Topic 1: Globalisation Flashcards
1
Q
Globalisation definition:
A
- the process in which people, culture, finance, services and goods transfer between countries with few barriers.
2
Q
What are the types of globalisation?
A
- economic/financial globalisation
- political globalisation
- social globalisation
- cultural globalisation
3
Q
What is financial globalisation?
A
- global capitalism is spread by TNCs - some with higher incomes than the GDP of some countries.
- cheaper labour in developing countries helps to supply consumers in wealthier nations
- trillions of dollars are exchanged globally by electronic mean every day.
4
Q
What is political globalisation?
A
- international political organisations have expanded to promote economic growth, e.g. the EU, G8/G20.
- TNCs and international political organisations can influence national governments
- many trade barriers (e.g. quotas/tariffs) have been reduced or removed to liberalise world trade.
5
Q
What is social globalisation?
A
- those with skills in management, finance and IT move around the world to where they are most in demand.
- economic migrant labour flows to areas with higher incomes and higher rewards.
6
Q
What is cultural globalisation?
A
- lower transport costs allow increasing long-distance tourism
- cheaper global phone networks, increasing mobile phone usage, and fast fibre-optic connections allow exchanges of information and ideas by email, social media and online news websites.
7
Q
Deepening and lengthening of globalisation:
A
▪ The lengthening of connections - people can now travel further afield and goods are
brought in further away.
▪ The deepening of connections where connections are penetrating more in depth into
most aspects of life.
▪ Faster speed of connections - people can now talk in real time from different parts of
the world and you can travel much faster than previously between different countries etc.
8
Q
What are the flows of movement:
A
- Capital – money flows through the world’s stock markets
- Commodities – valuable raw materials (e.g., fossil fuels, food and minerals) are traded
Information – the internet allows real-time communication between countries globally - Migrants – the permanent movement of people still face challenges due to border controls and immigration laws
- Tourists – Budget airlines have made it possible for people to travel further more easily
9
Q
Political interdependence:
A
- international political issues require countries working together in order to solve them. Issues must have a unanimous decision from nations.
- countries rely on others to intervene if there is political unrest. For example, many countries intervened when there was Serbian State sponsored ethnic cleansing of Kosovo’s independence.
10
Q
Economic interdependence:
A
- countries are dependent on the flows of labour, products, services entering the country in order for the economy to grow.
- labour provides a workforce; products and services mean countries can develop and make more money.
11
Q
Social interdependence:
A
- migration has caused social interdependence as there are now diasporas all over the world that are dependent on the place they live.
- countries rely on each other for leisure activities, e.g. TV programmes produced in other countries.
12
Q
Environmental interdependence:
A
- all nations are affected by other nations, greenhouse gas emissions, nuclear waste emissions etc, meaning all countries rely on each other to protect the environment.
13
Q
Developments in transport and trade - 19th century:
A
- steam power
- railways
- jet aircraft
- containerisation
- telegraph
14
Q
Developments in transport and trade (19th century) - steam power:
A
- in the 1800s, Britain was leading the world in use of steam technology.
- This allows the British to move their goods and armies very quickly into key areas, such as Asia and Africa.
15
Q
Developments in transport and trade (19th century)- railways:
A
- railway networks expanded globally in the 1800s and remains important for governments globally. E.g. HS2 Railway linking London to northern England.
16
Q
Developments in transport and trade (19th century) - jet aircraft:
A
- newer and more efficient aircraft have allowed goods to be transported quickly between countries. Increasing competition between affordable airlines has led to more people being able to travel abroad.
- arrival of the intercontinental Boeing 474 in the 1960s
17
Q
Developments in transport and trade (19th century) - containerisation:
A
- more than 200 million container movements every year and is extremely important to the global economy.
- lower costs of transport are beneficial for both businesses and consumers.
- today, the largest container ships carry 24,000 containers.
18
Q
Developments in transport and trade (19th century) - telegraph:
A
- first telegraph cables were laid across the Atlantic in 1860s, which allowed foe almost instantaneous communication and revolutionised how businesses operated.
19
Q
What is the ‘shrinking world effect’?
A
- when places around the world take less time to reach, due to developments in technology and therefore start to feel closer.
- can also be referred to as time-space compression.
- 1840: best average speed of horse-drawn coaches and sailing ships was 10mph.
- 1930: steam trains averaged 65mph and stem ships averaged 36mph
- 1950s: propellor aircraft - 300-400 mph
- 1960s: jet passenger aircraft - 500-700 mph
- 1990s: cyberspace information in seconds
20
Q
Developments in transport and trade (21st century) - telephones:
A
- mobile phone use is very common with smartphones becoming more popular. This has allowed better global communication.
21
Q
Developments in transport and trade (21st century) - broadband and fibre optics:
A
- since the 1990s, ranges of data can be transferred very quickly via cables laid out along the ocean floor
- this also reduces the cost of communication
22
Q
-Developments in transport and trade (21st century) - GPS:
A
- allowed companies and people to track goods across the world.
23
Q
National governments attitudes and actions
A
- free-market liberalisation
- privatisation
- encouraging business start-ups
24
Q
What is free-market capitalism
A
- associated with the policies implemented by Thatcher in the UK and Ronald Reagan in the US.
- the belief that government interventions in markets would hinder economic growth and development in the long term.
- banking and finance sectors were deregulated in the UK which led to London becoming one of the world’s major financial sectors.
25
What is privatisation
- until the 1980s, important assets in the UK (railways and utilities) were owned and run by the govt.
- Thatcher privatised these state-owned industries. Privatisation allowed the govt at the time to raise a lot of money.
- however some critics believe that privatisation comprises the quality of services.
26
What is encouraging start-up businesses
- around the world, incentives are provided by govts in order to attract businesses.
- after Sunday trading began in the UK, many foreign businesses (e.g. Disney) began to establish shops to profit from lucrative opportunity.
27
National governments as key players examples
- UK
- China
28
UK National govt actions
- Margaret Thatcher's Conservative government was first to fully embrace globalisation strategies.
- developed two strategies:
1) gave tax-breaks (subsidies) to companies investing in areas such as the London Docklands. Almost all companies establishing themselves in Canary Wharf were given life-long tax-breaks. This created highly attractive benefits and encouraged a number of large overseas financial institutions to relocate to London.
2) gave grants to encourage foreign companies to locate new manufacturing plants in the UK. E.g. Nissan and Toyota both received subsidies to attract further FDI. By 2015, the UK was the 4th largest recipient of FDI.
29
Subsidies definition
- grants given by governments to increase profitability of key industries
30
Foreign Direct Investment (FDI) definition
- investment made by an overseas company or organisation into a company or organisation which is based in another country
- richer countries invest in poorer ones, often financing infrastructure in return for access to raw materials or workers
- 2014: Asia received $492 billion in FDI and Latin America received $183 billion.
31
Advantages of FDI:
- diversifies investor's portfolios
- promotes stable long term lending
- provides financing to developing countries
- provides technology to developing countries
32
Disadvantages of FDI:
- not suitable for strategically import industries
- unethical access to local markets
- investors may have less moral attachment
33
What was China's 'open door' policy
- 1978
- allowed economic liberalisation and introduction of FDI
- China needed western technology and investment to develop economy
- SEZs were introduced on the coast, e.g. Shanghai Economic Zone. This led to a rapid influx of FDI as foreign companies has tax incentives and access to huge pools of cheap labour.
34
What were the benefits of the open door policy
- by 2005, approx. 50% of Chinese exports came from foreign companies in these zones
- exports increased by $2bn in 1980 to $200bn in 2000.
- China joined WTO in 2001, guaranteeing other countries while lower tariffs on exports from China.
- by 206, China was receiving $60bn per year in FDI
- 400 million people were lifted out of poverty
- FDI into China allows economic growth for China = more money = allows Chain to invest FDI elsewhere
35
What are trade blocs?
- allow free trade within member states - no tariffs or changes can be applied
- encourage and entitle free trade
- examples include, EU, NAFTA, ASEA, APEC etc
36
Advantages of trade blocs:
- businesses have a larger potential market to sell to, and so larger potential revenue to make
- trade of essential materials or services become more reliable within a trade bloc. May be less economic risk
- positive feedback loop, as businesses cater for more demands many other businesses can benefit.
37
Disadvanages of trade blocs:
- trade blocs still don't guarantee fair treatment within, for example the relationship between Mexico and USA has not strengthened through NAFTA
- interests of countries within major trade blocs are focused upon themselves. Outside trading countries become excluded and find it difficult to join in trading.
38
What is the KOF Index?
- produced by the Swiss Economic Institute
- scores on 24 factors across three main categories, political, social and economic aspects of globalisation.
- scores out of 100 with countries having higher scores being more globalised
- political = number of embassies
- social = cross border contacts
- economic - volume of FDI
39
KOF Index - why do small countries score so well?
- KOF measures international interactions rather than internal flows within big countries.
- countries in Europe are smaller than USA and China and therefore every country has embassies. They also have shorter distances to neighbouring countries
- high European indicator value reflects large interactions within the EU. Suggests decision to join a trade bloc is effective in promoting globalisation
40
What are the disadvantages of the KOF Index?
- technology developments mean that some indicators look dated, e.g. international mail given the rise of social media and email
- larger numbers of indicators incorporate wide range of international connections
- trade flows will not include informal economy flows. Will understate the degree of globalisation in developing and emerging countries.
41
T Kearney Index?
- ranks both major global countries and cities
- uses 12 indicators spread across four categories:
42
T Kearney Index?
- ranks both major global countries and cities
- uses 12 indicators spread across four categories:
+ economic integration
+technological connectivity
_ political engagement
+ personal contact
- two most globalised cities are New York and London
43
Disadvantages of AT Kearney Index?
- only include 62 countries, 84% of global population
- established in 2008 and therefore may appear to be outdated
- small European cities have higher scores as smaller countries have higher FDI indictaors due to smaller markets.
44
Why are some countries 'switched off'?
- political reasons
- geographical location - landlocked
- poor infrastructure
- poor education - lack of jobs
45
What are examples of switched off countries?
- North Korea (politically)
- Zambia (landlocked)
- Tanzania (economic issues)
46
Why is North Korea 'switched off'?
- switched off from globalisation for political reasons
- no access to the internet or social media
- noy connected by any undersea cables
- radio and TV access only allows government regulated channels where propaganda is aired.
- press and broadcasters are under the control of the state
47
Why is Zambia 'switched off'?
- landlocked country: relies on good political relations with neighbours to access ports on the Tanzanian or Angolan coast by rail.
- heavily reliant on Chinese investment, e.g. Tanzam railway (1970s) a 1860km rail link was improved with Chinese investment and as a result copper exports have risen since 2008.
since 2000 privatisation and debt cancellation has reduced Zambia's debt, and $20 bn of FDI has been invested in the copper industry which has increased the country's income.
48
Why is Tanzania 'switched off'?
- until 2001 Tanzania had serious debt problems. The HIPC initiative led to the cancellation of many of its debts. Now income from the cotton and other export crops allows the country to invest in healthcare and education.
- also has growing investment links with India, China, Japan and UAE to export its farm produce and mineral resources.
- from 2006-2016 raw cotton fluctuated from $0.40 to $2 leading to global overproduction meaning cotton prices frequently fell then was less able to pay for imported manufactured goods.
49
Why is Tanzania 'switched off'?
- until 2001 Tanzania had serious debt problems. The HIPC initiative led to the cancellation of many of its debts. Now income from the cotton and other export crops allows the country to invest in healthcare and education.
- also has growing investment links with India, China, Japan and UAE to export its farm produce and mineral resources.
- from 2006-2016 raw cotton fluctuated from $0.40 to $2 leading to global overproduction meaning cotton prices frequently fell then was less able to pay for imported manufactured goods.`1
50
Global shift over time:
- originally in China, however from 1860-1913 it seemed to shift towards Scandinavia and Europe.
- Although it has now returned to Asia, particularly China, due to the kl0oss of primary and secondary sectors.
51
Global shift - China:
- world's largest recipient of FDI since 2000 and its share of global revenue rose from 3% in 2001 and 10% in 2013.
- rapid urbanisation has accompanied rapid industrialisation. By 2015, China had 150 cities with a population of over 1 million, up from 30 cities in 2000.
52
Global shift - benefits for China:
- investment in infrastructure
reduction in poverty
- increase in urban income
- better training and education
53
Investment in infrastructure:
By 2016:
- China had developed the world's longest highway network
- its rail system reached 100km in length linking all cities and provinces
- its high speed rail system was world's longest railway linking Beijing with Guangzhou, Shenzhen and Shanghai.
- 82 airports had been built
54
Reduction in poverty:
- over 300 million Chinese people are now considered to be middle class (2014)
- poverty in China has reduced significantly. Between 1981 and 2010 China reduced the number of people living in poverty by 650 million.
- also reduced its extreme-poverty rate from 84% (1980) to 10% in 2016.
- however 20% still live below the poverty line although many cope due to remittance payments.
55
Increase in urban incomes:
- urban incomes have risen 10% each year since 2005, by 2014 they averaged $9000 a year.
- there is a growing rural-urban divide in China. By 2013, per capita net annual income after taxes and rent for the poorest 20% of rural households was the equivalent of £412 - compared with £9000 for the richest 20%.
56
Better training and education:
- education is free and compulsory for children between the ages of 6-15 and because of this 94% of Chinese over the age of 15 are literate. compared to 20% in 1950.
- 2014: 7.2 million Chinese graduated from university - 15 times higher than in 2000. This has helped to create a highly skilled workforce for the Chinese economy's expanding knowledge and service sectors.
- still big rural-urban divide. Per capita spending on secondary education varies widely from £2200 in Beijing to £300 in Guizhou.
57
Global shift costs:
- loss of productive farmland
- increase in unplanned settlements
- pollution and health problems
- land degradation
- loss of biodiversity
58
loss of productivity:
- over 3 million hectares of arable farmland has been polluted with heavy metals, 12 million tonnes of grain were polluted in 2014
- increased risk of fertilisers and pesticides has also led to farmland near rivers being taken out of production
59
increase in unplanned settlements:
- rapid industrialisation has created an urgent need for more urban housing
- land prices have rocketed and made decent housing unaffordable, particularly near city centres
- two types of informal housing have been created, both of which are illegal.
+ expanding houses in villages located on edge of cities. Villagers add extra storeys which are rented out to migrant workers
+ farmland is privately developed for housing without permission
60
Pollution and health problems:
- pollution is so bad Beijing has frequent pollution alerts
- 70% of China's rivers and lakes are now polluted
- 100 cities suffer from extreme water shortages and 360 million do not have access to safe drinking water. Tap water in Chongquing contains 80 out of 101 forbidden toxins under Chinese law.
- 2015: Chinese air pollution kills an average of 4400 people every day (1.6 million annually)
61
land degradation:
- China only has 6.2% of world's land and 7.2% of farmland
- rapid urbanisation and industrialisation are reducing this further and over 40% of China's farmland is now suffering degradation
- soils in the north are eroding while in the south soils are suffering from acidification caused by industrial emissions.
- land clearance has also led to deforestation and over-intensive grazing.
62
loss of biodiversity:
- 2015: WWF found that China's terrestrial vertebrates had declined by 50% since 1970.
- WWF researchers tracked over 2400 populations of nearly 700 vertebrate species in Chin and discovered that almost half had vanished. Main cause was habitat loss ad degradation o natural environments by economic development.
63
Deindustrialisation in Detroit - health:
- 12% of residents have no health insurance coverage, rendering most health services inaccessible.
- a significant proportion of the population suffers from preventable diseases like diabetes (13%), asthma (21%) and cardiovascular disease (11.4%)
- Detroit has a maternal mortality rate three times the national average, coming in last in state rankings
- life expectancy in parts of Detroit is 69.
64
Deindustrialisation in Detroit - unemployment:
- according to US Department of Labour Bureau of Labour statistics, the unemployment rare us 8.4% as of October 2017.
65
Deindustrialisation in Detroit - poverty:
- individual rate living below poverty line is 36.4% and family rate is 31.2%. This is the highest of any city in the USA.
66
Deindustrialisation in Detroit - crime:
- highest crime in the US with a rate of 62.18 per 1000 residents for property cries and 16.73 per 1000 per violent crimes
- murder rate was 53 per 1000 in 2012, ten times that of New York
67
Deindustrialisation in Detroit - education:
- less than 30% of students graduate from high school
- Detroit has severe shortages of public sector workers (e.g. teachers, nurses etc) because most have simply moved away to better places.
68
What are mega-cities?
- A megacity is a city with a population of 10 million people or more
- There were just 3 megacities in 1970; today, there are 34 megacities and this number is set to grow to at least 40 by 2030
- Megacities grow as a result of rural-urban migration and natural increase
- The world has reached a point of hyper-urbanisation because since 2007 more than half of the world’s population live in urban areas.
69
Examples of pull factors:
- employment opportunities
- services
- infrastructure
70
Employment opportunities:
- Large businesses and TNCs provide a wide range of jobs, with the opportunity to be
promoted to better roles and so higher wages.
71
Services:
- There is a better access to services in urban cities, as the distance needed to travel is
reduced and there is more likely to be specialised facilities in the city than in rural
areas.
- This can include education, healthcare, government embassies and offices, etc.
72
Infrastructure:
- Transport links - roads, railways, bus routes, etc - are faster and more reliable in urban
areas.
- There may be less congestion (if you are moving from a honeypot village,
congested due to tourists, to the suburbs). - Also, there is better internet and broadband
connection in urban areas, due to the ease of installation here rather than in the
countryside.
- There are usually street lights which makes people feel safer to go out at
night.
73
Pull factors of Karachi, Pakistan:
- population is 10.5 million, one of the top 5 biggest cities
- largest city and seaport of Pakistan
- big manufacturing industry producing a range of products (e.g. textiles an footwear)
- Karachi handles entire seaborne trade of Pakistan and landlocked Afghanistan
- 25 banks and insurance companies - key for investment and loans
- 20 hospitals and 1000s of schools
- terminus of Pakistan's railway system which transports goods north
74
Examples of push factors:
- poverty
- natural disasters
- conflict
75
Poverty:
- People may not able to earn enough (decreasing earning of farming, seasonal tourist employment) and there are very few job opportunities, therefore there can be high
poverty and deprivation in rural regions.
76
Conflict:
- There may be a scarcity of resources which can cause conflict between different
groups, as they fight for resources (such as water, land for agriculture or natural
resources) and wealth.
77
Climate and natural hazards:
- A rare circumstance, but the occurrence of droughts or crop failures can force
migration in search of food or water.
Alternatively, for regions regularly affected by
earthquakes, storm surges, landslides, etc. families may feel pressured to move
elsewhere to avoid economic loss or fatalities.
78
Social problems caused by economic growth:
- challenges governments to provide services and basic needs such as housing and education
- private companies are more likely to provide housing, water, healthcare, energy and sanitation rather than the govt to meet demand from growing urban populations
- even in wealthier cities, number of homeless people rises due to unaffordable housing
- shanty towns are the product of uncontrolled labour growth and are common in most cities in LICs.
79
Environmental problems caused by economic growth:
- New Delhi's growing population is predicted to increase number of vehicles from 4.7 million (2010) to 26 million by 2030.
- air pollution is India's 5th biggest killer causing respiratory and cardiac problems
- other environmental problems include sewage pollution, chemical dumping from factories and fuel spillages from poorly maintained vehicles.
80
International migration - London:
- large knowledge economy attracts elite migrants to work in the finance and invetsment sector.
- foreign buyers were reported to have bought 82% of all property sold in London in 2013.
- two main overseas investors: Russian oligarchs and Qatar.
81
Russian oligarchs in London:
- responsible for 1/3 of all residential property sales in London between 2004-2014. This has led to price inflation, meaning many Londoners cannot afford to buy.
82
Qatari investment in London:
- have invested money into:
+ the shard
+ Canary Wharf
+ East Village
+ One Hyde Park
83
Examples of elite-migrants:
- footballers
- academics
- politicians
- financial sector workers and entrepreneurs
- surgeons, lawyers, architects
84
What are low-wage migrants?
- the poor are not welcomed into the 'Fortress of Europe' unlike elite migrants
- they are often exploited by 'people traffickers'
- vessels used for transportation are unsafe and thousands have drowned
85
Qatar:
- many labourers from Bangladesh and India moved temporarily to Qatar to help construct infrastructure for the 2022 World Cup.
- 2014: 1.4 million migrants working in construction - 400,000 from Nepal
- 2014: 964 workers from Nepal, India and Bangladesh had died in work-related accidents in Qatar in 2012-2013.
86
What are the benefits for the host country?
- can help fill skills gaps
- working migrants contribute to the economy through paying taxes and buying goods and services
- increase in cultural and demographic diversity
- young migrants can help to balance out ageing populations or increase a dwindling population over time
- businesses have a larger pool of potential employees.
87
What are the costs for the host country?
- rise of far-right organisations, hate crime and racial tensions IF lack of understanding between migrants and original population
- there could be strains on services (e.g. healthcare, education) due to increasing populations
- house price inflation due to higher demand
88
What are the benefits for the source country?
- migrants send back remittances which can aid in development and reduce poverty without govt intervention
- migrants become skilled and can return to set up their own businesses, encouraging local economic growth and employment opportunities
- reduced service spending for the govt as population declines
89
What are the costs for the source country?
brain drain due to skilled workers leaving
- migrants tend to be young, so elderly family are left behind and can become isolated
- decline in services due to lower customer numbers, which can lead to negative multiplier effect, in turn reducing other businesses and services
- agricultural land not taken care of, with potential dereliction
90
Human data indicator examples:
- GDP (Gross Domestic Product)
- GNI (Gross National Income)
- PPP (Purchasing Power Parity)
- economic sector balance
91
What is GNI?
- the value of goods and services earned by a country (including overseas earnings.
- formerly known as Gross National Product (GNP)
- both are good indicators of wealth.
92
What is GDP?
- the same as GNI but excluding foreign earnings.
93
What is PPP?
- the expenditure of a country’s population and reflects the cost of living.
94
What is economic balance sector:
- the percentage contribution of primary, secondary and tertiary sectors to GNI.
- as countries develop manufacturing industries, the value of their primary sector output falls in relative terms - and value of secondary sector rises.
95
Social indicator examples:
- Human Development Index
- Gender Inequality Index
- Environmental quality
96
What is HDI:
- devised by the UN to provide a measure of life expectancy, education and GDP for every country.
- shows how far people are benefitting from economic growth.
- uses four indicators:
+ life expectancy
+ education - literacy
+ education - average no of years of education
+ GDP per capita
- each indicator is converted into a value ranging from 0 - 1 and four values are combined into a single index
- however many countries don't have sophisticated agencies for accurate caluclations
97
What is the GII:
- developed by the UN due to inequalities between genders within countries.
- e.g. in LICs, fathers may prevent their daughters receiving education beyond puberty and view is hard to shift in LICs
- three categories:
+ reproductive health - as gender inequalities decline, fertility rates and maternal mortality rates fall and age of having a first child rises
+ empowerment - women enter politics as they become more empowered.
+ education and employment - staying at school ad university allows increased opportunities for women
- countries are scored between 0 and 1. The higher the value, the greater the inequality
98
What is environmental quality indicies?
- air quality deteriorates as economic development increases
- many causes all linked to energy production, industrial processes and road transport.
- most HICs have improved their air quality by controlling vehicle emissions
- countries are ranked in order according to their performance across 11 areas related to environmental quality
99
Global widening gap:
- Average incomes have risen in all continents since the 1950s but the poorest parts of
Africa have seen very little and slow growth.
- The increase in wealth of Europe and North America has resulted in the widening gap
between the richest and poorest in the world.
- Absolute poverty has fallen across but still is high.
- Since the 1970s, income per capita in Asia has risen significantly due to Japan and South
Korea’s modernisation
- Incomes in some African countries - especially sub-Saharan countries - has remained stagnant. However, within Africa there are big disparities and so Africa (like other continents) should not be viewed as a whole.
In Northern Africa, countries like Algeria and Tunisia are much wealthier than Southern African countries due to natural oil wealth.
100
What is the Gini co-efficient?
- measures the increasing inequality of income distribution.
- index of 0-100% shown using the Lorenz curve.
101
How is the Gini co-efficient measured?
- low index value indicates a more equal income distribution; 0 represents perfect equality.
- high index value indicates unequal income distribution; one person has all the income.
102
economic inequalities in China:
- Chinese people have been used to provide a cheap labour pool and, in spite of rising wages, many workers are not much better off than before industrialisation
- an east-west divide now exists, as incomes decline further inland or towards the west.
- almost all major cities and industrial zones are located on the coast, and urban dwellers have higher incomes tan rural.
- Gini Index in 2010 was 47% but is increasing. E.g. 2020 = 57.1
103
environmental inequalities in China:
- Chongqing on Yangtze River is at the heart of economic developments around the Three Gorges Dam.
- 30 million live there and is one of the dirtiest cities and filthy air causes thousands of premature deaths.
- air quality doesn't reach the govt's own safety standard.
- China may be doing well economically but is it at the expense of the environment?
104
How have open borders led to growing diversity in London?
- EU citizens are free to move around the EU as a right.
- for example, in 2015, there were around 250,000 French people living in London.
105
How has FDI led to growing diversity in London?
- 2015, UK attracted over 32,000 jobs from overseas-owned companies investing in software and financial services
- London also attracted 35% of all companies who moved their European headquarters in the UK.
- first choice for European project investments by US companies.
- also leading recipient of FDI investment from France, Japan, Australia, Canada, India and Ireland.
106
How has the freedom to invest led to growing diversity in London?
- In the UK any bank or individual can trade in shares without having to use the London Stock Exchange.
- individuals are free to invest without barriers
there are no restrictions for financial institutions in setting up offices and no govt approval is needed
107
Examples of diasporas within Europe:
- Polish communities in Lincolnshire
- Latvian communities in Cornwall
- France has large North and West African communities from its former colonies
- Germany has a large Turkish population of over 3 million.
108
How has globalisation created tensions?
-immigration has led to extreme political parties
- trans-border water conflicts
109
The rise of extreme political parties:
- e.g. Golden Dawn in Greece, The League (Italy) and France's National Front, are becoming increasingly popular.
- less extreme (though significant) are attitudes in the UK's tabloid press about immigration, particularly uncontrolled immigration.
- since 2014, streams of refugees from Syria have caused tensions between Greece and other Balkan countries and Turkey.
110
Trans-border water conflicts:
- Mekong is one of SE Asia's major rivers - flowing 4200km.
- 1995 treaty, known as Mekong River Agreement required govts of Cambodia, Laos, Thailand and Vietnam to all agree to proposals for new dams before the go ahead. The treaty aimed to share water allocations within the river basin.
111
What are examples of attempting to control globalisation?
- censorship
- limiting immigration
- trade protectionism
112
Attempting to control globalisation - censorship?
- China is a single-party communist state. Globalisation creates a psychological challenge for its leadership.
- Chinese govt enforces censorship of Internet content, as well as all published material, in order to regain control.
- there are two types:
+ state controlled (e.g. Chinese news) - where print publishing or broadcasting via TV or radio is run by official State media
+ state monitored - where overseas contacts or media are monitored and censored, including TV, the Internet, literature, radio and text messaging.
113
Attempting to control globalisation - limiting immigration?
- across Europe, USA and Australia there have been debates about migration controls.
- Donald Trump proposed during 2016 US Presidential election campaign to control the flow of immigrants from Mexico by building a high wall along the US-Mexican border
- UK have focused on limiting net migration. Two arguments used by opponents are cheap migrant labour undercuts local wages and the govt has not adequately planned foe increased demands on welfare, housing, healthcare and education caused by influx of migrants.
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Attempting to control globalisation - trade protectionism?
- the free market can be a challenge for national governments
- 2016: cheap Chinese steel was being 'dumped' onto global markets at prices heavily subsidised by Chinese govt to protect its own manufacturers.
- in the UK this resulted in Tata Steel putting all its UK steel plants up for sale, e.g. Port Talbot and threatened to close them if there was no deal agreed.
- solution would have been to raise tariffs on imported steel to protect domestic produce however this is forbidden by WTO.
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Maintaining cultural identity - Canada:
- First Nations consist of 643 recognised groups and had much of their land taken away during colonial rule in 18th + 19th centuries which was never returned.
- since the late 20th century, efforts have been made to acknowledged the rights of the First Nations to compensation payments.
- many cases of resource exploitation in Canada have caused conflict with traditional communities.
- increased conflicts are due to occur as increased resource exploitation results in companies exploring more remote regions and indigenous land.
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Maintaining cultural identity - France:
- the French government has attempted to control globalisation by restricting
foreign language media (40% of all broadcast must be French).
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Maintaining cultural identity - China:
- ‘The Great Firewall of China’ prevents information unfavourable of the government
or foreign media outlets.
- Within China, you cannot access the BBC, use Facebook or search for politically sensitive information (such as Tiananmen Square).
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Maintaining cultural identity - Iran:
- In the early 2000s, the government banned Barbie dolls and confiscated them all from
stores as they weren’t seen as appropriate for the Islamic State
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Methods of sustainable living:
- responding locally - transition towns
- fair trade
- ethical consumption/shopping
- waste and recycling
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What are transition towns?
- some local groups and NGOs promote local sourcing of goods to increase sustainability.
- e.g. Totnes in Devon was world's first Transition town.
- 2016: Transition had become a movement of communities in 50 countries, attempting to reduce carbon footprints and increase resilience.
- belief that healthy economies are vital to healthy communities and change can eb driven by ordinary people
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What do Transition towns promote?
➔ Reducing consumption through reusing and recycling
➔ Reducing waste, pollution and environmental damage
➔ Meeting local needs through local production
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Examples of Transition Towns:
- Totnes, Devon
- Bristol
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Transition Town - Totnes:
- Totnes, in Devon, is the world’s first transition town which has its own currency (the Totnes Pound).
- The Totnes Pound encourages spending in independent stores, therefore benefiting
the local economy rather than chains or TNC stores.
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Transition Town - Bristol:
- 2012: Bristol introduced the 'Bristol Pound'.
- It aims to encourage people to spend in local, independent businesses in Bristol - rather than in national chin stores or TNCs.
- However strategies like these also threaten global economic growth as they reduce the demand for new items overseas.
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Advatages of sourcing locally?
- Local suppliers can generate more revenue and they can provide more jobs for locals.
- Lower carbon emissions are food transported over shorter distances.
- Deliveries can be much quicker and may cost less.
- profits can remain in the area rather than being returned to Head Office (which may be in a different county, e.g. Aldi or Lidl in Germany)
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Disadvantages of sourcing locally?
- Foreign suppliers in developing countries may lose out and jobs may be lost abroad.
- Overall cost is higher, due to higher wages and manufacturing costs.
- Low income families may not have the financial ability to afford local produce.
- Transition in a big city, e.g. London may be more difficult. However there are currently about 40 community-scale Transition initiatives across London, such as the Crystal Palace Food Market and Brixton Pound.
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What is fairtrade?
- WTO policy f trade liberalisation pitches small businesses against much larger rivals ad mean factory workers or farmers earn a small share of product's value.
- Fairtrade aims to return a bigger proportion of revenue to producers or growers.
- fairtrade is an independent not-for-profit organisation, which certifies products by issuing FAIRTRADE Mark as a guarantee they are ethically produced and a fair price has been been paid to producers.
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Fairtrade - Starbucks example:
- 2009: Starbucks served its first Fairtrade coffees.
- claim to help farmers improve their coffee quality and environmental sustainability, as well as supporting thousands of families.
- Starbucks' Fairtrade Certified Espresso Roast is sourced in Guatemala, Costa Rica and Peru.
- however in 2014 only 8.5% of coffee was Fairtrade certified.
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Disadvantages of fairtrade:
- However as the scheme continues to grow, it’s increasingly difficult to ensure profits are distributed properly to the growers and producers.
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Ethical shopping:
- UK's retail sector is increasingly aware of ethical issues in shopping.
- For example, M&S now sells only Fairtrade teas and coffees, plus naturally dyed clothes and fabrics (made by small businesses overseas) in order to reduce its carbon emissions
- all supermarket chains now display ethical shopping credentials for those who want to make a difference.
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Disadvantages of ethical shopping:
- buying organic destroys forests - less use of fertilisers and pesticides means more land is needed to produce the same amount
- Fairtrade does raise farmer's incomes but also produces potential overproduction. This may cause prices to fall, which leaves farmers no better off
- buying local food minimises 'food miles' an helps local economy 0 but most customers still use carts to go shopping and therefore end up using more energy than home deliveries.
- growing cash crops, even under fairtrade conditions can mean farmers end up not growing enough food to feed themselves and their families.
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Waste and recycling:
- local authorities manage the disposal of most of UK's waste.
- NGOs such as 'Keep Britain Tidy' also try to alter people's behaviour, e.g. by campaigning for beach and countryside cleanliness
- 2012: the UK generated 200 million tonnes of waste - 50% came from construction industry and households generating 14%
- Since 2004, along with other European countries, the UK has shown a stready improvement.
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UK improvements in waste and recycling:
- 2013-14: waste managed by English local authorities was 25.6 million tonnes, this was 9.1% lower than in 2000-01.
- 2014-15: total amount of water recycled was 43.7%, compared to 12% in 2000.
- 2000-01, 79% of local authority waste was sent to landfill. By 2013-14, that figure had fallen to 31%
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Downsides of recycling - different variations:
- recycling percentages vary between local authorities, South Oxfordshire District Council achieved 67.3% in 2014-15 and nine other councils achieved over 60&.
- However London boroughs of Lewisham, and Newham were the lowest with just 18% in 2013-14.
- Wales had the highest recycling rate of the four constituent countries between 2010-14 - achieving 55%.
