Fichas
globalisation
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- 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 - 2what is international trade?- the exchange of capital, good+services across international borders
- inbound trade = imports
- outbound trade = exports - 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 - 4what are BRIC countries?Brazil
Russia
India
China
- economies have advanced rapidly since 1990s - 5what are MINT countries?Mexico
Indonesia
Nigeria
Turkey
- more recently emerging countries - 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 - 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 - 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 - 9what is diaspora?large group of people with similar heritage/homeland who have moved+settled in places across world
- 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 - 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 - 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 - 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
- - 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 - 15what are economies of scale?- cost adv
- 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 - 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 - 18in the 50s where was manufacturing concentrated?95% in industrialised economies of Western Europe, North America + Japan
- 19overtime what has happened?- decentralisation
- FDI by TNCs into developing countries
- TNCs relocated production abroad to developing countries with lower wages = global shift - 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 - 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 - 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 - 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 - 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 - 25financial systems are based on ...- companies called investment banks
- main role = to help companies raise capital by selling shares on behalf of those companies - 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 - 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 - 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 - 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 - 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 - 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 - 32why have trade agreements been formed?- countries joining together to form trading blocs > stimulate trade between themselves+gain economic benefits from cooperation
- 33what are the various forms?- free trade areas
- customs unions
- common markets
- economic/monetary unions like EU - 34what are common markets?- group formed by countries in geographical proximity in which trade barriers are eliminated
- 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
- 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 - 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 - 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 - 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 - 40what have supporters pointed out?- trade between member countries tripled between 1993+2007
- manufacturing grew in USA with increased employment
- Mexico receives increased FDI - 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 (global systems + governance ) Geography Fichas sobre globalisation, creado por serena norman thomas el 14/05/2018.
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- serena norman thomas
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