3.2.1.1 Globalisation Flashcards
(37 cards)
What is globalisation
The process by which national and regional economies, societies and cultures have become integrated through the global network of trade, communication, immigration and transport
What are the different flows linked with globalisation
- Information
- Capital
- Products
- Services
- Labour
What are flows of information
- Financial data, news of current events, spread of cultures
What causes increased flows of information
- Increased spread of the internet, email and social media
What is flows of capital
- Flows of money that is invested, to produce and income or increase a profit
What has caused increased flows of capital
- Improvements in Information and Communications Technology (ICT)
What is flows of products
- Flows of physical goods from one country to another
Why has flows of products changed
Low labour costs overseas has caused countries to move manufacturing there, causing an increasing in international trade for manufactured goods
What is flows of services
- Flows of non material goods, and instead providing an act, such as banking
Why has flows in services increased
- Improvement in ICT
- Deregulation of financial markets
- Deindustrialisation- more developed economies shifting to service sector
What are flows of labour
- Flows of people who participate in the workforce from one country to another
Why has flows of labour increased
- Conflicts
- Increased wages/QOL
- Better working conditions
- Better transport technology
What happened in 1980s to make the financial system more global
- Creation of the internet, allowed investors to get more information
- New financial products made, making investment less risky
- Financial deregulation- removed barriers
What is a core region
Central regions with high communications and high population density
What is a periphery region
A marginal or secondary area
What are the main flows from Core to Periphery regions
- FDI
- Remittances
- Core regions funding IMF and world bank, who give loans to periphery regions
- Capital flows of foreign aid
Main flows from Periphery regions to core regions
- Labour/migration
- Repatriation of TNC profits
- Loan repayments
What is the shrinking world theory (time/space compression)
The idea that as technology and ICT has improved, communications with faraway has become easier, as well as the time taken to travel long distances, making them effectively closer
What is a tariff
A tax or duty to be paid on a particular class of imports or exports
What is capitalism
An economic system in which a country’s trade/industry are controlled by private owners for profit
Summary of Globalisation 4.0
- Dominated by US and China
- Cyber world- digital economy
- Negative globalisation- climate change, depletion of resources, inequality
- Deglobalisation? Isolationism- MAGA
What are remittances
- Money or goods sent back to families (in origin countries) from migrants working abroad
How much sent home to Somalia in remittances per year
- $1.36Bn approx
How much of Somalia’s economy is made from remittances
25-45%
