Karteikarten
Globalisation
Karten in diesem Stapel (21)
- 1Define globalisationGlobalisation can be defined as the increased interdependence of human life around the world and multiple linkages and interconnections between governments, societies and individuals. It involves technological, cultural, political and economic exchange, made possible by advancements in communication, transportation and infrastructure.
- 2Can globalisation have destabilising effects on national and local economies?Globalisation can cause a destabilising effect on national and local economies, however, there are also examples of globalisation having a positive effect on national and local economies. cases of globalisation in Nigeria, Uganda and Taiwan illustrate this point.
- 3What would you put in an essay that asks about how globalisation has affected more than one local economy ?Para 1- Trade positives
Para 2 - Trade negatives
Para 3- FDI positives
Para 4- FDI negatives - 4How has globalisation impacted trade?Globalisation has resulted in a massive improvements in international trade, the number of countries where products can be sold or purchased has increased dramatically. This trade is predominantly ‘free trade’ which means international trade is left to its natural course without tariffs, quotas, or other restrictions.
- 5Why do governments in developing countries feel free trade is unfair?Poorer countries in Latin America, the Caribbean and Africa weren’t so keen to pursue free trade but have been bullied into it by larger economies of whom they desperately need to trade. Developing country governments feel free trade deals overwhelming favour rich, developed countries, resulting in trade that is neither free nor fair.
- 6Give an example of this unfair tradeFor example, farmers in developed countries continue to receive massive subsidies for their produce allowing them to compete with much cheaper producers from poorer countries. Free trade should allow countries to compete with one another on equal footing. If the US are better at producing IT products than Zambia then the US IT industry should get the lion’s share of business. And equally, if Zambia were better than the US at producing cotton then Zambian farms should get more business. But if the US give cotton farmers in their country subsidies so that they can produce these products at a lower cost and thus sell for a lower price this would then cancel out Zambia’s comparative advantage.
- 7Further this pointow income countries derive 36% of their GDP from agriculture and developed countries only 1.5%, but you wouldn’t know that from the amount of subsidies developed nations farmers receive.The injection of these mass sums of money into areas such as the cotton sector naturally comes at a price- US cotton subsidies resulted in cotton farms across West Africa earning up to 20 percent less than they would, were they on an equal playing field with America.
- 8how has this made developing countries food insecure ?this has lead developing countries that were once self-sufficient to be net-importers of foodstuffs, leaving them at the mercy of rising food prices as they are forced to import food they once grew themselves.
- 9What would critics of globalisation say about the polarisation of wealth?Critics of globalisation point out that billions haven’t benefited from globalisation and that the polarisation of wealth is growing both within and across nations. Given free reign, market forces give the rich the power to add further to their wealth, Hence, large corporations invest in poor countries only because they can make greater profits from low wage levels or because they can get access to their natural resources. The free market does nothing to address redistribution of wealth and assumes that wealth will simply ‘trickle down’ to the poor. In fact by the 1990s the fifth of the world’s people who were living in the highest income countries had 86% of world GDP while the bottom fifth had just 1%.
- 10How could that view be counter argued ?disparities between who has more and who has less have existed from the moment agriculture had enabled us to accumulate a surplus and sometimes this inequality has been a big concern and at other times not so much. Inequalities are as old as human history, and almost as old is the debate about them, one thing that is new, however, is our ability to learn about them, to discuss them and hopefully to find solutions for them together as a global community that is better integrated and more connected than it's ever been before.
- 11How do developed countries such as the US benefit from globalisation ?It has allowed them to expand their markets, the creation of the NIDL enabled them to increase productivity while keep production costs low as it outstreams labour from foreign countries.
- 12How is Taiwan a success story for globalisation ?- Diversified their economy, they were once reliant on agriculture and are now a post-industrial society.
- 1950s land reform = government bought land from the rich and then divided it up among the population allowing individuals the chance to start their own businesses
- Taiwan became a deregulated economy, which meant businesses could start up easily for a variety of products.
- Firms could also easily set up in Taiwan, bringing the global market into the country
- Resulting in Taiwan's economy becoming richer both nationally and locally
- Taiwan’s tea industry has also been taken abroad in a similar style to Starbucks. This has increased their economy’s income as the tea industry now reaches a larger market.
-his also means that Taiwan can export their culture into the rest of the world, rather than just receiving western culture. This shows how globalisation spreads all cultures, not just the dominant western culture.
- more people become educated as globalisation = transfer of skills and knowledge so workers know their rights and thus don't get exploited - 13How has globalisation had a destabilising effect on Uganda's economy ?- Uganda has approximately 32 million people, 31% of which live below the national poverty line.
- In 2006, fishing in Lake Uganda made up 12% of Uganda’s GDP.
- 1950’s the Nile Perch was introduced into the lake which became an important export and source of food
-Nile Perch is a predatory fish which has reduced the indigenous species to extinction levels, negatively affecting the lakes ecosystem
- Over the past few years, the amount of fish in the lake has declined due to overfishing in Uganda and other countries bordering the lake
-This has been due to the high demand from the developed world which Uganda hasn’t been sustainably meeting.
- This has resulted in prices being driven up for locals as well as threatening the livelihoods of the fishers as if
- they continue to fish unsustainably, their fish exports will stop when there are no fish left.
- This shows how globalisation has impacted Uganda locally and has the potential to devastate their economy nationally - 14How has globalisation negatively effected Nigeria?- Nigeria’s economy is heavily reliant on their oil and gas industry. In 2004, this accounted for more than 90% of their export earnings.
- This has had a destabilising effect on local businesses as government funding is prioritised for the oil and gas industry to help Nigeria keep up with the high demand from the global market.
- It has also had negative impacts on their environment which has slowed down development due to factors such as oil spills. This has resulted in the taxpayer’s money being spent on cleaning this up rather than improving areas of social development or helping the local economy to flourish.
- By being so heavily reliant on the oil and gas industry, their economy is unstable. This is because of factors outside of their control which increases or decreases the price of oil.
- For example, in early 2015 the price of fuel in England was as high as £1.49 per litre, but now it can be found for as little as £0.98. Whilst this can be seen as a positive effect for the consumers abroad that they are exporting to as this results in a lot of savings - 15what is a difference between these three economies (Taiwan, Nigeria and Uganda) and why do you think only one has experienced positive impacts from globalisation?- A large difference between these three economies may be that whilst Taiwan’s economy is promoted through a wide range of businesses, Uganda and Nigeria’s economies are heavily reliant on one main export
- It may be this crucial factor which has resulted in a destabilised economy in Uganda and Nigeria, but not in Taiwan. By having many exports, Taiwan’s economy can be seen as more stable as if one sector loses some export income, the income from other sectors will make up for this.
- However, by Nigeria and Uganda having a heavy reliance on one main export, the economy can become unstable as it is subject to demand and value dictated outside of their economies, as well as in danger of the natural resources being overused due to unsustainable methods being in place. - 16Evaluate the view that globalisation has a destabilising effect on economies (local to national)globalisation can have a destabilising effect on national and local economies, however it can also benefit a country if utilised correctly. Other factors such as having other forms of income are essential to allow a country to reap the benefits of globalisation. Nigeria and Uganda are examples of where globalisation hasn’t appeared to be beneficial, but this may be largely due to a heavy reliance on one main export. Taiwan shows how globalisation can be beneficial, and it may be due to their diverse economy as well as a de-regulated economy making it easier for local businesses to start up to diversify the economy which has allowed Taiwan to become richer over the past 50 years.
- 17Globalisation has leadto increased FDI which has both positive and negative effects on local economies. what are some positive effects :Foreign direct investment (FDI) refers to the flow of capital goods and services between countries. Investing overseas has many economic benefits for a country such as reduced transport costs by locating manufacturing plants within a consuming country, also allowing them to avoid barriers to trade such as tariffs that they would have had to have dealt with if they stayed outside of that trading bloc (e.g. Nissan locating in the EU so they can trade under EU laws and therefore profit more due to the reduction on tariffs etc.).
- 18What is FDIFDI is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
- 19more positive effects of FDI on economiesCreates jobs
inflow of capital
technology transfer
encourages competition- raises standards of domestic
host country integrates into the world economic system
decreases cost of production and can lead to increase trade
develops infrastructure - 20Case Study : Nike in Vietnam34 factories in Vietnam that provide jobs especially for young women and created 10,000 jobs and makes 75 million pairs of shoes a year. Wages paid are often higher than other companies, helped to attract other MNC's creating more jobs. Workers contribution to the local taxes helps pay for improvements in infrastructure and exports are a positive contribution to the balance of payments.Nike has implemented education and training programs that have improved literacy rates and job prospects for workers in the area.
- 21What are the working conditions like in Vietnam1999 Nike implemented "Code of Conduct" in the 34 factories and recently there's been visible improvements with the safer conditions and the workers' awareness to their entitlements and rights. As a result other MNC's have done the same and workers are now aware of their right to minimum wage and subsidized food rates. 85% of Nike factories by 2001 offered education and training programs which improved literacy rates and job prospects for the workers in the area.
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- A level World Development Karteikarten am Globalisation , erstellt von Megan Gallagher am 26/05/2018.
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- Megan Gallagher · Mai 2018
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- 26 Mai 2018
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