Unit 4 - Power, Places and Networks Flashcards
What is globalisation?
- the process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information an ideas, capital and goods
(- the increasing interdependence of countries (in terms of economic systems, physical systems, sociocultural systems, political systems))
What is the economic form of globalisation?
- accelerated by the growth of transnational corporations (TNCs)
What is the social form of globalisation?
- the impact of western culture, art, media, sport and leisure activities around the world
What is the political form of globalisation?
- the growth of western democracies and their influence on poor countries, and the opening up of centralised economies
What process is globalisation described as?
- process that erodes national boundaries, integrates national economies, cultures, technologies and governance and produces complex relations of mutual interdependence
What are the main features of the KOF Index of Globalisation?
- economic dimension
- social dimension
- political dimension
What are the main features of the EY Globalisation Index?
- openness to trade
- capital flows
- exchange of technology and ideas
- labour movements
- cultural integration
What are the main features of the New Globalisation Index?
- finance
- trade
- politics
- social
(- differs from the others since it measures the distance of goods traded and counts the number of refugees in a country)
What are superpowers?
- countries that influence policy on an international scale
What is soft power?
- the ability to change individuals, communities and nations without using force or coercion
(- culture, political values, foreign policies e.g. aid)
What is hard power?
-
Superpowers: What are the factors of geographical influence?
- large land/sea areas
- enough resources to be self sustaining if necessary
- large population
Superpowers: What are the factors of military influence?
- large ability to project power over the world
- large land, sea and air army which can be easily deployed
Superpowers: What are the factors of economic influence?
- large national economy (high GDP)
- high economic growth
- large number of companies (MNCs)
- economic self sufficiency
Superpowers: What are the factors of cultural influence?
- strong cultural influence over other nations
What is a loan?
- transfer of money or skills that require repayment over a set time
What are structural adjustment programmes?
- loans from the IMF requiring the borrowing country to cut its government expenditure, reduce state intervention in its economy, and promote liberalisation and international trade
What is the great advantage of remittances?
- go directly to migrants’ family/household and can be used for whatever purpose the household wishes
What forms of illegal flows are there?
- trafficked people
- counterfeit goods
- fraudulent medicines
- counterfeit food and drink
- drugs
What is Foreign Direct Investment?
- the investment by a company into the structures, equipment or organisations of a foreign country
What is a transnational company?
- an organisation that operates in a number of countries
What is a multi-governmental organisation?
- operate across a number of different states
What is a trading bloc?
- an arrangement between countries to allow free trade between member countries to impose tariffs on external countries that wish to trade with them
What are the advantages of FDI for an HIC?
- cheaper imports
- growth in LICs may lead to a demand for exports from HICs
- greater worker mobility to areas with relative scarcities of labour
- greater industrial efficiency
What are the advantages of FDI for a NICs and LICs?
- higher exported-generated income
- the effects can spread to local areas with many new, highly paid jobs
- negative trade balances can be reduced
- employment growth in relatively labour-intensive manufacturing spreads wealth
What are the disadvantages of FDI for an HIC?
- rising unemployment, especially of unskilled workers
- large gaps develop between skilled and unskilled workers
- job losses are invariably concentrated in certain areas and certain industries
- branch plants are particularly vulnerable
What are the disadvantages of FDI for a NICs and LICs?
- jobs tend to be concentrated in the core region of urban areas, leading to in-migration
- TNC’s may be exploitative and establish sweatshops
- overdependence on a narrow economic base can result
- food supplies may be reduced as people give up agriculture
What are free trade areas?
- areas where members abolish tariffs and quotas on trade between member nations but restrict imports from non-member countries
What are customs unions?
- free trade between members and all members operate a common external tariff on imports from abroad
- closer form of economic corporation
What are common markets?
- customs unions, which free trade in goods and services and allow free movement of people and capital
What are economic unions?
- groups of nations that allow free trade, free movement of people and capital and require members to have common policies on sectors of agriculture, industry and regional development
What are export processing zones?
- areas that offer incentives to foreign companies to develop export-oriented industries
What are free trade zones?
- areas where goods can be stores, manufactured and re-exported without custom duties (taxes)
What is the frictional effect of distance/distance decay?
- areas that are close together are usually more likely to interact with one another, whereas areas far apart are less likely to interact with one another
