EQ1 Flashcards
How does globalisation explain a positive changing world? (4 marks)
+ve:
Interdependence allows both sides to benefit e.g. Angola’s housing development built by Chinese for oil
More people connected to global flows through increased globalisation, more consumers get purchasing parity power
More capital generated, more global economy advances e.g. more richer countries invest in new innovations, focus on green renewables
How does globalisation explain a negative changing world? (4marks)
-ve:
May not be fair trade e.g. China’s poor manufacturing standard, exploiting Angola’s need for infrastructure
Low income countries may not benefit as much as other countries, especially if not connected to global flows
Developing countries can be left behind if they cannot afford the newer innovations and keep up with the global shift in the market to e.g. renewables, creates wider gap. This contributes to a shrinking world and stops the widening and deepening of global connections
What does a more interconnected world mean?
- more cultural differences
- interdependence
- glocalisation
- more global access to flows, more consumers
- more goods exporting and importing, increases GDP, increases travel and flow of people and increases capital
What does a shrinking world mean?
- time space compression
- as technology improves, time is shrinking as everything becomes faster
- rapid development in IT and mobile communications, lower communication costs
How has developments in transport and trade in the 19th century contributed to a shrinking world? (4marks)
The development of telegraph, steam ships helped accelerate the shrinking world allowing transboundary communication and trading of goods. Empires caused globalisation and because of the widespread impact on trade. Britain developed railways and cross ocean communication, allowing trade to be set up eg.g East India Trading Company
How is globalisation and the shrinking world unique to the 20th/ 21st Century? (4 marks)
More intermodal developments in LEDCs due to FDI contributing to widening world due to more connections. More opportunities for startups due to vast number of consumers. In the past, only Britain benefited from developments. Now, it has accelerate significantly and now has a massive impact such as fibre optics causing time space compression. More cheaper airlines e.g EasyJet increases connectivity and flow of people. FDI allows airports to be built in LEDCs. TNCs can take advantage of self employed businesses and work on zero hour contract
Some facts about developments of trade and transport
- containerised shipping arrived in 1950s
- telegraph cable appeared in 1860s
- 200 million contained movements each year
- ## 9000km long trans Siberian railway
What was the role of the International Monetary Fund on Pakistan?
- in past Pakistan has had 12 IMF programmes since 1988- overall receiving £18.9bn
- due to corruption, this money was swindled away and increased debt
- IMF has created structural adjustment programme and will receive £6bn of funds from IMF over 39 months-
- 45% of loan will be used for debt repayment
What are the consequences (+ve and -ve) of the IMF’s structural adjustment programme in Pakistan?
- more flexible economy
- reforms in service industry
- rupee will have to be devalued leading to weaker trade
- inflation in prices, poor people may be severely impacted
- will have to privatise loss making companies that are owned by government
- the World Bank and Asian Development Bank may agree to lend another $2bn
How have international political and economic organsiation contributed to globalisation?
Through the promotion of free trade policies and foreign direct investment. For example, the World Bank fund development projects and the International Monetary Fund decide who gets the money and in what quantity. They are also responsible for bailouts. This helps developing countries in particular develop.
However due to slowbalisation, more countries are relying less on international organisations and more relying on regional organisations. They are internalising themselves just like China with the Asian Development Bank.
How has globalisation accelerated (12 marker)
- advancement in technology e.g. transport, communication, businesses
This is contributing to time space compression, shrinking world - political and economic decisions e.g. big players such as WTO and IMF that help promote globalisation and facilitate trade to help LEDCs or role of national governments
- can be measured using indicators such as AT Kearney Index and KOF Index
What is the role of national governments in the acceleration of globalisation?
They promote free trade blocs such as European Union. Changing government attitudes means that they have embraced SEZs e.e China’s Open Door Policy which encourage FDI.
What are the effects of SEZs?
- less tariffs, encourages business startups in R&D phase
- encourages FDI
- could threaten local industries
- could cause more migrants to move to area and Cayuse culture dilution
- create jobs and larger supply chain
- encourage competition between companies
What is the role of the European Union in the acceleration of globalisation?
- allows goods to exported and imported more cheaply
- no trade tariffs
- allows TNCs to export to more customers
- more workers for companies to choose from, skilled task force
- improvement in infrastructure
Why should countries be reliant on global institutions? ( 4 marks)
- has worked before in the past e.g. Ivory Coast
- allows development of economy in developing countries that may not have had the funds before
- allows richer countries to give out money and gain it back with interest
- structural adjustment programmes tackle corruption by taking control of money.
