Globalisation Flashcards

Question

What are the environmental reasons for countries being detached?

Answer 1

- Landlocked countries cannot be independent in trade - Poor fertility of land, mountainous or arid conditions and limited land space can all reduce a country's ability to produce a commodity for trade - Some countries are vulnerable to climate change, so the natural environment could change to unfavourable conditions

Answer 2

- The political agenda and governance of a country may limit flows of people or culture - Terrorism or active conflict within a region can be detrimental to their global connectivity - Government corruption results in money being wasted instead of invested

Answer 3

Employment opportunities - wider range of jobs - better availability - higher wages Availability of services - more likely to be specialised facilities in cities Infrastructure Transport links - faster and more reliable

Answer 4

Poverty - due to few job opportunities Conflict - scarcity of resources can cause conflict Land reform - In some regions, locals can't prove their ownership of the land, so it gets taken over by TNCs- this is common in native indigenous communities Agricultural modernisation - Machinery means less people are needed to work on farms Climate and natural disasters - drought or crop failures can cause migration to find food and water

Answer 5

Strain on services like education and healthcare Overcrowding and the development of informal housing- slums and shanty towns Rising crime rates Poor sanitation due to open sewers Lack of green space High levels of congestion, which causes air pollution

Answer 6

Elite international migrants Economic international migrants

Answer 7

- Generally skilled or very wealthy people, with the ability to move to global hubs such as London, Paris and New York - An example would be Russian Oligarchs

Answer 8

Extremely powerful and wealthy people in Russia, with social and political influence Many gained their wealth rapidly during the 1990s when the Soviet Union collapsed

Answer 9

Cities such as RIyadh, Dubai, New York and London attract workers who will work for very little and are skilled in a certain profession (often construction) Economic migration can fill skill gaps and advance a country's development However, it can also lead to escalating urban populations and a rise in illegal migrants

Answer 10

- 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 an ageing population or increase a dwindling one - Businesses have a larger pool of potential customers or employers

Answer 11

- Migrants send back remittances which can aid in development and reduce poverty without government intervention - Migrants become skilled and can come back to set up their own businesses, encouraging local economic growth and employment opportunities - reduced service spending for the government as the population declines

Answer 12

- Rise of far-right organisations, hate crimes and racial tensions IF there's a lack of understanding between migrants and the original population - Could be strains on services - House price inflation due to higher demand

Answer 13

- 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 low customer numbers, which can lead to the negative multiplier effect, in turn reducing other businesses and services - Agricultural land not take care of

Answer 14

Importing raw materials and commodities could negatively impact domestic suppliers and industries Migrants from abroad could create tensions as they may not be wanted Foreign information could be seen as a threat

Answer 15

IMF (International Monetary Fund) WTO (World Trade Organisation) The World Bank

Answer 16

To loan money to poorer developing nations

Answer 17

That the country opens up its markets and industries from government control, which in turn leads to privatisation - TNC's now have the opportunity to enter those markets more easily which would generate financial activity and tax, but mainly for their host country

Answer 18

- LEDCs fall into debt with their industries privatised, as more profits are leaving the country - Countries which struggle to pay back their debts will have to cut back on key areas such as education and healthcare, which further damages the country's economy and welfare - In order to get the loan, poorer countries often have to sign up to deals that aren't fair for them

Answer 19

- Loans money to developing nations with the aim of improving development, and therefore aiding globalisation

Answer 20

- Some critics say it promotes LEDCs to increase their debts and limits the governments sovereignity

Answer 21

- Aims to liberalise trade by removing tariffs, subsidies and quotas - Intends to supervise international trade

Answer 22

- It has failed to prevent the UK and USA from implementing protectionist measures like subsidies, so it has been unsuccessful in creating equal opportunities for all countries to trade - Regulations set by the WTO can sometimes encourage poor countries to specialise , when in reality, they need to diversify

Answer 23

A governance model Strongly associated with the policies implemented by Ronald Reagan in the US and Margaret Thatcher in the UK

Answer 24

- Government interventions in markets would hinder economic growth and development in the long term. - Its where you remove the influence of the state in the economy, and allow the markets to act more freely

Answer 25

- Banking and finance sectors were deregulated (remove government controls or rules) in the UK due to market liberalisation, which led to London becoming one of the worlds major financial centres

Answer 26

Railways and utilities were originally run by the government - Thatcher privatised these state-owned industries; private companies bought and ran these services.

Answer 27

Allowed the government at the time to raise a lot of money Some critics believe that privatisation compromises the quality of services

Answer 28

Incentives (grants, tax breaks, infrastructure constructed) are provided by governments to attract businesses

Answer 29

Offshoring Foreign mergers Foreign acquisitions Transfer pricing

Answer 30

TNCs set up production facilties in developing countries, which have large, cheap workforces

Answer 31

TNCs from different countries join to form one larger company

Answer 32

A TNC acquires another company from abroad, often in a hostile way (may involve local job loss, lack of interest in the local environment etc.)

Answer 33

Censorship Limiting migration Trade protectionism

Answer 34

- The Government restricts the flow of knowledge and information through state-controlled media outlets and internet restrictions - Censorship can be used to limit a population's knowledge of foreign culture and ideas (such as democracy)

Answer 35

- Most have some sort of border control and migration monitoring

Answer 36

Involves subsidies, tariffs and quotas which help a country to protect domestic industries Restricting imports from other countries through above methods

Answer 37

Governments may sign agreements with each other in order to reduce restrictions of the flow of capital and goods. It may also encourage the flow of people, culture and knowledge

Answer 38

- Businesses have a larger potential market to sell to, and so larger potential revenue to make - As businesses cater for more demand by increasing their production volume, other businesses will benefit by providing raw materials, skilled workers or providing outsourcing opportunities - Trade of essential materials or services becomes more reliable in trade blocs. There may be less economic risk and better pathways for essential imports.

Answer 39

- Outside trading countries become excluded and find it very difficult to join in trading (regionalism) - Foreign industries and suppliers can be damaged as a result of competition or lack of opportunities due to trade blocs forming - Trade blocs still don't guarantee fair treatment within- for example the relationship between Mexico and the USA has not strengthened through the trade bloc NAFTA - Loss of sovereignity - Any country that wants to join a trading bloc must be prepared to make concessions

Answer 40

Tariffs - A tax for importing and exporting goods Non-tariff barriers - Such as quotas (a fixed number of goods) or requirements Outright bans - On products or country imports/exports

Answer 41

Certain restrictions being removed or lessened in return for another country doing the same All trade agreements are overlooked by the WTO to ensure they're fair

Answer 42

NAFTA - North American Free Trade Agreement -Lowered and removed taxes on imports and exports between Canada, the USA, and Mexico

Answer 43

Measures globalisation of countries through political, social and economic indicators

Answer 44

Measured by indicators like: Cross-border trade FDI Tariff rates Money flow

Answer 45

Measured by: International telephone calls Tourist flows Resident foreign population Households with a TV International mail

Answer 46

Measured by: Foreign embassies in a country Membership of international organisations Number of UN peacekeeping missions participated in Trade and other agreements with foreign countries

Answer 47

index calculated since 1970 Available for 158 countries Calculated on the basis of 24 variables

Answer 48

Cultural globalisation mostly refers to the cultural domination of U.S Cultural products Measures like International letters per capita are very dated, and most people now use technology instead Trade flows don't include informal economy flows- can understate globalisation in developing and emerging countries Measuring foreign populations can be hard because of inaccurate record keeping and illegal immigrants It's hard to calculate the true number of internet users, as not everyone uses their own device

Answer 49

Economic Personal contact Technological Connectivity Political Engagement

Answer 50

Trade and FDI

Answer 51

International travel and tourism International telephone traffic Cross-border financial transfers (e.g remittances)

Answer 52

Internet users Internet hosts Secure servers

Answer 53

International Organisations U.N Peacekeeping Treaties Government transfers

Answer 54

- The lowest value is given a 0, the highest a 1 - FDI, Internet and Telephone Traffic are all weighted double - All scores are then summarised

Answer 55

It covers 96% of the worlds GDP It covers 84% of the worlds population Allows for comparisons between countries Allows for comparisons over time

Answer 56

- Only 64 countries are included - First published in 2008 - Small countries tend to take the top places in the index due to higher importance / proportion of FDI- therefore suggesting an overimportance of the size of a country - heavy weighting given to ICT connectivity enables the USA to gain a high index score despite low political engagement in terms of treaties signed

Answer 57

Based upon one single factor, and are the most common statistical measures of wealth and productivity

Answer 58

GNI PPP Income per Capita GDP

Answer 59

Gross National Income - Value of goods and services by a country - Similar to GDP, but it also takes into account overseas spending

Answer 60

Purchasing Power Parity - It is calculated as the ratio between the prices in the different currencies of the same basket of goods

Answer 61

- Mean average income per person (income of the country by population size) - This average can easily hide inequality, the few high earners have a large influence of GDP than a majority of low earners

Answer 62

Gross Domestic Product - Total value of goods and services produced in a country - Using GDP as a single economic measure may be inaccurate as GDP doesn't include any informal earnings or black market economies - Measured in US Dollars, therefore can vary as exchange rates vary daily

Answer 63

Consider a range of factors, therefore are more reliable statistical measures of development

Answer 64

Economic Sector Balance GII HDI

Answer 65

- Considers all four main economic sectors- Primary, Secondary, Tertiary and Quarternary - Describes the composition of a country's industry (often displayed as a bar chart) - As a country develops, primary industries usually decline and their earnings reduce whilst secondary and tertiary become more important (according to the Clarke-Fisher model)

Answer 66

Gender Inequality Index - Measures female participation and treatment within society and considers: Reproductive health - maternal mortality ratio - adolescent birth rates Empowerment - proportion of parliamentary seats held by women Employment - labour force participation rates of women

Answer 67

Human Development Index - Measure of social development that considers: Life expectancy Wealth (GDP per Capita) Education (Literacy levels and average number of years in education)

Answer 68

- Provide raw products, manufactured goods, services or information- they exist in different industries - Make products, produce jobs, invest in countries, and sometimes contribute to cultures. - Some TNC's can have political influence (e.g the pressuring of countries to reduce taxes and create SEZs so that the TNC will invest there)

Answer 69

In 2016, the top 200 TNCs accounted for 25% of the worlds economic activity but employed only 1% of the world's population

Answer 70

Links - Linkages are created in order to benefit the TNC and often includes expanding the company

Answer 71

Links through Integration - Horizontal Integration - Vertical Integration Links through FDI

Answer 72

- TNCs create links with other countries by investing in them, which benefits the country as it creates jobs and contributes to the economy. - TNCs can be investments into a factory, but they may also take the form of mergers and acquisitions

Answer 73

- TNCs often expand their company by creating links with other companies Horizontal Integration - Taking ownership of part of the supply chain, e.g buying a plantation Vertical Integration - Taking ownership of another company, often one that is in a similar industry - The food industry is a prime example of vertical integration- a lot of large companies control the majority of small countries

Answer 74

- TNCs that provide tertiary industry products (services) will often outsource tasks to other companies in order to save money and time - TNCs like Apple outsource their manufacturing processes so that profits can be maximised

Answer 75

- Companies that make manufactured products will often have their factories in LICs due to lower labour costs, better taxes, weaker regulations for workers and weaker environmental regulations - This leads to much dispute about the ethical issues with TNCs exploiting poorer citizens in order to maximise profit

Answer 76

The adaption of goods or services by a TNC to meet local needs or tastes, which would increase custom within a certain region

Answer 77

- Grocery shops based in Bangladesh dont wrap their vegetables, because customers judge their purchases based on the feel of the food (called a wet market) - McDonalds have created a menu without any beef or pork in India, due to the large population of Muslims and Hindus - Car makers must change the orientation of the car to suit which side of the road a person must drive on

Answer 78

How manufacturing and industrial activity has shifted from the West to the East - Prior to the 1960s, manufacturing industries were located in the West in Europe and the US - After the 1960s, industries relocated to the East in countries like India and China, due to their large, unskilled workforce

Answer 79

- Workers receive middle class wages, which means their disposable income has increased - Other businesses have seen more customers and spending due to the positive multiplier effect - People running the companies where services are outsourced to have seen increasing profits

Answer 80

- Many workers believe they are exploited, with long shifts and still lower wages than MEDC workers - Employees have become demotivated due to the repetitive nature of their work - The inequality between the richest and the poorest is increasing, as the poorest are not well educated and cannot benefit from outsourcing jobs

Answer 81

- Many Indian citizens can speak fluent English, and the Indian government have invested in infrastructure such as broadband capacity, which has attracted high tech companies

Answer 82

- In the 1990s, cities such as Shenzhen and Dongguan offered investors a large pool of cheap labour for manufacturing and other secondary employment. Since then, the volume of TNCs outsourcing to China has massively increased - Sweatshops had previously accelerated China's globalised status but have now become less popular due to cheaper labour elsewhere- such as Bangladesh and Vietnam - Now, new technological outsourcing opportunities move into China

Answer 83

- New production methods and techniques brought by TNCs have now been adopted by local companies, causing local economic development - Locals, especially in rural areas who would otherwise be dependent on subsidence farming, now earn a wage

Answer 84

- Many employees have been exploited and the working conditions are dangerous- chemical contact, long hours, limited human rights, relaxed health and safety regulations - The environment has been degraded - Rivers and waterways become polluted with arsenic, lead, and other dangerous chemicals - The air becomes polluted with particulates, that increase asthma sufferers and pollution-related fatalities

Answer 85

Dereliction and Contamination Increasing unemployment rates

Answer 86

- Many textile companies based in UK Northern cities closed and so the buildings they previously occupied become derelict and abandoned - Other areas suffered from abandoned chemical and industrial waste, which has infiltrated the soil and local waterways

Answer 87

- Companies moving away leads to unemployment , which can lead to depopulation , as residents migrate away to find alternate employment - Deprivation of inner city areas will increase and crime rates may increase

Answer 88

Language Traditions Religion Food

Answer 89

Media Migration TNCs Social media

Answer 90

Developing and developed populations - As China has developed, the middle class population has grown and so people are starting to adapt their diet to Western preferences, causing a rise in meat consumption

Answer 91

- From the 1990's to 2015, meat consumption per capita rose from 5kg to 50kg - Obesity has increased, especially within the middle class population - A rise in cattle rearing has led to an increase in methane emissions

Answer 92

- Communities being exposed suddenly to a new culture can face sudden change or reduction to their own culture. - Young people are especially vulnerable to cultural diffusion or erosion. - Due to the sensitivity and value of culture in some communities, this can cause conflict

Answer 93

- The French government has attempted to control globalisation by restricting foreign language media (40% of all broadcast must be French)

Answer 94

- 'The Great Firewall of China' prevents information that's unfavourable of the government or of foreign media outlets. - Within China, you can't access the BBC, use facebook, or search for politically sensitive information

Answer 95

- In the early 2000s, the government banned Barbie dolls and confiscated them from all stores as they weren't seen as appropriate for the Islamic state

Answer 96

- Average incomes have risen in all continents since the 1950s but the poorest parts of Africa have seen very little and very slow growth - The increase in the wealth of Europe and North America has resulted in the widening gap between the richest and the poorest in the world - Absolute poverty has fallen but is still high

Answer 97

Measures the inequality of wealth shared across a population and scores a country from 0 to 1 0 represents perfect equality 100 represents perfect inequality

Answer 98

The far-right - Support for them has increased since the expansion of the EU in 2004, allowing for an increase in the flow of migrants.

Answer 99

- Germany has accepted the largest number of migrants of any EU country, but growing concerns about this has led to the rise of Pegida - In France, the National Front received 25% of the votes during a national election, suggesting the French view of migrants and cultural diversity is becoming less accepting

Answer 100

- Some countries attract tourists to experience their culture or witness their traditional lifestyle (e.g Papau New Guinea) - Indigenous or nomadic populations have grouped together, to support each other and maintain their traditional lifestyle

Answer 101

- Global production networks have been developed through cheap labour and low transport costs, which has helped TNCs minimise costs and maximise profit - However, there are many environmental costs of this (such as high carbon emissions)

Answer 102

- 'Localism' as a way of life - This is the reduction of globally sourced goods, and instead purchasing locally-sourced, sustainable products to protect the environment and vulnerable individuals

Answer 103

- Local suppliers can generate more revenue and they can provide more jobs for locals - Lower carbon emissions as produce is transported over shorter distances - Deliveries can be much quicker and may cost less

Answer 104

- 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

Answer 105

Transition towns support local economies and they promote: - reducing consumption through reusing and recycling - reducing waste, pollution and environmental damage - meeting local needs through local production

Answer 106

Totnes, in Devon, which has its own currency (the Totnes pound) - This encourages spending in independent stores , therefore benefitting the local economy rather than chain stores or TNCs

Answer 107

A system of certification that sets standards in the production of goods

Answer 108

- To secure better pay to producers and growers, and includes coffee, cocoa and bananas - The Fairtrade certification provides consumer confidence that suppliers are being paid a fair price for what they produce

Answer 109

As the scheme continues to grow, its increasingly difficult to ensure profits are distributed properly to the growers and producers.

Answer 110

When heightened connectivity changes our conception of time, connectivity and potential barriers to the migration of people, goods, money and information

Answer 111

As travel times fall due to new inventions , different places approach each other in time-space - they begin to feel closer together than they did in the past. This is called the shrinking world effect.

Answer 112

Structural Adjustment Programmes - Strict conditions imposed on countries receiving aid from the IMF or the World Bank - Receiving governments may be required to make cuts to healthcare, education, sanitation and housing. - This is to reduce the role of the government in a country, and open it up to private investment. It also cuts government spending so they can repay loans/

Answer 113

- In Tanzania, water to shanty towns in the capital city was cut off when the country privatised its water services as a condition on $143 million of debt relief

Answer 114

- information can provide citizens with knowledge that their government finds threatening - migrants can bring cultural change and diversity, not everyone welcomes this - imports of raw materials and commodities can threaten a nation's own businesses

Answer 115

The Bretton Woods Institutions are the IMF and the World Bank. They were set up at a meeting of 43 countries in Bretton Woods, USA in July 1944 Their aims were to help rebuild the shattered postwar economy and to promote international economic cooperation

Answer 116

- Can help to reduce taxes and tariffs, which in theory, can help developing countries. - It can also help to ensure that food products are only traded if they are safe through its sanitary regulations.

Answer 117

LEDCs can get access to money needed to build up their economies

Answer 118

European Union- EU - A customs union, a single marker and now with a single currency ASEAN - Association of Southeast Asian Nations Pacific Alliance - A regional trade agreement between Chile, Colombia, Mexico and Peru

Answer 119

Asian and Africa

Answer 120

A metropolitan area with a total population in excess of 10 million people

Answer 121

Disease epidemics Informal settlemts Increased vulnerability to hazards Traffic congestion Pressures on water supply / quality Pressure on waste management Overcrowding

Answer 122

- high economic leakage from TNCs away from megacity to HICs - Low tax rates etc. used to attract TNCs means the government can't provide adequate infrastructure

Answer 123

Companies making profit and being situated all over the world - Largely caused by the growth of MNCs / TNCs

Answer 124

Connecting with other people across the world without borders

Answer 125

Migrants sharing culture in their new countries -The impact of Western culture, art, media, sport and leisure pursuits on the world

Answer 126

Governments coming together to make agreements - The growth of Western democracies and their influence on poor countries, and the decline of centralised economies

Answer 127

- A TNC is a company that has operations in more than one country - They have grown by buying up foreign firms in mergers and acquisitions - Much of their manufacturing is subcontracted to third parties, making it hard to regulate working conditions

Answer 128

The social and economic disparity between the wealthy and the poor It occurs globally, and at more local scales

Answer 129

- Established in 2000 - Probably the most significant major attempt to defeat poverty. - The UN set out eight development goals to reduce global poverty substantially by 2015

Answer 130

Used to show how much inequality exists in a situation

Answer 131

1. Raw data 2. Arrange in ascending order 3. Find total income 4. Find % of income 5. Find cumulative % of income 6. Lot the data

Answer 132

The flow of economic migrants after a country has joined the EU

Answer 133

A response to globalisation with the aim of increasing local sustainability

Answer 134

Saves energy use (especially transport) Reduces size of eco-footprint Encourages eco-friendly farming and other production methods Provides alternatives for local people Improves social and cultural interchange and cooperation Supports local suppliers and businesses Keeps money within local area Self-sufficiency

Answer 135

Emussions from long-distance transport are often offset by more efficient production methods Local products may be of lower quality Limited choice for local consumers Shortages of products at certain times due to local production cycles Local markets may be unreliable prices of local products may be higher

Answer 136

- Containerisation made the expansion of global trade possible due to its efficiency and economies of scale (costs saved)

Answer 137

- Fewer dockworkers needed, so not as many salaries to pay - Much cheaper to load up ships - Less stock stolen as containers were pre-sealed, which also reduced insurance costs - One standardised model reduced expense of international trade -

Answer 138

- Maintaining long-distance social relationships through apps such as Skype - Long-distance learning, through accessing courses online

Answer 139

- Supply chain monitoring and ordering from suppliers is aided by real time connectivity - Buying and selling of stocks, shares, bonds and currencies - Personal banking, such as through the banking system M-Pesa, which is popular in East Africa and India - A growing number of small business start-ups seek online pledges from the public to help get the funds they need

Answer 140

- Cultural traits such as language or music are adopted or hybridized due to cultural interactions - Small companies can achieve a digitally connected global fan base

Answer 141

- Research and journalism networks that global offices of NGOs depend on are far better connected than they ever were in the past - Websites for MGOs such as the United Nations and World Bank contain lots of resources that aim to educate a global audience on a wide range of issues found across the world

Answer 142

- Governments take away barriers that make trade more difficult and costly - As costs are reduced, TNCs will see a profit and want to invest in nations - TNCs will bring new ideas, products, cultures etc. to a nation - The TNC will also generate wealth - This wealth and development will increase standard of life and demand for foreign products - As an economy has more TNCs, they become more interconnected and interdependent on each other.

Answer 143

Some TNCs, such as Amazon or Starbucks sometimes channel profits through a subsidiary company in a low-tax country such as Ireland. The OECD is now trying to limit this practice

Answer 144

- Increasing access to healthcare - Invest in sustainable agriculture - Support the rights of children in the digital space - Improve financial integration

Answer 145

- Highly vulnerable to climate change and natural hazards - Poor resources for agriculture - Physical isolation and lack of coastline deters inward investors seeking an import/export base (e.g Niger)

Answer 146

- Lack of skills and literacy deters inward investors (e.g Somalia) - Politically isolated (e.g North Korea, Myanmar) - Ethnic clashes and civil war between tribes

Answer 147

- Resurces are controlled by foreign TNCs due to old trade agreements that need renegotiating - Resources are controlled by a small elite - Infighting over resources

Answer 148

- Asian nations allow foreign TNCs in (Open Door Policy) - Cheaper labour and lots of workers. Land and natural resources are often also cheaper

Answer 149

- Founded in 2006 by the NGO 'Transition Network' - They encourage towns to grow their own food in community gardens, and reduced energy used in transport and recycle materials

Answer 150

Meeting the needs of the current generation without compromising the ability of future generations to meet their own needs.

Answer 151

- The transition initiative network grew as a way of preparing communities for the changes that will inevitably come due to climate change. - This initiative allows a community to transition from high dependence on fossil fuel energy and drawing in products worldwide to a low dependence on fossil fuels and with a focus on locally produced goods

Answer 152

- Creating local groups that take actions to achieve a sustainable lifestyle - Reducing dependence on fossil fuels - Promoting local foods, using local ways of paying for goods and services

Answer 153

- Reduces amount of waste going into landfill - Provides raw material for production and consumption - Reduces industrial energy use, as some recycled materials use less energy in processing than original raw materials

Answer 154

- Western countries are adopting more tolerant policies on ethical and moral issues, such as gay rights- Westernisation can encourage the spread of such values across the world. - Such as Paralympians being treated properly in London at the end of the 2012 games

Answer 155

Language Eating habits Clothes How we view our systems of value and political governance

Globalisation Flashcards

(179 cards)