Globalisation Flashcards
(20 cards)
Definition
Globalisation is the increasing connectedness of countries around the world through movement of goods, services, capital and ideas across borders
Types
Economic
Social
Political
Cultural
Transport and trade developments
Steam
Railway
Jet
Container ship
Shrinking world
The Shrinking World effect is when places around the world take less time to reach, due to developments in technology, and therefore start to feel closer
This change in perceptions can also be referred to as time-space compression
Development in communication
Telephone
Broadband and Fibre optic
GIS and GPS
Internet, social networks
Mobile phones
IMF
Economic crisis - provide debt relief through loans
Focus on stability rather than growth
Focuses on LIC
Structural adjustment policies (SAP’s)
1. Open borders to FDI - privatisation of industries
2. Austerity = reduce government spend
Example = Ghana 2015
Overinflated public sector - borrowed from high interest lenders = price of their commodities dropped in value leading to unsustainable debt
IMF provided $918m loan - benefit from FDI
Evaluation:
- In Jamaica austerity led to a decrease spend on teachers and nurses
World Bank
Developing countries = provide loan for infrastructure
Economic growth rather than stability
Focuses on both LIC and HIC
Also require SAP’s
Example = Philippines 2014
World Bank provided $470 loan
Benefit in rural areas from 5% increase in household income
Evaluation:
- In Tanzania they privatised the water industry = Citywater UK ended up switching up water to those who couldn’t pay bills
WTO
- Reduction in tariffs
- Reduction in subsidies
Aim is to increase the flow of goods
Evaluation:
- Benefits TNC’s as they don’t pay tariffs
- Sunrise compares become outcompeted
- Increase reliance on foreign businesses
Government policies
Free-market liberalisation
Privatisation
Encouraging business startups
Free trade blocs
Free Trade Blocs allow governments to trade freely with neighbouring countries and allies which brings many benefits:
- Companies grow as they gain access to more customers
- A bigger market increases demand of products and services
- Smaller companies can merge to form TNCs reducing production costs
Spread of globalisation
Special economic zones (SEZs)
Government subsidies
Changing attitudes to FDI
EXAMPLE = China’s open door policy in 1978
Measuring globalisation
KOF index = measures the social, economic and political aspects of globalisation through a wide range of data and countries are scored out of 100 (higher = more globalised)
- only available for 122 countries
- does not include environmental factors
AT Kearney index = aims to look at how countries cope with population growth and a shrinking world
Ranks cities according to their ‘business activity’, ‘cultural experience’ and ‘political engagement’
- only looks at 156 countries
TNCs
Offshoring
Outsourcing
Global production network
Global shift
refers to the relocation of different types of industry, especially manufacturing
is a result of a combination of off-shoring, outsourcing and new business start-ups in emerging economies such as China and India
has led to unethical practices being ‘exported’ e.g., poor working conditions, child labour and low wages
Problems with deindustrialisation
Dereliction
Depopulation
Crime
Unemployment
Cultural diffusion
Westernisation promoted due to:
TNCs = distribute products and clothes
Global media = celebrations of Halloween and Christmas
Migration and Tourism = share language and customs
Opposition to this:
- censorship = liming access to online info
- Trade protectionism = promotion of domestic industries
Occupy Wall Street Movement - a 59 day extended protest against economic inequality
Global Justice Movement promotes the equal distribution of resources and access to advances in technology
Economic and Social measures
Economic = single
Social = composite - more than one indicator
Economic:
- Income per capita
- Economic sector balance
- GDP
- GNI
- Purchasing power parity
Social:
- HDI
- GII
- Environmental quality
Environmental issues and management
Conversion of land to agricultural = loss of habitats and biodiversity
Intensive agriculture and animal farming = depleting groundwater sources and mangrove forest
Social, Political and Environmental tensions
International migration increased due to:
- Open borders - e.g., the large numbers of post accession migration following eight eastern European countries joining the EU in 2004
- Deregulation - the removal of ‘red-tape’ for businesses
- Foreign Direct Investment which have encouraged TNC workers to move abroad
Tensions created as housing shortages and services under strain, discrimination
Rise of extremism as some nationalist parties oppose immigration
Ethical and Environmental concerns
Ethical consumption is becoming increasingly popular with people buying locally sourced food and commodities and avoiding supermarkets with high food miles
Promoted by NGOs and charities
- Fairtrade
- Supply chain monitoring
- NGO action
Recycling and transition towns
