globalisation Flashcards
(178 cards)
what is globalisation
increasing interdependence between countries through flows of cpaital trade goods and services
causes of globalisation
ec=influence of tncs, online purchasing, stocks traded across countries and currencies, p=trade blocs have become more influential, igos and worldwide media outlets, migration=spread of cultural and finance, tourism due to lower transport crisis, cultural=americanisation and westernisation
flow of commodities= goods are more easily transported, value of manufactured goods,
technology=internet, social networking sites and enormous server farms
effects of globalisation
lengthening connections, depth in aspects of life, faster speed of connection, political=work together on political issues and unrest, economic= dependent on flows of labour in order for economy to grow
env=greenhouse emissions so countries rely on each other to protect the environment
social=rely on each other for leisure
globalisation through history
started as steam power, jet aircraft, containerisation, telegraph cables, telephones, fibre optic, gps and the internet
general pattern of globalisation manufacturing in emerging countries, consumption
manufacturing in emerging countries, consumption in developed countries- lower costs, less regulations,
economism scale
widen supply top bring retail cost down
geolocalisation
changing product to fit with audience/public perception
give three examples of international organisations
world bank, world trade organization, international monetary fund
what is the world bank and what do they do
1995, regulate international trade, trade liberlisation, no quotas, tariffs or embargoes
what is the international monetary fund and what do they do
provideas loans from rich to poorer nations for development, the poorer countries must run free market economies and prioritise development in return
what is the world bank and what do they do
lend money on a global scale for development projects, for example 470 million to the philippines
what are trade blocs
groups of countries that form agreements to pormote trade and economic cooperation, reduce barriers or emliminate them, eg quotes, tariffs, embargoes, duties,
intergation levels of trade blocs
-Preferential Trading Areas (PTAs)= trade agreement between eu and ledcs
-Free Trade Area (FTA)= 0 import tariffs remove non tariff barrier
-Custom Union (CU)= free trade arfea and common external tariff
-Common External Tariffs (CEF)= around the edge of FTA, raise tariffs, unattractive to those outside of agreement
-Stage Market (SM)= freedom of movement of goods, services, labour and financial capital
-Monetary Union (MU)=common currency , one monetary policy , interest rate and signal central bank, e.g. euro
what is a bilateral free trade agreement
two countries only e.g. austrailia and china for aus raw materials and china slarge economy and their geographical proximity
how is globalisation mesured
kof index; degreee of 122 countries, 1970-2002, 1-100 scale, based on economic, ssocial and political globalisation, singapore on list as it is a big financial centre, also due to connectivity and shiort travelling distance
kof index factors
political= 39%, membership of igos and trade blocs, number of foreign embassies, participation in international treaties
social=24%, personal contact internationally, information flow, cultural promixity
economic=37%, long distance flow of goods and services and capital, flow of fdi
what is the at kearney index
measure of globalised cities, due to political, communication, technology and political factors,
what are the factors of at kearney index
economic integration=imports and exports, fdi
personal contact=telephone traffic, travel and tourism, remittances
techonologicxal activity= internet users, hosts and secure servers
political engagement=membership of igos
international treaties
number of embassies
what are transnational corporations
operates in multiple countries, increase global flows of goods services capital and labour, more annual revenue that some gdp’s, for example walmart and sweden
what are examples of tncs
walmart=2.2 million workers, 560b turnover,
amazon=1.3 million workers, 400b turnover,
disney have the most boats compared to navys
what is offshoring
company works overseas either itslef or by using other companies
what is outsourcing
work is sent to other countries such as bt in india, when tncs pay a third party to provide goods and services
advantages of tncs in globalisation
could lead to lower costs, specialised work in particular products, higher quality, builds international relations, more future trade, legislation more relaxed to cut costs
disadvantages of tncs in globalisation
logisitical issues, hold up in one country, political relations, large import tariffs, language barriers coiuld lead to difficult standards to maintain, could make mistakes