Yr12 UCAS Globalisation Flashcards
globalisation definition
the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services, freer international capital flows and more rapid and widespread diffusion in technology
what factors have accelerated the process of globalisation
TNCs, Lower Transport Costs, Computer and Internet Technology, International Organisations, New markets
what is containerisation
a method in which goods and products are transported in containers, meaning that they can easily be transferred on and off ships onto trains or lorries
what is the role of the world bank
to provide loans in order to help rebuild economies as well as to alleviate poverty
what are the aims of the world bank
to reduce the % of people living on less than $1.25 a day to no more than 3% of the world’s population by 2030, as well as reduce inequalities by encouraging income growth for the bottom 40% of every country
what is the WTO
the World Trade Organisation, its role is to reduce tariff in order to allow the standardisation of products, reduction of trade barriers and the elimination of preferences, established in 1995
what is the IMF
the International Monetary Fund, to help governments balance their payments when they are suffering from economic difficulties, gives out loans to its member countries that are unable to pay off their debts
what is FDI
Foreign direct investment
what is privatisation
transferring ownership of a business, agency, service or property from the public sector (government controlled) to the private sector, governments do it as they believe that rules make businesses inefficient and reduce motivation and innovation
what are the advantages of trade blocs
Protection from Foreign Competitors and Political Stability, National firms can merge to form TNCs, Bigger markets but no extra taxes
what are the disadvantages of Trade Blocs
loss of Sovereignty, increase in interdependence, Compromise and Concession
what are special economic zones
areas of land set aside by governments in locations well-placed for international trade, companies can import raw materials and export finished products from these zones, without incurring common domestic taxes e.g China set up 4 in open door policy 1980
What is the KOF Globalisation Index
measures the extent that countries are socially, politically and economically linked to others. Considers political factors, but its major weakness is that data from some countries is not available
what is AT Kearney
produces a Global Cities index which uses measures of business activity, human capital, information exchange, cultural experience and political engagement to rank cities
what is the IMF Annual Report on Exchange Arrangements and Exchange Restrictions
records the existence of restrictions to trade in different countries.
what is the role of TNCs in globalisation
link together different national markets through their supply chains and marketing strategies, they partake in offshoring and outsourcing
what is offshoring
where a company moves parts of its operation to other countries due to cheaper labour costs, or for lower taxes and tariffs
what is outsourcing
where a business makes a contract with another company to complete some of the work, rather than doing within the company
what is glocalisation
adapting the goods or services of a business to increase consumer appeal in different local markets
environmental reasons for global isolation
distance from market, wilderness (desert), low agricultural potential, lack of energy and mineral deposits
political reasons for global isolation
corruption and presence of organised crime/ terrorist groups, weak commitment from the government to develop, civil or tribal conflict, exclusion from trade blocs
economic reasons for global isolation
high level of government debt, weak education levels and poor workforce skills, poor transport and telecommunications infrastructure, dependence on particular industries
push factors of rural to urban migration
increasing use of technologies so less need of manual workers, young people don’t want to farm, increase pop means less land for everyone, education and health standards lower
pull factors of rural to urban migration
better jobs in cities, better facilities in cities, increased quality of life, most migrants know people in the cities
what are the benefits of migration for the source country
reduced pressure on welfare spending, money is sent back, returning migrants bring professional social and political experience
costs for source country
skills shortages in key areas of the economy, demographic imbalance ( reduced birth rate and higher dependency ratios), depopulation leading to dereliction
benefits for the host country
filling of skills shortages, migrants contribute to the economy as consumers, more taxpaying workers
costs for host country
need for extra school and health services (130,000 more primary schools needed), pressures on the rented section of the housing market
what are hyper-globalisers
believe that globalisation is a successful process, think that one day the world will become a homogenous culture
what are transformalists
they don’t think that its inevitable that the world will move towards a homogenous culture, new hybrid cultures will emerge
what are sceptics
globalisation only includes the richer core capital economies and reflects their interdependence, there is marginalisation of other poorer groups and their cultures
what are indicators of development
freedom of speech and political voice, conflict and corruption, quality of the environment, equality of opportunity, individual perception, sustainability, religion and respect for tradition
what is the gender equality index
measures gender disparity, it has three dimensions that are reproductive health, empowerment and labour market participation
what is the Air pollution index
measures quantities of Sulphur Dioxide, nitrogen dioxide, carbon monoxide and Ozone, if it exceeds 500 a state of emergency is declared
what is the Gini Coefficient
a number between 1 and 0 that measures the degree of inequality, in the distribution of income or wealth, 0 is good
what is trade protectionism
the economic policy of limiting trade between countries through tariffs on imported goods, restrictive quotas and regulations that disadvantage foreign companies compared to domestic ones.
