Globalisation

Question 1

Why does globalisation lead to cultural erosion

Answer 1

Loss of language
Changes to traditional food, clothes, music

Case studies:
- Bhutan, landlocked in between India and china, globalisation began to erode culture: young ppl choose English
- Asia, movement from traditional clothes and new ones have no spiritual meaning & fast food changed diets leading to health issues

Question 2

Why are some locations switched off from globalisation

Answer 2

• landlocked/no coast, therefore lack of investment from tncs, who would want to import/export goods, resulting in lack of flows of trade
• limited education, leads to pop’ns lacking skills, so don’t attract investment from TNCS who need workers, so end up relying on things like farming that doesn’t contivute hugely to econ
• political isolation, minimal trade/communication with outside world and so focus on self sufficiency, therefore limited economic and social connections
• poor climate, limited development of transport/trade, less connected so less access to global market

Question 3

Key players in globalisation

Answer 3

WTO: promote international and economic co op in trade. Deals with rules of trade. Aims to remove barriers to it and negotiates trade agreements between countries to make sure they stick to them.

IMF: votes depend on money invested (top21 econ have 70% votes - USA 17% EU 25%, BRICS only 10%). Lent money to stabilise countries and counter growth of communism. Imposed conditions on money borrowed, decided by wealthy countries. Main role to stabilise countries in debt but impacts can be harsh.

World Bank: set up to finance development, also natural disasters and humanitarian crises. Rep damaged in 1980sfor financing development beyond ability to repay. Similar to IMF: voting rights=wealthiest

Question 4

Players in globalisation CS

Answer 4

Pakistan joined WTO
Had to open waters for international fishing which created competition
TNCs moved in and big boats from India fished in their waters - left them with little fish so poverty grew in fishing communities
Fishermen worse off and many gave up

Question 5

Trade bloc advantages

Answer 5

• lower price for consumers + grater opportunities for exporters: tariff removal and trade creation
• increased specialisation: increased trade gives benefits of economies of scale (lower AC from increased output)
• increased FDI: therefore trade opportunities for countries joining trade blocs
• increased trade w countries nearby: reduces transport costs, similar cultural/economic ties
• increased competition: remove tariffs= more consumer choice, more incentives to reduce costs to stay competitive

Question 6

Trade bloc disadvantages

Answer 6

• shutting down domestic industry: more competition=winners+losers
• unemployment: free trade can cause resource shift from uncompetitive industries to new industries
• loss of sovereignty/independence: TBs make decisions for all members - may conflict with domestic econ interests/other members
• retaliation from non-members:to protect their economies could form new TBs to protect
• possible increase in external tariffs: leads to trade diversion eg loss of trade from commonwealth countries
• increased influence of multinationals: free trade could come at cost of allowing free movement of capital, could increase costs for domestic consumers
• increased econ dependence: performance between members is interconnected. Econ crisis in 1 member spreads to others

Question 7

Global Shift COSTS on developing world

Answer 7

• environment/resourse pressure: forest sacrificed for logging, urbanisation and cash crops, pollution and dumping of waste - leads to loss of biodiversity, land can become degraded. Farmland replaced with factory =can’t supply country without importing
• some workers exploited, poor conditions
• air pollution: PM2.5 particles in lungs=health issues, reduces life expectancy - strain on healthcare
• unplanned settlements: can’t build there so can’t make profit, often poor conditions and dangerous
• land deregulation
• over-exploitation of resources

Question 8

Global shift BENEFITS on developing world

Answer 8

• rapid and sustained growth in economies and wages: ppl can afford more, econ g driven by domestic consumption, poverty falls - income- tax-back into econ- attracts businesses/TNCs to sell- generate wealth
• education and training: education improved but uneven but high school achievements in places like Hong Kong vv good), education=better chance of better jobs. Better opportunities - companies need educated people to work for them and consume goods. Better workforce attracts FDI

Question 9

Developed country COSTS of global shift

Answer 9

• unemployment
• crime
• depopulation
• dereliction

Due to deindustrialisation leading to deprivation - spiral of decline

Question 10

Global shift BENEFITS on developed world

Answer 10

• cleaner air: deindustrialisation, factories relocate
• increased profits for business owners: cheaper costs of labour when offshore (move production process)
• increased choice for consumers: lower prices
• lower price for goods: shift production to LICs, lower COP therefore able to charge less and strike make profits