Flashcards in Globalisation Deck (29):
What is globalisation?
Globalisation is a process which has caused the world to become more connected over time.
Connections are best though of as flows e.g
Goods, capital, information and people.
Forms of globalisation
Economic- growth of TNCs. Have a global presence and brand image.
Cultural- Westernisation. People sharing similar values.
Political - dominance of western democracies in political and economic decision making.
Demographic- occurs as migration and tourism increases.
Environmental- global threats require global solutions.
Transport and trade developments
Developments in transport has encouraged growth in trade, as transporting goods and people around the world has become cheaper over time.
The world's fleet of 9500 container ships can carry up to 18,000 containers. They are so efficient that it costs less than £1 to move a TV from China to UK .
50% of world population use the internet.
Satellite-based TV means that popular channels are available around the world.
Number of social networking applications mean that people can communicate and experience time-space compression.
This has allowed businesses to keep in touch with all parts of their production and transfer money instantly.
International political and economic decision making
Increase in world trade. This is important to globalisation.
Number of organisations have helped to promote free trade and end trade protectionism.
Governments can choose to be part of a globalised world.
Most actively seek global connections.
Joining free trade blocs.
Opening up markets to competition.
Business start ups.
Special economic zones
Beginning around 1980, many countries started to create these.
China led the way in 1978 when it decided on its Open Door Policy. In 1980 it created the Shenzhen SEZ. About 50 million people in 100 countries work in these areas.
They are attracted to FDI because:
Tariff and quota free.
Unions are banned.
Infrastructure is provided by the government.
Taxes are low.
Environmental regulations are lax.
Effects of globalisation
KOF index measures the degree of globalisation on an annual basis. It measures:
Economic globalisation- cross border trade.
Social globalisation- international telephone calls.
Political globalisation- no. of foreign embassies.
Most globalisation countries tend to be relatively small and European.
A.T Kearney Index measures how economically successful cities are.
The role of TNCs
Much of China's massive growth has been fulled by Western TNCs locating in SEZs, creating jobs and boosting exports.
They create economic connections that tie local and national governments together.
They have contributed to globalisation by:
Developing new markets.
Switched off from globalisation
Most of the world is increasingly integrated into the globalised economy but some places remain switched off.
Political isolation- North Korea.
Physical isolation- Himalaya mountain terrains are isolated, which limits their connections.
Economic isolation- Sub-Saharan countries.
Environmental barriers- harsh desert climates, extreme cold and dense tropical rain forests all limit the development of transport and trade connections.
Global shift to Asia
The global centre of gravity has shifted towards Asia i the last 30 years.
shift of manufacturing to China.
shift of service and administration jobs to India.
Costs of global shift to Asia
New development tends to be unplanned.
Pressure on natural resources.
Low wages, long working hours, lack of union representation and possible exploitation.
Rapid loss of tradition
Benefits of global shift to Asia
China built 11,000km of new motorways in 2015.
Shift to waged work.
TNCs invest in training and skills development and some skills are transferable.
600 million lifted out of poverty between 1992-2015 in China.
Environmental and social impacts of the global shift.
China's environmental issued:
Severe air pollution.
50% of all world's coal in burned in China.
50% of rivers and lakes and 40% of groundwater is polluted.
20% of China is subjected to desertification.
Almost half of land based vertebrate species have been lost in the past 40 years.
This air pollution in Northern China has reduced life expectancy by 5 years.
Deindustralistion. This has led to lower pollution levels but also:
About 4% of Glasgow's land is derelict.
Unemployment is high (9% in Hull.)
Migration and globalisation
These connections have caused an increase in global migration.
In developing and emerging economies, about 60% of all urban growth is caused by rural-urban migration.
Migrants are attracted to global hub cities:
Offices and HQs of TNCs are often located here.
Global elites hire nannies, maids etc. This attracts low skills migrants.
Low wage migrants are used as construction workers.
Social challenges of mega city growth
Housing is in short supply, leading to the growth of slums.
Poverty is rife.
Lax of taxes mean that governments struggle to provide essential health and education services.
Lack of water and sanitation.
Environmental challenges of mega city growth
Slums cause deforestation and loss of farmland and increased slum risk.
Air pollution levels are high.
Rivers and lakes are polluted.
Emergence of a global culture
Globalisation is said to have spread a Westernised global culture.
This has been spread by cultural diffusion. This has been dramatically increased by migration. Tourism, TNCs and global media are all important.
These has led to changing diets. Linked with rising obesity and diabetes.
Western culture tends to improve opportunities for some traditionally disadvantaged and discriminated against groups e.g. Paralympics.
Opposition to globalisation
Protest groups such as Occupy Wall Street and Global Justice Movement have argued that globalisation has:
Increased resource consumption.
Passed political and economic power into the hands of TNCs and uncaring governments.
Created increased inequality.
Caused cultural erosion. Traditional foods, music, language, clothes and social relations are all being eroded.
Globalisation and the development gap
China's coastal cities have an income per capital of $10,000 yet in the rural West they are under $2000.
Measuring the gap between the rich and poor isn't easy.
Single measures = Life expectancy, GDP per capita.
Composite measures=HDI, GII.
Purchasing power parity GDP has become a popular way of comparing economic development between countries. it takes into account the cost of living within countries.
Widening income inequality
Wealth of the richest 1% is now equal to the wealth of the other 99%.
This is measured using the Gini Coefficient, with income divided into quintiles plotted as a Lorenz curve.
There were 1800 billionaires worldwide.
Developed countries have proved good at maintaining their wealth.
Rising middle class.
People who work for TNCs in developed countries.
Isolated, rural populations, where subsistence farming still dominated
Workers in old industrialised cities.
Workers in sweatshops factories in emerging countries.
Slum dwellers in developing world mega cities.
Tensions caused by globalisation
Globalisation has caused large immigrant population. There are many diasporas worldwide. In 2015, 85% of the UAEs population was immigrant.
Several factors have increased the pace of migration:
Open borders in EU.
FDI encourages workers to move abroad.
Most EU countries now have culturally mixed populations. Migrants need housing, jobs, education and other services. Evidence that migration has increase social and political tensions, and even led to a rise in extremism:
2016 Brexit vote.
Anti immigration political parties e.g. UKIP.
in 2014, 51% of Swiss voted in favour of stopping mass immigration in a national referendum.
Controlling the spread of globalisation?
The internet is banned in North Korea.
In China, the internet is censored.
Since 2010, the UK has sought to reduce immigration using a points system.
Trade protectionism is still common.
Australia, uses points-based immigration systems to match immigrants with actual economic needs and job vacancies.
First nations in Canada
They are the original population in Canada.
An assembly of First Nations promotes the rights and needs of First Nations.
Within Indian reservation territories, bands are largely self governing.
There are 100 First Nation and Inuit Cultural Education Centres to help to preserve cultures and traditions.
Modern First nation schools teach native languages and traditions.
Festivals help to preserve the First Nation tradition.
Ethical and environmental concerns
Concerns that imported food products do not provide farmers with a decent income.
Consumer goods use excessive resources.
Consumer culture is contributing to global warming.
Hidden costs of a pair of jeans
To grow the cotton to make the denim fabric used 13,000 litres of water.
Bangladesh's 3.5 million textile workers earn £25 per month.
Many work 14 hour days in appalling conditions.
Cotton farmers in Africa live on less than £1 per day.