3.2.1.1 globalisation Flashcards
factors in globalisation
- factors accelerate the flows + enable growth in globalisation
improvements in transportation
improvements in IT + communication
trade agreements + trade blocs
security relationships
financial systems
management systems
factors in globalisation- improvements in transportation
1800s
steam ships + trains along trade routes (Asia + Africa)
1960s
intercontinental Boeing 747 (Jumbo jet)- less expensive travel + increased flows of tourists
recently
containerisation- flows of goods (food) + merchandise
e.g. COSCO shipping vessels can transport 13,000 containers per ship
growth of low cost airlines, train travel
factors in globalisation- improvement in IT + communication
- internet= began as part of the scheme funded by US in Cold War
- early computer network= designed to link important research machines around the world –> now more connectivity (5 billion Facebook ‘likes’ every day (Broadband has helped this)
- lots of data flows across earth ocean floor through optic cables
factors in globalisation- trade agreements + trade blocs
- 3 main international organisations that act as ‘brokers’ of globalisation through free trade policies
1. IMF 2. World Bank 3. WTO = work towards free trade - Bretton Woods institution (WTO, IMF, world bank) –> persuade LICs to embrace free market economies, globalisation + adopt a western model of trade
- national governments promote growth of trade blocs
- trade agreements= trade freely with neighbours by allowing boundaries to be crossed freely
e.g. Mexico + USA= part of NAFTA etc
factors in globalisation- security relationships
- Breton Woods institution= established after WW2 in hope to make world politically secure —> avoid repeating shocks of 1920s + 80s + stabilise world economy.
-UN, EU + NAFTA- governments sought to promote world security + lessen chance of future conflict through co-operation of similar economies
factors in globalisation- financial systems
- IMF
- 1980s=financial systems were transformed due to policies from US + UK PM + President
- After 1980: belief that government intervention in markets impedes economic development
- restrictions lifted on way companies + banks operate
- de-regulation of London (1986) removed ‘red tape’ + helped London become Worlds leading global hub for financial services
-IMF channels large loans from rich nations to countries that need assistance in return countries must agree to run free market economies that are open to investment —> TNCs can then enter countries to establish there easier
factors in globalisation- management systems
- complicated global production networks (GPNs)
- part of global businesses e.g. Lidl, Samsung
GPNS - have extensive outsourcing + business partnership
- need to be managed by TNCs in same way team manages its players (each has a key role)
- over time national governments adapted economies to allow for GPNs, globalisation + global systems
e.g. China (1978) began ‘Open Door’ policy
what’s an alternative way to study geographies of globalisation?
KOF index
- measures: economic globalisation (36%) flows of capital + services
social globalisation (38%) spreads ideas, information, images, people
political globalisation (26%) diffusion of government policies
what enables/stops globalisation?
- 2009 financial crisis —> capital flows slowed
- wars/pandemics
- political choices e.g. Trump MAGA, trade restrictions etc
patterns of globalised activity?
- flows of skilled professionals on HICs mainly but recently also in NEEs (China + India)
- poorly paid/dangerous professions= mainly flowing between LICs + NEEs
*some places can be highly globalised in some ways + not others e.g. China has globalisation in trade but little social + cultural globalisation
global marketing summarise it
- marketing is selling + promoting goods + services e.g. Insta, TV, Collabs
- now it’s global as companies want to maximise their profits by maximising market size
- one single market- ultimate goal = sell same product, same way everywhere e.g. Coca Cola
—> this reduces cost
—> use same marketing formula globally (brand awareness) BUT consider local adaptations e.g. Walmart in China adapted to Chinese culture + ways —> glocalisation
global marketing- past, now + future
past
- 95% products= manufactured + consumed in US etc
- NEEs manufacture most + HICs consume most
now…
NEEs manufacture most + HICs consume most
Future..
Asia is main producer of products globally + will also consumer the products
what’s the most recognisable currency?
US dollar
what’s globalisation
process where national + regional economies, societies + cultures have become integrated through global network of trade, communication, immigration + transportation
what’s interdependence
our world is not in reality composed of nation states operating in international life of states + international area. Global governance is struggling to keep up with pace + extent of globalisation capital + trade flows, illegal + legal migration + technology changes
what’s shrinking world?
feels as if world is getting smaller we can get to places easier + faster
what’s time-space compression
feels like time is speeding up as technology improves and world is easier to travel and communicate around
globalisation- connections in people have..
- LENGTHENING- in distance over time —> goods + services are sourced from distant places
- DEEPENED- over time —> imported food + TV programmes etc now
- become FASTER over time e.g. FaceTime
what are the flows of globalisation?
flows are reasons globalisation exists
there’s glow of services, capital, labour, products + information
flows of globalisation- Capital summarise it
- flows of money for business, trade, investment, production
flows of globalisation- Capital what do IMF do
- IMF aims to secure financial stability, facilitate international trade, promote high employment + sustainable economic growth + reduce poverty
- stabilise loans with low interest= stabilise economies
- normally helps periphery countries
flows of globalisation- Capital what do world bank do
- give out loans for development or relief
- core country may give disaster relief (loan to aid response after disaster) to a periphery
- core may giver development loads for economic growth to periphery countries
flows of globalisation- Capital FDI, Bilateral aid, remittances
FDI- investments from core countries to periphery foreign countries to make lasting interest
Bilateral aid- money sent from core country to periphery to help that country
remittances- money transferred from workers in core regions back to home country (normally in periphery)
flows of globalisation- Capital migration + profits from TNCs
- migration from peripheral to core region contribute to workforce= money for economy
- profits from TNCs sent back to core region from periphery
