Globalisation Flashcards
4 examples of global flows of capital ?
Foreign direct investment, Repatriation of profits, Migration, Aid
How is FDI a flow of capital ?
TNC in one country investing in foreign capital or assets of foreign companies
How is repatriation of profits a flow of capital ?
TNCs investing in overseas production normally take profit from investment back to home-country
How is migration a flow of capital ?
Majority migration happens in poor countries so they lose skilled labour and some remittances get sent back
How is aid a flow of capital ?
Important source of financial support for poor countries
What is the largest regional flow of labour ?
Asia
Why do economic migrants migrate ?
Educational and financial means
Pattern of migration in last 25 years ?
Asia to North america and Europe
Gulf and Tiger countries become attractive for seeking employment
How is flow of product a global flow ?
Through transaction costs being reduced by improvement of data
Transport and time costs have been reduced by containerisation.
Regional trading blocs offer tariff free trade.
What is the global flow of services ?
Economic activities traded without production of material goods.
What are high-level services ?
Business, investment, advertising
What are low-level services ?
To consumers such as banking, travel and tourism, communication services.
What do services such as banking and insurance depend on ?
Communication and transfer of info, they are also footloose so can be located anywhere and improvement of tech means can provide service anywhere.
What is the flow of information governed by ?
Movement of people and speed of data and communication transfers.
What are the BRIC countries ?
Brazil, Russia, India, China - whose economies have advanced rapidly since 1990s.
What are the MINT countries ?
Mexico, Indonesia, Nigeria, Turkey - more recently emerging economies
What are the factors affecting globalisation ?
Containerisation, Growth of TNCs, Migration, Trade, Communications, Transport
How has containerisation helped globalisation ?
Reduced costs, Increased speed, Enabled growth of international supply chains, Facilitating emerging economies.
How has containers contributed to the environment ?
Large ships often produce 5,000 tonnes of sulfur dioxide annually, Account for 4% global emissions
What has been the shift in production over the past 40 years ?
Manufacturing has become decentralised, moving away from HICs and to NEEs due to FDI of TNCs.
What are the impacts and solutions of global shift in production ?
Deindustrialisation
Encouraging TNCs to invest in deindustrialised areas, Encouraging investment in skills and tech, Adopting protectionist policies
What is protectionism ?
Deliberate policy made by gov to impose restrictions on trade goods and services with other countries.
What is the pattern of distribution and consumption ?
Still lies predominantly in richer countries, products are being manufactured in NEEs and exported to HICs. However NEEs population are growing so demand is coming greater.
How has communication encouraged globalisation ?
Tech like phones and the internet has allowed sharing of information with few barriers.
