Geography Paper 2 -> Globalisation

What is globalisation?

Globalisation is the increasing inter-connectedness of countries around the world through the movement of goods. services, capital and ideas across borders

4 types of globalisation

• Economic

• Social

• Political

• Cultural

Whats economic globalisation?

Increase of TNCs and ICT

What’s Social globalisation?

Migration, improvements in education and healthcare as well as social inter-connectivity

What’s Political Globalisation?

Increase of trade blocs, free trade agreements and global organisations

Whats cultural globalisation?

diffusion of ideas, values and ways of life

How were past global connections made?

Through trade, colonialism and co-operation between countries

How has modern globalisation increased global connectivity

It has lengthened connections between people and places with products being obtained from further away, It has deepened connections with the feeling of being connected to other people and places as well as fastening the speed of these connections through new technology

5 types of global flows

• Capital

• Commodities

• Information

• Migrants

• Tourists

What is Capital in terms of global flows

movement of money (through stock markets)

What is commodities in terms of global flows

The trade of raw materials

What is interdependence?

Two or more things depending on each other

How has global flows increased the interdependence

due to countries being linked through trade, finance, migration and communication economies are more connected and reliant on one another

How has developments in transport helped trade?

Developments in transport have increased trade by reducing costs, increasing speed, and improving global connectivity, allowing goods to be moved efficiently between countries

This increases the amount and value of trade

What are 4 important developments in transport

• Steam power

• Railways

• Jet aircraft

• Container shipping

Whats the shrinking world?

When places around the world take less time to reach, due to developments in technology, and therefore start to feel closer

What are 5 developments in ICT and global communication that increased globalisation?

• The telephone

• Broadband and Fibre Optic

• GIS/GPS

• The Internet and Social Networks (skype)

• Mobile phones

How do fibre optic cables increase globalisation?

Large amounts of data are carried across the ocean floor by fibre optic cables overall reducing the cost of communication (as lots of data can be carried at once in real time)

How does GIS/GPS increase globalisation?

Satellites broadcast position and time data continuously all over the world → things such as deliveries can be tracked in real time

What are the 3 international organisations?

• WTO (world trade organisation)

• IMF (International monetary fund)

• World Bank

What does WTO do?

Promotes trade liberalisation (removal/reduction or barriers (eg. tariffs) to promote economic growth by increasing market access

Issue with WTO

It didn’t stop USA or EU from subsidising their own food producers hindering farmers in LICs

Subsidising → pay part of the cost of producing (something) to keep the selling price low.

Example → if grain locally costs £7 for tescos to buy whereas it costs £5 abroad tescos would buy from abroad. However the UK government would then pay £2 of the cost locally so that tescos buy locally → therefore increasing the economic growth within the UK → more profits off of tax and spending etc

What is IMF?

An international Organisation that transfers loans from HICs to countries that have applied for help. Recipients must agree to strict conditions which are designed in order to stabilise their economy as well as allow FDI. They are usually used for short term crisis’s such as a sudden collapse in economy or a failure to pay back debts

How do countries pay back IMF loans?

Strict conditions of taking the loan (eg. relying on the government less, privatisation) lead to economic growth.

By spending less money on things such as healthcare, education etc → the government tries to save money and use those savings to pay back the loan

Jobs and Tax through foreign companies increases economic growth

Money from privatisation

Money from trade

What’s an issue with IMF?

Due to strict conditions on governments borrowing these loans it usually results in less money being spent on healthcare, education etc

How does IMF loans help encourage FDI?

• privatising industries often allows for foreign companies to buy businesses and make profits from running them

• with less government control it is simpler and quicker for investors to set up operations and move their money

What does the world bank do?

Lends money on a global scale, gives direct grants to developing countries, imposing strict conditions on where this money can be spent. It is used for long term developments such as infrastructure construction

What’s an issue with the World Bank?

All of the presidents have been American citizens

What are 6 things that national governments do to encourage the growth of TNCs

• Free trade blocs

• SEZs

• Tax incentives

• Free-market Liberalisation

• Privatisation

• Business start-ups

What are free trade blocs?

They are groups of neighbouring countries that mutually agree to reduce trade barriers (such as tariffs and quotas)

What are some benefits of trade blocs?

• Companies can grow as they gain access to more customers (more people purchase their products due to lower taxes and other restrictions)

• A bigger market increases demand of products and services

• Smaller companies can merge to form TNCs reducing production costs → cannot sell internationally alone due to power, money, production rate issues → also didn’t do beforehand as international trade was very small and not worth it due to restrictions

What is free market liberalisation?

Free market liberalisation is the process of reducing government intervention in the economy to allow market forces to operate more freely

What is Privatisation?

Allowing companies to take over important national services previously owned by the government (such as railway and energy supplies) to reduce government spending → attractive to TNCs as they would gain a stake in vital services

What is encouraging business start-ups

Aims to increase profits for businesses by using strategies such as low business taxes and changes in the law (eg. Sunday trading in 1994)

What is a special economic zone?

They are industrial areas, near the coast where favourable conditions (eg. low taxes, fewer rules) have been created to attract TNCs

When was the open door policy in China introduced?

1978

What was the open door policy?

It opened China to foreign direct investment and trade by allowing TNCs to operate in Special Economic Zones

How many people moved from the Rural areas to the Urban areas within China after the open door policy?

300 million people

What is the KOF index?

a way to measure globalisation that was invented in 2002 which uses data sets divided into 3 categories → social, economic and political. Each section is scored out of 100 (100 being the most globalised) then averaged to get a final score

What is the AT Kearney world cities Index?

It is a way to measure globalisation that ranks cities based on how globally connected and influential they are (invented in 2008). It has multiple categories →”business activity”, “cultural experience” as well as technological connectivity, economic integration and “political engagement”. Measures both cities and countries

Whats offshoring?

moving parts of their production process, such as factories or offices, to other countries to reduce costs (e.g. labour)

What’s outsourcing?

Contracting with a different company to produce goods and services they need

What are global production networks?

Setting up chains of connected supplies of parts and materials that contribute to the manufacturing or assembly of consumer goods

What are global networks?

Links between different countries in the world → goods, services, money etc

What are global hubs?

Places possessing qualities that make other places want to connect with them

What is BRICs

Brazil, Russia, India, China → BRICs are a group of four emerging economies that cooperate to increase trade, development and their influence in the global economy.

What are some physical reasons for places being switched off

• Land locked developing countries

• Natural disasters

• Climate

• Non-flat land (hard to build on)

• Disease

What are some political reasons for places being switched off

• Civil wars/conflicts

• Debts

• Corruption

• Censorship

• Lack of transport

• Lack of skills/education

Why is Korea switched-off?

• Heavy censorship of media and internet

• Very strict government

• Little FDI (closed economy)

• Limited transportation to the outside world

keeping it largely isolated from global economic and social flows

What is the global shift?

The relocation of different types of industry (especially manufacturing)

What are 4 negatives of the global shift for Asia?

• Unplanned settlements (rapid urbanisation)

• Loss of productive land (land becomes exploited and overused, leading to soil erosion and soil infertility)

• Environmental pressure (deforestation)

• Growing inequalities (gap between the poorest and the wealthiest increasing)

• Bad working conditions in some areas

What are four benefits of the global shift for Asia?

• Poverty reduction → over 500 million people have escaped poverty in China

• Waged work → Many people are now earning between US$10 and US$100 per day

• Infrastructure investment → Economic growth leads to investment in infrastructure

• Education and training → Education has improved across Asia - millions of graduate degrees are being presented by over 2000 unis

What are the two main causes of rapid population growth in New Delhi?

• High birth rate and low death rate

• One of the world fastest rates of rural-to-urban migration

Why do both poor and rich people move from rural to urban areas?

• Poor → Lack of opportunities in their villages and people who hope for a better future in the city

• Rich →Move to cities in order to invest in urban property and provide a better education and standard of living for their families

What are 5 push factors for rural→urban migration?

• Poverty

• Low pay

• Lack of opportunities

• Lack of investment

• Lack of services

What are 5 pull factors for rural→urban migration

• Better quality of life

• Better housing

• Better services

• Job opportunities

• Better pay

What are some social challenges for rapid growth (new delhi)

• Higher demand for services and basic needs such as housing and education

• Private companies that provide services are likely to target high earners first so the poorer areas wont get supplied

• Sprawling shanty towns

• Accommodation becomes unaffordable

What’s an environmental issue from hyper-urbanisation?

The world health organisation surveyed 1600 cities worldwide for air quality. They measured particulates and New Delhi was the worst. Air pollution is India’s 5th largest killer.

What issue occurred in India to do with Coca Cola?

hint - water

Farmers complained that water was being sucked dry by a local bottler factory (coca cola). Coca cola often taps directly into underground aquifers to access water that the local population rely on

• they use over 200 billions litres of water a year

What issue occurred in Columbia to do with coca cola?

A powerful right-wing paramilitary group called the Black Eagles killed 9 men working for coca-cola as well as issuing multiple threats telling them to stop talking bad (protesting) about coca-cola or they would die. Coca cola FEMSA (the largest bottling company that bottles coca-cola) did nothing to protect their workers and people were shot in the coca cola building. The access that the black eagles had to the bottling site would’ve been impossible without company knowledge. Coca cola said they deny responsibility as it’s a separate bottler and they don’t have any control however they own 30% of FEMSA.

This then triggered the Killer Coke campaign which involved boycotts, student protests and awareness campaigns aimed at pressuring coca cola to address allegations of worker abuse.

What happened in El Salvador to do with Coca Cola?

hint - children

El salvador exports a lot of sugar to coca cola - cane cutting is a very dangerous job as they use machetes, the plant has a sap that irritates the skin and there are poisonous snakes.

By law workers must be over 18 however in 2004 there was believed to be around 30,000 children employed in the sugar cane cultivation → they miss school and risk injury

An allegation was sent to Coca Cola and they replied saying they are actively removing children from the workforce and only purchase from sugar mills that adhere to our standards and that they constantly monitor compliance.

However, central ISALCO (one of the sellers) denied child labour but this was once again proven to be wrong.

What else happened in El Salvador to do with Coca Cola?

Hint - Nejapa

The major in Nejapa who allowed the bottling plant to be built said 4 conditions had to be fufilled:

• Provide jobs

• Sponsor the local football team

• Pay its taxes

• Care for the environment

However, black polluted water from the Coca Cola plant overflows into the people water source (streams) and Coca Cola don’t do anything to sort it out

Coca Cola testers have said the water was pure and perfect

However, locals have complained of rashes on their skin and all the fish have died

The council could later afford an independent test and they found waste and chemicals present in the river water (5x the allowed level)

Within El Salvador and the Del Monte fruit company why couldn’t the workers complain about the working conditions?

Many of the people employed were illegal immigrants that were unable to work anywhere else. If they complained then they’d be turned in and deported

What issue occurred to do with Del Monte with the storage containers?

Within an airport there’s various tanks of agrochemicals which exploded and ran into the water leading to eutrophication meaning fish die and wildlife that eat the fish die. As well as this making people sick when they drink the water

What is wrong with the pesticide used by Del Monte?

They use 10x the amount of pesticide than needed however there are no regulations to stop them (and they won’t because it looses them money)

Some of the chemicals within the pesticide are extremely dangerous and can be bad for the people working nearby → such as one chemical that can cause birth defects as well as carcinogenic chemicals

How much per pineapple do the workers get in El Salvador?

out of £1 they get 4p

What is an issue with the Del Monte wages?

The wages are so low that once workers pay of their insurance, rent etc they have no money left meaning they have no chance of moving elsewhere to get better job opportunities

What occured in Leicester?

It was a very industry based place in the mid 1900s mainly known for making leather shoes and other clothing items. As well as this, in the 1950s Leicester Market was one of the largest outdoor markets in Europe and it contained hundreds of stalls selling food, textiles and more. In the mid-late 1900s many factories shut down and companies relocated to countries abroad with cheaper labour and production costs. Thousands of workers lost employment due to this and the fact that new technology meant even in factories that stayed open, less workers were needed.

• linked to the open door policy

What are some impacts of the deindustrialisation within Leicester (4)

• Unemployment rose

• Inner-city decline (empty factories, poorer housing conditions)

• Shifted towards service industries

• More small-scale manufacturing

How has rapid-globalisation in China led to ghost cities being created?

Rapid globalisation in China led to increased economic growth and urbanisation, encouraging large-scale investment in housing and infrastructure. However, cities were often built ahead of demand, and combined with property speculation and limited job opportunities, this resulted in underpopulated “ghost cities.”

How does inner city decline occur (due to deindustrialisation)

Manufacturing industry closes, the land becomes derelict and people lose their jobs meaning people choose to leave urban areas. Therefore less services are required so more people lose their jobs forcing more people to leave urban areas (some elderly stay). There’s very little investment in the area so it becomes even more run down - crime increases. Overall quality of life in urban areas worsen.

What is the rust belt (Detroit)?

The rust belt was formerly called the manufacturing belt (or similar names) due to its high concentration of factories mainly the construction of automobiles and parts. However, in the 1950’s many of these factories moved abroad where the companies could pay lower taxes and have cheaper labour (eg. Asia). This meant that many people became unemployed and moved elsewhere to find job opportunities. As a result of this, many ‘ghost neighbourhoods’ were created, especially in Detroit.

What is a megacity?

A city with a population of 10 million people

What are some social challenges of rapid urban growth?

• Insufficient affordable housing

• Limited accessibility to education and healthcare

What are some environmental challenges of rapid urban growth?

• Water pollution from untreated sewage

• Air pollution from industry and vehicles

• Loss of farmland

What is high-wage international migration?

Where migrants are highly skilled and/or socially influential people → eg actors, bankers, computer programmers etc

Wealth comes from their profession or inheritance

Many live as ‘global citizens’ with numerous homes in different countries

What’s an example of where high-wage migration occurs?

Many affluent Americans and other high-wage economic migrants live or work in the UK

What is low-wage international migration?

Where migrants work in low-pay jobs such as in kitchens or as cleaners (legally and illegally)

Whats an example of where low-wage international migration occurs?

Over 2 million Indians live and work in the UAE

What are some benefits of migration for the Host Country (4)?

• Migrants can fill skills shortages

• Migrants who wish to move for employment reasons tend to be willing to do labouring work

• Migrants pay taxes and spend their wages on rent and in shops

• Some migrants may start new businesses employing others

What are some costs of migration for the Host Country (3)?

• Social tension is possible if people in the host country believe migration has led to fewer jobs or housing issues

• Shortages of school places in some areas

• Higher demand for services such as healthcare

What are some benefits of migration for the source country(3)?

• Migrant remittances (when migrants send part of their wages home to support their family) contribute to national earnings

• Reduced spending on healthcare and housing

• Migrants (or children of the migrants) may return and bring new knowledge and skills

What are some costs of migration for the source country(3)?

• Reduction in the independent, working population that would have contributed to the economy

• Reduced economic growth as consumption falls

• Increase in the number of dependants - children and elderly

What is the definition for cultural diffusion?

Cultural diffusion is the spread of cultural beliefs and social activities from one group to another

What is westernisation?

Where non-Western socities adopt or are influenced by Western cultures, technology, politics etc.

What’s a specific indicator of westernisation?

The use of ‘Globish’ → which is a simplified dialect of English used as a common language for international communication, particularly in business

What’s two examples of how global diffusion has made changes in the world?

Paralympic games →Cultural attitudes towards disability have changed as the media has contributed to making the Paralympic games into one of the worlds biggest sporting events - the spread of attitudes toward disability, inclusion etc

Changing diets in Asia → Asian diets have changed from a low-meat high-vegetable diet to eating more meat and fast food

What’s the definition of glocalisation?

the adaptation of a global product for a local market place

What occurred in India with Mcdonalds to do with glocalisation?

Nearly half of Indians are vegetarian so Mcdonalds promised there would be no beef or pork on the menu. In 2003 on average only 3% of meals eaten by Indians were eaten out. Mcdonalds introduced a cheap burger called the Aloo Tikki Burger which was made of potato, peas and Indian spices → it was something that you’d find on the streets in India → the low price combined with the taste meant it became a large hit. Now about 10% of meals eaten by Indians are eaten out. The McDonald in India doesn’t have children as its main customer and instead many workers, college students etc eat there. They currently buy a lot of the equipment locally and are looking to increase this amount → as well as the amount of restaurants across the country

How do TNCs lead to a westernised global culture?

Global distribution of products such as food and clothes has contributed to creating a common culture

Some TNCs have introduced uniform products globally, e.g. Nike, Apple and Lego

Some TNCs have adapted their products to suit each country, reflecting local cultures

How has global media contributed to westernisation?

Western celebrations of Halloween and Christmas appear in films and TV

Other countries experience American and UK culture through TV shows (eg. Downton abbey)

However, other shows are adapted, and each country has its own version → eg Britians got talent

How has migration and Tourism contributed to westernisation?

Throughout history, Europeans have travelled around the world, sharing the language and customs

Migration can have an impact on the culture of the host country

Sometimes, this change may only be partial - eg. British migrants exporting their English language and love of cricket to other countries, but having a minimal impact on other things, such as religion

whats cultural erosion?

The gradual loss or weakening of a societies unique traditions, language, food and behaviours, often replaced by westernised norms.

What is Bourgainville?

Bourgainville is the most remote of PNG’s (Papua New Guinea) provinces. There are tens of different languages spoke in Bourgainville and it has remarkable cultural diversity.

What happened in Bourgainville (not impacts)?

Within Bourgainville there is a copper mine (Pangua mine) which wasn’t used on a commercial scale however in the 1960s PNG decided to allow FDI into Bourgainville → Rio Tinto (A TNC) created Bourgainville copper limited (BCL). Most of the money made went to Rio Tinto and PNG government (through taxes and profits). A little of the money went to the local people (only around 1%).

How did everything lead to cultural erosion in Bourgainville (4)?

1. Mining took over large areas of land and damaged it → land is tied to identity, ancestry etc

2. Mining brought many other workers from other parts of PNG and from abroad which brought different languages, beliefs etc

3. The profits mostly went to the PNG government and the TNC so the locals saw little benefit which caused resentment and conflict which weakens community structures, traditions etc

4. TNC presence brings new technology, new lifestyles, new culture which may mean younger generations may adopt western values and abandon traditional practices

What did all the impacts of the mine lead to in Bourgainville?

The locals (especially the Bourgainville revolutionary army) started a violent conflict due to unequal wealth, environmental damage, loss of land and identity, cultural erosion etc. It began in the 1980’s → people blocked the mine, damaged equipment, used weapons to attack soldiers etc. The PNG government sent in soldiers and police increasing the scale of the conflict. by the late 1980’s the mine had shut down. The PNG government imposed a blockade on the island restricting food, medicine, fuel (in order to try and weaken the rebels)→ causing disease, starvation and many deaths. Over 15,000 people died from both the conflict and the blockade

In 1998 a peace agreement brought most violence to an end and the blockade was lifted

What has happened to many tribes in tropical rainforests?

Many of those tribes now wear westernised clothing, such as t-shirts when traditionally they would wear very little

What are affirmative actions?

The practice or policy of favouring individuals belonging to groups regarded as disadvantaged or subject to discrimination

What are 4 examples of affirmative actions?

• Adding different race people to shows

• Promoting positive female characters

• Songs based around other cultures

• Paralympics