Globalisation EQ1 Flashcards
(25 cards)
Globalisation
Process that has caused the world to become more connected over time.
What are the 4 Globalisation connections/flows?
GOODS - products and commodities
CAPITAL - transfer of money between people, businesses and governments
INFORMATION - data transferred through internet
PEOPLE - migrants and tourists
How was globalisation achieved in the past? (3)
Trade
Colonialism
Cooperation
Forms of globalisation
Economic
Cultural
Political
Social
Economic globalisation
Growth of TNCs
Online purchasing - ICT improvements
Rapid growth in world trade
Cultural globalisation
Western cultures dominate
More circulation due to internet
Political globalisation
Western governments dominate
Increased trade blocs
Social globalisation
cross border family networks
Improvements in health and education
Why has improvements in transport and trade benefitted the world?
- Encouraged growth of trade
- Allowed TNCs to establish spatial division of labour
- Increased connectivity makes places seem closer and easier to reach (shrinking world)
- Transporting goods has become cheaper
Why are containers good?
They are inter-modal so can be transported by both train lorry or ship.
9500 container shops in world can carry up to 18000 containers each.
Loaded by crane now.
What are the 4 developments in transport and trade?
Steam power
Container ships
Jetcraft
Railways
Time space compression
People now feel closer as technology allows real time communication so the idea of someone being far away is irrelevant in terms of communication.
What are the developments of the communication revolution? (4)
Telephone/mobiles
Broadband/fibre optics
GIS/GPS
Internet/social media
How have improvements in communication benefitted businesses?
Analyse data instantly
Keep track of all aspects of production in diff countries
Transfer money and investments instantly
How are global flows sometimes seen as threats? (3)
Imports can threaten countries own industries.
Information can provide citizens with knowledge governments find threatening.
Migrants can bring cultural change where it may not be wanted.
How does the world trade organisation promote globalisation? And an evaluation
Encourages countries to abandon protectionism.
Works to reduce tariffs and taxes for free trade.
Evaluation - harms farmers and failed to stop richest countries from protectionism.
How does the world bank contribute to globalisation? And evaluation
Loans money to help developing countries to reduce poverty and help make ties with the global economy.
Evaluation - strict conditions on loans and criticised for putting economic development before social development factors.
How does the International Monetary Fund contribute to globalisation? And evaluation
Encourages open economies and promotes economic stability.
Loans to develiping countries who in turn need to open their economies to outside investment (FDI)
Evaluation - controversial rules
How can governments promote globalisation? (4)
Join trade blocs (ASEAN, EU)
Privatisation
Free market liberalisation
Encourage business start ups
WHy are SEZs attractive to investors?
- unions usually banned
- less environmental regulations
- tariff and quota free
- no taxes
- infrastructure provided by gov
- profits sent back overseas
What does the KOF index measure?
Measures degree of globalisation:
- economic: trade and money flows
- social: tv ownership and international calls.
- political: trade blocs/agreements
What does the AT Kearney index measure?
How economically successful cities are:
-global political importance and role in global financial system
How have TNCs contributed to globalisation?
Outsourcing
Offshoring to cheaper location
Developing new markets
Glocalisation
Negatives of TNCs?
Exploitation
Low wages
Environmental concerns
Jobs losses in developed world due to outsourcing
Traditions and cultures can become eroded