Topic 3: Globalisation Flashcards

Revision (94 cards)

1
Q

What is Globalisation?

A

The process by which countries become more interconnected through free flow of goods, people, culture etc

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2
Q

How is globalisation achieved?

A

By reducing tariffs, removing tax and encouraging migration and movement of TNCs with other incentives

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3
Q

Why do TNCs relocate to Asia?

A

TNCs exploit Asia lower labour costs

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4
Q

What is the race to the bottom?

A

Competition between companies to produce and sell goods at even lower costs - this often exploits the environment or human rights.

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5
Q

What are economies of scale?

A

Reduce operating costs and encourage bulk buying.

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6
Q

Throw away society statistic

A

30% of goods are thrown away in the first year of purchasing (doesn’t include packaging)

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7
Q

One example of interdependence between countries

A

Russia - Ukraine war caused the price of fuel for many countries to skyrocket as Russia provides alot of fuel

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8
Q

What is a ‘shrinking world’?

A

The idea that through better communication (e.g. mobile phones) and transport (e.g. planes), the time taken to trade between countries is dramatically reduced - now e-commerce.

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9
Q

What is one financial impact of globalisation?

A

Large TNCs have bigger incomes than the GDPs of some countries

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10
Q

What is one political impact of globalisation?

A

Politicians often seek support of influential TNCs like The Times and Sky TV

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11
Q

What is one impact on population due to globalisation?

A

Elite migrants move to countries with bigger knowledge economies - causes brain drain

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12
Q

What is one impact on transport due to globalisation?

A

Lower transport costs allow increasing long-distance tourism.

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13
Q

One example of how WTO rules have not benefitted a country
Clue: hat

A

Bolivia - opened salt mines up to Chinese TNC (B doesn’t possess tech or money to harvest lithium under salt)
Local Valero’s are angry at loss of traditional ways of life and damage to environment.

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14
Q

Why were the 3 banking/trade organisations built?

A

After ww2, to stimulate economic growth in SE Asia and rebuild Europe.

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15
Q

What is IMF?
Aim/ Job
Pro
Con

A

Aim - maintain international financial stability by lending money and encouraging GOVs to privatise
Pro - increase private sector and generate more wealth
Con - forced poorer countries to sell off assets so wealthier TNCs

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16
Q

What is Austerity?

A

A set of economic policies implemented to reduce government debt by cutting spending or/and raising taxes

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17
Q

What is WTO?
Aim/ Job
Pro
Con

A

Aim - free trade with no barriers (trade liberalisation)
Pro - has 162 member states
Con - Wealthy countries often have more power in decisions made

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18
Q

What is The World Bank?
Aim/ Job
Pro
Con

A

Aim - uses bank deposits placed by wealthier countries to provide loans for developing countries
Pro - first loan was to France for post-war construction
Con - GOVs can become in debt and have to sell of assets to pay back

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19
Q

One example of WTO rules not benefitting a country
Clue: ban

A

2020 Indonesia banned raw nickel exports to force people to process it into goods - adds value and employment (‘export valorisation’)
EU disputed ban to WTO who ruled that the ban went against free trade rules (EU then placed tariffs on imported Indonesian rolled steel)

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20
Q

Who was first prime minster to fully embrace globalisation?
Name one thing that proves this

A

Margaret Thatcher
Forced unprofitable industries to close (like mining) to allow for cheaper overseas imports.

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21
Q

What is FDI?

A

It’s when a company or person from one country invests directly into a business or project in another country

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22
Q

Give on statistic about UK FDI

A

By 2015, UK was 4th largest recipient of FDI

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23
Q

What happened after 1979?

A

Privatisation - reduced influence of state, shares were sold to private shareholders

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24
Q

What are 3 cons of privatisation?

A
  1. leakage of UK profits to overseas investors

2.more easily affected by world events e.g. Russia and Ukraine war challenged UK national energy security

  1. Disregard for environment - water company allowed over 1 million hours’ worth of raw sewage into Uk river
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25
What was the 1970 Chinese policy and why was it declared?
'Open door' policy to encourage Western technology and investment to develop it's economy
26
What are Chinese 'Export processing zones'? UK equivalent?
Zones which offer tax incentives and cheap labour Equivalant to Enterprise Zones in UK
27
What is China's 2013 Belt and Road initiative?
Improved connectivity at transcontinental scale
28
What are IGOs? Give one example
Groups of wealthiest countries that meet to discuss mutually beneficial policies e.g. G7 - USA, UK, France, Italy etc (make up over 50% of world GDP) Meets annually
29
One example of WTO rules that have gone well for a country
Viet Nam has formed new trade links - gives access to other countries of VNs growing market (90 million consumers). Low labour costs - VN provides cheap goods to West
30
What are trading blocs?
e.g. EU, NAFTA Groups of countries which promote free trade between them by 1. Remove tarries between member states 2. Create barriers for non-member states
31
What is one con of trading blocs?
Creates 'switched off' places as none-member states are excluded and often increased tariffs etc
32
How does KOF index work?
3 factors - economic, social, political (some more significant than others) Countries are then ranked.
33
One KOF index statistic
13/15 top countries are European
34
How does A T Kearney index work?
4 factors - political engagement, technological connectivity, personal contact and economic integration Uses more holistic indicators
35
One Kearney index fact
UK ranks lower on Kearney index than KOF
36
What barriers face Zambia?
Landlocked country - no coast so more expensive to trade (relies on good political relations with neighbouring countries) Old UK colony - struggled to become independent, and even after was exploited
37
What ore does Zambia export? And who invested in them by building a rail to increase exports to their country?
Copper China
38
What barriers face Tanzania?
Main GDP through agriculture - subject to global market and prices fluctuating Also used to be a UK colony
39
What does Tanzania export?
Cotton
40
How has TNC MOTIVE led to globalisation?
Ultimately profit Economies of scale - minimise costs Develop new markets - frequently updated models or increase market size Horizontal and vertical integration Diversify product range
41
How has TNC MEANS led to globalisation?
Free flow of capital Interconnected webs Countries that used to be recipients of FDI now provide it (reverse colonialism)
42
How has TNC MOBILITY led to globalisation?
Faster, cheaper transport - containerisation Rapid communication - fibre optic cables JIT production
43
3 facts about Disney as a TNC
1. 14 theme parks 2. 220,000 employees 3. Frozen almost earned US$2 billion
44
2 benefits of globalisation for Disney
1. JIT production (example of Frozen as they don't know which characters become popular) 2. Outsourcing manufacturing - much cheaper
45
2 drawbacks of globalisation for Disney manufacturers
1. low wages 2. bad working conditions - unsafe toxic substances banned in USA (Toy had to be recalled from shops in USA due to unsafe levels of lead in paint)
46
Disney has a global market - list 3 films and the intended market
Mulan - China Finding Nemo - Australia Aladdin - Middle East
47
What was the name of the ancient trade route for silk?
The 'Silk road'
48
What is the 'Global shift'?
Movement of manufacturing from USA and Europe to Asia
49
What 3 factors accelerate global shift?
1.) open door policy - individual Asian countries allowed overseas companies access to their markets 2.) TNCs began to seek new areas for manufacturing 3.) FDI began to flow into the emerging or re-emerging asian countries
50
What are the 4 benefits of globalisation and rapid growth for China?
1. investment in infrastructure 2. reductions in poverty 3. increase in urban income 4. better education and training
51
3 facts about China 'investment in infrastructure'
1 World's longest highway network 2 HSR system was the world's longest and doubled in length in 2 years 3 250 airports
52
3 facts about China 'reductions in poverty'
1. 40 years - china reduced number of people living in poverty by 800 million 2. under 20% of Chinese population live on under US$2 a day 3. rural regions survive on remittance payments
53
3 facts about China 'increase in urban income'
1. urban incomes have raised by 10% a year since 2005 2. work conditions often include high overtime rates and paid holidays 3. more disposable income
54
3 facts about China 'better education and training'
1. free between ages of 6 - 15 2. 99.8% of pop over 15 are literate 3. big rural - urban divide
55
What are 7 drawbacks of globalisation and rapid growth for China?
1. loss of productive farmland 2 increase in unplanned settlements 3 increased poverty 4 pollution and health problems 5 land degradation 6 over-exploitation of resources 7 loss of biodiversity
56
2 facts about China 'loss of productive farmland'
1. 2018 - 20% of agricultural land was reported to have been polluted with heavy metals 2. 6 million tonnes of grain each year are destroyed due to contamination
57
2 facts about China 'increase in unplanned settlements'
1. land price skyrockets - more informal housing 2. either increase house or make new houses of farmland (state owned)
58
2 facts about China 'increased poverty'
1. poorer soils - lower farm yields 2. poor health due to pollution
59
2 facts about China 'pollution and health problems'
1. coal-fired powered stations 2. 70% china's rivers and lakes
60
2 facts about China 'land degradation'
1. 40% of chinas land suffers from degradation 2. rich black soils in north are eroded
61
2 facts about China 'over- exploitation of resources'
1. oil, coal and metals such as iron ore 2. GOV has sought additional resources from Amazonian rainforest
62
2 facts about China 'loss of biodiversity'
1. main causes is habitat loss and the degradation of natural environments 2. WWF is concerned
63
What is a megacity?
Populations of 10 million
64
What are world cities?
Cities that have major global influence
65
What are 4 push factors?
1. war 2. lack of jobs 3. lack of opportunities 4. bad services
66
What are 3 pull factors?
1. better paid jobs 2. better housing 3. better quality of life
67
2 causes of growth in Mumbai
1. high birth rate, low death rate 2. one of world's fastest rates of rural-to-urban migration
68
3 Social challenges caused by rapid growth
1. Increase in pop puts pressure on GOV to provide housing and services 2. sprawling areas of poor housing 3. number of homeless rises as accommodation becomes more expensive (due to privatisation)
69
3 Environmental challenges caused by rapid growth
1. New Delhi was judged the worst of 1600 cities for air quality 2. Air pollution is India's 5th biggest killer 3. Sewage pollution is big swell
70
What are elite migrants?
Flows of skilled, wealthy migrants have moved to London for the KE.
71
One example of London receiving FDI
Qatari investments bought into the Shard
72
What are Low-wage migrants?
Risk of being deported when visa ends - work long days for little pay and often labour jobs
73
How do the host locations benefit?
1. Receive skilled foreign workers 2. Fills key shortages 3. balances ageing population with young adult migrants
74
How are host locations challenged?
1. they experience pressure on housing, healthcare and education
75
How do the source locations lose out?
1. lose most skilled and dynamic workers 2. BRAIN DRAIN 3. imbalanced population
76
How do the source locations benefit?
1. reduced unemployment 2. remittance payments
77
Benefits for Cuba due to globalisation
1. spread of satellite and TV 2. broaden Cuban knowledge of the rest of the world
78
Drawbacks for Cuba due to globalisation
1. diluting Cuban culture 2. Cultural erosion 3. cultural diffusion - western values and ways of life spread into Cuba (late nights, partying, loud etc) 4. Large TNCs take away from traditional culture - global homogenisation
79
What is global homogenisation?
Eroding of cultural diversity due to TNCs e.g. use of increasingly common vocabulary
80
What are ethnic enclaves?
Area within a large city where a community of people from the same ethnicity collect and maintain the culture of their home land
81
What is a diaspora?
The dispersion or spread of a people from their original homeland.
82
What is one positive for people from globalisation?
More acceptance of marginalised groups like Disabled people - Paralympics
83
Who benefits from globalisation the MOST? And statistic
'Super rich' has emerged - China's richest 1% owning 1/3 of it's industrial property and wealth
84
Fact about development gap
1990 - 2020 development gap has widened
85
Name 3 of HDI indicators
1. life expectancy 2. GDP per capita 3. Avg. time in school
86
What is the GINI index?
Better than using a single indicator because it measures inequality
87
one fact about Chongqing
population of 30 million - filthy air causes thousands of premature deaths
88
One immigration UK statistic
10% of households in England contain 2 or more ethnicities
89
Why is diversity growing in the UK? 3 Reasons
1. Open borders- EU citizens can freely move anywhere in Europe (a lot of Elite migrants) 2. Freedom to invest - no barriers for trade and investment (no longer through London stock exchange) 3. FDI - create thousands of new jobs in finance and software services via investment from overseas companies
90
Why are some people not happy about immigration?
strain on education services, healthcare, resources (water, land and food)
91
What has dislike of immigration led to lots of support of?
Extreme political parties e.g. Golden Dawn (Greece)
92
What is trans-border water conflict?
1995 treaty - Mekong River Agreement (multiple countries GOVs in SE Asia have to ALL agree to any new dams being built along the river) Laos is testing this agreement - new dam only benefits them and Thailand
93
What are the 3 attempts to control Globalisation?
1. Censorship - e.g. China (state controlled and state monitored) 2. Limiting immigration - Donald Trump and Mexico wall 3. Trade protectionism - e.g. raising tariffs on overseas goods or subsidising goods so that they can be exported at a much cheaper value than any other countries'
94
One example of attempts to maintain cultural identity
First Nations - indigenous people had their land taken away from them during colonial rule. They stage protests against TNCs who are accused of taking land from indigenous land holders. Against fracking, shale mining, Trans mountain pipeline etc