Global Flashcards
(37 cards)
Factors of globalisation
Technological Advancements = transport developments, communications technology
Economic Liberalisation = trade liberalisation (e.g. WTO), FDI, deregulation + privatisation
TNCs = outsourcing, global supply chains, marketing + branding
Cultural Globalisation = media/entertainment
Political Factors = migration, economic integration, international organisations
Social Factors = labour migration, diaspora communities
Environmental Globalisation = resource exploitation, global environmental processes
Trade Agreements = role of WTO, helps to lead to > free trade through trading groups, stops some countries resisting some foreign imports + favouring others
What is a diaspora?
Large group of people with a similar heritage/homeland who moved + settled in places all over the world
How is globalisation multi-dimensional?
Have to view globalisation as a whole- economic, social + political- have impacts on eachother
Global but has local + national implications
Information, technology + capital
-info spread across world quickly
-email, Internet + social media- large amounts exchanged quickly -> communication + working together
—world > interconnected- people learn about other countries
-amount of capital invested in other countries increasing- FDI
-ICT- encouraged flows of capital- money can moved instantly- world > interconnected
Foreign Direct Investment
-long-term investment in a foreign country
-involves an investor/company buying a significant, lasting interest in a company in another country
Flows of services
-improvements in ICT- services = global banking + insurances depends on info transfer
-1970s/80s = deregulation + opening of national financial markets to rest of world- easier to do business in other countries
-services = locate anywhere around world- can still service customers needs
—low level = developing countries- cheaper labour e.g. call centres
—high level = developed cities
Global Marketing
-products/services sold all over the world meaning marketing = global
-treating world as 1 market + using 1 marketing strategy for all customers
-gives economic scale- cheaper to have 1 marketing campaign for world
-global products = global brand with same identity all over world -> identity with name/logo + associate with particular product/service -> brand awareness
-adapt to regional markets due to different social norms/laws
—e.g. Coca Cola- 2019 revenue = > US $37 bn + ~ $4bn spent annually on global marketing
Flows of products + labour
-record migrations reported in recent yrs despite restrictions imposed by many govs
-soon will be 1/4bn economic migrants in the world- some places need migrant labour
e.g. Qatar relies on > 2 mil primarily Indian construction workers- 95% total workforce- considered ‘temporary disposable assets’
Products:
-manufacturing decreased in developed countries
-companies relocate production abroad- decreased labour costs
-international trade of manufactured goods increased
-making > interconnected- in UK most produced abroad + imported
Labour
- > moving overseas- increased 40% 2000-2015
-some highly skilled- move for wages/working conditions
-some unskilled- move due to unemployment/poor wages
-cultures moving + family around the world
Importance of the World Health Organisation
e.g. COVID-19 pandemic
-helping countries to prepare + respond- worked with govs, set up the COVID-19 Solitary Response Fund
-provided accurate info + busted dangerous myths- provided guidance, sorted + gave advice from trusted sources
-ensured supplies reached frontline workers- shipped > 2mil personal protective equipment to 133 countries
-trained + mobilised health workers- aimed to train millions of health workers
-search for a vaccine- brought together 400 of the world’s leading researchers in February, developed research protocols
Examples of global interdependence
Political: NATO
-reduces conflict
-32 members from Europe + N.America
-members rely on eachother for security- brings together govs + armed forces- an attack on 1 nation is an attack on all -> deters conflict
Social: Social Media
-social media companies- many have HQs in USA- most in California
-social media is used to bring people together all across the world + people rely on it to connect them to eachother
Environmental: UN environment programme
-helps develop a transition to a carbon-neutral society- working across sectors, help countries to mitigate/adapt to climate change
-created the Sustainable Development Goals
Economic: EU
-forms many trade agreements- within the EU + between the EU and other countries
-allows for free movement of labour, goods + capital
Frank’s Dependency Theory
-developed countries = core
-other areas = peripheries- depend on the core for its market- sells + produces low-value raw materials to the core which processes into high value goods + become wealthier
Distribution of international migrants- 2012
-Net receivers = high income countries- Canada, USA, UK, Australia
-Net contributors = newly emerging economies/low income countries- China, India, Mexico
Unequal Flows of People
-People tend to move where there are few jobs -> countries with plenty
-Escape war, famine, persecution- refugees often try to get to nearest safe country
-People moving for economic reasons- not usually poorest in society- have to pay for visa/transport/living expenses
-countries may only allow people with certain skills to enter as country- migrants often reasonably educated
Unequal flows of ideas
-1980s = developed countries thought economy would work better without state intervention- max economic growth would only occur if barriers to trade were removed, state owned companies were privatised + gov spending were cut
—Neo-Liberalism
Positives:
-multi-culturalism- enables developing countries to integrate into global economy/access markets
-free trade = global markets can develop/thrive
-reducing gov intervention/regulation can encourage enterprise
Negatives:
-profits are retained- causing > inequality + potentially inhibiting economic growth -> concentrating wealth in the hands of a few
-multi-culturalism = dilution of culture
-free trade may not be beneficial
Unequal flows of technology
-‘Village Phone’ microfinance model- Bangladesh + Uganda supported by World Bank- allows purchase of smartphone/battery + internet access in remote rural areas
-Developed countries afford latest tech- 2016 = 97% Netherlands citizens had access to internet, 20% in Myanmar
-tech = unaffordable to many- unjust as assembly of consumer tech products based in developing countries- receive low wages compared to price of goods
-labour-saving technologies- leads to unemployment + poverty e.g. textile industry in developing countries
Unequal flows of money
Positives:
-growth of TNCs have stimulated economic growth
-FDI from TNCs/HICs governments- raised avg incomes + reduced income
-aid helps LICs in times of needs
Negatives:
-World Bank loans have to be paid bank- can only be done if money has been invested effectively
-Foreign Aid can find its way to armed groups/help fund conflict
-investment creates dependency
-aid reduces incentives for govs to help their own countries
Advantages + disadvantages of international trade
Advantages:
-economies of scale- producing narrower range goods/services mean that a country can produce in higher volumes + cheaper cost
-purchasing power- increased competition- consumers can buy >
-transfers of tech- may lead to design improvements + cost savings as well as supporting innovation/enterprise
-increased employment- multiplier effect
Disadvantages:
-overspecialisation- production needs to shift to other products
-product dumping- exporting at a price that is < in foreign market than the price charged domestically
-stunted growth/decline of local/emerging industries
-de-skilling- from production technology
-exploitative + labour-intensive industries
Global Trade System
-governs flows of products between countries
-regulated by govs
-top 5 exporting countries = 37% global trade + 49 poorest countries = 0.6%
-LICs = limited range of exports- dominated by low value primary products- work on single product economies- vulnerable to market price fluctuations
-crops + raw materials- dependent on physical geography
Multilateral vs bilateral trade agreements
One country removes controls in exchange for other country doing so -> benefits companies/consumers
Global trade rules set + governed by WTO
Multilateral = several countries
Bilateral = two countries
What are trade blocs?
-groups of countries that have reached a common agreement to lower trade barriers throughout the group
-regional barriers to international trade are reduced/eliminated among participating states -> trade = as easy as possible
-create inequalities = developed countries have > access to markets than other countries
Inequalities caused by trade blocs
-level of what’s traded e.g. HICs will trade technology
-exploitation of workers, unfair prices, inequalities in wages
-access of markets can be unequal- developed countries add tariffs on goods
-developed countries have > money to invest- avoid tariffs + < developed rely on loans depending on them removing trade barriers -> debt
-developed countries benefit from trade blocs + < developed outside of bloc may have to pay tariffs to export goods to those markets
Causes/reasons for social + economic groupings of nations
-trade = e.g. NAFTA, African Union, OPEC + EU
-global governance = economic reasons e.g. World Bank, IMF, WTO
-global governance = social reasons e.g. UN
-defence = groupings such as NATO
-social, political + economic unions- EU is an example
4 characteristics of a trade bloc
- special trade relationships- promotes/allows trade within group of countries- instead of trading with outside nations- discriminates against non-members
- trade liberalisation/integration with aim establishing free trade area/customs union/common market
- strives to reach common positions in negotiations with other trade blocs
- attempts to coordinate national economic policies to minimise disruption to intra-bloc trade
Free trade area
countries agree to eliminate tariffs + other trade barriers
