Globalisation

Question 1

What are interconnections driven by?

Answer 1

• flows of goods
• flows of capital
• flows of people
• flows of ideas

Question 2

The shrinking world points

Answer 2

• development of containers
• growth of logistics industry - movement of containers
• rapid developments in ICT
• social networking
• cyber security

Question 3

Key points for decision making

Answer 3

• most FDI by TNCs in foreign countries currently originates from developed countries
• emerging economies - China - increasing FDI
• much Chinese investment is in developing countries

Question 4

The EU points

Answer 4

• 28 members
• established under the Treaty of Rome
• created by a desire to form political and economic unions to prevent another war

Question 5

The ASEAN points

Answer 5

• 10 southeast Asian countries

- aims include accelarating economic growth and social progress and promoting regional peace

Question 6

Other countries have…

Answer 6

• opened up markets to competition - free market liberalisation
• encouraged privatisation
• providing grants for new businesses

Question 7

Key characteristics of SEZs

Answer 7

• unions are often banned
• environmental regulations are limited
• tarriff and quota free allowing manafactured goods to be exported with no extra cost
• good infrastructure
• taxes are low

Question 8

The KOF measures…

Answer 8

• economic globalisation - investment n money flows
• social globalisation - tourist flows
• political globalisation

Question 9

TNCs…

Answer 9

• occur in a wide range of industries
• responsible for developing global supply chains through investment
• making further investments in Latin America, southeast Asia
• tend to have headquaters in developed countries
• taking advantage of economic liberalisation
• manafacturing takes place in place with low labour costs
• often take advantage of outsourcing their production

Question 10

Why are some people switched off from globalisation?

Answer 10

• political isolation - eg - North Korea
• physical isolation - eg - Nepal
• economic isolation - eg - Sahel countries of Africa

Question 11

The global shift key points

Answer 11

• during last 30 years - economic global shift to Asian countries
• manafacturing jobs moved from Western Europe to China and Asian countries
• service industries have also moved especially to India

Question 12

Why has there been a recent slow down in the global shift?

Answer 12

• financial crash in 2007/8
• Chinese economy maturing and growth rate recently halved
• growing signs of opposition to globalisation

Question 13

Why has rapid urbanisation occured?

Answer 13

• rural-urban migration taking place due to push and pull factors
• life expectancy and natural population increase is greater in urban areas
• development of megacities where there are marked social and environmental challenges

Question 14

What sort of migrants do hub cities attract?

Answer 14

• highly paid professionals - lawyers/bankers
• very wealthy people seeking to establish bases away from home
• low skilled people to service wealthy - maids, nannies
• low skilled people to build homes

Question 15

Diffusion and erosion of the global culture key factors

Answer 15

• globalisation accused of cultural diffusion creating westernisation
• consumer based TNCs (cococola) sell similar products through their global marketing strategies
• global media corporations reinforce western culture
• global tourism increasing
• political leaders and their policies advocate importance of wealth creation and business ethic
• social media trends features music, fashion etc
• cultural erosion taken place in some parts of the world

Question 16

Concerns about cultural impacts and about economic and envrionmental exploitation have led to opposition to globalisation from:

Answer 16

• groups - anti globalisation movements protest against resource consumption and exploitation of workers
• nations - some suggest Brexit vote was rebellion against offshoring jobs to emerging economies
• individuals - Trump signalled more protectionist measures: trade tariffs and initiatives to reshore jobs back to USA

Question 17

Gini coefficient points

Answer 17

• values between 0 (perfect equality) -100 (perfect inequality)
• the lower the GC the more equally household income is distributed
• therefore measure of overall extent to which households from the bottom of the income distribution upwards receive less than an equal share of income

Question 18

How has globalisation posed a threat to the global environment?

Answer 18

• creating pollution (air/water/dereliction)

- having a high ecological footprint

Question 19

What major environmental issues are linked to globalisation?

Answer 19

• use of 40% of earth’s land as agriculture land - loss of biodiversity
• intensive cash cropping, aquaculture bring damaging effects - groundwater depletion

Question 20

What tensions has globalisation caused?

Answer 20

• some countries have a large immigrant population resulting from diaspora
• in some areas these populations have been facilitated by open borders
• TNCs have made use of liberal policies and increased their FDI
• demands to limit immigration have increased due to rising demand on services
• some extremist groups have increased popularity
• concerns over use of water across national boundaries

Question 21

Some governments try to control spread of globalisation through…

Answer 21

• laws can be strengthened to limit number of economic migrants - illegal immigration is however hard to tackle
• limiting access to information online
• trade protectionism being considered by some governments - USA
• resource nationalism - individual countries seek to limit access to rare materials
• some indigenous people seek to retain cultural identity

Question 22

Initial point of sustainability

Answer 22

• globalisation is associated with a range of environmental stresses - growing food, water + energy supply - put increased pressure on natural resources

Question 23

What may localism result in?

Answer 23

• boycotting of supermarket products with high food miles
• formation of local pressure groups and NGOs
• increase in the cost of essential goods which may not be viable for people on low incomes

Question 24

Many people have ethical concerns regarding…..

Answer 24

• social cost of worker exploitation and/or levels of fair income
• amount of packaging for products
• ecological footprint of a goods production and transport to markets

Question 25

Recycling points

Answer 25

• local authorities play key role in reducing waste and ecological footprints
• recycling process requires use of large amounts of energy and water
• energy is also used to transport waste to recycling sites
• long term solution to design out waste altogether