Flashcards
Globalisation cards
Cards in this deck (19)
- 1Define the term "Globalisation"Globalisation is a process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration.
- 2Explain the factors of productionLand- All natural resources are grouped under land
Labour- the human resources available in any economy. The quality and the quantity of labour needs to be taken into consideration.
Capital- Physical resources that help man made production. It can also refer to the flow of money.
Entreprise- Entreprise is a particular form of human capital which describes those who take the risk fo creating businesses. - 3What are the flows of the Frank- Wallerstein Core-PeripheryFDI- FDI is investment made by TNCs or governments from one country into another.
Repatriation of profits- TNCs investing in a country will move the profits back to their own country. This is known as economic leakage.
Aid- Aid is money given to poorer countries. It can be done multilaterally (UN) or bilaterally, from one country to another.
Migration- The Frank-Wallerstein model shows people move from developing countries to developed ones. They may also send remittances to their country. - 4Highlight the pattern of the flows of labourHarder for people to move than for money to move.
Increase in recent years of migrants crossing borders.
Many move from South Asia, Africa and Latin America to North America and Europe.
Most people in Sub-Saharan Africa don't cross borders but travel shorter
distances
There is an increase in the amount of people who travel to the Gulf States for work.
Tiger economies in South East Asia have been attractive for work. - 5Somalia and remittances40% of Somalians relied on remittances.
80% of the countries investment is remittances.
50% of the countries GNI (Gross National Income) is from remittances.
$1.2 billion dollars came from remittances.
$800 million came from international aid
Reasons why many UK and US banks stopped the service.
1. Somalia has little government regulation.
2. There are few anti-money laundering
laws
3. There is a lack of Suspicious Activity Reports (SARs).
4. There were fears that some money was being sent to Al-Shabaab. - 6How has the cost of trade been reducedTransaction costs- These have been reduced by improvements in the flow of data, and the ease with which capital can be transferred to pay for transactions.
Transport and time- These costs have been reduced through containerisation. This has allowed for more complex and long distance flow of products.
WTO- The WTO has encouraged free trade between countries through many different 'rounds'. - 7What are the different kinds of servicesHigh level services- Services such as Investment, Finance and Advertising. These services are for businesses.
Low level services- Services such as banking, travel and tourism, and call centres. These services are for customers. - 8How have the flows of information improved?Communication is cheaper and easier due to better global telephone networks.
Mobile telecommunication technology.
The invention of email and internet have also enabled better communication.
Sattelite technology has allowed live media coverage. - 9What affects the decision taken for a new location for manufacturing?The availability of a skilled and new workforce.
The opportunity to build new plants with the latest technology.
Government incentives in the form of tax breaks of entreprise zones attract companies.
Access to larger markets. - 10Car production case studySince 1994, GM and Ford have moved production to free trade zones known as Maquiladoras.
Despite deindustrialisation in the 1980s, the UK has Japanese car factories in towns such as Swindon, Sunderland and Derby. This was done to access the EU market. - 11What are the factors in globalisation? (1)Communications- ICT/ mobile phones
Transport- Faster transport by air, road and rail
Collapse of communism- more countries develop market economies
TNCs- Growth of TNCs through mergers and expansion
Capital/investment- increasing capital mobility
Global marketing- rise in significance of global brands e.g. McDonalds - 12What are the factors in globalisation? (2)Travel-Increased business, personal and tourism travel
Containerisation- Vast quantities can be shipped globally at a low cost
Migration- Ideas and information spread via movement of people
Trade- The Role of WTO; more free trade; trading groups e.g. EU/NAFTA - 13Global scale advantages of trading blocsImprove global peace and security.
Increase global trade and co-operation.
Help member countries develop their economies and standard of living. - 14Regional scale advantages of trading blocsCompete on a global level.
Have more representation in world affairs.
More freedom of movement of trade.
Allow people who seek work easier opportunities to do so.
To negotiate trade advantages as a group with other groups.
Develop a common currency to prevent fluctuations.
Share technological advances
Improve declining industrial regions
Spread democracy and human rights. - 15Examples of trading blocsNAFTA (U.S., Canada, Mexico)
Mercosur( Brazil, Argentina, Bolivia, Peru, Venezuela, Paraguay, Uruguay and Ecuador)
CARICOM (20 Caribbean countries)
EU
ASEAN - 16Case Study for NAFTA (main aims)Main aims include:
Gradual elimination of all trade barriers
Promotion of economic competition between members
Increased investment opportunities
Generally improved co-operation between member states - 17How has NAFTA benefitted the countriesTrade tripled between 1993-2007
Mexico received increased foreign investment from TNCs
Mexican workers receive higher wages - 18How has NAFTA worsened the countriesSome Canadian companies have closed due to competition from cheaper US firms
Some US firms have moved to Mexico, causing jobs to be lost
Food surpluses have been dumped into Mexico reducing food prices
Mexico could be exploited due to its natural resources and less stringent pollution laws - 19—