globalisation

globalisation

1. causes & acceleration

   • acceleration of globalisation
     • basic types
       • economic: growth of TNC's, info & communication technlogy
         • TNC's: businesses with globally spread operations, many nations as both makers & sellers of goods & services
       • social: international migration, global improvements - education, health & social interconnectivity
       • political: growth of trade blocs, free trade agreements & global organisations
       • cultural: through successful western cultural traits dominating territories, glocalisation & hybridisation & acceleration of circulation of ideas & info
         • glocalisation: changing of the design of products to meet local tastes or laws
     • global connections, flows & interdependence
       • lengthening of connections between people & places with products sourced from further away then before
       • deepening of connections, with sense of being connected to others & places
       • faster connections, people can talk in real time globally or travel by jet
       • globalisation involves building up networks of people and places, these represent different flows such as:
         • capital: at global scale, major flows are routed daily through stock markets.
         • commodities: valuable raw materials - fossil fuels, food & minerals have all been traded between nations
         • information: internet brought real time communication, allowing goods & services to be bought instantly
         • tourists: cheap airlines, brought a 'pleasure periphery', distant places within easy reach for tourists of high income nations
         • migrants: permanent movement of people, still faces biggest obstacles due to boarder controls and immigration laws
     • development in transport & trade
       • in 19th and 20th century developments in transport & trade came together. transport improvements = trade to increase
       • transport innovations included:
         • steam power: steam ships (& trains) moved goods & armies quickly along trade routes into Asia & Africa
         • railways: 1800's they expanded globally, currently a priority for governments across the world
         • container shipping: backbone of economy since 1950's, around 200 million containers moved yearly
         • all resulted to the shrinking world effect
         • jet aircraft: arrival of intercontinental jet aircraft 1960's made international travel more commonplace
     • ICT, mobile, phones, 21st, tech is used by many players that contribute to globalisation
       • telephone & the telegraph - core tech for communication across distance
       • broadband & fibre optics: enormous flows of data are conveyed across the ocean floor through fibre optic cables
       • GIS & GPS - satellites continuously broadcast position & time data to users throughout the world
       • internet, social networks, skype - all connect globally
   • politics & economics of globalisation
     • work of international organisations
       • IMF
         • based Washington DC, channels loans from rich nations to countries that apply for help, in return they must agree to run free market economies that are open to outside investment. this means that TNC's can enter easily.
         • rules and regulation can be controversial, especially the strict financial conditions put on governments may lead to cutbacks
       • World Bank
         • lends on global scale, Washington DC, $470 million loan to Philippines for poverty reduction
         • in total distributed $65 billion in loans and grants 2014, still strict loans, controversial as all World Bank presidents have all been US citizens
       • WTO
         • took over from the General Agreement on tariffs and trade 1995, based in Switzerland, WTO advocates trade liberalisation, aim to abandon protectionist attitudes in favour of untaxed trade
         • failed to stop USA & EU for subsidising own food producers, this is harmful to farmers in developing countries which want to trade equally
     • attitudes & actions of national governments
       • trade blocs: voluntary international agreements that encourage free flow of capital & goods
       • national governments are also players & promote growth of global economy by:
         • promoting trade blocs, EU
         • free market liberalisation, lifting restrictions on the way companies operate
         • encouraging start ups, allowing TNC's to grow in size & influence
         • privatisation lets companies take over national services, railway
     • spread of globalisation into new global regions
       • SEZ's, industrial area often near coast, , favourable conditions for a TNC
         • government subsidies & changing attitudes to FDI
           • FDI, financial injection from a business into another countries economy, build shops, facilities or merge
       • China, open door policy
   • effects of globalisation
     • uneven globalisation
       • some areas been affected more than others, due to variety of policies & attitudes, not all governments want this,
         • also physical factors - availability, resources, accessibility, leads to TNC's picking prime spots for business
       • can be measured using KOF index, this uses economic, social & political aspects
     • TNC's & Globalisation
       • attempt to build their global businesses through the processes of
         • offshoring - moving parts of production process abroad to reduce labour or other costs
         • outsourcing - contracting another company to produce the goods or services
         • global production networks - setting up chains of connected suppliers for parts & materials that contribute to the manufacturing or assembly of consumer goods
       • however some parts of the world benefit more from FDI by TNC's, not all areas suitable for investment
       • to maximise profits often need to adapt products to suit local tastes through Glocalisation, often adapted to suit: tastes, religion, laws, interests, availability of materials

2. geographical impacts of globalisation

   • winners & loosers
     • global shift: international relocation of different types of industrial activity, especially manufacturing industries
     • globalisation has had variety of impacts on countries, groups & cultures through:
       • global shifts in economic activity, brought social, economic, environmental impacts
       • increasing scale & pace of economic migration, causes different impacts
       • global & cultural changes associated with globalisation
     • costs & benefits of emerging Asia
       • urban environment transformed by rapid urbanisation, establishment of SEZ's, social, economic & environmental changes include:
         • poverty reduction & waged work
         • education & training
         • undue pressure on environment & resources
         • growth of built environment & unplanned settlements
     • environmental challenges in developing countries
       • global shift has been driven by TNC's seeking low cost locations for their manufacturing & refining operations. Lax regulation of pollution, environmental protection, also health & safety all key factors
     • problems of deindustrialisation
       • the decline of regionally important manufacturing industries in terms of either workforce numbers or output & production measures
       • global shift causes problems in developed countries - deindustrialisation has fuelled spiral of decline including:
         • high unemployment due to disappearance of old manufacturing jobs
         • rising crime now become the basis of an informal economy in poor urban areas
         • depopulation as people migrate out of failing urban areas in large numbers
         • dereliction resulting from abandoned factories, closure of services, rundown houses & environmental neglect
   • increasing scale & pace of economic migration
     • rural-urban migration & megacity growth
       • megacity, 10 million + people, 1970 there were just 3, by 2025 there will be 30. grow through combination of rural-urban migration & natural increase, the causes of rural-urban are:
         • urban pull factors
           • main factor almost everywhere is employment, urban areas offer the hope of promotion & advancement into occupational roles that are non existent in rural areas. schooling & healthcare better in urban, makes cities good migration areas
         • rural push factors
           • usually poverty, aggravated by population growth - not enough jobs for people, land reforms (cant prove who owns the land)
         • shrinking world, technology, rural dwellers are gaining knowledge of outside world & its opportunities & transport improvements have removed obstacles for migration
         • at the moment a lot in southern Asia
       • rapid urban growth in megacities often due to inadequate provision of housing
       • limited education access
     • international migration into global hubs
       • global hub: highly connected city, home or the region of a large globally connected community has become the focal point for activities, trade, business, education, governance & research
         • recognised by influence instead of size
       • two types of international migration have contributed to the growth of global hubs
         • elite international migration involving highly skilled/socially influenced individuals. some top migrants live as global citizens, multiple homes in multiple countries.encounter fewer obstacles when moving, Russian oligarchs in London
         • low waged international migration, people drawn towards hubs in large numbers, legal & illegal, kitchen jobs, labour, fruit
   • costs & benefits of migration
     • interdependence
       • one of the products of globalisation. builds up as countries become reliant on each other in terms of trade, financial political connections, interdependence offers economic & political security but, countries continued well being depends on economic health of those involved
     • benefits
       • host region
         • fills skill shortages, e.g doctors from India to UK, economic migrants willing to do work locals don't. workers spend wages on rent, helping landlords & pay tax on legal earnings. some migrants are ambitious, 2013 14% business start ups were migrant owned
       • source region
         • migrant remittances can contribute to national earnings significantly, 2014 remittances made 25% Nepal national earning, less public spending on housing, health, before 2004 prior to joining to EU Poland unemployment was 20% not more than halved. migrants may return with skills, young British Asians have relocated to India to start health clubs, government spending can be transferred to host region
     • costs
       • host region
         • social tensions, job taking, changes of culture, housing gone, political parties change views to address concerns, local shortages of primary schools due to natural increase, London boroughs become migrant hotspots
       • source regions
         • economic loss of a generation causes problms, doctors, schools etc, reduced economic growth, increases proportion of aged dependence, & long term economic challenge this creates. university closure, closed urban services, brings decline in urban areas, nightclubs closed in Warsaw, Poland 2004
   • emergence of global culture
     • diffusion of global culture, being spread by the mass idea, internet & migration. as it spreads traditions erode, but can adapted & absorb parts of the cultures. Diagnostic features of emerging global culture are:
       • emphasis on consumerism
       • belief in capitalism & personal wealth
       • anglo saxon & white
       • English is the dominant language
       • 'American' in terms of tastes & traits, diet, dress, entertainment
     • cultures evolve naturally, but globalisation has accelerated.
     • cultural diffusion & its causes
       • cultural diffusion: gradual spread of culture from an influence civiisation
       • cultural imperialism: practice of promoting culture & language of one nation in another, usually happens in large economically or militarily powerful nations
       • countries like the USA play a role in bringing cultural change
       • evaluating emergence of global culture
         • TNC's
           • influence
             • dispersal of food, clothes other goods, TNC's shape common culture, Nike, Apple, Lego all produce global products
             • evaluation
               • when TNC's engage with new markets, cultures often adapt their products, services. products sold in different places increasingly reflect local cultures, e.g macdonalds menu
         • Global Media
           • influence
             • Disney exports stories globally, festivals - Halloween, Christmas shown in films.
           • evaluation
             • other places gain a window on America & Britain, shows like Strictly Come Dancing, re-filmed in different countries, Japanese culture, Pokemon
         • Migration & tourism
           • influence
             • brings huge cultural changes to places, Europeans travelled globally during age of empires taking languages & culture with them
           • evaluation
             • migrants can effect host nations, British people took language, cricket & other things but had little effects on cultures in many areas,
     • costs of cultural erosion
       • idea that westernised global culture is emerging as a result of cultural erosion, in different places is called hyper-globalisation, often seen as negatives, languages are disappearing,
       • other view is that this is all positive, values of equality, freedom etc
     • concern about globalisation impacts:
       • growing opposition to globalisation, individuals, pressure, groups, governments, important to realise culture can profoundly affect attitudes to all sorts of issues, resources, environment & heritage

3. challenges of globalisation

   • globalisation, development & the environment
     • development gap (range of values between worlds richest & poorest) has increased as globalisation has accelerated. overall the global economy has grown enormously, faster than the pop.
     • already rich, take large share of each years new economic growth, but globalisation has not pushed large numbers into poverty.
   • Economic & social development measures
     • development is measured in many different way using single & composite measures
       • Gross national income per capita is the mean average income of a population. it is calculated by aggregate source of income for country divided by population size to give crude average
       • Gross domestic product, final value of output of goods, services inside a nations borders, most telling if expressed in per capita terms.
       • Economic sector balance, country's or region's economy can be divided into 4 sectors, primary, secondary etc
       • human development index composite measure ranking countries according to economic criteria, gdp & social criteria, literacy & life expectancy
       • gender inequality index, composite devised by UNDP, relates to women reproductive health, empowerment & labour force participation
       • Environmental quality, often poor in developing countries, usually improves as economic & social development occurs & places make transition from industrial to post industrial forms of economic activity.
   • Widening inequalities
     • steep rise in world money supply during era of globalisation has been accompanied by a changing spatial pattern of global wealth
       • average incomes have risen on all continents since 1950 but slowly in parts of Africa
       • great gains made by European and North American nations have widened the average income gap
       • absolute poverty fallen world wide
       • many countries have advances from low income to middle income status since 1970
       • growing wealth divide within nations
     • Gini coefficient: measure of income inequality number 0-100, high number = bigger inequality. 0 = everyone receives the same, 100 = one individual earns the countries income
     • environmental issues, climate change & biodiversity loss
       • transformation of 40% of earth surface into productive agricultural land, habitat loss & biodiversity decline
       • bad effect on large agribusiness operations affect poorer countries
       • cash cropping, cattle ranching, aqua culture, damages environmental effects ranging from ground water depletion to the removal of forests
   • contrasting trends in economic development & environmental management
     • environmental damaged been felt in developing countries, known as environmental losers
   • social, political, environmental tensions of globalisation
     • cultural mix
       • lots of international migration is key in globalisation, encouraged by open boarders, deregulation & FDI, given rise to diasporas around the world
         • diaspora, dispersion or spread of a group of people from original homeland
       • tensions can development, between immigrant groups & host, especially in ethnicity. immigrants take jobs, feel discriminated again. some coutnries nationalist parties are becoming popular
     • controlling the spread of globalisation
       • economic migrant, person who moves from one country to another job to improve standard of living
       • government controls
         • strengthening laws, limit economic migrant numbers, still hard to fix illegal immigrants, 1948 Universal Declaration of Human Rights guaranteed refugees asylum rights
         • limiting citizens, freedom to access online info, dark web harder to control
         • trade protectionism, still common, illegal smuggling of both legal & illegal commodities difficult to control
       • internet censorship in places like China, government way to stifle criticism & censorship
     • resource nationalism & protecting cultures
       • resource nationalism: growing tendency for state governments to ensure locals have priorities.
       • Venezuelan: took control of oil operations in own country
   • globalisation, sustainability & localism
     • associated with a range of rising environmental stresses related to population pressure on food water & energy
     • local sourcing solution
       • ethical consumption: occurs when consumer takes into account the costs of producing food & goods & providing services
       • adopted by environmental citizens,, purchase local goods, boycott supermarkets with high food miles
       • consumers, can be very expensive, but crops grown with fewer chemicals
       • producers, less demand from UK consumers, UK farmers get better
       • environment, tomatoes UK grown in heated green houses, in areas can reduce carbon footprint
     • ethical consumption & fair trade
       • consumers benefit, economically from global shift with cheaper goods
       • supply chain monitoring
         • large businesses accept the need for corporate social responsibility, large TNC's have thousands of suppliers,
         • firms such as Nike prohibit worker exploitation in foreign factories, hard to control what happens in work places
       • fair trade
         • fair trade, guaranteed higher income to farmers & manufacturers even if prices change. coffee, chocolate, bananas, waitrose
         • fair trade lets shoppers know that they will give more to workers, however as schemes grow its harder to control,
       • NGO Action
         • charity war on want helped South African fruit pickers, used to be no toilet in a Tesco for females,
         • limited financial resources, can inhibit scale of what they can achieve, people still remain unaware of issues
     • recycling & resource consumption
       • end of useful life, goods often sent to waste, alternative is to recycle