Karteikarten
Globalisation
Karten in diesem Stapel (70)
- 1What is globalisation?Increasing interconnection in the world's economic and political systems.
Much of this occurring because of TNCs. - 2What are the three main forms of globalisation?Economic, Cultural and Political
- 3How is economic globalisation occurring?Under both the General Agreement on Tariffs and Trade (GATT) and its successor, the WTO, world trade has expanded rapidly.
This links to GDP, literacy rates - 4How is cultural globalisation occurring?Western culture has diffused all parts of the world through television, cinema, the internet, newspapers and magazines. This has been reflected in media, art, sport, and leisure pursuits.
- 5How is political globalisation occurring?The influence of nation states has diminished in many areas as many more countries organise themselves into trade blocs.
- 6What are the 4 terms of globalisation?Urban
Demographic
Linguistic
Environmental - 7Urban:A hierarchy of global cities has emerged to act as centres for the global economy.
- 8Demographic:A growth of international migration and the rise of multicultural societies.
- 9Linguistic:The emergence of English as the working language of the 'global village'. Spanish is most widely spoken, followed by Mandarin.
- 10Environmental:The impact of activity in one country has a clear impact in others - for example,the spread of pollutants and the impacts of global warming.
- 11History of Globalisation: Late 19th Century1) Transport and communication began to expand rapidly globally.
2) WT began to grow with and increase in the level of interdependence between rich and poor countries.
3) Capital flows began to expand as European companies started operations in other parts of the world. - 12History of Globalisation: Early 20th Century1) Great depression caused countries to fall back on their own resources, with the production process being mainly organised within national economies.
- 13History of Globalisation: Late 1940's1) Fragmentation of production processes across national boundaries which changed pattern specialisation globally
2) International trade increasingly complex
3) Increasing number of NICs (Singapore)
4) New gen. of NICs (India, Malaysia)
5) Integration of Soviet Union and Eastern Countries into the capitalist system
6) Opening up large India and China economies to outside world.
7) International Monetary Fund (IMF) was established to oversee global financial system. Offers financial and technical assistance.
8) World bank mainly deals with internal investment projects, usually in developing countries. Although, IDA provides interest free loans to countries with very low per capita income. - 14When was the international economy established?The 1970's
- 15What did GATT do?Lower barriers on international trade with free trade as its aim. World trade therefore increased at a much faster rate than GDP.
- 16W1950's
In order to stimulate trade between themselves and to obtain economic benefits from cooperation - 17History of Globalisation: Late 20th Century1) Emergence of free markets in 1980's prompted by Thatcher and Reagan.
2) Deregulation of world financial markets. Previously, the activities of financial institutions such as banks, insurance and investment companies had been confined with national boundaries. - 18History of Globalisation: Early 21st Century- Increased movement of people across international borders seeking employment.
- With EU, large flow of people from poorer eastern European countries into wealthier western countries (some asylum some financial)
3) 21st Century financial crisis. - 19What is Global Marketing?Marketing on a worldwide scale, talking commercial advantage of global operational differences, similarities and oppotunities in order to meet global objectives.
- 20Example of Global Marketing:Coca Cola
Company with a single product, only minor elements are changed for different markets. Bottle design is the same in every country with bottle and can sizes only changing for regulations. - 21What two main groups of labour did it bring?Highly Skilled
Unskilled - 22Highly Skilled:Highly skilled, highly paid decision making, research and managerial occupations. On a global scale, these are largely focused in developed countries
- 23UnskilledUnskilled, poorly paid assembly occupations. These tend to be located in developing countries which have low labour costs. This has changed over the last 40 years as LEDCs have now changed into NICs.
- 24What 4 factors promote globalisation?Capital
Production
Services
People - 25Flows of Capital:1)Capital is money that is invested so that you can get an income or increased profit.
2) Previous, Capital was invested within a country but recently the capital invested in foreign countries has increased. This is foreign direct investment (FDI) ($3000 billion in 1996 to $12 000 in 2006).
3) Improvements in information and communication tech has encouraged flows of capital around the world.
4) Increasing flows of capital makes the world more interconnected. - 26Flows of Production:1) Historically, manufacturing industries are located in more developed countries.
2) Products being sold in countries they were made.
3)Recently, manufacturing has decreased in developed countries (5 mil in 1985 to 3 mil in 2009 in UK).
4) Low labour costs overseas have cause many companies to relocate their production overseas then import product
5) As a result, international trade in manufactured goods have increased
6) changing flows of production us making the world more interconnected. - 27Flows of Services:1) Economic activities which aren't based about producing material goods.
2) Improvements in ICT has allowed services to become global industries
3) Banks and Insurance depend on communication + transfer of information
4) in 70's and 80s there was deregulation and opening up of financial markets to the world meaning it was easier for financial institution to do global business - 28What are low and high level servicesLow: located in less developed countries where labour is cheaper
High: concentrated in developed countries and cities - 29Flows of People:1) More people are moving to different countries. International migration doubled since 1975.
2) Some are moving for work, higher skilled and payed jobs, better living conditions.
3) Increased flow of people is making the world more interconnected. - 30What is a NIC?Newly Industrialised country.
Countries which are rapidly getting rich as their economies change from being based in primary industry (agriculture) to secondary (manufacturing) and sometime tertiary (IT services) - 31Four Phases of NICs: First PhaseEmergence of NICS.
TNCs look for areas where labour and costs are lower. East Asia targeted.
Japanese TNCs among the first to seek now areas for their operations and they seeked their less developed neighbours (South Korea, Taiwan). These countries along with Singapore and Hong Kong became known as the Asian Tigers. They were called this because they grew aggresively - 32Advantages of Asain Tigers:1) Reasonably developed infrastructure level such as roads, railways, ports.
2) Relatively well education population with existing skills
3) Cultural tradition that revere education
4) Good geographical location
5) Government support, low interest rates on bank loans
6) Less ridged laws and regulation on labour, taxation and pollution - 33Four Phases of NICs:1) As TNCs economies grew, so did wage levels and operation costs. This resulted in Japanese, US and EU TNCs looking for a second generation of countries that could support their operations.
2) At the same time, companies that have grown in the original NICs (Chaebols in SK) began to move routine manufacturing tasks to their neighbours such as Malaysia and Thailand. - 34Four Phases of NICs: Third Phase1) Recently, China and India has emerged as targets for FDI by TNCs. They have shown steady and rapid economic growth.
2) China's growth is the fastest experienced by any country with one time a 10% annual growth. - 35Four Phases of NICs: Fourth PhaseIn 21st century a new stage is evolving where new markets are emerging.
This has given a boost to older economies.
New markets represent 3/4 of world's population.
Include: China, India, S Korea, UAE, Chile, Turkey, Saudi Arabia, Russia, Argentina and SA. - 36Why are emerging economies switching to open markets?1) Relaxations fo controls of foreign exchange
2) Greater Autonomy of financial institutions
3) Removal of trade barriers
4) Political reforms - 37Case Study: Manufacturing in China-
- 38What occurred in 1978 China?They began moving from a centrally planned economy to a more market orientated system. Initially, there way strict communist control of how industries operated but gradually this relaxed. Agriculture doubled in 1980's as farmers were encouraged to make profits for themselves.
- 39What are specialised economic zones?SEZs are where foreign companies were encouraged to set up manufacturing plants in return for preferable tax rates. The SEZs were initially based on the Taiwan coast, particularly around Hong Kong.
- 40What did Foreign Direct Investment lead to?1) Economic growth of an average of 8% since 1990's (sometimes reaching 10%)
2) Early 21th century China received $50 billion in inward investment annually. In 2006, figure climbed to $63 Billion. - 41Problems with rapid economic growth:1) Large wage gap between rich and poor despite high GDP growth
2) Poverty of much of the interior of the country has lead to rural-urban migration
3) Unemployment growth means people move to find work.
4) Soil erosion means large losses in arable land and there are serious air pollution concerns.
5) Economy driven by exports rather than by consumption - 42Current Situation1) Reverse of child policy to two child policy
2) Slight downturn in productivity - 43Case Study: India-
- 44What server is it based in? FDI?Based more in service sector than in manufacturing sector unlike Taiwan, South Korea and Malaysia. Services accounted for 50% of GDP at beginning of 20th century
Until recently, there has been fairly low levels of FDI in Indian manufacturing sector. - 45India's global advantage?Has a number of highly qualified professionals whose skills are in high demand across English speaking world.
This has resulted in a great deal of outsourcing of work from developed countries to Indian countries, particularly in software and IT services. - 46India and the primary sector:Primary sector still dominates the country in terms of employment with 70% of the population still engaged in agriculture or other primary services.
- 47Why does India have a large advantage in call services and other business centres?1) Large English speaking workforce (50 Million)
2) Much lower labour costs (every 1 000 British jobs outsourced saves £10 million)
3) Many developed countries had significant ICT skills shortages - 48Other than IT, what else has India become a world leader in?'Back office functions'
Otherwise known as IT related services and include:
- Call centres to deal with companies such as BA, Lloyds, HSBC, BT, Barclays and British Gas
- Dealing with accounts (American Express)
- Data entry and conversion, such as medical and legal transcription. - 49Issues with India's service industry?1) Unions in developed world concerned about job losses
2) privacy and data protection grey areas
3) Tata consultancy Services (TCS), a large IT company which employs over 100 000 people worldwide stated it was outsourcing jobs from India to Mexico because of a lack of skilled workers and rising value of the rupee - 50Current Situation:-
- 51Case Study: New Markets and New TechnologiesNew markets are countries which are opening up to international trade and investment e.g. removing trade barriers.
Examples include NICs, wealthy oil countries and countries which have recently shifted from a closed market to an open one.
Some have very large population and the wealth of this population increases as the country becomes more open to international trade. - 52Demand in these countries? Effect globally?Growing demand in these countries for material goods.
This has allowed more developed countries such as the UK to grow economically.
New markets have become increasingly important to global economy e.g. China is responsible for 20% of economic growth since 2000. Some believe the power of markets will shift to new markets in coming years due to their growing power. - 53How have new technologies lead to economic growth?One of the main driving forces behind economic growth in recent years.
For example, improved computer hardware software such as CAM has increased manufacturing efficiency (work by computers is faster and more consistent). - 54Profits and investment in new technologies?Huge profits have been made from the production of new technologies.
High levels of investment in new tech (3D TVs) which creates growth in research and development and help boost future economic growth. - 55Dubai Case Study-
- 56What are Trans National Corporations?TNCs are huge companies that do business with several other companies. Many TNCs are much richer than entire companies in the developed world.
- 57Characteristics:1) Large, wealthy corporations
2) Have headquarters in one developed country
3) Have branches and factories spread all over the world.
4) Research and development usually takes place in poorer areas. - 58How TNCs connect to countries because of their structure1) Headquarters usually located in big cities in more developed countries which are well connected in terms of global transport and communications and there is a supply of highly skilled workers
2) Research and development located in towns where there's a supply of highly educated people.
3) Factories located in NICs where production costs are lower - 59TNCs have grown recently because:1) TNCs production costs are low
2) TNCs take advantage of differences in government policies
3) They operate in countries where environment and labour laws are less strict
4) TNCs can access new growing markets in less developed countries - 60Positives for country of origin:Economic - Profits from activities abroad come back to shareholders, give skilled employment in country
Social - Increased range of products available in shops
Environmental - Decline in local manufacturing may decrease pollution - 61Negatives in country of origin:Economic - Higher unemployment for TNC employees in home country, increased unemployment can lead to unemployment in an area.
Social - Higher unemplyment may lead to lower life quality, higher crime rates etc. - 62Positives for host country:Economic - Increased employment creates increased wealth for local people and economy, multiplier effect (higher economy creates higher economy
Social - TNCS may invest to create a more skilled workforce, may bring new technologies and working methods into country
Environmental - TNCs may invest in environmentally friendly technology - 63Negatives for host country:Economic - TNCs may cause local businesses to fail by out-competing, most profits go back to country of origin.
Social - TNCs exploit workforce as they are prepared to work long shifts for low wages, managerial positions often filled from country of origin, decisions made by TNCs often have little consideration to host country
Environmental - manufacturing causes pollution, agricultural and wildlife habitats lost - 64Case Study: Wal-MartBegan in Arkansas, USA in 1962
Developed across Arkansas, then USA, then more recently globe. - 65Social impacts of Wal-Mart:1) Consumer given wide range of goods
2) Many stores open 24/7
3) Many stores are poorly paid with few benefits (No healthcare)
4) In Cali 2004, its estimated that the state needed to pay out $86 to Wal-Mart employees
5) Accused of poor working conditions i.e. Had to pay out $172 to each employee who was denied meal breaks. - 66Economic impacts of Wal-Mart:1) Each new store creates jobs i.e. Store in Vineland created 700 new jobs
2) Low prices - Cheapest supermarket in USA
3) Can causes smaller independent stores to close down as they cannot match their low prices
4) It is estimated that for every 100 WM jobs created, 50 are lost from other businesses in the following 5 years. - 67Environmental impacts of Wal-Mart:1) Huge amount of greenhouse gases produced but has opened 'green stores' which run on renewable energy
2) Domestic stores are often out of town due to their size meaning traffic and pollution is caused by drivers - 68Positives and negatives of Wal-MArt: Economic(P) - Creates jobs in retail, construction and manufacturing. Local companies and farmers supply goods to WM i.e. In Canada Wal-Mart sustained 6K jobs and created $8 billion a year
(N) - Local companies suffer as cannot compete. Most profits go back to US rather than helping host country. - 69Positives and Negatives of Wal-Mart: Social(P) - Offers skilled jobs in less developed countries. Wal-Mart wages more reliable than other jobs.
(N) - Working conditions can be poor, long hours which go against regulation (80 rather than 60) - 70Positives and Negatives of Wal-Mart: Environmental(P) - Wal-Mart invests in environmentally friendly technology and sustainable development e.g. in Puerto Rico, 23 WM stores have solar panel technology
(N) - Use large areas of land for factories and stores. E.G largest WM store in Hawaii covers around 29 000 square metres.
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- A-Level Geography (A2) Karteikarten am Globalisation, erstellt von Ella Foster am 22/11/2016.
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