Globalisation Flashcards
(220 cards)
What is globalisation?
- A process of global integration of economies, politics, products, ideas and other aspects of culture.
What is the time space compression?
The shrinking world effect
- Increased connectivity changes our perception of time, distance and potential barriers to the migration of goods, money, people and information (can happen much quicker)
- Travel times fall due to new inventions, places feel closer together than in the past
Explain containerisation
Maersk case study
- Previously, everything was packed individually, meaning many had to be employed, so the process was costly (and took lots of time)
- In 1956, the modern shipping container was created (with standard dimensions - global design), which led to the creation of large container ships
- Less staff, more space, which reduced time and cost
Meant travel costs for items became much cheaper which meant a larger carbon footprint, as goods were being transported more (it was easier)
Explain some technological advancemants
Which have led to the shrinking world effect
Fibre optics
*Allows the transfer of large amounts of data and information (through cyberspace)
Internet
* People are easily able to connect with eachother from different parts of the world
GIS&GPS
* Parcels can be tracked
* Global production networks can be managed (from another country)
* Data of locations can be easily shared via the internet
-Google
-Facebook, Skype
-Royal mail
GIS (global information systems)
GPS (global positioning systems)
How do low cost airlines link to globalisation, e.g. what tech is used and what are pros and cons?
Easy jet case study
Easy jet overview
* Mainly flies to European destinations
- Fibre optics are used to move data and manage finances
- GIS/GPS used to track flights and give destination details
- Internet used to order flight tickets
Benefits
* More people can go to more remote/less travelled to destinations
* Made places more connected
* Doesn’t take as long to travel
* Cheaper, so more accessible
* Sharing of culture happens
* Multiplier effect occurs (tourists spend money, more jobs are created etc)
* People can more easily make connections (e.g. with friends/family)
Cons
* More people flying means larger environmental impact
* Uncomfortable flying conditions
* Larger starin on tourist destinations (e.g. to improve services, increase spac, tourists prioritised over locals)
What is a tariff?
A tax imposed on imports
What is a subsidy?
Financial assisstanceto a bussiness by the government to make it competitive or prevent collapse
- e.g. farming subsidies under the common agricultural policy
What is a quota?
A limit on the quantity of a good a country allows into it
What is protectionism?
Policies to protect businesses and workers in a country by restricting/regulating trade with foreign nations
What is a free-market economy?
Based on supply and demand with little or no government control
What is privatisation?
Transferring ownership of a public service (etc) into private ownership for profit
What is free-trade?
A policy where a government does not interfere with imports or exports by applying tariffs, subsidies or quotas
How has technology accelerated cultural globalisation?
- Different cultures are shared very quickly (internet access)
-e.g. other languages via youtube - korean song Gangnam style became a globally known song
How has technology accelerated political globalisation?
- NGO’s can easily spread there message online, research can be done more effectively, and donations can easily be collected
- MGO’s have education resources online - allows information to be spread to many countries e.g. UN information for UN member countries
How has technology accelerated social globalisation?
- Social networks (e.g. X, Instagram, facebook) allow people to be connected, and share thoughts/ideas, messages and information - can be done instantly and easily
-e.g. Skype enables communication across the world, maybe for immigrants to connect with family and friends (this is more accessible and easier than travelling)
How has technology accelerated economic globalisation?
- Global corporations can monitor supply chains - management of different parts of a company from around the world
- Transfer of money between countries e.g. immigrants back to their home country - enables economic growth in the recieving country
What are some positives of globalisation?
- Information and products can be spread quickly - can lead to a share of culture
- Increased jobs which can lead to the multiplier effect
- Multiple countries are able to connect and create change - MGO’s
- Creates a competitive market and gives consumers options
- Rules and regulations means workers are treated fairly
- Fair trade for small scale/individual farmers
- Migrants can bring cultural change and religious diversity
What are some negatives of globalisation?
- People can be misinformed via information online (fake news), extremist views can be spread, or governments may find info threatening
- TNC’s mainly care about profit - employees may be exploited, and development of a country may not improve
- Increased inequality - wealth not evenly shared
- Local businesses don’t have the recognition/low prices TNC’s do - get less customers and earn less money
- Economies can become too dependent on funding from companies- when the companies stop, they can collapse
- Imports of raw materials/commodities can threaten a nations own industries
What are SAP’s?
Structural adjustment programmes
- Policies for developing countries promoted by the World bank and IMF by the provision of loans, conditional on the adoption of policies (free-trade)
-conditions include , removing restrictions on capital, reducing the role of the government and government spending - SAP’s impact the social sector and have slowed improvements/worsened health status of people in that country
How did SAP’s lead to water supply issues in Bolivia?
Water privatisation in Bolivia Case study
- Bolivia was recieving loans and debt relief from the IMF and World bank
- After privatising many other public sectors (e.g. railroads and and electric company), The World bank pressured Bolivia to privatise its water systems
- There were threats to withdraw debt reilief if this didn’t happen ($600million USD)
- This meant raised water prices (for profit) which many couldn’t afford
- Augus del Tunari eventaully withdrew (after buying), asking for $25 million in compensation - water is back in the public’s hands
- Without new investment, the water system hasn’t improved, or expanded
What does the world trade do and what are its pros and cons?
World Trade Organisation
- Intends to supervise and liberalise trade to create a free global economy
*Gets countries to remove tariffs, and subsidies so trade is free - For a country to recieve international loans, they must agree to the WTO’s rules
PROS
-reduce tariffs which can help developing countries
-food can only be traded if it meets sanitary regulations
CONS
-encourages poor countries to specialise (they should diversify)
-exposes homegrown products to foreign competition
e.g. Italian tomatoes bought in Ghana
What are the positives and negatives of a developing country recieving a loan?
From the IMF, world bank
Positives
-Country is able to invest money and develop its economy
Negatives
-Free market must be run
-Funding for social sectors may be reduced to pay back the loan (e.g. education)
What are the positives and negatives of a developing country recieving debt relief?
Positives
-Country can now fouc funding/money on other issues (e.g. sanitation), instead of using the money to pay back debt
Negatives
-Country now has to run a free-market economy
-It can now become cheaper to import goods rather than make them, so some could lose their jobs
-It can force the privatisation of companies
What does the IMF do and what are its pros and cons?
International Monetary Fund
- Loans from rich to poor countries - recipients must agree to run free market economies open to outside investment (attracts TNC’s)
- Formed to stabilise currincies and aid countries in debt
PROS
-0% interest rates to LIC’s
-able to lend $1trillion
CONS
-Countries with more voting rights can decide how deals are made (more money invested, more powerful voting right - USA has 17% of this)
-Strict financial conditions for borring countries e.g. cutbacks on healthcare, education and sanitation