Globalisation

Globalisation

1. EQ1 - What are the causes of globalisation?

   • Understanding Globalisation: 4 strands of globalisation
   • The acceleration of globalisation: shrinking world. Factors influencing globalisation
     • Easyjet
       • 200 aeroplanes, carrying 65m people and revenues of £4 bn
       • Founded in 1995
   • The key players of globalisation.
     • International organisations: IMF, World Bank, WTO.
       • IMF channels loans from rich nation to countries that apply for help.
       • WB lends money on a global scale.
       • WTO advocates trade liberalisation.
     • National Governments: UK and China liberalisation
       • The Conservative govt. gave subsidies to encourage FDI.
       • China 'open door' policy in 1978
       • SEZ offered tax incentives and cheap labour.
     • Trade Blocs: EU, NAFTA, ASEAN, APEC
       • Promote free trade.
       • Resulted in rapid economic devpt.
   • Politics and Economics of globalisation
     • Ghana
       • During colonial times, Ghana was the world's largest producer of cocoa.
         • Its govt. had subsidised Ghanian farmers.
       • Although WTO rules seek tariff-free international trade, the EU sets tariffs for processed cocoa.
         • This forces Ghana to export raw cocoa beans instead.
       • Ghana joined the WTO in 1995
       • The WTO imposed a joining condition that Ghanian farmers should not be subsidised.
     • Vietnam
       • In 2015, the EU and ASEAN negotiated new trade deals with Vietnam. It removed all import duties and quotas on items traded between EU countries and Vietnam.
       • Vietnam's labour costs are lower than China's
     • Guatemala
       • In the 1980s, 75% of Guatemala's cotton crop was exported.
       • WTO policies meant Guatemala was tied to exporting raw cotton, until competition ended production in 2005.
     • China Open door policy
       • The Chinese govt. declared an 'open door' policy to international business in 1978
       • SEZs offered tax incentives and huge pools of cheap labour.
       • By 2005, 50% of Chinese exports came from foreign companies in SEZs.
       • China is the world's largest recipient of FDI
   • Uneven globalisation of TNCs
     • Global core periphery model
       • LICs, whose poorest people may still be isolated from global influences. Some shallow links to far-off places may exist.
       • NEEs, where poorer people may still rely on local produce but work for foreign firms. They have global cultural awareness.
       • HICs, where the majority of people are affluent consumers of global products and culture. Most people are widely traveled and fly overseas.
     • Apple
       • TNC spatial division of labour
       • Global production network
   • Developing new markets - Glocalisation
     • Walt Disney
       • It was one of the first TNCs to glocalise.
       • 14 theme parks and a cruise line.
       • In 2014, its turnover was US$48.8 bn
         • Disney is a globally recognised brand.
       • It employs 180 000 workers
     • McDonalds
       • By 2012, McDonald's had established 35,000 restaurants in 119 countries.
       • Eg. McVeggie and McSpicy
   • Switched on and off nations
     • KOF index and A T Kearney Index
       • In 2014, Ireland and Belgium were the world's most globalised countries according to the KOF index.
       • The A T Kearney Index ranks New York, London, Paris, Tokyo and HK as the top 5 world cities for commerce.
   • Degrees of globalisation
     • Zambia and Tanzania
       • Zambia is the world's 8th largest producer of copper.
         • In the 1970s, the TanZam railway was developed using Chinese FDI.
           • There is no guarantee of income and GDP fluctuates in Tanzania.
             • HIPC initiative led to the cancellation of many of its debts.
     • North Korea
       • Politically isolated
     • The Sahel region
       • Poverty

2. EQ2 - What are the impacts of globalisation?

   • The global shift / winners and losers
     • India
       • Call centre services.
         • Many Indian citizens are English speakers.
         • High purchasing power in Bangalore.
       • Some workers are exploited.
         • The gap between rich and poor has widened.
           • Earn good middle-class wages.
     • China
       • By 2015, China had 150 cities with populations of over 1m
         • Over 40% of China's farmland is suffering degradation.
       • Shanghai's Maglev
       • Over 300m Chinese people are considered to be middle-class.
       • Education is free and compulsory.
         • 70% of China's rivers are polluted.
           • Big increase in informal homes.
   • UK industrial cities
     • Leicester
       • Once dominated by the textile industry
         • By 1970s, overseas competition caused deindustrialisation.
       • Over 30 000 people worked in Leicester
   • The growth of cities
     • Megacities
       • Home to 10m people or more
     • Global hubs
       • A focal point for activities with a global influence, eg. trade (Shanghai) and business (London)
       • Elite international migration, low-waged international migration and internal (rural-urban) migration have led to the growth of global hubs.
     • Hyperurbanisation: New Delhi
       • Its rapid population growth is outstripping the ability of the authorities to provide for basic needs.
       • India's fastest-growing city
   • Global interconnections
     • International migration
       • Low wage migration in UAE and Qatar
         • Benefited from flows of cheap labour.
           • Low-wage migrants working for US$4 a day
         • Migrant workers make up 90% of the UAE's workforce.
       • High wage elite migration in London
         • London is a global property hotspot.
         • Qatari investments have bought The Shard and Canary Wharf
         • 1/3 of all foreign purchases of residential property in London between 2004 and 2014 went to Russians.
   • Rapid urbanisation
     • Rural-urban migration
       • Mumbai
         • 22m people in 2015
       • Karachi
         • Second most populous megacity in the world.
   • The rise of global culture
     • Cultural diffusion
       • Cuba
         • Since 2008, Raul Castro has allowed free enterprise businesses to be set up.
         • Growing inequality
     • Cultural continuum
       • Changing diets in Asia
         • By 2015, China became the world's biggest market for processed food.
         • Emerging middle-class
       • Indigenous people of Amazonia and Papua New Guinea
         • Westernised clothing
           • Young Amazonians are moving to urban areas like Manaus.
             • Social goals are becoming more important.
             • Indigenous people no longer value local ecosystems on account of cultural erosion.
       • Global Paralympics
         • One of the world's biggest sporting events
         • Athletes from 159 nations took part in Rio, 2016
         • Attitudes towards disability are changing.

3. EQ3 - What are the consequences of globalisation?

   • Cultural erosion
     • Cultural heritage
     • Mentawai people of Siberia island, Sumatra, Indonesia
       • Widespread cultural discrimination since the 70s.
       • Behavioural change programmes
       • Forced to relocate by the govt.
     • Papua New Guinea and Amazonas
       • They want income, education and health improvements.
       • Tree Kangaroo and jaguars are under threat.
       • Increasingly exposed to global culture.
   • Globalisation and development
   • Global disparities and models of development
     • The Clark Fisher Model
       • Never have a stage where everyone has become developed.
     • The Rostow Model
       • Suggests that the only way to develop is to westernise.
       • To develop you ned to be capitalist.
       • Aimed at developing countries.
       • Anti-communist manifesto.
     • The Demographic Transition model
       • Less-developed countries are moving through the stages too quickly.
       • Cultural-lag doesn't change quickly.
   • Social and environmental winners and losers
     • China
     • Shanghai's Maglev
       • 300m Chinese people are middle class.
   • Lorenz curve and Gini Index
     • India
     • China
       • 2014 Gini index was 47%
     • New Delhi
       • India's fastest growing city.
       • Air pollution is India's 5th largest killer.
       • One of the world's fastest rates of rural-urban migration.
       • Hyper-urbanisation.
   • Tensions and opportunities
     • London
       • Some local people worry young migrants have increase the crude birth rate.
     • France
       • Charlie Hebdo, 2015
         • 25% voted FN in 2014 European Parliamentary elections.
     • Extremism in Europe
     • Trans-boundary conflicts: Mekong River
   • Controlling the spread of globalisation
     • Censorship (China and North Korea)
     • Migration controls (UK)
       • In 2015, there were 250 000 French people living in London.
     • Trade protectionism
     • Maintaining cultural identity (Canada)
   • Ethical globalisation
     • Localism, fair trade, recycling