globalisation Flashcards
What is globalisation?
Rapid integration of the world’s economic systems in 1990s , opening up world trade to TNCs
The focus of globalisation has been primarily on economic relationships such as international trade, foreign direct investment, and international capital flows.
But also…
Globalisation has since been expanded to encompass a wider range of dimensions including cultural, social, technological, political, environmental and also health related factors
McPig- increasing transfer of money, culture, people, information and goods across the globe
Professor Giddens quote
Professor Giddens - globalisation is the intensification of worldwide social relations’
Aspects of globalisation process (econ, social etc..)
Economic- e.g. trade and aid, TNCS, capital flows etc
Social – exchange of ideas, migration, social networks, growing uniformity
Political- global institutions , trading groups, NGOs, action of climate change or COVID
Health – medical advances, pandemic control, pharmaceutical
Environmental – impacts/degradation, green campaigns, linked by global commons global governance – COPs
Technological – technology boosts productivity needed for important industries, communication, green technology
Cultural – spread/ exposure of different cultures, can lead to a global culture. Westernisation, cultural diffusion, globalisation
Marshall McLuhan
predicted ‘global village’ where free rein is given to economic and information flows, and the beginning of making planet wide decisions.
Time Space Convergence
This process concerns the changing relationship between time and space, and notably the impacts of transportation improvements on such a relationship.
It is closely related to the concept of speed, which indicates how much space can be traveled over a specific amount of time.
Friction of distance
as the distance from a place increases, the interactions with that place decrease, usually because the time and cost involved increase with distance.
Thomas Friedman
Thomas Friedman has said that today globalisation is ‘farther, faster, cheaper, and deeper’
o Farther- lengthened in distance over time – product sourced form faraway places.
o Deeper- sense of being globally connected e.g. social media, food
o Faster- internet, real time e.g. Zoom, messenger
He also said that ‘the world is flat’ in 2005- it was an apt metaphor for globalisation: goods, ideas and people sliding smoothly across borders.
Kofi Annan- former secretary - General of the UN
It has been said that arguing against globalisation is like arguing against the laws of gravity
Disadvantages of an integrated world economy
e.g. 2008 financial crisis started in USA but effected world trade, other setbacks such as trade wars, international conflicts and falling commodity prices
Brief timeline of globalisation
- Middle ages – the Silk Road
- 17th century took 30 years for French fashion to reach England
- 1944- world bank set up
- 1945- UN set up
- 1948- Empire Windrush
- 1953- took 5 days for news of Edmund Hillary reaching Mt Everest to reach London
- 1975- UK joins the EU
- 1996- internet available in homes
- 2000-UN launches Millenium development goals
- 2001- 9/11- attack on world trade centre
- 2004- Facebook starts
- Soon – with advanced supersonic aircraft- 80 minutes to go from NYC to London
when was the world bank set up?
1944
When internet becomes available in homes?
1996
in the 17th century, it took X years for french fashion to reach england
30
What are the dimensions of globalisation?
flows of capital, labour, products, services and information; global marketing; patterns of production, distribution and consumption.
What does capital mean?
All money transferred between countries- investment, FDI, trade or production
What increased flows of capital?
deregulation of the financial markets meant banks, insurance,investments companies were no longer confined within national boundaries (age of neoliberalism)- known as the BIG BANG in the UK - 1986 Thatcher
Big Bang
1986- Thatcher
- The Big Bang refers to the day the London Stock Exchange (LSE) was deregulated on October 27, 1986.
-After deregulation, the volume of shares traded on the LSE and its market capitalization increased.
-achievement of the Conservative government led by Margaret Thatcher.
- Deregulation eliminated fixed commissions, authorized firms to represent investors, opened the London Stock Exchange to foreign firms, and implemented an electronic platform.
Neoliberalism
a political approach that favours free-market capitalism, deregulation, and reduction in government spending
In 2022, value of trade in goods and services?
$31 trillion
Amount of transactions a day in 2022
- 6 trillion
Wallerstein model
1974->explains the emergence of a core, periphery and semi-periphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century. Built upon the dependency theory
Frank’s Dependency theory
Dependency theory proposed that the poverty and backwardness of poor countries are caused by their peripheral position in the international division of Labour.
Core countries
strong economies with large economic productivity, and higher per capita GDP- HICS. Global power is concentrated here
Semi-periphery
NICs , median standards of living (Chile, Brazil, India, China etc..). Offer citizens diverse economic opportunities,s but extreme gaps between rich and poor