globalisation

Globalisation

The increasing connectedness of countries around the world through movement of goods , services, capital and ideas across boarders

TNCs

Companies that operate in many countries producing and selling goods/services

Golcalisation

Changing the design of products to meet local tastes of laws

Trading blocs

A group of countries that work together for trading purposes

Global connections

• Process of how global connects are made and changed overtime

• In the past by trade, colonist, co operation

Modern globalisation

• lengthening- getting further away

• Deepening- deeply connected to other people and places

• Faster speed- communicate in real time

Global flows

Networking countries

• capital- money flows in stock markets

• Commodities- raw materials

• Information- internet allowing communication

• Migrants- movement of people

• Tourists- airline, travel

global shift

refers to the movement of economic activity, particularly the manufacturing and services from developed countries to developing and emerging countries

China’s open door policy

1978- China allowed foreign industry and TNCs in to promote economic growth and modernization, transforming its economy into a major global player.

containerisation

transporting goods in steel containers

cultural diffusion

the spread of cultural beliefs and social activities into different groups

cultural erosion

the diminishing of cultural identity and practices due to external influences, often resulting from globalization and cultural diffusion.

deindustrilasation

a reduction in industrial capacity, leading to social and economic change within a region

economic migration

movement of migrants to improve financial income or standard of lving

FDI

an investment by one country or business with an interest in another country

global hubs

cores that demonstrate connections to the world through trade, finance, and culture.

KOF index

index of globalisation which takes into account the social, economic and political globalisation of a state

liberalisation

a reduction in government rule within industry, creating opportunity for greater participation from private businesses and TNCs within an industry

offshoring

company moves part of its operations to another country to save money

outsourcing

a business contracts outside businesses to complete some of their work, with the aim to reduce costs

privatisation

when national public services become owned by private businesses

SEZs

regions where the government offer incentives to attract industry

TNC

a company which operates in different countries to where they are originally based

WTO

members seek substantial reductions on tarrifs and trade barriers and the elimination of preferences on mutually advantageous basis

one reason why some locations remain ‘switched off’ from globalisation

• countries which are landlocked/lack a coastline

• therefore deterring inward investment from TNCs

• who are seeking an import/ export base

• resulting in a lack of flows of trade to the global trading market

one way governments can attract FDI

• creation of SEZs

• that are tariff and qouta free

• allowing increased profits for foreign companies

• which can be sent to company head quaters over sea

one reason why free trade policies are promoted by international economic organisations

• promote free trade so glabal trade can operate easily

• by reducing tariffs

• which can help remove costs from businesses

• which enables global production and trade of goods/services

global shift

refers to the movement of economic activity particularly manufacturing and services from developed countries to developing and emerging countries

social costs of global shift in developing contries

• in China, rapid industrialisation due to global shift led to urbanisation and internal migration

• poor working conditions and long hours in sweat shops

• leading to health issues

• while millions are lifted out of poverty, many suffered from health impacts

social benefits in developing countries

• job creation & higher incomes

  - improved living standards

• urban infrastructure development

• china’s economic boom lifted 800 million people out of poverty

• hile inequality and exploitation exist, these benefits are significant on a national scale especially in reducing poverty

social costs in developed countries

• deindustrialisation due to outscourcing has caused

  -job losses in manufacturing

  -rising unemployment

• these social costs are long lasting and have contributed to political discontent

one reason why the global shift has had negative impacts on some people in the developed world

• unemployment

• reduces local incomes

• decreases government tax revenue

• investment declines in services

how globalisation damages the environment

• by the growth of TNCs

• TNCs using cheap labour/resources leading to pollution

• India’s exploitation of natural resources- lack of water

• significantly contributes to damage (weak regulations in developing countries)

• harming biodiversity

• By trade

• burning of fossil fuels for transport

• aircraft and containerships

• china’s manufacturing boom-smog, high levels of pollution

• contribute to co2 emissions

one reason why many people in the developed world

• costs of goods to developed world consumers is becoming cheaper

• due to lower costs overseas

• as costs of living in developing world is lower

• so businesses are able to profit maximise due to outsourcing