Topic 3: globalisation Flashcards
What is economic globalisation?
Global spread of foreign direct investment and growth in world trade
What is cultural globalisation?
Spread of culture, e.g. fast food chains like McDonald’s
What does demographic globalisation refer to?
Increasing migration and mixing of populations
What is political globalisation?
Expansion of international political organisations, e.g. EU
Define environmental globalisation.
Realisation that global environmental threats require global solutions
What is social globalisation?
International migration causing families to spread beyond borders and improvements in healthcare and education
What are the five main global flows?
- Capital
- Commodities
- Information
- Tourists
- Migrants
How much capital flowed through the stock market in 2013?
$5 trillion in exchange transactions a day
What has fueled the flow of manufactured goods?
Low tariffs
What role does the internet play in globalisation?
Allows information to be spread quickly and in real time
How have budget airlines affected tourism?
Increased tourism from high-income nations and emerging economies
What is time-space compression?
Heightened connectivity changes conception of time, distance, and barriers to migration
What is containerisation?
Standardisation of container ships making trade easier and more efficient
What is the significance of the commercial jet engine produced in the 1960s?
It accelerated global travel and trade
What are the advancements in transportation that have accelerated globalisation?
- Containerisation
- Aviation advancements
- Bullet trains
- Cars
- Canals
What is the digital economy?
Economy focused on e-businesses and e-commerce due to the internet
What is the predicted worth of the digital economy?
$1.5 trillion
What is a throwaway society?
A society that buys items and uses them only once
What is a tariff?
A tax imposed on imports
What is a subsidy?
Financial assistance to a business by government to make it competitive
What is a quota?
A limit on the quantity of a good that a country allows in
What does protectionism refer to?
Policies to protect businesses and workers by regulating trade with foreign nations
What is neoliberalism?
A political philosophy advocating free markets, free trade, and privatisation
What does GATT stand for?
General Agreement on Tariffs and Trade
What role does the World Bank play?
Finances economic development through loans to countries
What is the primary function of the IMF?
Lends money for development and encourages privatisation of governmental assets
What is the role of the WTO?
- Change laws for international purposes
- Advocate for free trade without subsidies or tariffs
- Encourage trade liberalisation
What is foreign direct investment (FDI)?
Investment in the form of capital, labour, commodities, or infrastructure
What are some factors that attract investors to a country?
- Stable government
- Low tariffs
- Large population
- Young, educated workforce
How does the Chinese Open Door Policy relate to FDI?
Allowed China to globalise while maintaining an authoritarian government
What is the multiplier effect?
Positive spin-offs from an initial investment in a region
What is the AT Kearney index?
Measures globalisation based on contact, political engagement, and technological integration
What are cash crops?
Crops sold to the global market for profit, e.g. coffee, cocoa, tea
What is the significance of the Doha development round?
Disagreements between emerging and developed economies regarding trade
What is the impact of trade blocs?
Facilitates the flow of goods, money, and sometimes workers across national boundaries
What is the relationship between the WTO and Pakistan’s fishing industry?
WTO rules forced Pakistan to open waters to foreign ships, hurting local fishermen
What are some examples of trade blocs?
- EU
- ASEAN
What is the significance of the Ghana cocoa trade in relation to trade blocs?
WTO rules affected Ghana’s ability to compete with subsidised farmers in the EU and USA
What is the role of tax breaks in encouraging investment?
Incentivises companies to invest in specific areas
What is the significance of the 1989 World Wide Web invention?
Marked the beginning of the digital economy
What are some effects of flexible employment laws?
- More people working from home
- More flexible work hours
- Increase in abnormal working hours
What is the race to the bottom?
Competition to deliver cheaper goods
What does the term ‘shrinking world’ refer to?
Distant places feel closer due to technological advancements
What is the significance of fibre optic cables in globalisation?
Enhance connectivity but are expensive and mostly accessible to MEDCs and emerging countries
What is the impact of online retail on traditional businesses?
Forced many traditional retailers to adapt or close
What is the main challenge faced by Ghana’s cocoa farmers due to WTO rules?
Inability to subsidise farmers led to competition issues
What changes occurred in the retail industry due to Amazon?
Shifted to online ordering and quick delivery, reshaping consumer habits
What is the predicted impact of trade agreements on employment in Vietnam?
Expected to create millions of jobs due to increased exports
What are SEZs in the context of FDI?
Special Economic Zones that attract foreign investment through relaxed regulations
What is the definition of cash crops?
Crops that you cannot live off but sell to the global market for a profit. Eg. Coffee, cocoa, tea.
Cash crops are typically grown for export rather than for local consumption.
Define the term ‘global hub’.
Settlement or area that is a focal point for activities that have a global influence.
Global hubs are crucial in the context of globalization.
What does the ‘multiplier effect’ refer to?
Positive spin-offs from an initial investment in the region. Eg. A café that caters to a new factory.
This effect illustrates how economic activity can stimulate further growth.
What is ‘cumulative causation’?
Why wealth is concentrated in certain areas, often due to globalization.
This concept explains the feedback loop that can lead to increasing disparities.
Fill in the blank: A _______ is a cluster of technologically innovative businesses and research institutes.
[technopole]
What are the three types of interconnectedness in places?
- Interconnected
- Interdependent
- Detached
These terms describe different levels of connection and reliance among places.
What are the reasons why Sub-Saharan Africa struggles to become attached to globalization?
- Physical challenges (e.g. warm climate, landlocked countries)
- Human challenges (e.g. unstable governments, low urbanization)
- Economic challenges (e.g. high government debt, dependence on particular industries)
These factors hinder Sub-Saharan Africa’s integration into the global economy.
What does offshoring refer to?
When a company moves part of its operations to another country, often because labor is cheaper.
This strategy is often employed to enhance profitability.
What is the ‘new economy’ characterized by?
When GDP is earned more through expertise, creativity, and services than through manufacturing goods.
This indicates a shift in economic focus towards knowledge-based industries.
What is ‘glocalisation’?
Changing the design of products to meet local tastes or laws.
Examples include Cadbury making chocolate sweeter in China.
What is the ‘index of multiple deprivation’ (IMD)?
A development indicator that shows how deprived an area is, split into quintiles (fifths).
IMD is used to assess relative deprivation across different regions.
What is a megacity?
A city with 10 million or more people.
Examples include Tokyo and New York City.
What are some push factors for rural to urban migration?
- Less regular, low-paying jobs
- Natural disasters
- Civil unrest and wars
- Fewer educational opportunities
These factors drive individuals to seek better conditions in urban areas.
What is the primary motivation for economic migrants?
To seek employment.
Economic migrants often leave their home countries for better job opportunities.
True or False: TNCs have existed for hundreds of years.
True
The East India Company is an early example of a transnational corporation (TNC).
What are some benefits of the global shift for emerging Asia?
- Creation of a new global middle class
- Reduction of poverty for 1 billion individuals
- Improved infrastructure
- Increased educational opportunities
These benefits highlight the positive impacts of globalization on economic development.
Describe the impact of the global shift on the environment in China.
- China produces 2912 million tonnes of carbon per year
- 50% of lakes and rivers are polluted
- Significant air pollution in urban areas
- Loss of biodiversity
These environmental challenges are significant consequences of rapid industrialization.
What is the primary focus of Lee’s model of migration?
The comparison of negative factors in the origin location versus positive factors at the destination.
This model helps to understand the decision-making process behind migration.
What percentage of international migrants are of working age?
74%
This demographic is crucial for many economies, particularly in host countries.
What is ‘deindustrialisation’?
The process of reducing industrial activity in a region, often leading to job losses and economic decline.
Deindustrialisation can have profound social and economic impacts on communities.
What are the consequences of urban overpopulation?
- Increased pollution
- Strain on public services
- Housing shortages
- Social tensions
These issues can escalate as urban areas become more densely populated.
Fill in the blank: A _______ is someone who fears persecution and seeks refuge in another country.
[asylum seeker]
What is a key characteristic of high wage migrants?
They are highly skilled, paid, and/or socially influential individuals.
High wage migrants often contribute significantly to the economies of host countries.
What percentage of the workforce in the UAE is made up of migrants?
90%
This highlights the significant reliance on migrant labor in the UAE.
What is the estimated amount of money returned to India in remittances from UAE migrants?
$1.5 billion
This demonstrates the financial impact of migration on home countries.
Define ‘globalisation’.
The process of adapting products to suit local tastes
Globalisation affects cultural exchange and economic relations.
What is cultural diffusion?
The spread of culture
It is a key concept in understanding how cultural traits are shared.
What does ‘cultural homogenisation’ refer to?
Every culture becoming the same
This is often a concern in discussions about global culture.
What is the Human Development Index (HDI)?
A composite indicator used to assess the wellbeing of a nation’s people
HDI incorporates various factors including life expectancy and education.
List three main economic indicators used to measure development.
- GDP per capita
- Purchasing Power Parity (PPP)
- Gender Inequality Index (GII)
These indicators provide a multifaceted view of economic health.
What does the Gini coefficient measure?
Income inequality within countries
A Gini coefficient of 1 indicates high inequality, while 0 indicates perfect equality.
True or False: The richest are getting richer while the poorest are maintaining their income.
False
The poorest are either maintaining or losing income.
What is ‘localism’ in the context of sustainable globalisation?
Aims to increase sustainability by buying local products
Localism helps reduce ecological footprints and supports local economies.
How has globalisation contributed to environmental issues?
- Overpopulation in urban areas
- Increased pollution
- Higher consumption of meat and dairy
- Increased plastic production
These factors strain resources and contribute to ecological degradation.
What are the three main challenges in sustainable globalisation?
- Food security
- Water security
- Energy usage
These challenges arise from rising populations and changing lifestyles.
Fill in the blank: The _______ curve is used to calculate the Gini coefficient.
Lorenz
The Lorenz curve visually represents wealth distribution in a population.
What is the role of Transnational Corporations (TNCs) in global culture?
They help to spread the culture of where they are based
TNCs influence local cultures through business practices and employment.
What is ‘cultural erosion’?
The loss of culture
This can occur due to external influences and globalization.
What is the significance of the Elephant Graph in globalization?
It illustrates income distribution trends among different socio-economic classes
The graph highlights the disparity between the rich and the poor.
List two examples of how globalisation can lead to tensions.
- Discrimination and prejudice
- Violence and antisocial behavior
These tensions often arise from cultural misunderstandings and economic disparities.
What does ‘resource nationalism’ mean?
The action taken by governments to assert control over natural resources
This can affect international trade and relations.
What is a common effect of censorship in state-controlled media?
Suppression of information considered politically unacceptable
This can lead to a lack of transparency and public awareness.
True or False: Globalisation has led to an increase in the number of diasporas.
True
Globalisation facilitates movement and cultural exchange, resulting in diverse diasporas.
What are the main reasons for limiting immigration mentioned?
- Physical barriers (e.g., walls)
- High tariffs on imports
- Censorship of information
These measures are often politically motivated to control population and economic dynamics.
What is the estimated population projection by the UN for 2050?
10 billion
This projection raises concerns about sustainability and resource management.
What are the negative aspects of using Purchasing Power Parity (PPP) as an economic indicator?
- Can create a false sense of economic security
- May misrepresent a country’s true economic state
These limitations can affect policy decisions based on economic data.
