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Flashcards in Globalisation Deck (20):
1

Define globalisation

The growing economic interdependence of countries worldwide through increasing cross border transactions freer trade

2

What is the WTO?

GATT became 123 countries agreeing to major reductions in tariffs and agricultural subsidies

3

What are the 5 factors which accelerated globalisation?

TNCS:FDI builds links between places which make consumers and the producers

Lower transport costs: steamships, containerisation, planes and railways

Computer and Internet technology: Manufacturing in diverse locations can be co-ordinated using computer software

International organisations: Trade relies on trust and cooperation and the global economy has rules and referees(WTO)

New markets: Companies invest in new markets order to make profits.

4

How has containerisation contributed to the shrinking world?

A normal ship can carry up to 25,000kg, they have reduced the international transport costs from 30% to 1%.

5

What is market liberalisation?

Removing government control and opening up markets to private companies

6

What is a trade bloc?

An intergovernmental agreement where Barrie's to trade(tariffs and non tariffs) are reduced or eliminated.

7

What are the advantages of trade blocs?

-bigger markets but no extra taxes

-national firms can merge to form transitional companies

-protection from foreign competitors and political stability

8

What are the disadvantages of trade bloc membership?

Loss of sovereignty

Interdependence

Compromise and concession

9

What are SEZs and why do they encourages FDI?

They are special economic zones and they attract FDI because
-they are tariff and quota free
-Unions are usually banned
-infrastructure(like port facilities, roads, power and water connections) are provided by the government
-Profits can be sent to the company HQ overseas
Taxes are usually very low and there is few environmental regulations

10

How have TNCs contributed to globalisation?

Outsourcing

Offshoring

Developing new markets

Glocalisation

11

What are the reasons that some places remain switched off from globalisation?

Political isolation(North Korea)

Physical isolation(Africa and the Himalayan countries)

Economic isolation(sub Saharan Africa particularly the Sahel are dominated by subsistence farming economy, they have little capacity to crate connections and are poor)

Environmental barriers
Desert, polar and tropical climates all limit the development of transport and trade connections

12

What is the global shift

The outsourcing of industry and offshoring of industry through FDI to Asia since 1980

13

What are the benefits of the global shift?

Major investment in roads, ports airports and power infrastructure

A shift from informal insecure employment to waged employment with a set income and some security

TNCS invest in training and skills development some of which are transferable

Major reductions in regional poverty due to emolument(almost 600 million Chinese were lifted out of poverty between 1992 and 2015)

Public services such as education and health have increased due to formal employment paying taxes

14

What are the costs of the global shift?

Urban sprawl and loss of productive farmland due to industries and cities expanding

New developments tend to be unplanned and sometimes poorly built, lacking key public services

Pressure on natural resources(water supply)

Low wages, long working hours and no union representation=exploitation

Rapid loss of tradition like local foods and dress( due to fast pace of urban and industrial change)

15

What are the environmental effects on China of the global shift?

Severe air pollution

50% of its rivers and lakes are polluted, 40% of its groundwater

Over 20% desertification

Loss of species

16

What are the social challenges of megacity growth?

Housing in short supply

Poverty is rife, wages are low and jobs are in sort supply

Lack of taxes means government struggles to supply basic services

Lack of water sanitation means disease and illness is common

17

What are the environmental challenges with megacity growth?

Sprawling slums at city edge cause deforestation and loss of farmland increases flood risk

Air pollution is high due to wood fires and industry

Rivers and lakes are polluted with sewage and industrial waste, making health problems worse

Critical resources(water) are in short supply due high demand

18

What are the arguments against globalisation?

Dramatic increase in resource consumption and exploitation of the natural environment(deforestation etc)

Exploited workers particularly in emerging countries

Passed political and economic power into the hands of TNCS and uncaring governments

Created increased inequality

Caused cultural erosion due to western culture taking over

19

Who are the winners of globalisation?

The billionaires who own TNC's

Developed countries maintaining their wealth

Rising middle class of factory and call centre workers whose incomes have risen from gaining offshore and out outsource jobs

Workers for TNCs in developed countries

20

Who are the losers of globalisation?

Isolated rural populations in Asia and Africa where subsidence farming still dominates

Workers in old industrial cities in the developed world who have lost their jobs

Workers in sweatshops in emerging countries

Slum dwellers in developing world mega cities where urban life is much worse than expected