Topic 3 - EQ3 - Globalisation Flashcards
What features make a developed countries?
A country that has a high quality of life, developed economy (quaternary, quinary and tertiary sector work dominating) and advanced technological infrastructure relative to other less industrialized nations.
What is an example of a developed (HIC), emerging (NEE) and developing (LIC) country?
Developed - The Netherlands
Emerging - Mexico
Developing - Afghanistan
How is GNI used to measure development?
The value of goods and services earned by a country (including overseas earnings). GNI is used to measure development because it clearly measures wealth, if the wealth coming in has increased then it is likely that the quality of life of residents is better and thus the country has developed. Can be skewed if the wealth gap is huge.
What 4 international standards can be used to measure development internationally?
-USD $ (stable and important currency)
-Per capita (countries need to be balanced by population)
-Purchasing Power Parity (things cost different things in different countries so provides necessary context)
-Balance of economic sectors
What is GII?
Gender Inequality Index. A composite index combining reproductive health, empowerment and labour force participation.
What proves China has won economically from globalisation?
- Economic growth in China has outpaced its population growth, so China’s GDP per capita increase 14 times between 1990 and 2015
- Between 1980 and 2012 the development gap widened globally, but the gap between China and the USA closed by some degree
Is there a development gap?
Yes. There is a gap between advanced economies and newly industrialised Asian economy, and then the rest of the world’s economy. The most rapidly increasing economies (especially since 1988) are the newly industrialised Asian economies, however, every other economic region has developed (except for sub Saharan Africa). GDP per capita is over 30,000 USD different between these newly industrialised Asian economies and sub Saharan economies.
How are Sweden and Haiti different in development indicators?
GDI per capita = Over 60k Sv, less than 2k Haiti
HDI = >0.95 HDI Sv, less than 0.5 Haiti
GII = below 0.1 Sv, above 0.6 Haiti
Epi = low Sv, high Haiti
What patterns are there regarding the development gap?
The more developed countries have a higher HDI and a higher GDP per capita. Higher GDP per capita and higher HDI come together, and these come with a low GII and high EPI, service industry is bigger in Higher GDP per capita (more developed) regions.
What do Lorenz curves show?
Often trends are shown on a Lorenz Curve. Lorenz curves are used to graphically represent the distribution of income. The percentage of households is plotted on the x-axis, the percentage of income is on the y-axis. The curve represents income distribution. The line of equality shows what equal distribution of wealth would be like.
Why does the environment decline as countries develop to emerging?
The link between economic development and environmental quality is well established. Air pollution data show that environmental quality is often poor in developing and emerging economies. It usually improves as economic and social development occurs and places make the transition from industrial to post-industrial forms of economic activity. However, the transition from developing to emerging results in environmental decline. There are many causes, all linked to energy production, industrial processes and road transport. Emerging countries are likely to have large industrial sectors, which lead to declines in the environment, due to pollution as well as clearance of land and the exploitation of materials. Many developing to emerging countries have also used wood burning stoves.
Why does as a country reaches a high level of development pollution levels start to decline?
Most High Income Countries have improved their air quality by controlling vehicle emissions (London’s low emission zone) and by transferring manufacturing overseas (outsourcing the problem to places like China). Air pollution usually improves as economic and social development occurs and places make the transition from industrial to post-industrial forms of economic activity.
Who are the economic winners of globalisation?
Average incomes have risen in all continents since 1950, however, this has been slow in Sub Saharan Africa. The great gains made by European and N American nations over the same time resulted in the widening of the average income gap between people living in the world’s wealthiest and poorest countries, absolute poverty has however also fallen in most countries (some anomalies). Since the 1970s many counties have also advanced from low to middle income status showing a ‘three speed’ world of developed, emerging and developing countries. There is also a domestic divide within nations like China and Indonesia (divide has become more pronounced, despite many being better off than previous generations in these countries, they are getting poorer in relation to the rich.
What is the link between globalisation and rising tensions?
Globalisation has resulted in social, political and environmental tensions. This is because in recent years globalisation has rapidly increased, resulting in significant global changes.
Why is London described as a melting pot?
55% of the people in London born outside of the UK in last census. London has hundreds of languages spoken, a variety of food, music and culture from around the world and all this has melted together to create modern London.
How have open borders led to melting pots?
Open border policies, e.g. Schengen area agreement in a Europe, has led to people from different backgrounds being able to freely move to another country and bring their culture with them creating a melting pot of different nationalities. Post-2015 refugee crisis, borders in Europe are becoming more closed, e.g. Denmark and Sweden have implemented border checks between their two nations on the train from København and Malmö. However, as a general rule places are increasingly becoming melting pots as migration to other countries is becoming easier as a general rule.
How has freedom to invest in business or transfer capital led to a melting pot?
Individuals are free to invest without barriers, there are no restrictions and so there becomes an economic melting pot of businesses from around the world.
How has FDI led to a melting pot?
As businesses set up outside their home nations, people from that nation travel with the business for jobs abroad creating an expat culture and the melting of different cultures and nationalities together. E.g. London attracted 35% of all companies who moved their EU HQs to Europe. 88-89% of both Qatar and UAE are foreign workers.
