Panic Revision For Mocks Flashcards
(56 cards)
Railways accelerating globalisation - 3.1 ๐
- railways created new transport links for migration/trade
- allowed for diversification of economies
๐ 1904 - trans Siberian railway connected Moscow, china and japan allowing for trade and migration - economic and social globalisation
Jet aircraft accelerating globalisation - 3.1 ๐
๐ intercontinental Boeing 747 (1960s) made international travel more common
- leads to more migration and goods
- the expansion of the cheap flights sector (easy jet and Ryanair) increased the number of people travelling and migrating
- foreign products are more readily available
Steam power accelerating globalisation - 3.1
- Britain rose to power in 1800s because of this
- moved armies and goods quickly along trade routes
- social and economic globalisation
Containerisation accelerating globalisation -3.1 ๐
๐ 200 million containers shipped per year
- backbone of economy since 1950
- one of the most efficient ways of transporting goods
- therefore products can be more easily sent internationally and allowed companies like Amazon to increase peoples exposure to new products
Fibre optics accelerating globalisation - 3.1 ๐
- large amounts of data can be moved through cyberspace
- transported across ocean floors by fibre optic cables owned by TNCs like BT and the government
- easily available
๐ virgin media offering over 516 mbps for ยฃ35 a month - International communications are now faster contributing to economic globalisation
- more deals closed internationally from businesses
The internet accelerating globalisation - 3.1 ๐
- could also talk about online banking
- increased foreign connectivity
- foreign news, videos etc showing increased exposure to cultures
๐ the rise of video conferencing like teams and zoom has allowed for businesses to operate internationally - also spread of cultures
๐ eg K-pop creating a massive market
World trade organisation - 3.2
Supervises national trade, promoting free trade, ending protectionism
- Attempts to remove trade barriers (trade liberalisation)
- in the absence of the WTO, the average country will face an increase in tariffs on exports by 32%
World bank - 3.2
- Mainly focuses on economic growth
- Role is to finance the development of countries through loans
- Official goal is to reduce poverty by promoting foreign investment and international trade
- First loan to France after WW1 to develop the country
- Focuses on natural disasters and humanitarian emergencies
International monetary find - 3.2
- Mainly focuses on the stability of the economy
- Channels loans from the richest nations to poorer nations that apply for a loan
- Governments getting loans must run a free-market economy therefore more FDI
- IMF ensures nation can return loans but country must go through structural adjustment programs
KOF index - 3.3
- Measures Economic, social, and political globalisation
- Economic = tariff rates or FDI
- Social = tourist flows
- Political = membership of international organisations
AT Kearney index
Measures:
- Political engagement (membership of international organisations)
- Technological connectivity (no of internet users)
- Personal contact (international telephone traffic)
- Economic integration (FDI flows)
Types of globalisation - 3.1
- Economic: the growth of TNCs, the spreading of investment and rapid growth of world trade
- Cultural: people around the world having increasingly similar clothes, food, music, values often western in origin
- Political: the spread of ideologies, global connections eg the UN and the view of western democracies
- Environmental: the impact of pollution from one country to another, global warming seen as a global threat and international climate change agreements
- Demographic: increase in migration and tourism creating fluid and mixed populations
AT Kearney index - 3.3
Measures
- Political engagement (membership of international organisations)
Technological connectivity (no of internet users)
- Personal contact (international telephone traffic)
Economic integration (FDI flows)
Types of globalisation - 3.1
- Economic: the growth of TNCs, the spreading of investment and rapid growth of world trade
- Cultural: people around the world having increasingly similar clothes, food, music, values often western in origin
- Political: the spread of ideologies, global connections eg the UN and the view of western democracies
- Environmental: the impact of pollution from one country to another, global warming seen as a global threat and international climate change agreements
- Demographic: increase in migration and tourism creating fluid and mixed populations
Globalisation definition
involves widening and deepening global connections, interdependence and flows (commodities, capital, information, migrants and tourists). Globalisation is the process of increasing interconnectivity between countries. Globalisation is caused by the development of new technologies and political and economic decisions (e.g. removing tariffs)
national governments accelerating globalisation - 3.2
- free trade blocs: an agreement between a group of countries to remove all barriers to trade, e.g. import/export taxes, tariffs and quotas
- free market liberalisation: lifting restrictions for companies and banks reducing the costs for TNCs to locate and operate in these countries, competition between firms leads to innovation and lowest cost production
- privatisation: allowing companies to take over important national services e.g., railway and energy supply to reduce government spending
- encouraging business startups: aims to increase profits for businesses by using strategies such as low business taxes and changes in the law, for example the UK became more attractive to TNCs when Sunday trading was introduced in 1994
๐ ASEAN - 3.2
- A free trade area with 10 members with a population of 625 million
- a uniform low tariff is applied between members for specified goods
- Itโs working towards the elimination of tariffs sector by sector
- agreed to create a single market by 2015, however this was not achieved
- ASEAN aims to co-ordinate response to regional political issues
- Itโs more political than economic
- ASEAN pledged to remain nuclear weapons free in 1995
- ASEAN incorporates a culture specific approach to conflict resolution
- Seeks consensus and avoids public criticism of member nations
๐ chinas open door policy - 3.2
1978: Deng Xiaoping introduced the Open Door Policy โ economic liberalisation with political control.
Special Economic Zones (SEZs) set up (e.g., Pearl River Delta, Shanghai, Shenzhen in 1980) to attract FDI.
TNCs invested, driving rapid economic growth and urbanisation.
Over 300 million rural migrants moved to cities, fueling low-wage factory work.
Information is tightly controlled โ limited access to Google/Facebook; Chinese platforms like Youku dominate.
Cultural control: Max 34 foreign films allowed per year in cinemas.
Some FDI restrictions remain โ e.g., Coca-Colaโs 2008 Huiyan deal was blocked.
Labour costs rising in SEZs; countries like Vietnam now more competitive.
Despite growth, China is not fully open to all global flows
Offshoring - 3.3
moving parts of their production process, such as factories or offices, to other countries to reduce costs (e.g. labour). Furthermore, it reduces costs as wage rates are lower, tax rates are lower, proximity to raw materials reduces transport costs, less environmental regulation.
Outsourcing - 3.3
contracting a different company to produce goods and services they need, Outsourcing is more flexible than offshoring as the TNC can quickly shift supplier if a cheaper source becomes available. However, less direct control over the production process can lead to problems, e.g. in 2013 Tesco discovered that its Romanian supplier was is Romanian supplier was mixing horse meat into their budget beef burgers.
๐ McDonaldโs globalisation - 3.3
- 38,000 restaurants in more than 100 countries
- McDonaldโs adapts its menu to reflect local tastes while maintaining its core brand identity
- it offers the McAloo Tikki in India
- Sells the Teriyaki burgers in Japan
- McBeer and the McSausage burger are on the menu in Germany
๐ North Korea as a politically switched off region - 3.3
- North Korea is a hereditary autocracy ruled by Kim Jong-Un
- Itโs run as a one-party system with a command economy organised on the communist system
- Since 1955 it has followed the policy of โself-sufficiencyโ, minimising trade with other countries
- Emigration and foreign tourism by ordinary North Koreans is prohibited
- Ordinary North Koreans have no access to internet or social media
- it does trade with China, and set up the Kaesong Special Economic Zone, employing 52,000 people on the border with South Korea
๐ Sahel region as a physically switched off region - 3.3
- All four Sahel region countries are landlocked, rely on poor quality roads, and freedom of passage through neighbouring countries to access coastal ports this resulting in high transport costs which may make exports unattractive in foreign markets and deter FDI
- poor infrastructure and low literacy levels of the working age population make it unattractive for offshoring FDI
- low income levels mean it lacks market size to attract retail outlet FDI. Few households other than elite can afford to purchase imported goods or engage in foreign tourism.
What is the global shift - 3.4
the relocation of different types of industry, especially manufacturing to Asia from Europe and North America, particularly, the shift of manufacturing jobs to China and the shift of service and administration jobs to India. Caused by lowering of trade barriers and off shoring and outsourcing.