Globalisation 3.1-3.2 Flashcards
What is globalisation
the growing interdependence of the world’s economies, cultures, ideas
What are the 4 types of globalisation
-Economic: growth of TNCs and FDI
-Cultural: Mcdonalds in 120 countries (30,000)
-Political: Groupes such as the EU
-Demographic: increasing mix of migrations and populations
How has amazon help to increase globalisation
More money spent online through E-tailing increasing the amount of goods shipped across the world
What are 4 factors of the shrinking world (TRIR)
-Tourist flows: Europe -> Asia (10m+), people able to travel with ease
-Remittances: most money sent to asian counties form USA (India 63bn), increased capital flows
-Internet: network cables across atlantic -> world wide communication
-Resources: oil from Saudi to Europe, USA, Asia -> increases trade between countries
How has EasyJet helped increase globalisation
-created global connections by offering low cost fares across europe
-lower costs = more people
-harder to make profit as ticket are cheaper but company pays same
How has ICT development helped increase Globalisation
-telephone and telegraph allow instantaneous world wide communication
-internet allows goods to be ordered across world increasing trade and business communication
How and why is SE Asia’s internet usage so high
-highest use in the world (72m in 2015 -> 109m 2018)
–> increased development make phones more affordable
–> increased economic growth (internet usage)
How and why has mobile phones usage changed in developing ares
Africa - (2005-6% owned) - (2015-70% owned)
–> due to falling prices and growth of provider companies
How has M-pesa helped Kenya
-allows credit to be directly transferred between phones users
–> citizens in rural areas able to receive micro loans from banks
–> 1/3 of Kenya’s GDP sent through M-pesa
WTO beliefs, advantages, disadvantafes
-believe in free trade with without barriers (tariffs)
-removing restrictions encourages trade (flows of goods) and poorer countries to trade
-farmers struggle as there is more competition so goods sold at lower prices
The IMF, advantages, disadvantages
-role is to maintain international financial sustainability
–> lends money for development purposes
-encourages countries to sell of government assets to increase private sector (TNC growth)
-strict regulations cause cutbacks on government spending (healthcare, education ect)
What is a trade bloc
-advantages / disadvantages
An agreement between a group of countries where barriers to trade are reduced or removed
ADV:
- Enlarged market increases demand raising production –> lowering costs improves economy
DISADV:
- Includes nations of varying development levels (TNCs can exploit cheap labour forces)
What are the advantages of the EU trade bloc
- 28 countries after WW2 to prevent conflict
- democratically agreed
- Internal market is EU’s economic engine allowing goods, services and capital to move freely
What is FDI and why is it encouraged
- investment made by overseas company into a company or organisation based in another country
- influx of capital can boost economic growth and employment
What was China’s open door policy and how did it increase globalisation
- it intended to protect the rights of all countries to trade equally with China
- modernised the Chinese economy
- increase trade and FDI from the west
