[Unit 3: Enquiry Question 1] Flashcards
Globalisation
define Globalisation
the process by which the world is becoming increasing interconnected through economies, movement of goods, services and capital across borders. It is the widening and deepening of global connections
define Detached Location
Physical, political, economic and environmental reasons why some places remail largely detached from globalisation. They lack trade, FDI and TNCs.
state Political reasons why some places may be detached
places like North Korea have a “Junche” policy (self-sufficiency). This means minimising trade with other countries
The leader prohibits emigration making it difficult for TNCs to invest in the country. Regular folk have no access to internet or socials, meaning they are cut off from the world (they have no undersea data cables).
state Economic reasons why some places may be detached
Sahel Region have poor infrastructure & low literacy rates which isn’t attractive to TNCs. Currently the area is dominated by subsistence farming, so the economy can’t grow.
state Physical reasons why some places may be detached
countries in the Sahel region are landlocked and have poor roads which cause high transport costs to import or export goods, this repels TNCs from investing in the countries.
Himalayan countries are also physically detached. (and weather (environmentally))
Environmental reasons why some places may be detached
Sahel region is semi arid, so produces unreliable agricultural exports (climate change making this worse), meaning the TNCs are unwilling to invest in the uncertainty.
Other harsh conditions make countries unattractive to TNCs
Physical and human reasons for countries being detached
Resources controlled by foreign TNCs (sierra leone)
Infighting over resources (Sudan)
time-space compression
as travel times fall due to new inventions, different places approach each other in “space-time”: they begin to feel closer together than in the past. This is called the shrinking world effect. We are becoming a global village
List as many Transport inventions and their dates
1712 - steam engine
1886 - automobile
1903 - airplane
1929 - jet engine
1955 - containerisation
1960 - commercial jet aircraft
List as many communication inventions and their dates
1925 - TV
1957 - Satellite
1989 - WWW
undersea data cables
Why are TNCs put off from African countries
Corruption
Politically unstable
Negative Image
Unstable currencies
Debt (SAPs force cuts in government spending)
Why is Gambia detached
connections cut off, 35% pop have electricity
Limited resources
Not economically stable, nor reliable income
Limited in development and infrastructure
Opportunities The Gambia has for developing
Further tourism income
develop more industrial services to attract more FDI
Invest in education to stabilise future economy
Pursue agriculture development
define tariff
A tax imposed on imports
define subsidy
a financial assistance payment that supports a business or government to make it competitive or prevent collapse
define Quota
a limit on quantity of a good a country allows into the country
define Protectionism
policies to protect businesses and workers in a country by regulating trade with foreign nations
define Free-market economy
a market economy based on supply and demand with little government control
define Free trade
a policy where government does not interfere with imports or exports by applying tariffs, subsidies or quotas
define Privatisation
transferring ownership of a public service/property into private ownership run for profit
define Neoliberalism
political philosophy of free markets, free trade privitisation and increasing the role of business in society (less government). Making trade easier there will be more of it, meaning reduction of poverty
state Three players that impose SAPs
World Trade Organisation
International Monetary Fund
World Bank
What does the WTO do?
made rules of international trade and liberalizes it.
Gets countries to remove tariffs and subsidies.
(creates competition for home grown products, reducing local employment.)
If a country want a loan, they must agree to WTOs rules.
What does the IMF do?
Channels loans.
Recipients of loans must agree to run free market economies
(so TNCs can enter easier)
Originally formed to help countries stabilise after WW2 (to prevent communism).
It is USA controlled.
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