Globalisation Flashcards
1
Q
What are the two main factors that accelerated globalisation?
A
Transport and communication.
2
Q
What are the transport factors accelerating globalisation?
A
Containerisation
Jet Air Craft
Railways
Steam-ships
3
Q
What are the communication factors affecting globalisation?
A
Mobile phones Fibre optics Social networking Internet Electronic banking
4
Q
What is privatisation?
A
Moving businesses out of government ownership into private ownership.
5
Q
What is the advantage of privatisation?
A
Creates a competition led market, which encourages more FDI.
6
Q
What is deregulation?
A
Getting rid of certain rules/ tarrifs.
7
Q
Who privatised lots of companies in Britain?
A
Margaret Thatcher in the 1980s. Privatised BT in 1984 and British gas in 1986.
8
Q
What is a trade bloc?
A
International agreement where barriers to trade are reduced or eliminated among the participating states.
9
Q
What are the advantages of trade blocs?
A
Serve a larger market
Protection from foreign competition
National firms can merge to form transnational companies
10
Q
What are the disadvantages of trade blocs?
A
Interdependence
Loss of sovereignty
Compromise and concession
11
Q
How do national governments attract FDI?
A
Change in policy (Open-door policy in China 1991)
Privatisation (Margaret Thatcher UK 1980s)
Improvement of infrastructure (China has 234 civil airports since 2018)
12
Q
How does privatisation attract foreign direct investment?
A
Creates a competition-led market which brings great opportunity to bring in profit. Therefore companies are attracted to that area.
13
Q
What are the special economic zones in China?
A
Shenzhen, Shantou, Zhuhai
14
Q
When did China join the WTO?
A
December 2001
15
Q
Why are special economic zones significant?
A
They create a high proportion of jobs in an area, which brings in a lot of money to the national economy.
16
Q
What questions the significance of SEZ’s?
A
They only help certain areas, and may only profit certain cities and not the people living in urban areas.
17
Q
What is a switched on and switches on area?
A
Switched on zones are areas that are very globally connected with other places, and host a lot of tourism and trade.
Switched off places are areas that are very shut off from the rest of the world, and do not have a large amount of global connections.
18
Q
What are some examples of switched on places?
A
- Paris
- New York
- London
- Tokyo
19
Q
What are some examples of switched off places?
A
- DRC
- North Korea
- Ethiopia
- The Sehel
20
Q
What are some reasons for places being switched off?
A
Location barriers, political barriers, economic barriers
21
Q
What are some political barriers?
A
Government corruption
Mismanagement of natural resources
Government policies
Ethical reasons, such as gender equality
22
Q
When was the KOF Globalisations Index founded?
A
2002
23
Q
What does the KOF Index measure?
A
Measure extent to which countries are socially, politically, economically linked to others
Countries with more links are more globalised
Ireland was most globalised in 2015
24
Q
What are the advantages and disadvantages of KOFI?
A
Advantage: include political factors
Disadvantage: data from all countries is not available
25
What is the AT Kearney Index?
Measures at city level. Uses business activity, human capital, information exchange, and cultural experience to rank cities in terms of the quantity and quality of their connections.
26
Evidence from AT Kearney Index.
In 2014, New York and London were unchanged in top spots
| Emerging economies such Jakarta and Manila were increasing global connections at a first rate in same year.
27
What is out-sourcing?
When companies use foreign labour to manufacture their products due to cheaper labour costs and reduced regulations.
28
When did the global shift begin?
Began in the 1950s when companies began outsourcing their products to Asia, specifically India and China.
29
What two counties have had a significant impact through globalisation?
China and India
30
What is cumulative causation and who proposed the theory?
Gunner Myrdrel propose that one event can cause many different factors to change. It can either be positive or negative feedback. For example a new factory opening would bring new jobs, lower unemployment, improve economy and thus infrastructure and education.
31
Why did globalisation in India grow?
- India is a preferred destination for Foreign Direct Investment because low labour costs, highly skilled workforce, high proportion of population speak English
- Change in policy, India changed its policy to allow foreign direct investment
- Improvements in technology, many people in India get jobs involving IT with foreign companies, without improvements in technology these firms probably wouldn’t invest there.
32
What is an example of a TNC in India?
Coca Cola has invested $1billion USD in India. They have created many jobs for people in factories, call centres, management, etc. They have improved infrastructure of India and invested $10million USD into community projects such as sustainably energy schemes, and installing pumps to allow people to access fresh, clean water.
33
Benefits of globalisation in India (and in general)
- Poverty reduction, people living below poverty line fell from 45% in 1994 to 21.9% in 2012
- Education and training
- Infrastructure investment
- Waged work
34
Disadvantages of globalisation in India (and in general)
- Competition, people tend to choose foreign products over local Indian goods
- Air and water pollution, in China 4000 people die of air pollution every year and 70% of China’s rivers and lakes are polluted.
- Unplanned settlements, Dharavi slum has 16milliokn residents
- Environmental resource pressure, 100 cities suffer with extreme water shortages and 360million students worldwide don’t have access to safe drinking water
35
Impacts of globalisation on developed counties
- Reduced cost of manufacturing
- Development of tertiary industries
- Deindustrialisation
36
What caused deindustrialisation in Detroit?
The decline of the three major car manufacturers, GM, Ford and Chrysler
Decline was due to outsourcing to Asia due to cheaper labour costs
Around 5000 workers are left at Ford and GM lost $11million USD.
37
When did Detroit declare bankrupt?
In 2013 with a debt of $18.5billion
38
What impacts did deindustrialisation cause in Detroit?
- 25% of population left, and 1000 people are still leaving very month
- 70 schools have had to close in the last decade due to lack of funding
- There is 120km cubed of spare land
- The average house price is $6000USD
- 1/3 of families are under the poverty line
- Murder rate is 45 for every 100,000 people
- High unemployment
39
What is economic restructuring?
Movement from one industry to another, Detroit will hopefully move on from secondary to tertiary industry.
40
What is an elite migrant?
Either a very affluent or high skilled/ influential individual.
41
How can elite migrants get a tier 1 visa?
By investing £1million into UK economy
42
What is an oligarch?
Very wealthy Russians that fled to the UK after the fall of the Soviet Union and economic recession in Moscow
43
When was the tier visa system introduced and what was it called?
In 2006, named the Immigration, Asylum and Nationality Act
44
What is an example of an oligarch?
Roman Abramovich
45
How much is Roman Abramovich worth?
$8.3billion USD net worth
46
How many Russians now call London their home?
100,000
47
What percentage of properties above £5million are brought by Russians
20%
48
What percentage of super-prime core capital do Russians make up?
2% according to Savills data
49
What was Polish unemployment in 2005?
18.2%
50
What is the unemployment rate in some rural polish areas?
40%
51
What was the average number of job vacancies in UK leading up to January 2007?
607,900
52
What was the Poland annual GDP in 2006?
Around $12,700 USD
53
What are advantages of high wage migration to the host country?
- Brings millions of pounds into host country's economy through many means
- More diverse culture, migrants bring over traditions, food, etc.
54
What are the disadvantages of high wage migration to host country?
- Lower income people can get forced out of their homes due to house prices and new development planning by property developers, which oligarchs do a lot of
- Squeezing residents out of Mayfair and Knightsbridge
- High wage migrants, such as oligarchs can hold a lot of power over the UK due to their contribution to the economy.
55
What are the disadvantages of high wage migration to source country?
-Richest percentage of the population leave a country, which will impact the economy by losing a major source of income.
56
What is low wage migration?
-When lower income families from countries with lower employment and GDP, move to another country in order to find better work.
57
What are the advantages of low wage migration to the host country?
- Annual turnover of businesses increased by 20 to 30%
- Migrants contribute £25billion to UK economy
- Work longer hours for lower pay
- Diversify our culture
58
What was David Cameron concerned about high wage migration?
That the tensions between Russia and the UK, made it worrying that Russian oligarchs have so much power over UK economy due to the millions of pounds they contribute every year.
59
What are the disadvantages of low wage migration to the host country?
-Needed to create 130,000 new primary school places
-Migrants have paid 34% more in taxes than they have received in benefits (exploitation)
-High birth rate puts strain on midwifery
However, if the funding is put in the right place, then these won't become such a large issue
-However funding for NHS is incredibly low
60
Why does globalisation allow for increased opportunities for cultural exchange?
- Migration
- Travel
- Media
- TNCs (70% of world trade)
61
What are positives of cultural exchange?
- Ethical topics such as sexuality, gender equality, disability can be spread around the world, and make countries more accepting (e.g. Paralympics)
- Causes places to become more diverse
- Beneficial for culture being adopted as it helps their economy to grow.
62
When was the first Paralympics held and where?
Held in 1948 in London (for WWII veterans)
63
What are negatives of cultural exchange?
- Cultural groups lose their culture, as it becomes erased by another, more dominant culture moving into that country. For example, in New Zealand there are over 7000 cultural groups, all of which cultures have almost be destroyed (e.g. loss of tribal language)
- Some areas of culture are sacred, and some people tend to use them without understanding why they shouldn't be used.
64
What do hyper globalisers believe?
That globalisation is such a successful process that one day all the cultures in one country will blend and become on homogenous culture.
65
What evidence is there to support hyper globalisers?
TNCs marketing strategies creates similar consumers demands across cultures, leading to uniformity.
66
What do transformalists believe?
That cultures are dynamic in their response to globalisation and will most likely change and create new hybrid cultures.
67
What evidence is there to support transformalists?
- Rap music emerged in the USA, however has spread worldwide and developed culturally distinct variants in different countries such as Japan and France.
- Due to migration, British culture has formed different cultural hybrids such as UK-Indian and UK-Polish groups.
68
What do sceptics believe?
That globalisation is profound in the core global economies and reflects interdependence. Beyond this, there is no impact on people's culture.
69
What evidence is there to support sceptics?
Rise of China, India and Iran will limit the dominance of the Western Cultures and ensure that cultures will stay separate.
70
What impacts has cultural diffusion had on China?
Overall negative because:
- Obesity levels have increased, 9.7% of population has diabetes compared to 11% in USA
- Meat consumption increased from 20kg per person to 50kg per person
- Loss of tradition
- Chinese farmers under stress to produce enough food
- Prices of grain driven up (used to feed cattle)
71
When was the open door policy introduced in China?
1978 by Deng Xiaoping
72
What percentage of all properties above the price of £5million in London are brought by Russians?
20%
73
What attempts have been made to control the spread of globalisation?
- Trade protectionism
- Rise of localism
- Rise in far right
- Protecting cultural identity
74
Attitudes towards migration in UK facts
- UK government attempting to cut down migration to 100,000 people a hear
- UK voted to leave EU in 2016 (control borders)
75
Trade protectionism facts
- Trump threatened to leave WTO in 2018 (classes them as a threat)
- EU blocked £50million worth of Chinese clothing from entering the UK in 2007
76
Localism facts
- For 600,000 meals produced annually at Eden Project in Cornwall, 90% of products are locally sourced from Cornwall and Devon
- Greenpeace states that although localism is more expensive, in the long term the effects of greenhouse emissions will cost us much more
77
Rise in far right facts
- In many European countries, nationalist parties for higher scores in parliament then in precious years
- Fidesz got 49% of votes in Hungary
- Sweden Democrats and Germany’s AFD portray anti multiculturalism and strict immigration law
- They have grown in popularity
78
Resource recycling facts
- According to the ISWA, globalisation is one of the largest challenges to achieve long-term sustainability of waste management
- KBT urging UK governments to create a national recycling blueprint
79
Fair trade and ethical consumption facts
-Forest Stewardship Council has a seal to show consumers that their wood was sourced sustainably without contributing to global degradation
80
What is the slum in India?
Dharavi
81
When was the high speed rail system completed in China?
2016
82
How much did poverty reduce by in China between 1981 and 2010?
680million
83
How much land was lost to globalisation in China?
16 million acres over past 20 years
84
What are the disadvantages of globalisation to the Chinese environment?
- 70% of China’s rivers and lakes are polluted
| - 40% of China’s farmland is suffering from land degradation
85
What are the four SEZ in China?
Shenzhen
Zhuhai
Shantou
Xiamen
86
What is Roman Abromavich’s networth?
$8.3million
87
When did Russia put the flag under the North Pole?
2007
88
How much did oil prices rise by in March 2020 in the US?
Just over 70%
