Globalisation

Globalisation- the integration of economic activity through knowledge, culture, goods and services

Widening and deepening of global flows:
Commodities- raw materials e.g fossil fuels. These have increased due to cheap production costs e.g China 'workshop of the world'
Capital- money. Businessed investing in foreign countries and buying & selling in foreign currencies.
Information- Internet, social media e.g Facebook. Govs threatened as could put citizens against.
Migrants- Governments e.g Australia try to prevent this through a point- system. Only beneficial migrants allowed. Don't want cultural/ religious change.

Transport and Trade Development:
19th Century-
Railways= 1800s railways connected globally. Now High Speed Rail e.g London to Birmingham
Steam ships= 1800s steam power allowed steam ships. Now used to move goods & armies
20th Century-
Containerisation= 'backbone' of global economy. 200 million every year
Jet aircrafts= budget airlines e.g EasyJet cheap flights. 

Budget Airline- EasyJet
Set up for flights within the UK now go to all of Europe and Morocco and Israel. 
2014 flights £40 to Estonia to reduce isolation
+ provides jobs, culture shared, connectivity
- airplanes cause pollution

Technology:
Mobile Phones- communicating from a long distance.
Internet- designed as a way to link computers, now used to find information. Companies with offices far away can keep in touch more easily.
Social networking- e.g Facebook allowing connectivity of lives. Skype allows real-time talk. Issues can be raised for awareness e.g charities. BUT ISIS used to brainwash young muslims.
Broadband- large amounts of data able to be moved through cyber-space.
Electronic banking- Allowing people in isolated places e.g Africa to make payments not in person.

This all contributes to a 'Shrinking World' where places and people feel closer together

FDI = financial injection by TNC's into an economy to build new facilities etc
Free Trade= trade left to it's natural course. there are no restrictions.
These accelerate globalisation as they promote different countries economies to integrate through increased investment and trade

Bretton Woods organisations (to stablise the world after WW2):
WORLD BANK:
gives loans to developing countries to reduce poverty. But Structural Adjustment Programmes (SAPs) meaning they have to run Free-market economies allowing outside investment. Also strict rules on how money is spent. Controversial as reduced money for health & education.

WORLD TRADE ORGANISATION (WTO):
Encourages trade liberalisation (removal of restrictions) particularly for manufactured goods. But has failed to stop richest countries e.g USA, harmful to farmers in developing countries

INTERNATIONAL MONETARY FUND (IMF):
Channels loans from HIC to LIC. Also SAPs causing free-market economies. But controversial rules.

Government policies:
Free Trade bloc= boundaries between countries allowed to be crossed so capital and commodities can easily be transferred. 

Free market liberalisation= government intervention not needed. Wealth should 'trickle down' from rich to poor. Margaret Thatcher allowed deregulation.

Privatisation= foreigh investors allowed to invest in infrastructure e.g transport. Less costly for government.

Business start ups= low business tax and changes in law allowing companies to make profit

European Union (EU)
evolved from a trade bloc to multi-governmental organisation. They have their own currency (The Euro). Members are allowed freedom of movement within countries. Give cities reputations to help e.g Barcelona= Capital of Culture. Future may be different. UK leaving EU could cause other countries to follow?

Association of Southeast Asian Nations (ASEAN)
members e.g Singapore, Phillipines, Malaysia. They encourage peace and stability and have no nuclear weapons rule. It has given Phillipines call centre reputation and Indonenisa manufacturing. Future they want to allow free movement of people like the EU.

Special Economic Zones (SEZs) are industrial areas near a coastline where conditions attract FDI e.g low tax rates

Government subsidy is a tax incentive of cash payment to encourage FDI

Foreign Direct Investment (FDI) is a financial injection into an economy.

SEZ- China Open Door Policy
agreed to export more minerals and allow TNCs to invest in some markets.
BUT Google and Facebook no access and strict rules of number of foreign films shown.

Deregulation of Capital Markets- UK
Margaret Thatcher gave subsidies to companies investing in the City of London e.g London Docklands, which attarcted FDI. 

Government attracting FDI
e.g Saudi Arabia changing their Thursday- Friday weekend so that more trade and deals can occur.

KOF Index-
Index of globalisation. Uses economic, political and social data such as: number of UN peacekeeping missions done, TV ownership and FDI from the World Bank. Then converted into a scale 1-100. In 2014 Ireland and Belgium = highest 
+ allows comparison over large number countries and over 30 years
- small countries seem to be over-represented so may be problems in calculations
- hard to measure some of the factors e.g migrants due to illegal 

A.T Kearney Index-
Looks as cities 'business activity' (economic e.g number TNC headquarters), 'cultural experience' (social e.g number of museums), and 'political engagement' (number of foreign embassies). Lowest value =0. Highest value= 1. Highest are New York, London, Tokyo and Hong Kong. 
+ allows for comparison between countries and over time
- only 64 countries involved
- small countries over-represented so problem with calculations e.g FDI 

EXAM QUESTION: 'Describe how one prominant index measures globalisation' 
                               'Evaluate the effectiveness of one measure of globalisation'

TNC= a large-scale company with headquarters in HIC's and production/ manufacturing in LIC's.

How they accelerate globalisation:
Global Production Networks- A chain of suppliers each manufacturing a certain part of a product e.g Mini Cooper have 2500 different suppliers. Trade liberalisation allows this to occur as no taxes/ tariffs.

Glocalisation- TNCs adapt product to appeal to that country e.g Cadburys making chocolate sweeter in China. 

Development of new markets- making GPNs in emerging markets e.g in Asia

(also through economic liberalisation)
Offshoring- moving manufacturing from HIC to LIC to benefit from the cheap labour costs etc..

Outsourcing- paying other countries to manufacture their goods for them

- however a poorly managed GPN can cause problems e.g natural hazards effect supply chains, public outrage e.g horsemeat in UK

The Sahel Region (Africa)

• physical: landlocked e.g Chad, so no way to trade unless good connection with neighbouring country and lack of FDI.
• environmental: extreme environmental conditions e.g desert costs more to build infrastructure such as railways as have to adapt.
• economic: poverty means limited potential
• social: crime e.g kidnapping of tourists

North Korea

• political: no access to social media, no fibre optic cables under sea. Political corruption e.g  bribery, torture of citizens 

Shift of manufacturing (China)
'Workshop of the world' outsourcing occured to due cheap labour but conditions were extremely poor. 2000-2010, they improved with more high tech manufacturing e.g IPhones. Reduced number of sweatshops.
+ large income gains
- workers making IPhone screens poisoned by manganese.

Shift of outsourcing of services (India)
Nearly all Indians speak English due to British colony so outsourcing of call centre services.
+ Provides middle class incomes for workers meaning moeny can be spent on leisure rather than essentials.
- work is repetitive and long hours at night due to time difference.

General evaluation of emerging Asia:
+ over 1 billion have avoided poverty
+ extremely good education standards e.g Singapore. envied by other govs.
- environmental degradation- soil erosion, over mining etc
+ improved infrastructure (modern motorways) but unplanned settlements

Air Pollution
Lack of efforts to reduce emissions from transport e.g India. High traffic amount. Smoke pollutions from burning forests.

Water pollution

Land degradation
Deforestation in Indonesia. Palm oil extraction

Over- exploitation of resources

Loss of biodiversity
Indonesia most threatened mammal species e.g Orang-utans, Tigers

Teesside Rustbelt 
- deindustrialisation after steel industry collapsed.

Crime
Drug use to 'feel better'
Graffiti as anger
Theft as 'no other option'

High unemployment
Workers have no other skills than primary/secondary manufacturing

Dereliction
'brain drain' as young and skilled move out. Land becomes derelict as no motivation to keep clean. Factories left empty. Falling house prices

Contamination

Rural- urban migration

Push factors- unemployment, bad weather conditions, crime, poverty, loss of agriculture
Pull factors- friends& family, jobs, better education and healthcare, safety

The 'Shrinking world' contributes as people in rural areas are becoming more 'switched on' and want to move to better areas

Mega-city= a home of 10 million people or more

Mumbai- 22 million people

• Lots of urban employment sectors e.g Starbucks
• Bollywood stars live here causing house prices to be high
• Good connections
• BUT social divide, slums , lack  of healthcare, sewar failures, pollution.

Global hub= highly globally connected city.
1) Internal migration

2) Mass low wage migration
India to UAE. Indians make up 30% of population.

Costs and benefits
Host country + workers take unskilled, unwanted jobs, spend money, bring culture
- high population density, shortage of supplies, social tensions, lack of housing

Source location + remittances sent back, migrants return with skills
- 'brain drain' lack of young skilled people, dereliction of land

3) Elite international migration
Russians to London

Highly skilled, powerful and rich migrants accepted into the country even though they aren't part of the EU. e.g bankers, health professionals, musicians

Cultural diffusion= civilisations producing cultural change to other places.
Cultural imperialism= promoting one powerful culture in a smaller less affluent one
Soft power= cultural influence with no force involved, just political values and diplomacy

Cultural traits- language, religion, food (reflecing the crops around), clothing (adaptations to the climate e.g fur) and traditions.

TNCs- clothes, goods and food is distributed by TNCs. By producing the same product for everywhere e.g Lego cultural change occurs

Media- Disney shares princess and superhero stories worldwide. Whereas other companies use 'gaining a window' such as Downton Abbey. It shows traditional culture of UK

Migration and Tourism- Tourists take language and customs with them e.g IPhones. But migration not always successful. British tried to introduce cricket to colonies but only India kept. 

Impact of westernisation on environment and people- Traditional Asian diets have changed from high in vegetables to high in meat and salt, meaning environmental degradation from cattle farming and methane emissions. Crops imported to feed livestock.

Cultural diffusion has also spread more open attitude causing more OPPORTUNITIES FOR DISADVANTAGED GROUPS.

e.g Rio, 2016 Paralympics

• Global media has helped celebrate physical achievements.
• Until 20th Century there was sterilisation programmes in USA
• Now 2/3 people's attitudes have improved
• Less discimination

Papua New Guinea- Indigenous people
Loss of clothing- used to wear very little due to hot climate but now wear western clothes e.g t-shirts
Loss of traditional food- easy access to quick western fast food e.g McDonalds has reduced their traditional cooking
Loss of language- speaking other languages such as English to give themselves more opportunities

Changes to build and natural environment-

• Leaving traditional houses on stilts to live in 'proper' homes in urban areas
• No longer value local eco-system so they hunt endangered species for money e.g Kangaroos, they value a good income over the environment

Opposition:
France- protection of culture by having 40% ALL tv french productiom
China- protection of media. No access to Facebook or BBC as a threat to gov. 
Nigeria- protection of environment. against oil spills causing degradation of their land

Development= the way a country seeks to progress economically and to improve quality of life.

Economic
GDP-final value of output of goods. If high suggests a countrys development is high. Hard to measure because everyones income has to accounted for even illegal work.
Income per capita- mean average income. Large number of high earners may inflate the mean. If it improves over time it can be assumed development has occurred.
Gini- coefficient- measures income inequality between 1-100 (single indiviudal recieves all)

Social
HDI- ranks countries on economic (GDP) and social criteria (life expectancy).
Gender equality index- reproductive health, empowerment and proportion labour force male and female. If all are high development is too because gender equality.

Environmental
Air pollution indices- when development occurs air pollutions is generally better due to more efforts being make. Developing and emerging countries e.g Bangladesh have no regard for environment, whereas Ireland (high) does. 

Winners and losers for people
Developed + average incomes have risen - widening income divide

Developing- + poverty has fallen.average incomes have risen - African countries still near poverty line

Winners and losers for the environment
Developed + large scale flows of cheap food.

Developing - habitat loss and biodiversity. 40% of Earths land agricultural. So groundwater depleted, removal of mangroves etc...

ECONOMIC DEVELOPMENT TRENDS
Average income in Asia has risen since 1970s. Africa closer to poverty line. North Africa more globalisation due to French TNCs outsourcing

SOCIAL TRENDS
Geographical isolation, poverty and political extremism reduced life expectancy

Open borders- EU
1 million Eastern Europeans has increased UKs population and created diasporas (groups of migrants) e.g polish community in Balham. Also UK citizens moving abroad e.g Meditteranean coast

Deregulation
Deregulation of the City of London under Margaret Thatchers rule allowed companies to rotate staff across countries, recruit from overseas.

Therefore, it FDI occurs as foreign investors want to become stakeholders in the country.

Tensions:
Extremism Europe- many people oppose migration as they feel threatened, as they think migrants are taking their jobs. Many people in UK vote for UKIP to reduce number of migrants and often racial attacks occur e.g innocent Stephen Lawrence (black man) murdered. 

Censorship (China)
'Great firewall of China' No Facebook, BBC or Google. When Chinese students protested about communism in 1980s, China killed them and asked Google if the information could be censored, Google withdrew services

Trade protectionism
Restraints on trade e.g tariffs and quotas. e.g EU banned chinese textiles being imported as too much. But illegal flows are hard to control e.g migration and trade of drugs etc

Migration limitation
2010, Conservative government enforced a 5-tier point system, only allowing most 'valuable' migrants to country e.g skilled workers. 1= exceptional talent

First Nationa- Canada
6 groups of Indigenous people

They're against petrolium companies because negative impacts on environment
- trout dying from polluted water. Fishing and hunting is vital to culture.
- alcohol and drugs brought by workers, affecting young indigenous people 

Sustainability goals: economic (reliable income over time), social (good quality of life) and environmental (no long lasting damage to environment)

Local sourcing= adopting ethical consumption strategies by buying locally sourced food and commodities
+ beneficial for local suppliers, reduces carbon footprint, shorter delivery times, fewer pesticides
- expensive to source meat locally, tomatoes have larger carbon footprints than imported

Transition Town= settlement where individuals make their community more sustainable and less reliant on global trade- 

Todmorden, Yorkshire

• 40 fruit and vegetable gardens so less imports and less air travel
• educational talks to younger generation to make future better
• BUT tomatoes in greenhouses have larger carbon footprints than if you were to import them

Ethical consumption= the consumer has considered the social and environmental costs of a purchase

Fair Trade schemes: Higher incomes to farmers even if market price changes. Lets shoppers know their purchase will help
- hard to monitor all money correctly distibuted

Ethical Consumption schemes:
Supply Chain Monitoring (TNCs stop worker exploitation e.g Apple investigating the touch screen production after workers poisoned by manganese)
- hard to monitor as far away

NGO action (NGOs making people aware e.g flying a fruit picker to Tesco to talk about bad working conditions)
- NGO's have limited money

Recyling costs initially high due to: transport and treatment of waste
BUT long term efficient.

UK actions
5p plastic bag cost. High enough to influence behaviour without harming trade for companies such as Tesco.

Future?
Manufacturing of products using substutue materials