globalisation

what is the race to the bottom?

30%+ of what is bought is thrown away within a year, we are buying and throwing away more than ever

what is the shrinking world

distant places start to feel closer and take less time to reach due to technology

what are some financial impacts of globalisation?

- global capitalism is spread by large TNC's, some with incomes larger than the GDP of many countries

- cheap labour in developing economies supplies wealthier foreign consumers with goods

- trillions of dollars exchanged electronically around the globe

what are some political impacts of globalisation?

- some TNC's try to influence how people think (news corp owns sky news and the sun)

- international political organisations have expanded to promote economic growth (eu, g20)

- trade barriers like tariffs and quotas reduced in to liberalise world trade

what are some population impacts of globalisation?

- economic migrant labour only flows to already wealthy countries with high incomes

- management, finance and IT is most in demand

what are some communication impacts of globalisation?

- lower transport costs have increased long distance tourism

- increasing mobile phone usage + cheaper phone plans + fast fibre optic connections = allows global exchange of information en masse

- 'global village' = online community that shares similar interests

what is the world bank?

- finances economic development by giving loans to countries that agree to specific economic conditions

- uses bank deposits made my wealthier countries

- focuses on natural disasters and humanitarian emergencies

what is the imf?

- lends money to maintain international financial stability

- forces countries to privatise asserts in order to pay off loan / generate wealth

- exists to stabilise currencies eg greece 2008

- forced greece to cut back on government expenditure (austerity) which many people protested

what is the wto?

- 162 member states

- advocates for trade organisation

- encourages the removal of trade tariffs / quotas

- can be discriminatory to less powerful countries

what are trading blocs?

- eu / nafta

- removes tariffs between member states and places tariffs on non members

- advantageous for economic growth for some countries, but the massive size of the us and uk economies gives them more leverage in wto policing of trade blocs

what are the gdps of tncs?

- many tnc have earnings higher than the gdp of some countries

- wal-mart higher earnings than sweden gdp

- 25% of worlds economic activity

tncs and motives, means, and mobility

MOTIVES:

- control and minimise costs

- increasing revenue through expanding or merging

- creating new markets

- owning every stage of production

MEANS:

- unrestricted global flows of finance

- 800 indian owned businesses in uk

MOBILITY:

- fast and cheap transport (containerisation)

- rapid fibre optic communication

- same day delivery

what is the KOF index?

economic, social and political globalisation

what is the AT kearney index?

- political engagement

- technological connectivity

- personal contact ie remittances

- economic integration

what is the global shift?

- reemergence of pacific rim countries like japan

- two way trade value between america and asia doubled america and europe