberian railway connected China with Japan
    HS2 will halve journey times
  3. Jet aircraft: 1960’s
    Boeing 747 in 1960’s made international travel easier
    Expansion of cheap flights industry
  4. Container shipping: 1950’s
    200 million individual container movements take place each year

These have contributed to a ‘shrinking world’

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13
Q

What is containerisation

A

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

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14
Q

Why is trade key to globalisation?

A

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

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15
Q

How technology aids the 4 global strands for globalisation

A
  1. Economic globalisation
    - ICT allows managers to keep in touch more easily from remote locations
  2. Social globalisation
    - Maintaining long distance relationships through ICT use
  3. Cultural globalisation
    - cultural traits I.e language or music are adopted, imitated, hybridised faster than before
  4. Political globalisation
    - social networks used to raise awareness for fighting to change political issues on a global scale
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16
Q

Mobile phone Revolution?

A

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

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17
Q

Define tariff

A

Tax imposed on imports

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18
Q

Define subsidy

A

Financial assistance to a business by government go make it competitive or prevent collapse

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19
Q

Define quota

A

Limit on quantity of a good allowed into a country

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20
Q

Define protectionism

A

Policies to protect businesses and workers in a country by restricting / regulating trade with foreign countries

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21
Q

Define free market economy

A

Market economy based on supply and demand with little Gov control

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22
Q

Define free trade

A

Gov policy where there is no interference with exports or imports by applying tariffs, subsidies or quotas

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23
Q

Define privatisation

A

Transferring ownership of a public service / agency / property into private ownership run for profit

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24
Q

Define neoliberalism

A

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

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25
Q

Do all countries have same ability to attract investment?

A

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
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26
Q

Name of 3 key global players who advocate trade, financial stability, protectionism and to end poverty?

A
  1. WTO (world trade organisation):
    162 countries involved in 2016
    - aims for free trade between members without subsidies / tariffs (barriers)
    - trade liberalisation
  2. IMF (international monetary fund):
    188 members pay money into it — gives loans to countries
    Holds $755 billion
  3. 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
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27
Q

Define subsidies

A

Grants given by governments to increase the profitability of meg industries

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28
Q

What is FDI?

A

Foreign Direct Investment:
Investment made by overseas company

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29
Q

What is SEZ

A

Special Economic Zone:
Set up by national governments to offer financial or tax incentives to attract FDI

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30
Q

What does EPZ stand for?

A

Export Processing Zone

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31
Q

Advantages of trade blocs?

A
  • improves foreign relations
  • no tariffs or subsidies — more profits
  • redistribution of wealth
  • larger market
  • less outside competition
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32
Q

Define what a switched on place is

A

Region strongly connected to other places through production and consumption of goods and services

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33
Q

Define what a switched off place is

A

Poorly connected place

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34
Q

Define privatisation

A

Transfer of assets from the public to private sector

Process towards moving away from a state-owned economy -> mixed economy

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35
Q

What is a business startup?

A

Grants and loans are often made available to new companies

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36
Q

What does SAP (SAP’s) stand for?

A

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

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37
Q

What are the 4 barriers to trade?

A
  • Tariffs
  • quota
  • embargo
  • subsidies
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38
Q

What does SEZ’s offer?

A
  • huge skilled workforce
  • tax incentives
  • factories
  • technology / machinery
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39
Q

Define offshoring

A

Process of moving part of a companies own production process to another country

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40
Q

Define outsourcing

A

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

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41
Q

In what 2 ways can we measure globalisation?

A
  1. 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%

  1. 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

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42
Q

AT Kearney Index criticisms?

A

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

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43
Q

Define TNC

A

Transnational Corporation:
Operates in more than one country at a time

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44
Q

Distribution of TNC’s?

A

Headquarters:
HIC’s I.e USA

Manufacturing for them:
LIC’s I.e SE Asia

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45
Q

What is the role of TNC’s

A
  • import / export goods
  • make significant investment
  • develop new markets
  • production networks
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46
Q

Why are TNC’s so important for globalisation?

A
  1. Investment:
    - jobs
    - infrastructure: transport, education, factories etc
  2. Production networks:
    - connections between countries / exploitation of natural resources: more stock
  3. Contract manufacturing:
    - Nike; outsourcing to LIC / NEE
    - jobs / profit — reinvest in other countries
    - less expensive for TNC’s — no factory costs
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47
Q

Positive and negative impacts of TNC’s?

A

Positive:
- raised living standards
- technology transfer
- political stability

Negative:
- tax avoidance
- growing global inequalities
- environmental degradation

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48
Q

What 3 factors have led to the expansion of TNC’s globally?

A
  1. Motive:
    - Profits maximised so reduced costs
  2. Means:
    - banking free flow of money globally, unrestricted flows of finance connects businesses and countries
  3. Mobility:
    - Faster + cheaper transport
    - rapid communication
    - improved production + technology
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49
Q

Why may TNC’s decisions be controversial?

A

Have little regard for workers conditions; production can be pulled easily to find a cheaper alternative

Pollution

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50
Q

Define global production networks

A

Where interconnected nodes and links extend spatially across national boundaries

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51
Q

Define reverse colonialism

A

After centuries of Eurocentric cultures exploiting the rest of the world, the rest of the world is now colonising these first world countries back

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52
Q

What is economic liberalisation?

A
  • ending the monopoly provision of some services
  • promoting free markets
  • created competition in once restricted markets
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53
Q

Advantages and disadvantages of outsourcing to India

A

Advantages:
- some workers earn middle class incomes

Disadvantages:
- workers lost limbs due to poor health and safety
- pollution damages

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54
Q

Where are the 6 problems with outsourcing

A
  1. Cross-cultural differences
  2. Communication problems
  3. Cost vs value
  4. Offshore outsourcing cost
  5. Retention of key personnel
  6. Non compliance with gov regulations
55
Q

Define glocalisation

A

Mixture of words globalisation and localisation

Products or services designed to benefit a local market whilst being developed and distributed on a local level

56
Q

Define deindustrialisation

A

Removal of industrial activity resulting in social and economic problems

57
Q

Define dereliction

A

State of having been abandoned or dilapidated

I.e Glasgow’s shipyard
I.e Sheffield suffered when it’s steelworks closed

58
Q

Define contaminated

A

Containing hazardous substances which are bad for the environment-
- brownfield sites

59
Q

What 3 main things does the closing of manufacturing jobs create in cities?

A
  1. Unemployment
    30,000 jobs reliant UK
  2. Depopulation
    Due to factories closing many people leave the area
    - old people / minorities left behind
  3. Crime
    Poverty / lack of money
    - lack of funding for regeneration
60
Q

Define mega city, how many are currently in the world?

A

Population > 10 million

24-27 depending on the source

61
Q

Define a push factor

A

Factor that makes people want to leave their existing area

62
Q

Define a pull factor

A

Factor that attracts people to an area

63
Q

Define natural increase

A

When global population increases as
BR > DR

64
Q

Examples of push and pull factors?

A

Push;
- poor healthcare
- lack of services
- crop failure
- conflict

Pull;
- goods jobs
- increased connectivity
- family ties
- higher QOL

65
Q

Issues with mega cities?

A
  • poverty
  • lack of green spaces
  • environmental pollution
  • lack of taxes
  • poorly built, rushed services
  • lack of housing leading to slums
66
Q

Define internal migration

A

Movement of population within a countrr

67
Q

Define international migration

A

Movement of people between countries — immigration + emigration

68
Q

Define economic migration

A

Migrant whose primary motivation is to seek employment / better employment

69
Q

Define rural-urban migration

A

Moving from countryside to city within a country

70
Q

Define urbanisation

A

Increase in proportion or people living in urban areas

71
Q

Define intervening obstacles

A

Challenges to a migrant

72
Q

Define centripetal migration

A

Moving towards the centre of an urban area

73
Q

What social and environmental challenges are created by rapid urbanisation?

A
  • lack of quality implemented services
  • difficult access
  • creation of slums
  • lack of green spaces
  • informal economy
74
Q

Define global hubs

A

Settlement or wider regions providing a focal point for activities that have a global influence

I.e Tokyo, New York, London, Dubai

75
Q

Name 4 types of connections global hub cities have

A
  1. Transport
  2. Communications
  3. Industrial
  4. Financial
76
Q

Name the 3 types of population movement

A
  1. Elite internationals
  2. Low-wage international
  3. Internal (rural-urban)
77
Q

Define remittances

A

Money received by migrants which is sent back home

78
Q

What is global culture?

A

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
79
Q

State the 5 cultural traits (LFCRT)

A
  1. Language
  2. Food
  3. Clothing
  4. Religion
  5. Traditions
80
Q

Define cultural diffusion

A

Powerful civilisations have brought cultural change to other places for thousands of years

Happens as a result of globalisation

81
Q

Define cultural traits

A

Culture can be broken down into individual component parts (LFCRT)

82
Q

Define cultural imperialism

A

Practice of promoting the culture / language of one nation in another

83
Q

Define soft power

A

Global influence a county derived from its culture, its political values and diplomacy

84
Q

Define global homogenisation

A

Erosion of cultural diversity with everywhere becoming the same

85
Q

Define westernisation

A

Joint role played by Europe and america bringing about cultural change

86
Q

What influence does TNC’s have on global culture

A

Distribution of food, clothes and other goods has played a major part in shaping a common culture

87
Q

What influence does migration / tourism have on global culture?

A

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

88
Q

By what methods has cultural diffusion been spread?

A
  1. Migrants
  2. Tourism
  3. TNC’s
  4. Global media
89
Q

Example of global culture homogenising?

A

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

90
Q

Define cultural erosion

A

Process of a culture losing many of its core elements — LFCRT

91
Q

Define hyper globalisation, and name some advantages and disadvantages

A

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

92
Q

What resistance / opposition is there to globalisation?

A

Environmental:

  • exploitation of environmental laws
  • air pollution

Social:
- gentrification
- exploitation

Economic:
- deindustrialisation; loss of jobs of local people

93
Q

What kinds of people hold contrasting views about globalisation?

A
  • hyper-globalisers
  • transformationalists
  • sceptics
94
Q

What are single indicators and composite measures?

A

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

95
Q

What are the economic development indicators?

A
  1. Economic:
    - GDP
    - GNI
    - Economic Sector Balance
  2. Environmental:
    - global urban ambient air pollution
    - ecological footprint
  3. Social:
    - HDI
    - GII (bender inequality index)
96
Q

What is HDI?

A

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)

97
Q

What is GII?

A

Scale of 1-0
1= most unequal
0= most equal

Combines reproductive health of women, their participation in the workforce and empowerment

98
Q

What is the environmental quality index?

A

Measures how environmental quality decreases as economic development progresses:

  • poorer air quality
  • eutrophication
  • deforestation
  • quarrying
99
Q

Define inequality

A

Where something is not shared equally within society or a country

100
Q

What is the development gap?

A

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

101
Q

What does the Lorenz curve show?

A

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

102
Q

Who are the winners and losers of globalisation?

A

Winners:
- the elites
- TNC’s
- developed countries

Losers:
- isolated rural populations
- indigenous tribes
- sweatshop workers for TNC’s

103
Q

How can we measure the environmental impact of globalisation?

A

Ecological footprints:

Ecological < planets bio = sustainable
Footprint Capacity

104
Q

Define open borders

A

Border that enables free movement of people between different jurisdictions with limited restrictions

105
Q

Define deregulation

A

Removal of regulations or restrictions

106
Q

What is FDI?

A

Investment made by a company or individual in one country

107
Q

Define diaspora

A

Dispersion or spread of any people from their original homeland

108
Q

Define melting pot

A

Variety of people cultures or individuals who assimilate into a cohesive whole

I.e londons melting pot

109
Q

Define extremism

A

Quality or state of being extreme

I.e trans-boundary water conflicts in Southeast Asia

110
Q

What is the case for and against migration in London?

A

For:
- investment by migrants
- working population increased
- cultural diversity

Against:
- religious/ cultural tensions
- strain on resources
- cultural erosion

111
Q

How has globalisation been controlled?

A
  1. Censorship
  2. Limiting immigration
  3. Trade protectionism
112
Q

What is censorship:

A

Suppression of speech, public communication or other information

I.e in China

2 types:

  1. State-controlled; publishing or broadcasting via tv or radio is ran by official state media
  2. State-monitored; overseas contacts of media is monitored or censored including tv media etc
113
Q

What is trade protectionism

A

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

114
Q

Define natural resources

A

Material source of wealth — natural state and has economic balie

115
Q

Define consumer society:

A

Buying and selling goods and services is the most important social and economic activity

116
Q

Define ecological footprint

A

Crude management of the area of land or water required to provide a person with the energy, food and resources needed to live

117
Q

Define water footprint

A

Measure of the amount of water used in the production and transport to market of food and commodities

118
Q

Define carbon footprint

A

Amount of CO2 produced by an individual or activity

119
Q

Define food miles

A

How far a product has travelled from its origin to its final destination

120
Q

What are the benefits of local sourcing?

A
  • cheaper - lower transport costs
  • less CO2 emissions
  • shorter lead times
  • supports local economies
  • isn’t reliant on other countries
121
Q

Shay are the costs of local sourcing?

A
  • may be of lower quality
  • limited choice for local consumers
  • higher prices for local products
  • shortages of production at certain times
122
Q

Define local sourcing

A

Where goods or products are sourced more locally

123
Q

Define transition towns

A

Communities step up to address big challenges they face by starting local solutions
They seek to nurture a caring culture

124
Q

Define fair trade

A

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

125
Q

What are 2 disadvantages of the fair trade scheme? (For producer and consumer)

A
  1. Producer:
    As the scheme keeps growing, it becomes increasingly difficult to ensure profits are distributed properly to producers
  2. Consumer:
    Higher prices for ethical consumption is the trade-off of ensuring environmental degradation is minimised and working conditions for people are maximised
126
Q

What is recycling?

A

Recycling materials from waste products reduces the extraction of new materials and decreases consumption and amount of waste sent to landfill

127
Q

What is cultural diffusion?

A

Spread of cultural beliefs and social activities into different cultures

128
Q

What is cultural erosion?

A

Reduction of a culture due to globalisation

129
Q

What is cumulative causation?

A

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

130
Q

Define downward transition zones

A

A country or city with predicted economic decline, industrial reduction or switched off from globalisation i.e. Scotland, Cornwall

131
Q

What does it mean to be a hyper-globaliser?

A

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)

132
Q

What does a skeptic believe?

A

Someone who believed globalisation only occurs within a core, therefore anyone living outside of it will receive no benefits from globalisation

133
Q

What do transformationalists believe?

A

That globalisation won’t lead to the formation of a homogenous culture. Instead, the flow of culture is two way

134
Q

What is an upward transition zone?

A

A country or city with predicted industrial and economic increase I.e China, India