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Flashcards

globalisation

serena norman thomas Geography GCSE English 41 cards

Cards in this deck (41)

  1. 1what is globalisation?- process of World's economies, pol systems+cultures becoming increasingly intergrated
    - due to the global network of trade, communication, transportation+immigration
    - started to accelerate in 1980s
  2. 2what is international trade?- the exchange of capital, good+services across international borders
    - inbound trade = imports
    - outbound trade = exports
  3. 3what are capital flows?- movement of money for purpose of investment, trade or to produce goods/provide services
    - historically money invested within country, e.g. new factories/branches
    - now FDI has increased, e.g. 1996 $400 bill 2016 $1500 bill
    - improvements in information+communications tech have encouraged flows of capital - instantly moved via internet
    - making world more interconnected, e.g. most economies dependent on flows of investment to+from other countries
  4. 4what are BRIC countries?Brazil
    Russia
    India
    China
    - economies have advanced rapidly since 1990s
  5. 5what are MINT countries?Mexico
    Indonesia
    Nigeria
    Turkey
    - more recently emerging countries
  6. 6what is FDI?- investment made mainly by TNCs into physical capital/assets of foreign enterprises
    e.g. setting up subsidiary company - acquiring shares or merger or joint venture
  7. 7what is the repatriation of profits?- TNCs investing in overseas take profit made from investment back to home-country HQ
    - sometimes called economic leakage
    - majority return to companies based in richer countries
  8. 8what are remittance payments?- transfers of money made by foreign workers to family in home country
    - become second most important source of income in developing countries, above international aid (Frank+Wallerstines core-periphery model)
    - India receives more remittance payments from diaspora than any other
  9. 9what is diaspora?large group of people with similar heritage/homeland who have moved+settled in places across world
  10. 10what are flows of information?- info can be spread across world very quickly+easily
    - development+rapid spread of email, internet+social media > large amounts of info exchanged instantly
    - allows people to communicate
    - making world more interconnected > people learn about different cultures+countries without leaving their own
    - important in expansion of knowledge-intensive goods+services, e.g. high-tech products like pharmaceuticals, international law - need exchange of ideas
  11. 11what are flows of products?- historically manufacturing industries located in more developed countries
    - recent decades it has decreased in more developed countries, e.g. in UK fell from >5 mill 1985 to 2.6 mill 2014
    reasons for this:
    - reductions in transaction costs due to improvements in flows of data+capital
    - lower labour costs overseas caused manufacturing side to move abroad, e.g. Dyson moved to Malaysia 2002 but sells to UK
    - makes countries more interdependent
  12. 12what are flows of services?- services = economic activities that are traded without production of material goods, e.g. banking
    high level = to businesses, e.g. finance, investment, concentrated in cities in more developed countries
    low level = to consumers, e.g. banking, travel+tourism, relocated to less developed countries where labour is cheaper
    - improvements in ICT have allowed services to become global industries, services can locate anywhere in world + serve needs anywhere
    - during 70s+80s deregulation+opening up of national financial markets to rest of world (e.g. UK+USA) > easier for banks
  13. 13what are flows of labour?= movements of people who participate in workforce from one country to another
    - more people moving overseas, e.g. international migration increased by >40% between 2000+2015
    - much of movement from South Asia, Africa+Latin America to NA+EU
    - largest regional flow = Asia
    - some migrants highly skilled workers moving to more developed countries
    - some unskilled+move to developed due to unemployment+poor wages
    -
  14. 14what is global marketing?- process of promoting, advertising+selling products/services
    - involves treating world as one single market, using 1 market strategy to advertise products to customers all over world
    - generates economies of scale
    e.g. Coca Cola, bottle design recognisable in every country but size conforms to each country's standard sizing
  15. 15what are economies of scale?- cost adv
  16. 16what are what are conglomerates?- a collection of different companies/organisations which may be involved in different business activities but all report to one parent company
    - most TNCs are conglomerates
  17. 17what are newly industrialised countries?- developed own industrial+commercial bases + their own TNCs which have spread globally
    - started with 4 Asian 'tiger' economies: Hong Kong, Singapore, S Korea + Taiwan
    - followed by BRIC economies + MINT
  18. 18in the 50s where was manufacturing concentrated?95% in industrialised economies of Western Europe, North America + Japan
  19. 19overtime what has happened?- decentralisation
    - FDI by TNCs into developing countries
    - TNCs relocated production abroad to developing countries with lower wages = global shift
  20. 20what is a consequence of global shift?- deindustrialisation in richer countries + loss of jobs in manufacturing sector
    - >50% manufacturing jobs are located in developing world
  21. 21what is a maquiladora?- a manufacturing operation (plant/factory) located in free trade zones in Mexico
    - import materials for assembly then export final product without any trade barriers
    - since 1994 US vehicle giants General Motors+Ford have relocated
  22. 22how has UK become one of the most productive car manufacturers in EU?- investment by Japanese companies Honda, Nissan + Toyota at factories in Swindon, Sunderland + Derby
    - these plants give Japanese TNCs access to EU market
    - boosted by investment from TNCs in BRIC economies, espesh Indian conglomerate Tata
  23. 23what are the patterns of distribution+consumption?- still lies predominantly in richer countries of developed world
    - products manufactured in NIC largely exported+sold to EU, NA+Japan
    e.g. Dyson still sells bulk of vacuum cleaners in UK+EU despite moving to Malaysia
  24. 24how is this pattern changing?- as emerging NICs develop their populations become more affluent+can afford products
    forecasts suggest:
    - consumption will drive trade patterns > than production location + fasted growing trade route = India+China
    - as Asia becomes more competitive growing share of exports will be to other countries in Asia
  25. 25financial systems are based on ...- companies called investment banks
    - main role = to help companies raise capital by selling shares on behalf of those companies
  26. 26what happened in 1980s to make financial system more global?- information technology: e.g. internet, allowed greater access to info, investors+investment banks could easily find out whether company was doing well or struggling + make decision whether to invest
    - investment banks created new financial products that made foreign investment less risky
    - govs from across world undertook financial deregulation > relaxed rules on what banks could do, e.g. allowing banks to charge people more for services, removing barriers to capital coming in+out of country > easier to buy+sell shares+products elsewhere
    - led to gr8r range of countries getting involved in finance, e.g. commercial banks began selling shares, allowed banks to take on greater number of services, e.g. exchanging currencies
  27. 27how has government support increased globalisation?- 1 of economic objectives of most govs = increase exports
    - govs @ national level who trade departments to ease exports, e.g. UK Trade+Investment, offer support+advice on all aspects of trade
    - in some larger developing countries with less developed infrastructure, e.g. Pakistan, exporters are encouraged by gov to use dry ports - save exporter time+transport costs
  28. 28how has transport increased globalisation?- uniform metal containers where introduces in 1950s
    - products+commodities can be shipped more quickly+in larger quantities due to:
    - increased size of aircraft; integrated air traffic networks
    - growth of low-cost airlines+air freight companies
    - use of standardised containers - by sea, rail, road+air
    - handling+distribution efficiencies
    - high speed rail
  29. 29communications?- satellites first launched in Earth's orbit in 60s, allow cheap wireless communication, means even those is rural+remote places can access internet
    - optic fibre cables allow fast communication between 2 devices > instant communication between companies/individuals
    - over past 20 years significant growth in software that allows free communication, e.g. email hosts, text messaging
  30. 30how have management+info systems increased companies' efficiency?- companies' supply chains have become global: supplier may be in different country to factory which is in diff country to research+development department > minimise costs
    - large companies benefit from economies of scale
    - outsourcing: when company pays another to do work that in past may have been done in-house, to save costs, e.g. rather than developing own call centre might pay another to take on these services
    - casual+temporary contracts allow companies to take on workers as+when required - dont have to pay them fixed yearly wage
  31. 31security?- number of initiatives introduced to alleviate threats, e.g. WCO
    - in response to terrorist incidents measures have tightened up security + in some ways facilitated trade
  32. 32why have trade agreements been formed?- countries joining together to form trading blocs > stimulate trade between themselves+gain economic benefits from cooperation
  33. 33what are the various forms?- free trade areas
    - customs unions
    - common markets
    - economic/monetary unions like EU
  34. 34what are common markets?- group formed by countries in geographical proximity in which trade barriers are eliminated
  35. 35what are customs unions?- trade bloc which allows free trade with no barriers between its member states but imposes common external tariff to trading countries outside block
  36. 36what are the advantages of nations who group together as trading entities? (global scale)- improve global peace+security+reduce conflict
    - increase global trade+co-operation on trade issues
    - help members develop economies+standard of living
  37. 37and regionally?- compete on global level with other trading entities
    - have a bigger representation in world affairs
    - allow freedom of movement of trade
    - allow people seeking work to move between countries more easily
  38. 38what disadvantages can arise?- some loss of sovereignty - decisions are centralised by what some see as undemocratic bureaucracy
    - some loss of financial controls to central authority, e.g. a bank like European Central Bank
    - pressure to adopt central legislation, e.g. in Europe, Bosman ruling on soccer transfers, food standards
  39. 39what is the North American Free Trade Agreement?- signed by USA, Canada+Mexico 1994 due to challenge presented by other trading blocs - espesh Europe
    - main aims: gradual elimination of all trade barriers, promotion of investment opportunities, improved co-operation
  40. 40what have supporters pointed out?- trade between member countries tripled between 1993+2007
    - manufacturing grew in USA with increased employment
    - Mexico receives increased FDI
  41. 41what have opponents pointed out?- some Canadian companies have closed due to competition form lower-cost US firms
    - some US firms moved to Mexico+so loss of American jobs

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GCSE Geography (global systems + governance ) Flashcards on globalisation, created by serena norman thomas on 14/05/2018.
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