Globalisation Flashcards
(58 cards)
Define Globalisation
A process of global integration of economies, politics, products, ideas and other aspects of culture.
What is the Time- Shrinking Effect also known as the Shrinking World Effect?
What It Is?
This perceptual change is called time-space compression. As travel times fall due to new inventions, different places approach each other in ‘space-time’: they begin to feel closer together than in the past. This is called the shrinking world effect.
Define NGOs
Non-Government Organisation that works for no profit. For example Save the Children or Water Aid
Give 6 types of Network Flow?
Capital, Commodities, Information, Tourists and Migrants
Define Transnational Corporations
Definition
A company operating in at least two different countries.
What types of powers have TNC shown in countries in the last 30 years ?
Over the last 30 years, TNCs have emerged as major global forces exercising economic and political power in an unprecedented and unaccountable way. They reap exorbitant profits. Have taken over policymaking in government and act with impunity despite the devastating social and economic impacts of their operations.
What are the Three aspects of Globalisation?
Think ABOUT
DEEPENING,
FASTER
AND
LENGTHENING
Connections are Deepening
- More people’s lives connect with far away places – e.g. purchasing commodities / cheaper travel
- Not just rich people who ‘live globally’
Connections are Faster
•Faster speed of connections with people about to talk to one another in real time or travelling quickly between continents using jet aircraft
Connections are Lengthening
•New links between places that are greater distances apart
How could global flows be viewed as threats?
Global Flows Supposed Threats
- Information can provide citizens with knowledge that their government finds threatening.
- Migrants can bring cultural change and religious diversity; not everyone welcomes this.
- Imports of raw materials and commodities can threaten a nation’s own industries and economy.
How does Free Trade increase Globalisation?
What does the World Bank do?
The World Bank
Its role is to finance the development of nations through loans.
It’s official goal is the reduction of poverty by promoting foreign investment and international trade.
It too requires structural adjustment when granting loans.
What does the World Trade Organisation do?
An organisation that supervises and international trade, promoting free trade and the ending of protectionism.
What does the IMF do and what are SAPs?
Give an example of The International Monetary Fund aid projects using an SAP?
International Monetary Fund
International organisations grew in power and influence throughout the 20th century.
The most important is the IMF. Based in Washington (and largely controlled by the USA) it channels loans from the richest nations to the poorest that apply for help.
In return, the governments receiving loans must agree to run free-market economies that are open to outside investment.
This means that TNCs can enter the country more easily, further promoting globalisation.
The IMF also ensures that the country can afford to pay back the loan. Often, they must undergo Structural Adjustment Programmes (SAPs)
SAPs
Strict conditions imposed on countries receiving loans from the IMF and World Bank. Receiving governments may be required to make cuts to healthcare, education, sanitation and housing. This is to reduce the role of government in a country, and open it up to private investment. It also cuts government spending so they can repay loans.
Example
In Tanzania, water to shanty towns in the capital city were cut off when the country privatised its water services as a condition on $143 million of debt relief.
Define Offshoring?
Some TNCS build their own new production facilities in “offshore” low wage economies. For instance, US guitar-maker Fender opened its Mexican plant at Ensendada in 1987.
Define Foreign mergers?
Two firms in different countries join forces to create a single entity. Royal Dutch Shell has headquaters in both the UK aand the Nevetlands.
Define Foreign Acquisitions?
When a TNC launches a takeover of a company in another country. in 2010, the UK’s Cadbury was subjected to a hostile takeover by US food giant Kraft. The UK has few restrictions on foreign takeovers.In contrasts, the committee on Foreign Investment in te USA closely scutinizes inbound foreign takeovers.
Define Transfer Pricing
Some TNCs, such as starbucks or Amazon, have sometimes channelled profits through a subidary company in a low-tax country such as Ireland. theOrganisation for Economic Cooperation and development (OECD) is now attempting to limit this practice.
Transport and Trade Accelerating Globalisation
STEAM POWER
Britain became the leading world power in the 1800s, using steam technology. Steamships moved goods and armies quickly along trade routes into Asia and Africa.
Transport and Trade Accelerating Globalisation
RAILWAYS
In the 1800s, railways expanded. In 1904, the 900km Trans-Siberian Raiways connected Moscow with China and Japan. It is a priority even today like the (High Speed 2 railway from London). This has helped to reduce the time it talks to export goods which has reduced costs. This helped create today’s world markets as it helped increase product availability.
Transport and Trade Accelerating Globalisation
Telephone and Telegraph
The first telegraph cables across the Atlantic in the 1860s replaced a three-week boat journey with instant communication. Connective systems allowed multiple sites to be run and for the company to find cheap sites. This has helped to make our world more connected and thus has reduced that time it takes to goods.
Transport and Trade Accelerating Globalisation
Jet Aircraft
The arrival of intercontinental Boeing 747 in the 1960s made international travel more commonplace, while recent expansion of cheap flights, including Easyjet brought it to the masses in richer nations. Company’s were able to reduce transport costs and ship products in bulk across the world for low costs. This meant it is easy to send businessman overseas to control and manage factories. This has helped improved the sucess and efficiency of businesses. This has helped to increase economic growth.
Transport and Trade Accelerating Globalisation
Container Shipping
The 200 million container ships move each years. It is known as a backbone of our economy since 1950s. Anything can be transported easily. The vessel COSCO is 306 metres long, 48 metres wide. This allows for maximum transport for cheap prices. This method is popular as it is inexpensive when you move in bulk. It can move more products than any other transport system.
What has created a Shrinking World?
GIS and GPS: First GPS was launched in the 1920s. Now there are 24 stunted above the Earth. These satelities continuously broadcast poadcast position and time data to users. Deliveries can be monitored by companies.
The Internet: began as a scheme by the Us defence Department during the cold war. early computers the Arapanent was designed in 1960s. By 20/14, there were 5 billion facebook accounts.
Broadband and the Optics: Advert of broadband internet in the 1980s and 1990s, large mounts of data could be moved through cyberspace. data can be conveyed across the ocean floor through fibre optics owned by government or TNCs like Google. 1 million kilometers of flexible undersea cables carry all the world’s emails.
Change in Transport Costs: Since 1930s to 200 new transport hs been introduced when satellite was introduced in 1970s it was expensive however by 2000 the price decreased by more than 50 percent showing as availability increases prices becoming more affordable. Air transport has decreased by 80 percent since 1930s. This means more people are now able to travel.
How has Easyjet helped a global network?
It has allowed people to travel easier as it offers low fares. it has made countries monitor who enters there countries meaning countries have collborated more often. With 300 flight route it is easy to travel from place to place. Easyjet has helped “Switch on” places like Estonia and Tallin with prices like 40 pounds to UK to Tallin.
Define Free-Market Economy:
A market economy based on supply and demand with little or no govenment control.
