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Geography-Globalisation > Globalisation-EQ1 > Flashcards

Globalisation-EQ1 Flashcards

1
Q

What does Globalisation refer to?

A

The way people and places across the world have become closely linked together which is dependent on global connections, interdependence and flows of capital, commodities, migrants and tourists

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2
Q

What has the acceleration of globalisation raised?

A

-Created new opportunities for businesses and people.
-Inequalities have been made but had still increased the flow of ideas, goods and services

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3
Q

What are the 5 main causes of Globalisation?

A

-TNCs
-Transport, Communications
-Technology
-International Organisation
-Markets

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4
Q

How have TNCs cause globalisation?

A

-Influenced global culture
-Improved local economies by providing job opportunities.
-Appeal to local markets through globalisation meaning that products are specifically designed for the taste of the consumer.
-Develop new markets and take advantage of economic liberalisation by offshoring and outsourcing.

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5
Q

How has transport and communications caused globalisation?

A

-Improvements in mobile communications,
-Internet,
-Social media and fibre optics have allowed people to connect from all over the world.
-Transport developments causing time-space compression.

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6
Q

How has technology caused globalisation?

A

Computer-aided design and manufacturing have allowed technology to become more efficient and less reliant on human labour. Saves time but creates job losses.

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7
Q

How have international organisations caused globalisations?

A

Provide aid and assistance to countries in need, forming a global community where countries try to support one another.

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8
Q

How have markets caused globalisations?

A

Globalisation has made people richer, forming a larger global market who consume goods and services. Has led to stock growth.

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9
Q

What is Economic Integration?

A

Economies are becoming more and more connected through trade and the movement of goods and capital. This motivates improved transport and communication and spreads culture.

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10
Q

What does Economic Integration create?

A

-Increasing reliance of economies on each other.
-Opportunities to able to buy and sell in any country in the world
-Opportunities for labour and capital to locate anywhere in the world
-The growth of global markets in finance.

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11
Q

What are the types of economic globalisation?

A

-TNCs
-Industries
-Trade blocs
-Sources of Income
-Global transactions

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12
Q

What are the types of political globalisation?

A

-Governments
-Western democracies
-Deregulation
-International Organisations

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13
Q

What are the types of cultural globalisation?

A

-Exposure to media sources
-Ability to travel internationally
-Greater awareness
-Westernisation

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14
Q

What are the types of social globalisation?

A

-International immigration
-Social networking
-Global NGOs

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15
Q

What are flows in globalisation?

A

When a country shares something as they are moving from one country to another. Can be physical, ideas or concepts

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16
Q

What are the different flows in globalisation?

A

-Capital
-Labour
-Products
-Services
-Information

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17
Q

Capital Flow

A

The movement of money for the purpose of investments, trade or business production

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18
Q

Labour flow

A

The movement of people who move to work in another country.

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19
Q

Products flow

A

The movement of physical goods from one country to another.

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20
Q

Services flows

A

Are ‘footloose’ industries meaning that they can be located anywhere without constraints from resources or other obstacles. They flow as they can be produced in a different country to where they are received.

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21
Q

Information flows

A

Any type can flow from one place to another via the internet, SMS, phone calls.

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22
Q

What is containerisation?

A

A system of freight transport used in sea shipping that has reduced the transport costs of moving thousands of different goods across the globe.

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23
Q

What role has containerisation played in globalisation?

A

-Been a catalyst
-Lowered the costs of trade containerisation has encouraged specialisation and the expansion of global supply chains.

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24
Q

What is the Shrinking World also known as?

A

Time-Space Compression

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25
Q

What is the idea of the Shrinking World?

A

The idea that distant places feel ever closer and take less time to reach.

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26
Q

Transport Innovations:1712

A

Invention of the steam engine, leading to steam road locomotives in 1784, steam boats in 1802 and steam rail locomotives in 1804.

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27
Q

Transport Innovations:1886

A

First automobiles in commercial production

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28
Q

Transport Innovations:1903

A

First controllable aeroplane demonstrated

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29
Q

Transport Innovations:1929

A

Jet engine designed, first prototype in 1937

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30
Q

Transport Innovations:1955

A

Development of the shipping container

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31
Q

Transport Innovations:1960s

A

Commercial development of jet aircraft

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32
Q

When did the idea of a digital economy come about and what was it in response to?

A

1995 to the recent development of the internet

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33
Q

What has happened since this idea in 1995?

A

The supporting infrastructure (software, hardware, telecommunications and networks) has developed rapidly which strengthens the digital economy.

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34
Q

What was the focus initially on and how did it expand?

A

Initially on e-business and e-commerce but social media has extended the scope of the digital economy.

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35
Q

ICT and Mobile Communication:1832

A

First demonstration of wireless telegraphy (radio)

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36
Q

ICT and Mobile Communication:1837

A

First commercial electric telegraph

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37
Q

ICT and Mobile Communication:1925

A

First demonstration of television

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38
Q

ICT and Mobile Communication:1940

A

Teletype (early form of communication between networked computers)

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39
Q

ICT and Mobile Communication:1957

A

First satellite leading to modern mass communication, electronic navigation and global positioning and data collection systems.

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40
Q

ICT and Mobile Communication:1969

A

ARPANET becoming the basic internet in 1981

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41
Q

ICT and Mobile Communication:1989

A

World Wide Web invented

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42
Q

What is one of the largest contributing factors to the exponential growth in mobile phone usage?

A

Increased uptake in LEDCs, such as Kenya, and rapidly developing countries such as India.

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43
Q

What does Trade require from goods?

A

Goods that meet the specified or expected standard of quality, alongside the prompt payment of bills according to the contract or trading agreement.

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44
Q

What have societies done around trade?

A

Developed laws to regulate trade, guaranteeing trust and promoting greater amounts of trade.

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45
Q

Governments recognise the benefit of increasing trade flows for many reasons. Therefore , they made agreements about what?

A

To regulate cross-border trade to encourage greater flows.

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46
Q

What are the political disadvantages from cross border trade?

A

-Domestic companies may become over-specialised and if the specialism suffers a decline in demand there can then be a large fall in employment and tax revenue. -Competition from abroad may lead to some domestic firms reducing production or going out of business altogether.
-Governments can face political opposition when making trade deals.

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47
Q

What is Protectionism?

A

Where some industries and communities may call for governments to impose taxes and tariffs on imported goods, to protect their trade from competition.

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48
Q

LDCs

A

Least Developed Countries

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49
Q

LEDCs

A

Less Economically Developed Countries

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50
Q

NICs

A

Newly Industrialised Countries
(Originally used for Asian ‘Tiger’ economies)

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51
Q

MEDCs

A

More Economically Developed Countries

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52
Q

OECD

A

Organisation for Economic Cooperation and Development

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53
Q

G7

A

The top 7 of the OECD

54
Q

G7+5

A

Created in 2005 to include other countries

55
Q

G20

A

Has 23 all from the developing world

56
Q

BRICS

A

Middle Income Countries becoming High Income
Brazil, Russia, India, China and South Africa

57
Q

What is the International Monetary Fund?

A

An organisation based in Washington that loans money to poorer developing nations.

58
Q

What is one of the key conditions for the recipient nations for the IMF?

A

That the country opens up its markets and industries from government control, which in turn leads to privatisation.

59
Q

What does this condition provide TNCs with?

A

The opportunity to enter those markets more easily which would generate financial activity and tax, but mainly for their host country (often a MEDC).

60
Q

How can this negatively impact a country?

A

As LEDCs fall into debt with their industries privatised which in turn could lead to profits leaving their country and potential environmental or workforce exploitation.

61
Q

What is The World Bank?

A

Loans money to developing nations with the aim to improve developments so enable globalisations

62
Q

Why is the World Bank seen as controversial?

A

As it doesn’t benefit developing countries.

63
Q

What is the aim of the World Trade Organisation?

A

To liberalise trade by removing tariffs, subsidies and quotas.

64
Q

Why has the World Trade Organisation been criticised?

A

As it has failed to prevent the EU and USA from improving protectionist measures like subsidies and so has been unsuccessful from creating equal opportunities for all countries to trade.

65
Q

What is Foreign Direct Investment?

A

A controlling ownership in a business enterprise in one country by a company or organisation based in another country.

66
Q

What has cause a significant increase in FDI since 2nd WW?

A

International agreements to promote trade

67
Q

If a government wishes to receive investment in their economies from abroad, what must they do?

A

Make it legal for foreigners to own and control businesses and property in their country.

68
Q

What is inorganic FDI?

A

Where a foreign firm buys a company in another country.

69
Q

What is organic FDI?

A

Where foreign investment expands the operations of an existing business in a foreign country.

70
Q

Why do national governments encourage FDI?

A

As the influx of capital can boost economic growth, employment opportunities and tax revenues for the host country.

71
Q

What does FDI often lead to?

A

Improvements in infrastructure that can also benefit domestic firms.

72
Q

What can greater competition from new companies lead to?

A

Productivity gains and greater efficiency in the host country due to the transfer of skills through additional training and job creation and the availability of more advanced technology and access to research and development resources.

73
Q

What are the government mechanisms to encourage FDI?

A

-Low corporation tax and low individual income tax rates
-Tax ‘holidays’ or other types of tax concessions
-Preferential tariffs (sometimes with special economic zones)
-Export processing zones
-Free or subsidised land
-Visas and approval for the relocation and expatriation of key staff
-Subsidies for infrastructure spending
-Subsidies for R&D

74
Q

What does Privatisation mean?

A

Transferring ownership of a business, agency, service or property from the public (government-controlled) sector to the private sector. Can also mean governments outsourcing of services to private firms.

75
Q

What does liberalisation mean?

A

To reduce and remove rules restricting economic activity and companies

76
Q

Why do governments liberalise?

A

They think that rules make businesses inefficient, and reduce motivation and innovation.

77
Q

What are Trade Blocs?

A

A type of intergovernmental agreement, where barriers to trade in a world region (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.

78
Q

What do governments within trade blocs recognise?

A

That innovation and branding add value to secondary and tertiary products over time. But primary products tend to go through boom and bust cycles in terms of their cycle.

79
Q

Why do governments seek to create better trade in terms for domestic companies that produce secondary and tertiary products?

A

In the hope that if they can increase their trade, they will be encouraged to invest in their workforce and their products. This will benefit the country by increasing the tax base and creating high skill levels and high wage employment.

80
Q

What is the first advantage of Trade Bloc Membership?

A

Bigger Markets but no extra taxes

81
Q

What is the second advantage of Trade Bloc Membership?

A

National Firms can merge to form TNCs

82
Q

What is the third advantage of Trade Bloc Membership?

A

Protection from foreign competitors and political stability

83
Q

What is the first disadvantage of Trade Bloc Membership?

A

Loss of Sovereignty

84
Q

What is the second disadvantage of Trade Bloc Membership?

A

Interdependence

85
Q

What is the third disadvantage of Trade Bloc Membership?

A

Compromise and Concession

86
Q

What is deregulation?

A

The process of reducing or removing rules governing economic activity in a country, with the aim of encouraging investment.

87
Q

What are Special Economic Zones?

A

Where governments build infrastructure to attract foreign direct investment and increase trade flows.

88
Q

What do Special Economic Zones look like?

A

Often large areas of land set aside by the government in locations well placed for international trade such as seaports. Companies can import raw materials and export finished manufactures from these zones without incurring domestic taxes.

89
Q

What do subsidies provide?

A

Employment for locals, payments of payroll, taxes and technology transfer.

90
Q

Why are the benefits of globalisation not distributed evenly?

A

As the pattern of connection is not the same across all countries.

91
Q

What are Global Hubs?

A

Are cores that demonstrate a number of intense connections to the rest of the world as others wish to connect with them. Many of these hubs host major TNCs and have increasingly diverse populations.

92
Q

What moves towards Global Hubs?

A

Demographic flows as well as flows of finance trade and ideas.

93
Q

What helps the cheap and efficient movement of people and goods between these hubs?

A

Transport and communications technologies help networks operate efficiently and air travel and containerisation.

94
Q

What does Telecommunications allow?

A

Long-distance links between producers and consumers. The internet has increased the capacity of the telecommunications network to handle data with GIS and GPS allowing accurate monitoring of flow between nodes.

95
Q

What does the Global Core-Periphery Model show?

A

The process of Cumulative Causation.

96
Q

What does the KOF Globalisation Index measure?

A

The extent to which countries are socially, politically and economically linked to others.

97
Q

How is the KOF Globalisation Index calculated?

A

On the basis of 24 variables

98
Q

What is 1 advantage and disadvantage of the KOF Index?

A

Ad-One of the few measures which considers the political element.
Dis-Major weakness is that the data for some countries is not available.

99
Q

What does the AT Kearney Index produce?

A

A Global Cities Index

100
Q

How is the AT Kearney Index measured?

A

Uses measures of business activity, human capital, informational exchange, cultural experience and political engagement to rank cities in terms of quantity and quality of their global connections.

101
Q

What is 1 advantage and disadvantage of the AT Kearney Index?

A

Ad-Allows for comparison between countries as well as over time.
Dis-Smaller countries tend to take the spots due to higher proportion of FDI.

102
Q

What are the other 2 additional index’s used?

A

-IMF’s Annual Report in Exchange Arrangements and Exchange Restrictions
–KAOPEN Index of Openness to Capital

103
Q

What does the IMF’s Index measure and what does it record?

A

Measures globalisation. Records the existence of restrictions to trade in different countries.

104
Q

What does the KAOPEN Index measure and how is this measured?

A

Measures globalisation. Measures how easy it is to invest and withdraw investment in different countries.

105
Q

What can TNCs be described as and why?

A

-The architects of globalisation
-They join together different national markets with their supply chains and marketing strategies.

106
Q

Why is it often difficult to map the geography of a TNC?

A

As the largest firms have branch plants in almost every country and has business links with local partners.

107
Q

What do TNCs gain by exporting goods and services?

A

They make a significant investment in foreign countries sometimes by buying and selling licences for production or sale in foreign markets.

108
Q

What encourages TNCs to expand internationally?

A

The prospect of increased sales and potential profit encourages.

109
Q

What is Outsourcing?

A

Where a business makes a contract with another company to complete some of the work rather than doing it within the company.

110
Q

What may Outsourcing involve?

A

Making products or providing a service with the aim to reduce costs as other companies can do the work at a lower cost.

111
Q

What is Offshoring?

A

Where a company moves part of its operations to another country, often because labour costs are lower or because the economic situation is more favourable for profit making such as lower taxes and tariffs.

112
Q

What does Glocalisation mean?

A

Means adapting the goods or services of a business to increase consumer appeal in different local markets.

113
Q

What is Glocalisation?

A

A marketing technique for TNCs that combines cultural respect and self-interest.

114
Q

Why may Glocalisation be necessary?

A

Because tastes differ per country and there is no advantage in offering a uniform product if it is not popular in a particular location.

115
Q

What is Glocalisation commonly used for?

A

To address religious or cultural objections or regulatory or design restrictions.

116
Q

Give some examples of Glocalisation.

A

-Mcdonalds doesn’t serve beef burgers as the majority of population is Hindu and don’t eat beef-McVeggie burgers instead.
-BMW-right hand drive for the UK market and left hand drive for the German market.
-Tesco doesn’t wrap fruit and veg in Thailand due to the country’s ‘wet market’ tradition.

117
Q

What is the first positive impact of TNCs on the host countries?

A

Raised Living Standards

118
Q

What is the second positive impact of TNCs on the host countries?

A

Technology Transfer

119
Q

What is the third positive impact of TNCs on the host countries?

A

Political Stability

120
Q

What is the fourth positive impact of TNCs on the host countries?

A

Higher Environmental Standards

121
Q

What is the first negative impact of TNCs on the host countries?

A

Tax Avoidance

122
Q

What is the second negative impact of TNCs on the host countries?

A

Growing Global Inequalities

123
Q

What is the third negative impact of TNCs on the host countries?

A

Environmental Degradation

124
Q

What is the fourth negative impact of TNCs on the host countries?

A

Unemployment

125
Q

What happens to some countries as a result of globalisation?

A

Remain Switched off from Globalisation

126
Q

What does it mean for a country to be switched off?

A

Few or very little connections between these regions and the core global economy

127
Q

What are the physical reasons for global isolation?

A

-Distance from market discouraging FDI
-Wilderness
-Low Agriculture Potential
-Lack or poor quality of energy and mineral deposits

128
Q

What are the political reasons for global isolation?

A

-Corruption and presence of organised crime groups
-Weak commitment of government to development
-Civil or tribal conflict
-Exclusion from trade blocs or disadvantaged by trade rules

129
Q

What are the economic reasons for global isolation?

A

-High level of government debt
-Weak education levels and poor workforce skills
-Poor transport and telecommunications infrastructure
-Dependence on particular industries

130
Q

What are Foreign Mergers?

A

Two firms in different countries join forces to create a single entity.

131
Q

What are Foreign Acquisitions?

A

A TNC launches a takeover of a company in another country.

132
Q

What is Transfer Pricing?

A

The setting of a price for the transfer of products or services between controlled (or related) sections of a TNC.

Geography-Globalisation (3 decks)

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