Globalisation Flashcards
Global Systems & Global Governance
What is globalisation?
Globalisation is the process of countries and economies worldwide becoming more interconnected.
Transport is making the world feel ‘smaller’ despite not changing geographically. What is this concept known as?
Time-space compression OR the shrinking world.
The five factors that promote globalisation:
1= Flows of I_________
2= Flows of C_________
3= Flows of P_________
4= Flows of S_________
5= Flows of L_________
Information
Capital
Products
Services
Labour
Flows of information - how does it promote globalisation?
Information can be spread across the world very easilly. Links to the development of the internet. Makes the world more interconnected - people learn about other cultures.
Flows of capital - how does it promote globalisation?
Money is now invested into other countries via FDI. ICT has encouraged flows of capital round the world - it can be instantly moved via the internet.
Flows of products - how does it promote globalisation?
Manufacuring has moved to developing nations (global shift). Labour is cheaper abroad, many buisnesses have relocated. As a result, international trade is increasing.
Flows of services - how does it promote globalisation?
ICT allows services to become global industries. They can be located anywhere in the world and still meet the needs of customers. Makes the world more interconnected.
Flows of labour - how does it promote globalisation?
International migration has increased 40% between 2000 and 2015. Highly skilled workers are moving to developed countries where conditions are better. Increased flow of people makes culture more interconnected.
How has marketing become more global?
Global marketing treats the world as one single market, so it now uses one marketing strategy to advertise a product to customers all over the world. Global brand awareness, economies of scale etc. But - can be adapted to markets (polycentric)
How have financial systems promoted globalisation?
Financial deregulation removed barriers to capital coming in and out of a country, making it easier to buy and sell shares. It led to more companies getting involved in finance and growing the global financial system worldwide.
How do trade agreements promote globalisation?
They may remove trade barriers, such as taxes or quotas, making it easier for people to trade internationally and encouraging the globalisation of products across the world.
How has transport and communication promoted globalisation and global business?
It has contributed to the time-space compression, along with containerisation, allowing people and products to get around easier.
What is containerisation?
When metal containers were introduced in the 1950s, it allowed more goods to be traded at once, making it easier for goods to be traded quickly and cheaply.
What are the four dimensions of globalisation?
1= Economic
2= Political
3= Social
4= Environmental
How are countries economically interdependent?
Countries rely on eachother for economic growth. Rely on comparative advantages to export your goods to some countries and import from others.
How are countries politically interdependent?
Countries rely on eachother to solve issues which cannot be resolved by just one country, E.g. COVID-19, war/conflict.
How are countries socially interdependent?
Connections between people in different countries creates social interdependence. In 2015 there was 244m migrants worldwide. e.g. Remmittance payments, culture.
How are countries environmentally interdependent?
Dependent on others to look after the environment. Environmental problems (e.g. Chernobyl) often affect not just one country, they affect many or the whole world.
What are some of the causes of unequal flows of people?
1= Moving from countries with little jobs to ones with plenty.
2= Leaving to escape war, famine or persecution.
What are some of the benefits of flows of people?
Immigrants can create economic growth by providing GDP. Often also do jobs that a countries citizens dont want to do.
What is the main benefit to the origin country of flows of people?
Remmittance payments can increase the amount of capital flowing into less developed countries, creating economic growth.
What are some of the consequences of unequal flows?
1= Brain drain
2= Immigrants being paid low can depress local wages, causing conflict.
3= Migrants are sometimes made to do work in dangerous conditions for little money - e.g. WC2022 Qatar.
4= Dependency on remmittance
What are some of the consequences of unequal flows of technology?
Developed nations can afford the latest technology where less developed ones cant. They can make products cheaper and have access to better information and services.
How do global institutions reinforce unequal power relations?
Despite providing loans to less developed countries, the IMF and World Bank, decisions are influenced by developed nations and place contitions on loans so that developed nations still profit from the ‘help’ they give.
