Global Systems and Government Flashcards
(16 cards)
Globalisation
-Increasing integration of national economies, societies and culture through the global network of trade, communication, transportation and immigration.
Golden Arches Theory
-Thomas Friedman
-No two countries with a McDonalds have ever gone to war
-Disproved by Russia/Ukraine conflict
Economic globalisation
-Growth of TNCs accelerates trade of raw materials, components and managed goods.
-IT supports the growth of labour and a more international economy.
-Online purchasing.
Political globalisation
-Growth of trading blocs allows TNCs to merge and acquire firms in nearby countries.
-Global response to national disaster and economic issues.
Social globalisation
-International immigration creates extensive family networks that cross borders.
-Global improvements in education and health occur over time.
-Mobile phones and the internet have led to greater connectivity.
Cultural globalisation
-Cultural traits come to dominate in some territories eg Americanisation.
-Old local cultures merge with globalising influences.
-Greater circulation of ideas and information.
Capital flows
-The movement of money for the purpose of trade, investment or business operations.
Flows of labour
-Qatar 2014, male population between 20-45 nearly five times more than female.
-Shows migrants are moving into Qatar for work.
-In some areas make up more than 50% of the population of countries.
-Overall, estimated no of 281 million migrants in 2020 is three times more than in 1970.
Remittances
-Sent from a host nation to a source nation by migrants.
-Generate as much as 40% of the GDP of poorer countries.
Flows of capital
-All money that moves between countries which is used for investment, trade or production.
-Usually take the form of FDI, repatriation of profits, aid and remittance payments
-2022, global FDI flows dropped by 24% from 2021
Flows of information
-Migration and communication developments have led to easier spread of information.
-Between NA and EU >20,000 gbps bandwidth.
-Crucial to the expansion of high-tech products and business services.
KOF index
-Introduced in 2002
-Defines globalisation as a process of creating connections between countries through a variety of flows
-Measures economic, social and political factors
-Uses economic flows, restrictions, info flows, personal contact and culture
-Top 3 of Sweden, Belgium and Netherlands
-Bottom 3 of Somalia, Eritrea and CAR
Glocalisation
-Tailoring of pre-existing products to suit a regional marketplace
-Domino’s only offers vegetarian toppings in India’s Hindu neighbourhoods
-Driving seat positioned differently in US and UK
Principles of global marketing
-Ultimate goal to sell the same thing everywhere.
-Create a recognisable brand with one marketing strategy.
-May create products tailored to regional marketplaces.
McDonalds
-40,275 McDonalds globally.
-Serves 69 million people daily.
-Operates in 118 countries.
-$23.18 billion annual revenue in 2022.
