Flashcards in Globalisation / An integrated World Deck (10):
Globalisation refers to
Changing relationships between different world cultures, as well as different world economies
What is globalisation
The process by which the world becoming increasingly interconnected as a result of massively increased trade and cultural exchange
3 factors that influence globalisation
3) Trade Liberalisation
What is the positive and negative effects of globalisation?
∆ Creates more wealth in developing country
∆ Not helping to close the gap between the world's poorest and the richest countries
Describe "unfair trade"
MEDC buy raw materials cheaply but sell finished products and services as a much higher price.
High standard of living in MEDC but low in LEDC
Define "unfair trade"
People who produce raw materials are paid very little for them but are expected to pay high prices for finished products.
What do "multinational companies" do?
Take advantage of cheaper about but bringing employment to poor countries.
Why do LEDCs need "International Debt Relief"
Poor countries borrowed money from the World Bank, the UN or the International Monetary Fund to stimulate growth by spending money on their economy.
* But it did not
Arguments for Globalisation
1) Better health opportunities
2) Fight for democracy and social justice
3) Make people aware of events in far away parts of the world
4) Improves the skill base of developing countries
5) Raise income and standard of living
6) More mixing of people and cultures
7) More sharing of ideas, experiences and lifestyles
8) Make people aware of deforestation and global warming - alert for sustainable development
10) Encourages ethical trade and corporate social responsibility