Globalisation eq1

Globalisation

The increasing connectedness and interdependence of world cultures and economies.

Connections between people and places are widening deepening and becoming faster

Economic globalisation

includes the growth of TNCs making world economies more interconnected.

The growth of the internet and better communication technology is included in economic globalisation.

Social globalisation

Sharing of ideas and information through the increasing number of international migrants, the increasing quality of education and healthcare and the rise of social media.

Political globalisation

Codependency between places through the growth of trade blocs as different countries seek to work together to increase the prevalence of free trade. Important organisations in political globalisation are IGOs

Cultural globalisation

Sharing of ideas

Cultural advantage to globalisation

Allows local cultures to survive e.g. musicians in Mali upload YouTube videos where many watch them , helping keep their tradition alive

Economic disadvantage to globalisation

Deindustrialisation. western business move their factories to places where labour cheaper e.g. Indonesia. This takes factory jobs form cities like Sheffield.

Political advantage to globalisation

UN has worked to bring countries together to solve a range of issues e.g. climate change. UN peacekeeping troops help restore order in countries where there is conflict

Social disadvantage to globalisation

Sweat shops e.g. factories in Bangladesh with wages of £2 a day

Time space compression

Heightened connectivity changes our conception of time, distance and potential barriers to the migration of people goods, money and information

Shrinking world affect

As travel time falls, different places approach each other in ‘space- time ‘ and begin to feel closer together than in the past through ICT and mobile communications

How long did it take in a steamship in 1900 uk to nyc compared to the flight time in 2023

5 days by steamship in 1900 and 8 hours flight today

Why is transport (container shipping) accelerating globalisation 3 reasons

The process is easily mechanised reducing labour costs,

It’s so efficient that moving an iPhone or to form China to UK costs >£1,

The reduced cost of transportation has been a big factor in global shift in manufacturing form NA and EU to China and SE Asia

Why is transport (jet aircraft- easy jet) accelerating globalisation

30,000 passengers in 1995 with flights just around the Uk to 96,100,000 in 2019.

Planes needed for holidays (sharing culture) and trade.

Cheaper flights and so easier access to other people

How has the internet and social networking accelerated globalisation

Allows world to be connected with news and info more widely accessible.

More accessible and quicker than a telegram.

60% of the population use the internet

IGO

Intergovernmental organisation

Three IGOs

International monetary fund (IMF),

World bank,

World trade organisation (WTO)

What does the IMF do

Work with countries in debt to change their international and political structures

What does the WTO do

Helps its members use trade ti raise living standards, create jobs and improve quality of life

What does the world bank do

A global form of social care for countries that are struggling with poverty as they want to reduce conflict. They lend money

Issues created by the IMF

They make the loans conditional on the implication of certain economic policies e.g. to spend less on healthcare, education

Issues created by WTO

Free trade benefits HICs more than LICs.

Often ignores environmental considerations.

Slow progress and difficulty in reaching agreements

Issues created by world bank

Forced displacement of people and communities to carry out their major infrastructure and agricultural projects

Tariff

A tax on an item entering or leaving a country

2 benefits to tariffs

They raise money that goes back to the gov,

They protect domestic industries from competition abroad (products made at home don’t pay tariffs so may seem more affordable)

4 aspects of their economies govs can influence

Promoting trade blocks,

Free-market liberalisation (e.g.China opening their doors),

Encourage business start ups and development of TNCs,

Privatisation

2 disadvantages to trade blocs

They can reduce trade outside the trade bloc leaving poorer nations isolated,

They can lead to trade wars outside of trade blocs reducing global flow

2 advantages to trade blocs

They tend to create big TNCs which are big enough to operate around the world spreading culture, ideas …,

They encourage wider flow of people, goods and capital between member nations

Ghanas loses form globalisation . One to do with tarries and one wi the subsidies

They’re forced to export coco beans instead of powder cuz there are tariffs in powder none on beans.

By joining the WTO, they were forced to not pay farmers subsidies

4 types of FDI (foreign direct investment)

Offshoring, foreign mergers, foreign acquisitions and outsourcing

What’s offshoring

TNCs building new production facilities in other countries

What’s foreign mergers

Two firms in different countries joining to create a single entity

What’s foreign acquisition

When a TNC takes over a company in another country

What’s outsourcing

Getting goods and services from cheaper locations within your country

6 things govs can do to attract TNCs

Lower corporation tax, give tax holiday or compensation, Give preferential tariffs, give free or subsidised land, subsidise building infrastructure, Special economic zones

4 reasons for glocalisation

People’s taste, religion and culture, laws, lack of availability of raw materials

An example of glocalisation

Tesco doesn’t wrap fruits and veg in plastic in Thailand as ppl are more trusting of products they can select by handling

How have jaguar used offshoring and outsourcing

Offshoring in China and India, outsourcing by establishing a joint partnership with cherry automobile company to expand

What’s economic liberalisation and how does it being it TNCs

The lessening of gov regulations and restrictions in the economy. Allows TNCs to offshore and outsource to expand

4 different flows of movement which connect places

People, commodities, money, goods

2 gov policies thatve assisted in economic growth

Chinas open door policy, USA increasing tarries on foreign imports allowing more money into USA economy which can be used for economic growth

3 international organisations

WTO, IMF, WB

Why do countries join trade blocs

As member stated liberalise trade within he bloc, so the simultaneously cut trade barriers in imports from external countries as well

Is the KOF index of globalisation for countries or cities

Countries

What 3 dimensions does KOF index measure

Economic globalisation, social/cultural globalisation, political globalisation

2 criticisms of the KOF index

Relevance of measures e.g. books/newspapers is irrelevant from rise of internet.

Trade often ignores the informal economy which can account for a lot of trade in some places.

What 5 dimensions does the Kearney Global Index measure. And a measure in each dimension)

Business activity(TNCs), human capital (education), information exchange (internet), Cultural exchange (sports), political exchange( embassies)

2 criticisms of the Kearney Global Cities Index

The weighings (30% for business 30% for human capital) skew the data.

It’s hard to measure cultural exchange

What does it mean to be switched on to globalisation

Strongly connected with significant global flows

What does it mean to be switched off to globalisation

Lack strong flows of trade and investment and have limited connections with global economy

A political reason a country is switched off

Corrupt gov, excluded form trade blocs

A physical reason for a country to be switched off

Lack of natural resources, far from switched on countries, land locked

Economic reasons for a country to be switched off

Lack of investment in education so poor work force, high levels of national debt, poor infrastructure

Environmental reasons a country is switched off

Highly vulnerable to climate change/ hazards. Low agricultural potential

Why is Cuba switched off and how as it affected them

We’re on trade ban from the USA and all their partners so isn’t well connected.

Not in a trade bloc.

In 90s had to ration food. No latest technology.

Well preserved environment cud of no tourists

Why is DRC switched off and how has it affected them

Conflict so lots of people displaced so stalled to e economy, very corrupt, so unattractive for FDI and tourism.

Over 60% live in less than $2 a day. Less likely to have tv so reduced cultural exchange