Globalisation Flashcards
(181 cards)
1
Q
What is globalisation?
A
international interconnectedness and interdependence of people with an integration of economies, where there is a fundamental transformation of economic, social, political and cultural forces
-lengthening, deepening, faster connections
2
Q
What happens if there is a deeper depth of global connections?
A
country is more integrated
3
Q
What is a throwaway society?
A
society strongly influenced by consumerism
4
Q
What factors of globalisation lead to connections and interdependence
A
capital commodities information tourists migrants
5
Q
How has transport and trade interlinked in the 19th and 20th Centuries until now?
A
- constant feedback loop
-transport has allowed trade to grow - 19th Cent Ford and other manufacturers were able to export
- innovations in transport and trade:
19th Cent steam power, railways, telephone, telegraph,
20th Cent container ships, jet aircraft
6
Q
What are the four strands of globalisation?
A
economic, social , political, cultural globalisation
7
Q
What does spec say globalisation has accelerated due to?
A
rapid developments in
transport,
communications
and businesses.
8
Q
What has the 21st Century been dominated by leading to more globalisation (spec)?
A
rapid development
in ICT and global communication (mobile phones, internet,social networking, electronic banking, fibre optics),
therefore lowering communication costs and contributing to time-space compression.
9
Q
What helps economic globalisation?
A
TNCS, tech
10
Q
What helps social globalisation?
A
international immigration
improvement in healthcare and education
online connectivity
11
Q
What helps political globalisation?
A
trading blocs
World Bank, IMF, WTO
BRICs
MINT
12
Q
What is in Bretton Woods Agreement?
A
WTO, World Bank, IMF
13
Q
Difference between IMF and World Bank aims?
A
IMF wants to stabilise the world’s monetary system
World Bank wants to reduce poverty by providing assistance
14
Q
What system did IMF set up? Why?
A
system of fixed exchange rates with the dollar as the international currency
to ensure global economic stability
15
Q
What does World Bank do?
A
lend money often to developing countries to reduce poverty
16
Q
Controversial World Bank
A
SAPs
Economic before social development
17
Q
What does WTO do?
A
helps importers/exporters trade freely and smoothly w/ rules framework for trade agreements
18
Q
What are IMF, World Bank, WTO all?
A
IGOs
19
Q
5 trade blocs
A
EU OPEC ASEAN Mercosur NAFTA
20
Q
Who is in OPEC?
A
African, S American, Middle East countries
21
Q
Who is in ASEAN?
A
SE Asian countries (clue is in name)
22
Q
Who is in Mercosur
A
South American countries
Argentina, Brazil, Paraguay and Uruguay
23
Q
Who is in NAFTA?
A
Canada, Mexico, and the United States
24
Q
Advantages of free trade blocs
A
- helps developing countries
- no tariffs
- free borders
- large market
- promotes local goods
25
Cons of trade blocs
- hard to get out of
- loss of sovereignty
- interdependence
- comp
26
What does spec say national govs are key players in in terms of ....
- promoting free trade blocs
- polices (free-market liberalisation, privatisation,
encouraging business start-ups).
27
What does spec say WTO, IMF, World Bank have contributed to globalisation through the promotion of.....
free trade policies and
| foreign direct investment
28
What is free-market liberalisation/neoliberalism?
-removing government control and opening up the markets to privatisation, which will lead to capitalism, and therefore wealth
29
Characteristics of neoliberalism
```
privatisation
stopping regulation corruption
business start up encouragement
spending cuts, especially on welfare
free trade
integration into global economy
```
30
Why was deregulation of City of London 1986 beneficial?
made it world's leading global hub
31
How is neoliberalism imposed by IMF and World Bank?
SAPs
32
What are SAPs?
capitalist structural adjustment loans to remove gov controls and promote neoliberalism, with privatisation and lower tariffs, but cut health spending, leading to lower health status and social development
33
How has China changed its attitudes and economy? dates too
- 1970 poor
- 1976 Mao died
- 1978 Deng Xiaoping introduced Open Door Policy, leading to more privatisation
- 1980 joined World Bank and IMF, as well as four SEZs, bringing in FDI
- 1990 stock markets in Shanghai and Shenzhen opened up
- so in 90s, half a billion were lifted out of poverty
34
Is China completely open door?
YES - foreign TNCs can invest, FDI predicted over $1 trillion
NO - banning of foreign social media, only 34 foreign films screened p/year, strict controls on foreign TNCs
35
How has UK gov accelerated globalisation?
tax breaks +subsidies to companies who invest (most Canary Wharf companies given this)
subsidies to foreign manufacturing companies here
36
Four SEZ zones China 1980
Xiamen
Shenzhen
Zhuhai
Shantou
37
How has China accelerated globalisation?
open door policy 1978
welcomed foreign businesses ,as it needed Western tech
biggest recipient of FDI
investing in USA, EU, Africa
38
What are the diff types of FDI
offshoring
foreign mergers
foreign acquisitions
transfer pricing
39
What is offshoring
locating overseas for cheaper costs
40
Example of offshoring
Fender opened plant in Mexico in 1987
41
What is foreign acquisition
a TNC takes over company in another country
42
Example of foreign acquisition
2010 Kraft took over Cadbury
43
What is transfer pricing?
Companies put profit in lower taxed country for lower tax
44
Example of transfer pricing
Starbucks and Amazon have put profits through Ireland, (low taxed)
45
What is the KOF Index?
measures degree of globalisation with economic, social, political indicators
46
What are the two indexes that measure globalisation?
AT Kearney index,
| KOF index
47
Why is KOF Index perhaps not modern enough?
made in 1970
| factors such as TV ownership are less relevant
48
What type of globalisation does KOF Index put most weight on and least?
social
| least on political
49
Why does KOF Index perhaps not show USA and China as globalised and can be criticised for?
- they are more self-sufficient
| - so indicators such as barriers to trade may not be relevant
50
Indicators in KOF Index (2 for each type)
FDI
Barriers to trade
No of Embassies
No of UN Peace missions
TV Ownership
No of Mcdonald's Restaurants
51
What is the AT Kearney Index?
```
measures globalisation with four factors:
political engagement
technological connectivity
personal contact
economic integration
```
52
How is AT Kearney Index diff from KOF Index?
more holistic indicators, such as no of web servers rather than internet communications
53
Who were top 4 of AT Kearney Index 2015?
Sing.
Switz.
US
Ireland
54
What is the AT Kearney World Cities Index?
-a measure of how economically successful cities are
| and includes TNC headquarters, museums, embassies
55
Who was top 4 AT Kearney World Cities Index 2016?
London
NY
Paris
HK
56
Why do some areas remain switched off (physical)?
- poor agriculture
- land locked (Niger)
- natural hazard vulnerable (Mozambique)
57
Why do some areas remain switched off (human)?
- corruption
- lack of skills deters investment
- politically isolated (NK)
- low prices for food exports due to overproduction
- ethnic clashes between tribes (DRC) hinder progress
58
What is a global production network? Example?
chain of suppliers of parts and materials that contribute to production of goods
Apple
59
Diff between outsourcing and offshoring
Outsourcing is when work is carried out in another country
| offshoring is when it is overseas
60
How many suppliers does Kraft have for ingredients?
30,000
61
What is Just in Time?
companies lessen time between when product is produced, and when it is delivered, to cut costs
62
What is motive, means and mobility?
TNCS have shared motive to make money, and have the means to do so, and the mobility to carry goods and communicate
63
How have Taiwan, Vietnam, Kenya and the EU been influenced by globalisation?
- Taiwan had sweatshops in 60s due to change in gov, then increasing workers, wages, and most competitive survived (Acer), so their democracy helped them trade
- Vietnam has had Nike sweatshops so more children go school, higher wages, internal migration to South
- Kenya's gov has meant glob. is hindered, as people can't own land, export restrictions, black market, protectionism, sales tax, but phones have helped
- EU's lower tariffs on Kenya's flower exports has helped Kenya become leading flower exporter
64
Which two countries are good examples of how the global economic centre of gravity has shifted to Asia?
India
| China
65
Why has Apple opened its first development centre in India?
to develop Apple Maps
| high skilled yet cheap workers there
66
What will Apple's new development centre in India bring?
4000 new jobs
67
How much of the Indian IT industry does Bangalore have?
40%
68
How many workers does the Indian IT industry in Bangalore employ?
nearly 10 million
69
Benefits of global shift to India
- less unemployment
- call centre workers paid better
- economic growth by 6%/yr
- more billionaires than UK
- inspiring young entrepreneurs, such as EKO India Financial Services
- growing middle class w/ more disposable income
70
Costs of global shift on India
- overcrowding
- still 60% of Mumbai in slums, who cannot work in services
- widening income inequality
71
What percentage of the world's computers does China manufacture?
50%
72
Who is the largest recipient of FDI?
China
73
Benefits of global shift for China
- decreased poverty from 60% (1990) to 10%
- improved transport such as high speed rail between Beijing and Guangzhou
- more uni graduates
- more middle class w/ disposable income
74
Costs of global shift for China
- pollution of water (Chongqing 80/101 forbidden toxins in tap water
- air pollution = smog
- sweatshops violate human rights
- farmland degrading - 40%
75
Benefits of all global shift according to Spec 3.4a
```
infrastructure
investment
waged work
poverty reduction
education
training
```
76
Costs of global shift according to Spec 3.4a
loss of productive land
unplanned settlements
environmental and resource pressure
77
What have some communities in developing countries experienced due to global shift 3.4b
```
major environmental problems
including air and water
pollution
land degradation,
over-exploitation of resources
loss of biodiversity, which impact on people’s health and
wellbeing.
```
78
Some deindustrialised regions in developed countries face
| what social and environmental problems as a result of economic restructuring EQ2 3.4c
```
dereliction
contamination
depopulation
crime
high unemployment
```
79
What does the Clark Fischer Model show?
how different sectors (primary, secondary, tertiary, quaternary) rise and fall going through pre-industrial and post-industrial stages
80
What percentage of UK is tertiary ?
over 80%
81
Why has the UK economically restructured (shifting from a manufacturing to a service sector)?
- mechanisation
- deindustrialisation
- reindustrialisation
- tertiarisation
82
What was announced about Redcar steelworks?
Thailand's SSI announced it would be closing down
83
How many job losses from Redcar closing down?
2200, as well as 900 in the supply chain
84
What was Redcar named after it closed?
'ghost town'
85
What are threats to the UK steel industry?
- less demand
- competition from China who have lower prices
- high costs of energy production
- climate change policies adding costs
- not enough gov compensation
- EU rules restricting support
86
How much less is Chinese steel sold for?
300 less euros per tonne
87
Why do people believe it is important to save the British steel industry?
- steel is vital
- job losses - 18000, if gone
- detrimental impact on other sectors
88
What could the government do to save the British steel industry?
- cut energy costs
| - lessen other steel imports
89
What is a megacity?
a city that has more than 10 million people
90
Two terms for main causes for pop growth in megacities?
natural increase
| rural-urban migration
91
How many international migrants live in foreign countries?
250 million
92
What are million cities?
cities with pop over 1 million
93
Where are most megacities?
Asia have most
Americas
Middle
East
94
In which continent are megacities growing most rapidly?
Asia
95
What two resources have helped global hubs develop?
natural resources
| human resources
96
What are the natural resources that have helped global hubs develop?
oil
coastlines
low relief
good location
97
What are the human resources that have helped global hubs develop?
large labour forces
affluence attracts FDI
skilled labour
multi-lingualism
98
Three types of movement that have helped global hubs grow?
internal migration
elite international migrants migrating
low waged international migrants
99
How much of UAE's workforce is low skilled international migrants?
90%
100
Which country has invested in the Shard and Canary Wharf?
Qatar
101
What proportion of foreign residential purchases 2004-2014 were Russian?
a third
102
Benefits of migration to host region?
- less skill shortages
- migrants willingly pay more rent
- good form of soft powe
- diversity
103
Costs of migration to host region?
- social tensions can lead to rise of far right parties, who then support racist immigrant restrictions
- polarization
- over-dependence
- more greenhouse gas emissions (China)
104
Benefits of people migrating from source region?
- migrants return with new skills (Indian health clubs)
- remittances
- better policies to encourage people to come back
- industrial land used for farming again
105
How much of Nepal's national income in 2015 was remittances?
25%
106
Costs of people migrating from source region?
- less young, skilled people
- more international aid needed
- services close, such as nightclubs in Warsaw 2004
107
widening development gap extremities and disparities in
| environmental quality are a result of what process?
globalisation
108
What is development?
progress economically, environmentally, politically, culturally, socially
by improving quality of life
109
Economic Indicators of development
HDI
GNI
GDP
110
What does the development continuum show ?
how economic developed cities or countries are in comparison with each other
111
How are countries placed on a development continuum?
they are placed at points on this line
| least developed----------------------------most developed
112
What are the single economic indicators of development?
GNI
| GDP
113
What is GNI an acronym for ?
Gross National Income
114
What is GNI?
total goods and services produced per year + net income locally and internationally - payments to other countries
OR
total income of pop
115
What is GNI usually expressed as ?
per capita / person
116
How is GDP slightly different to GNI?
does not include foreign earnings
117
What is GDP sometimes expressed in which takes cost of living into account?
purchasing power parity
118
Why is GDP sometimes expressed in purchasing power parity?
low cost countries will have higher GDP as it is more equal
119
What is a composite economic indicator?
Economic Sector Balance
120
What is Economic Sector Balance? Example Vietnam
- what proportion the diff sectors have and how they contribute to GNI
- in Vietnam the secondary sector has risen when primary sector has fallen
121
Which model shows Economic Sector Balance?
Clark-Fischer Model
122
Four limitations of economic indicators of development?
- not always representative, as poverty in emerging countries decreases economic indicators, and elite could skew the GDP upwards
- not always accurate if there is large informal sector
- difficult to compare if PPP is not taken into account
123
Single social Indicators of development
```
Infant Mortality Rate
Literacy rates
Enrollment in schools
% Undernourished
Corruption Index
```
124
Composite social indicators of development
HDI
GII
Happy Planet Index
GINI coeffient
125
What does HDI rank countries according to?
Health
Education
Living Standards
126
What is used to measure health for HDI?
life expectancy
127
What is used to measure education for HDI?
mean years of schooling, expected years of schooling
128
What is used to measure living standards for HDI?
GNI per capita
129
What place is Australia's HDI globally?
2nd
130
What is the average years in education in Australia? (it's good)
12 years
131
What does GINI Coefficient show?
income inequality
132
What proportion of countries publish GNI, and why don't some publish it?
1/3
| reluctant
133
What is the diff between absolute poverty?
absolute is when you can't even meet basic needs.
| relative is when u can meet basic needs, but not to maintain the average standard of living
134
Is North Africa switched on or off to globalisation?
switched on
135
What has helped North Africa be switched on to globalisation?
- French outsourcing
136
Why has Africa been a loser of globalisation?
- slow income growth
| - inequality still in Sudan, Ethiopia, landlocked areas with politically corrupt governments
137
Is income inequality increasing or decreasing everywhere?
increasing
138
Pros of HDI
- composite indicator, so holistic approach
- shows the benefits of development to people
- enables comparisons over time, as it has been measured for over 150 years
139
Cons of HDI
- doesn’t consider environmental costs of development
- could be based on unreliable data, as some countries do not have sophisticated methods
- does not show inequality
140
What is GII an acronym for ?
gender income inequality
141
How does GII measure ?
reproductive health
empowerment
labour force participation rate
142
Which continents have most GII?
South America
South Asia
parts of Africa
143
Limitations of social indicators of development?
- hard to quantify some indicators like freedom of speech
- some are misleading for development, as e.g high death rate could still be in a developed country
- unreliable data in low income countries
144
How do we show inequality?
Lorenz Curve
| Gini Coefficient
145
Where is air pollution causing premature deaths?
Chongqing
146
Example of losing due to globalisation Bangladesh
mangroves cleared for prawns
147
What has forest cover decreased from and to on Negros, a Philippine Island?
90% to 4%
148
Why did Rio close Jardin Gramacho landfill?
leaking toxic waste onto bay
149
What was the landfill called that Rio closed to promote recycling?
Jardin Gramacho
150
Where is rubbish now managed in Rio?
Solid Waste Treatment Centre
151
Where are residents encouraged to put rubbish compared to before?
bins
| instead of around favelas
152
What principle have Rio made for recycling?
Reduce-Reuse-Recycle-Hold Liable
153
What have Rio started using the abundant algae for ?
fertiliser
154
What is the five tier system for immigration in the UK?
```
Tier 1 - high value
Tier 2 - skilled workers
Tier 3 - lower skilled workers
Tier 4 - students
Tier 5 - temporary workers
```
155
How has globalisation led to loss of control in goods on the Mekong River Delta?
- higher demand then supply, so there have been 2000 international disputes on who can use which part of the river, what they can do there
- so Mekong River Agreement set up
- transboundary conflict with dams, e.g China HEP dams economically develop area, but displaces Cambodians
156
When was the Mekong River Agreement set up?
1995
157
Who are Canada First Nations?
aboriginal Canadian group
158
How is Canada First Nations (aboriginal group in Canada) protecting the environment?
watch over endangered bears
note and stop changes in the area
negotiate treaties to reclaim land
159
Why does Canada First Nations negotiate treaties to reclaim land?
- it was originally Indigenous, but there were historical grievances of mismanagment
- believe people should live in harmony with the environment
160
What does Fairtrade advocate for?
fairer prices
better conditions
sustainability
fair terms of trade
161
How do people in the developed world have the power by buying Fairtrade?
helps address injustices the poorest producers face
162
Cons of Fairtrade (5)
- a lot to apply - 2004 Euros, so richer farmers benefit more
- sometimes goods, such as coffee, will be still still sold at lower market rates, as importers will simply not buy it otherwise
- farmers often still earn same income
- mixed reviews of fairtrade
- farmers cannot go up in sectors, as they only get Fairtrade Premium if they are producing the crops that locked them in poverty
- becoming harder to ensure money is distributed as Fairtrade grows
163
What did Green and Black's new bar in 2017 have on its label instead of another?
Cocoa Life certification instead of Fairtrade
164
Why is it okay that the Green and Black's new bar in 2017 had Cocoa Life on it?
- in partnership with Fairtrade
- still sustainable
- competitive prices
165
Con of Cocoa Life on Cadbury bars
not according to Fairtrade Standards of certification
166
What is the local sourcing solution?
sourcing products and services from local areas instead of internationally
167
Pros of local sourcing solution
- reduces carbon footprint with shorter supply chains
- benefits local suppliers
- local preferences more easily met
168
Cons of local sourcing solution
- business may become over-dependent on customer
- less economical development in not local places such as Ivory Coast
- can increase carbon footprint when tomatoes are grown in heated greenhouses
169
What is Todmorden trying to do?
local food for all
170
How is Todmorden promoting local sourcing solution?
- unpaid volunteers grow fruit and veg for everyone
- tours for over 1000 visitors
- free Harvest festival
- free talks - Stephen Barstow, world-famous author and grower
171
Why is Todmorden promoting local sourcing solution?
less food miles, more locally sustainable and beneficial, more people locally benefit with jobs
172
What event incited high fashion brands to be more ethical? Year?
Raza Plaza factory collapse 2013
173
What accord did H&M sign to be more ethical?
Bangladesh Safety Accord
174
What is the Bangladesh Safety Accord?
contract to make inspections of 1000 factories
175
How transparent have H&M been with partial supplier list?
transparent
176
What do campaigners want H&M to be more ethical?
better living wages for workers
177
Why is Topshop not ethical?
- led by Arcadia, who never signed up to the Bangladesh Accord in 2013, and never joined the Ethical Trading Initiative, which is a very basic step to be more ethical
178
How ethical has Zara been?
mixed - did compensate Bangladesh factory collapse victims and there are good trade unions
- but it is ambiguous how many clothes are made in Europe, and some argue Zara is one of the worst players in fast fashion
179
What do Gap and Nike do to prevent worker exploitation?
prohibit it
180
Why is it hard to monitor worker exploitation?
so many factories
| hard to control suppliers of suppliers
181
Two examples of how NGOs are helping be ethical
- Charity War on Want helped South African pickers
| - Tesco told farm it would use diff fruit supplier until conditions improved
