Flashcards in Globalisation Deck (39):
What is globalisation
Refers to the way people and places across the world have become closely linked together. This has deepened global connections, flows of capital and migrants
What effect has in the increasing pace of globalisation had
Created new opportunities for businesses and people. Increased flows of goods and services
Explain factors that have accelerated globalisation
TNCs - e.g mcdonaldisation - improved local economies providing jones - influenced global culture
Transport and commodities - improvements in mobile connections, internet, social media have allowed people to connect together , transport produced cheap travel
Technology - manufacturing more efficient
Markets- made people richer,forming global market who consume goods and services , led to stock growth
How has development in transport led to a shrinking world
E.g railway, jets , containerisation
World seems much smaller due to its interrelations
In past would of taken weeks to get to other side of world - now it takes 24 hour
Explain political factors accelerating globalisation
- International political and economic organisation, such as WTO and IMF, have contributed to globalisation by promoting free trade policies and foreign direct
- governments promote free trade blocs by removing trade barriers and forming international groupings.
-encouragement of business and privatisation
- free-market liberalisation - e.g UK - de-regulation of banks allowed London to become leading global hub and as wealth increases trickle down effect takes place.
How can we measure the winners and losers of globalisation
indicators such as the the kearny index and the KOF index.
Explain how the AT kearny index works
the kearny index is broken into 4 categories. Economic integration,personal contact, technological activity and political engagement. Each one given a value between 0 and 1. It covers 84% of world population however how do you measure cultural trends
Explain how the KOF index works
measures globalisation on economic, social and political dimensions on a scale of 1-100. The results in 2009 showed that globalisation is still on the rise
why do some countries remain switched off to globalisation
corruption/ideology (e.g. North Korea), location (e.g sparsely populated areas (Tibet), poor infrastructure, unskilled workforce, crime (kidnapping of foreign workers in African countries), weak market, debt and unstable currencies.
Explain the winners of globalisation
encouraged western companies, such as Virgin Media, to gravitate towards Asia for cheap manufacturing and outsourcing.
This has helped build benefits for Asian countries such as India, who have now seen improvements in infrastructure, wages, poverty reduction, education and training
A globalisation winner usually has an abundance of resources. For instance, Saudi Arabia have physical oil resources which produce petrodollar wealth from trade. China has cheap and skilled labour with a large market and growing industry.
Explain the losers of globalisation
the loss of productive land as urban settlements grow, unplanned settlements leading to shanty towns (Dharavi in Mumbai) and environmental/resource pressure. Some communities in developing countries have experienced environmental problems such as air/water pollution, land degradation, over exploitation of resources and the loss of biodiversity which impacts human wellbeing and health. or developed nations, globalisation causes deindustrialisation which causes job loss.
what are the effects
of economic migration
Rapid urban growth creates numerous social and environmental problems such as overcrowding, stress on housing/healthcare/resources, the growth of the informal sector and diseases.
- wages depreciated in some areas UK as eastern european migrants are willing to work for much lower wages
- Open door policies , deregulation and FDI has created culturally diverse societies but also caused racial and ethnic tension.
Explain responses to globalisation
One response to globalisation is to promote local sourcing which encourages
- Schemes such as Fair Trade reduce environmental degradation, poor working conditions and global trade inequalities, allowing a larger market to contribute to globalisation.
-Recycling manages resource consumption and ecological footprints but its effectiveness varies globally. Whilst places like Curitiba in Brazil have a strong recycling scheme, other places such as India have yet to develop a system.
identify 4 different types of foreign direct investment
offshoring , foreign mergers , foreign aquisitions, transfer pricing
Explain how WTO, world bank and united nations
WTO - promote free trade between countries, which help to remove barriers between countries.
World bank - provide loans to help countries develop
United nations - promote peace between nations and cooperation
Explain what ASEAN aims to and has achieved
Asean aims to promote collaboration and co-operation among member states, as well as to advance the interests of the region as a whole, including economic and trade growthIt has negotiated a free trade agreement among member states and with other countries such as China, as well as eased travel in the region for citizens of member countries.
what is offshoring
when TNC,s build their new production facilities in offshore economies
what is foreign mergers
when two firms in different countries join together to create a single entity
What are foreign aquisitions
When a TNC launches a takeover of a company in another country
What is transfer pricing
Some TNCs such as amazon channel profits through a subsidiary company in a low tax country.
A term that was invented to emphasize that the globalization of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture in which it is marketed.
What is a global production network
The range of operations and transactions through which a specific product or service is produced, distributed and consumed. For example when someone orders a product of amazon
What are the role of trade blocs in the growth of global economies and national economies
Trading blocs are groups of countries that agree to reduce trade barriers amongst themselves. This is used to promote trade activities within certain areas, whilst also assisting in economically managing specific regions. By implementing trade blocs it provides a means of agreement between the countries within that trade bloc to enable them to benefit from each other through trade. As well as increased integration amongst members of a trading bloc. It is argued trading blocks help globalisation through making global negotiations easier. For example, in the case of trade negotiations. The EU will negotiate as a single trading block making it easier to push through practices which increase free trade. Enlarged market increases demand
why has the scale of economic migration increased
More open door policies
As western countries become more developed, need for migrants to do factory jobs etc increases
more need for migrants
Financial crisis, people left with nothing
Asess why the impact of globalisation will vary within a country
TNCs benefited massively
Workers in construction industry etc don't benefit
How has Tesco taken advantage of globalisation
Tesco is driven by its motive to make profit. It uses horizontal integration and vertical integration to dominate over its competitors and take control of the full process of its expansion.
Reached £2.7 billion in 2006.
1250 overseas stores keeping 450,000 people employed.
Diversified to one stop shopping e.g. financial services, food, clothes and DVD’s. Good for home country.
What is horizontal and vertical integration
horizontal - buying competition
vertical - controlling/owning every stage
How has Mc-Donalds taken advantage of globalisation and used glocalisation in it's favour
Opened in June 1955 in Illinois. In 1995 there were 18,000 restaurants worldwide. Now 30,000 outlets in 121 countries.
Grow and adapt to local sensitivities. E.g. Maharaja Mac in India/McMaza meals in Pakistan. Offer more choice while still being familiar
What are the reasons and impacts of the global nature of TNC's
- Glocalise to adapt to
a specific market, this
allows them to be
closer to separate
markets by fitting
-TNC's want smaller
wages to increase
their profit, they
operate in less
where labour is
-TNC's want to avoid
tariffs, they operate
inside local trade
barriers so their is no
How did China's decision to switch on to globalisation effect its economy
China made a number of concessions. These include agreeing to trade liberalization, Fully fledged free market economy, decreased trade barriers and allowing foreign investment. After China joined its GDP more than doubled, domestic consumption increased and poverty was reduced. It became the largest manufacturer and the 2nd biggest economy.
Evaluate the relative benefits and problems of an ageing population in East Devon
In recent years there has been heavy migration of retired people to East Devon from other areas of the UK. This has been largely down to its low property prices, good climate and slower paced life.
Council tax is vastly reduced as retirees can claim discounts. An ageing population has put serious strains on the NHS services in Devon day in day out. Furthermore an older population is not attractive for the young people,many of whom move away.
Positives include the grey pound, the elderly spend a lot and this has helped boost the economy.
What are push-pull factors
Push factors- what factors at home push someone to want/have to leave their dwelling
pull factors- what factors of another dwelling maje someone to want to move there
What is hyper-urbanisation
where the increase in urban population is happening so rapidly that the city cannot cope with needs of people. Happens in less developed/developing countries.
What is the informal sector
work that is irregular and with little security e.g. street trading. Not taxed.
What is urban sprawl
The unplanned, uncontrolled spreading of urban development into areas adjoining the edge of a city.
What is sustainability
Meeting the needs of today’s generation without compromising the needs of future generations
Case study- LA as an unsustainable developed mega-city
A changing economy, has resulted in the loss of thousands of manufacturing jobs. Replacement jobs are often low paid.
Migrants excluded as cannot afford to pay for health and education services.
house prices are extremely high
Photochemical smog from 10 million cars on the road. 30% use public transport.
Massive ecological footprint.
Use of greenfield sites
Waste/consumption. 50000 tonnes of waste daily.
Case study- Mumbai as an unsustainable developing megacity
Informal jobs so not taxed, therefore, no money for basic infrastructure
Poverty and disparity
Hyper-urbanisation and slums
Little education so stuck in a cycle of poverty
Weak urban governance
Low environmental quality
Chemicals from cottage industry
Ecological footprint as it develops
Waste and consumption