causes of globalisation and why it has increased in recent decades Flashcards Preview

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1

what does globalisation mean?

the process by which national and regional economies, societies and cultures have become integrated through the global network of trade, communication, immigration and transportation.

2

what is interdependence

-the success of one place depending on the success of other places.
-countries which rely on each other to trade goods and services

3

what are flows and what are some examples?

flows are a pattern of movement
-goods: products and commodities
-capital: money (between banks, people, businesses and government)
-information: data transferred between business and people (often involving the internet)
-People: the flow of migrants and tourists from one part of the world to another

4

what are some forms of globalisation?

Economic globalisation: involves the growth of global TNC's.
Cultural globalisation: involves people increasingly doing similar things globally (food, style, music, values)
Political globalisation: dominance of western democracies in political and economic decision making
Demographic globalisation: occurs as migration and tourism increases: populations become more fluid and mixed
environmental globalisation: the realisation that global environmental threats require global solutions.

5

How have the key factors 'Transport and trade developments' helped to drive and accelerate globalisation.

They've encouraged growth in trade, as transporting goods and people around the world has become cheaper over time

6

what does trade mean?

the exchange of goods and services between people and companies (usually across borders)

7

what is meant by a shrinking world?

the idea that the world is so interconnected, that we feel closer in terms of travel time.

8

what is arguably the most important development in transportation?

shipping containers.
efficient and cheap ways of transporting consumer goods across the world.

9

how has communication revolutionised?

-the late 20th century and early 21st century have been dominated by developments in ICT (ie information and communication technologies- landline telephones and electric telegraph)
-mobile phones (mid-1990's)
-interent access (mid 1990's)- now 50% of population have interent access

10

what is time-space compression

the idea that the cost, in terms of time or money, of communication over distance has fallen rapidly.

11

what technology carries internet data across oceans?

subsea fibre optic cables

12

why is revolutionised mobile and internet communication important for businesses?

-keep in touch with all parts of their production
-transfer money and investments instantly
-instantly analyse data on sales, employees, or orders

13

what is a consequence of internet use in business mainly?

many interactions that were once 'face to face' or 'voice to voice' are now done without person to person interaction (i.e banking or shopping- moved online) putting skilled people out of jobs.

14

how has the pattern of global flows of exports and goods influenced globalisation

-increased trade (in late 70's and mid 90's)
-a huge growth in export trade after 2002
-a sharp dip in 2008-09 (global financial crisis
-return to normal export levels by 2011 but slow growth since.

15

In the past, how have countries protected their own industries and businesses?

-demanding payments of taxes and tariffs on imported goods, so making them more expensive than home-produced products
-setting quotas to limit the volume of imports, protecting home producers from foreign competition
-banning foreign firms operating services like banking
-restricting or banning foreign companies (FDI's or TNC's) from investing in their country

16

what is 'free trade'?

Trade that's free of taxes, tariffs and quotas)

17

what are FDI's

Foreign Direct Investments
when a business from one country invests in another such as opening a chain of shops or building factories.

18

what are the three main global organisations?

World trade organisation
international monetary funds
world bank

19

what does the world trade organisation do?

it is an international organisation that works to reduce trade barriers and create free trade. A series of global agreements have gradually reduced trade barriers and increased free trade.

20

what does the international monetary fund do?

since 1945, the IMF has worked to promote global economic and financial stability, and encouraging more open economies. part of this means encouraging developing countries to accept FDI and open up their economies to free trade. The IMF has been criticised for promoting a 'western' model of economic development that works in the interest of developed countries and their TNC'S.

21

What does the World Bank do?

the WB's role since 1944 has been to lend money to the developing world to fund economic development and reduce poverty. It has helped developing countries develop deeper ties to the global economy but has been criticised for having policies that out economic development before social development.

22

what are some ways governments can promote globalisation?

-joining free trade blocs such as the EU; allow free movement of people between countries
-open up market competition; moves towards free market liberations.
-privatisation; sold of industries (nationalised them)
-grants and loans made to new businesses.

23

what are free trade blocs?

an agreement between a group of countries to remove all barriers to trade e.g import/export taxes, tariffs and quotas

24

what is free market liberation?

refers to the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities

25

what are special economic zones?

A special economic zone is an area in which business and trade laws are different from the rest of the country so aim to attract foreign investment.

26

how to special economic zones attract FDI?

-they're tariff and quota free, manufactured goods can be exported no cost
-unions are usually banned so workers cannot strike or complain
-infrastructure is provided by government, so allow a subsidy for investors thus lowering their cost.
-environmental regulations are usually limited.

27

where's an example of special economic zones contributing hugely?

CHINA over the last 30 years
western consumers benefit from low-cost goods, however questions are raised on pay and working conditions.

28

what does the KOF index measure?

the degree of globalisation of countries on an annual basis.
measures 3 aspects of globalisation
Economic- trade and money flows
social- calls, tourist flows, media
political- embassies, number of IO's.

29

what does the AT Kearney index measure?

how economically successful a city is.

30

what are TNC's?

trans-national corporations
companies that operate in more that one country