GLOBALISATION Flashcards
(35 cards)
Define: GLOBALISATION
When countries become increasingly interconnected and interpendent through processes of politics, tourism, economics, culture, and trade
What were the 4 main developments that resulted in efficient NETWORK FLOWS between places
-TNC’s
-transnational trading blocs
-improved IT and technology speeds (e.g the internet)
-development of modern transport networks
Reasons for globalisation
1)improvements in IT and communications
2) improvements in transport (containerisation)
3) freedom of trade
4) lower labour costs + lower regulation in emerging countries attract TNC’S
4 main developments influencing GLOBALISATION
1) emergence of TNC’S- operate in a number of countries
2) improved IT and communications - e.g the internet and computers allow communication of information globally instantaneously
3) improved transport networks- e.g containerisation, speed up the movement of people and commodities quickly + cheaply. Air travel causing a “shrinking world”
4) freedom of trade- trading blocs and promotion of free trade
The 5 flows of the global economy
-labour
-trade
-communication + information
-aid
-foreign investment
Statistic on air miles last year
Last year we hit 3 trillion air miles globally
TNC statistic
Of the top 11 entities of the world- only 50 are countries
TRADE: statistics
In 2024, trade reached a record 33 trillion dollars
-there is now 30x more trade since the 1950’s
How did the WTO originate
Post WWII, countries developing peaceful cooperation- began the GATT which became the WTO
Global institutions
-TNC’S
-INTERNATIONAL NGO’S
-IMF
-WTO
-UN
-WORLD BANK
What does the IMF do ?
Created to bring financial stability to the world post WWII
-has 190 countries since 1945
-funded by quota subscriptions (member’s pay into the IMF)
-provides advice and FINANCIAL ASSISTANCE to struggling countries
-aims to reduce poverty, promote financial cooperation and sustainable economic growth
What does the WTO do?
-aims to reduce barriers and promote free trade
-powerful TNC’S support the WTO
-lowered trade barriers + lowered trade tariffs
-some view it as undemocratic, and increasing the wealth gap
What does the WORLD BANK do?
-established in 1944, post WWII to help rebuild Europe and japan
-owned by 187 countries
-aims to reduce poverty + invests in poorer members to increase the standard of living there
-one of the world’s largest research centres in development
What does the G7 do ?
Formed in 1975, an intergovernmental organisation of the world’s top 7 leading countries + largest economies
-was the G5 but became the g8 when Russia and Canada where added, becoming the G7 when Russia were kicked out in 2014
- considered too exclusive
NGO’s
A nonprofit group that functions independently
-major practices in philanthropy
“Barriers” of migration
-racial prejudices
-political instability
-government borders e.g visas
-cost of migrating
-transport accessibility
-
BENEFITS VS COSTS of host countries to TNC’S
BENFITS:
-skill training of labour
-creates jobs + more wages earned
-sets up trade links with other countries
-investment in new technology
-investment in infrastructure + areas
COSTS:
-exploitation of workers
-little regard for environment
-new technology can easily displace workers
-profits “leak” out of host country
-only profit-driven
-investment can be easily moved to more profitable places
Nike in Vietnam : TNC case study
-50% of all Nike footwear is manufactured in Vietnam
-in 2010, 20000 workers in VIETNAM went on strike for higher wages
VIETNAM PROS VS CONS:
-child labour
-poor working conditions
-exploitation of workers
-jobs created
-pays higher wages than local firms
-encourages other TNC’S to invest in the country
USA PROS VS CONS:
-reduction of jobs available as outsourcing
-damages company image
-bigger profits as manufacturing costs lower
Main reasons for rise in tourism
-COMMUNICATIONS + SOCIAL MEDIA
-increased pay- increased disposable income to use on travelling
-improved leave allowances
-greater range of destinations
-decrease in cost to travel (e.g budget airlines RYANAIR)
-transport is faster
Easier to cross borders (e.g the European Union)
SOCIAL POSITIVE impacts of MASS TOURISM
-cultural fusion + education
-revive local skills
-develops foreign language skills
-preserves historical legacies + heritage
SOCIAL NEGATIVE impacts of MASS TOURISM
-loss of locally owned land
-increase tensions between tourists and locals
-clash of cultures + behaviours (hijab)
-erode local culture
-visitor congestion
ECONOMIC POSITIVE IMPACTS of MASS TOURISM
-more investments of infrastructure
-creates jobs-> multiplier effect
