Globalisation

Define globalisation

Increasing interconnectedness of the world, economically, culturally and politically. Human activities organised globally.

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What are the main IT developments?

Computers began top secret in WW2, first commercially used in 1950's, processing power doubled since 1971

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How does IT/telecommunications aid globalisation- developing countries?

Phones allow for economic growth e.g. to pay bills, women can claim microloans lifting families out of poverty, fishermen can check market prices, in Africa in 2005 6% owned phones, in 2015 70% owned phones

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How does IT/telecommunications aid globalisation- business?

Video conferencing, expansion of TNCs by quick, effective sharing of information.

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How does IT/telecommunications aid globalisation- socially?

Supports migration as they can keep in touch with families, relationships and friendships long-distance, mixing cultures, language and music shared.

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How does IT/telecommunications aid globalisation- political?

Charity messages spread, fight for change on a global scale, spread negative messages like ISIS.

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What are the main fibre optic and satellite transmissions developments?

1 billion lines by 2000, number of lines per 100 people 4x 1960 number, copper wires replaced with fibre optics to carry more data, FLAG connected Europe and Asia (links 75% world), faster, cheaper, more reliable data transfer.

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How does telecommunications aid globalisation- political?

Video conferencing, email, 'footloose' TNCs, rapid movement of money and information globally.

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Kenya, M-Pesa

Allows credit to be transferred between phones, 1/3 GDP sent through this, pays bills, fishermen can check market prices, women in rural areas secure microloans by proving good credit and lift families out of poverty

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How does containerisation impact globalisation?

90% non-bulk cargo transported in this way, very secure, cheap, efficient, enable the Global Shift of some manufacturing from HICs to NEEs.

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How does aviation impact globalisation?

Jets replaced passenger ships for travel, 1970 'Jumbo Jet' 500 people, Airbus A380 can carry 853 and uses 20% less fuel, aided by deregulation allowing private airlines, increases tourism, migration, 5% goods travel by air, 36% value of goods

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How have the internet and mobile phones developed?

Internet began in 1960s, email in 1970s, mobile network in 1985, mass ownership from 1990s.

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What is imperialism?

Countries that have a strong influence over many other countries, they do not rule directly but influence economically through neo-liberal policies and culturally.

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What is neo-liberalism?

Encourages closed countries to open up to other countries e.g. by borrowing money in exchange for adopting neo-liberal policies.

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What are state adjustment policies?

That everything state owned should be privatised and the money gained used to pay back the loans, borrowed money must be used to improve facilities like healthcare and education- but costs and prices tend to rise.

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What is the IMF?

Based in Washington, channels loans from rich countries to poor ones applying for help, in return these countries adopt neo-liberal policies so TNCs can enter more easily, USA has veto over decisions

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What is the World Bank?

Based in Washington, lends money globally, e.g. $40 million to Philippines to reduce poverty, grants to developing countries

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What is the WTO?

Based in Switzerland, advocate trade liberalism, ask countries to abandon protectionism in favour of untaxed trade e.g. China to lift the 'rare earth' minerals protectionism, allows rich to develop, LICs have little say

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What is the UN?

Has a security council which maintains peace and security, 5 permanent members have veto power

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How does the USA have imperialism over many developing countries?

It controls the IMF and WB, so has great control over countries it lends loans to, allows its TNCs to enter their economy.

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Why are state adjustment policies sometimes not helpful?

International organisations accused of supporting corrupt governments, loans may not be spent on helping the people, rich can use cheap labour while the poor are trapped in poverty.

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What is a trade bloc?

Groups of countries within a region that protect themselves against imports from non-members, reduces tariffs for members in bloc.

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List examples of trade blocs

EU free trade agreement: 2006 banned Chinese underwear imports as annual quotas had been met. NAFTA: USA and Mexico, allows cheaper labour for USA consumer market.

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What are TNCs?

Businesses located in 1+ country, major influences on spread of globalisation, most retain bulk of workforce in original country.

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Why do TNCs move into a country?

Raw materials, cheaper labour, market seeking, lower tax, political leverage, environmental exploitation, physical location, skilled labour

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What is a Special Economic Zone?

A region that has economic and other laws that are more free market than the country's typical laws, export related manufacturing areas, taxes reduced to encourage TNCs, sweatshops and factories, urbanisation e.g. Shenzhen, China village-10 million

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What are off-shoring and out-sourcing?

Off-shoring: buy a factory, control and manage it. Out-sourcing: do not own factory, pay another company to manufacture goods.

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Describe the globalisation of services?

High level services becoming more concentrated (trained workforce, skilled), most in Tokyo, New York, London

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What are 'switched off' countries?

Countries that show few signs of linking to a global network for political, cultural, physical, social, economic reasons e.g. Gambia, Nepal, North Korea

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How is North Korea a 'switched off' country?

Is an autocracy, remains isolated, citizens have no access to internet or social media, possessing Bible/non-state movie=death, no jeans, only military/government allowed cars, no undersea cables connecting them.

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How does the AT Kearney Index measure globalisation?

Ranks 1-100, higher= more globalised, analyses place's business, culture, political engagement, TNC headquarters, museums, foreign embassies...

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What is Foreign Direct Investment?

A company from one country invests in a business in another, more investment means more globalisation, mostly HICs, 23% goes to 12 NEEs, 0.2% goes to poorest 70 countries.

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What is global shift?

Global scale relocation of different types of industrial activity, especially manufacturing.

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What are the positive social impacts of globalisation?

Regular income for factory workers, accommodation and food, income to families, diminish cultural boundaries, more accepting, liquidity of capital, improving status of women.

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What are the negative social impacts of globalisation?

Exploitative hours, punishments, limited breaks, unsafe conditions, regional inequality e.g. China FDI 85% East, but 3% West

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Why do many LICs not benefit from globalisation?

Lack viable markets, low literacy rate/education= unskilled workers, terrorism, political instability e.g. Sudan 2 million landmines

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List some examples of anti-globalisation

Brexit vote, North Korea, France must play 40% French songs on radio, last EU nation to receive a Starbucks

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What were the environmental impacts of globalisation in India- Union Carbide?

Sold deadly chemicals, had to leave the USA for India due to less restrictions, in 1984 a chemical leak occurred, 40 tonnes chemical poured out for 2hrs over 8km, 3800 died, 8000 of secondary impacts, 11,000 left disabled

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What were the environmental impacts of globalisation in India- Union Carbide? (2)

Happened due to reduced regulations on safety and faults to reduce expenses, complaints were ignored, Indian government asked for $3.3 billion compensation, Carbide offered $470 million

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What were the environmental impacts of globalisation in China-air pollution?

Linfen, China is world's most polluted city, 24 hours there= smoking 60 cigarettes, 70% Chinese cities do not meet air quality standards

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What were the environmental impacts of globalisation in China-water pollution?

3x global average of liver cancer, many diseases, 320 million no access to clean water, 20-30% comes from manufacturing for export, fewer fish, , 1/2 rivers polluted, 1/3 lakes and 80-90% city groundwater, high cancer rates, reduced crop production

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What were the environmental impacts of globalisation in Nigeria-oil and water contamination?

Shell company in Niger Delta, homeland of Ogoni people, work with military but many Ogoni killed by military, Shell has polluted fish, gas fixing=air pollution (70mil tonnes CO2), supposed to build health centre but did not.

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What were the environmental impacts of globalisation in Indonesia- rain-forests?

Pressure to build factories since Suharto's open-doors policy, agriculture turned into industrial, Suharto subsidised clearing of land, 100,000s acres gone, owns 10% rain-forests, losing 900,000 hectares a year.

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Define natural increase.

Difference between countries birth rate and death rate, influenced by migration.

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What is rural-urban migration?

Movement of people and business from rural areas to towns and cities, leads to urbanisation.

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What is a mega-city?

Have a population over 10 million, only 3 in 1970, now 46, more common in NEEs, due to rapid population growth.

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What are the social challenges of mega-city growth?

Housing, healthcare, education, air pollution, employment e.g. 25% unemployment in Cairo and Tunis= drive for extremism.

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What are the environmental challenges of mega-city growth?

Water pollution from untreated sewage, air pollution from cars and industry, depends on location e.g. Athens smog due to anticyclonic weather.

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What are hub cities?

Highly globally connected city, strong infrastructure, many TNCs, range of jobs, e.g Los Angeles for technology, innovation. Beijing for manufacturing, 1000s TNCs, 40% Asian investment. Paris for culture.

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Describe Lee's Migration Model.

Involves push and pull factors, factors which are negative and positive, some are neutral,may involve intervening place's to overcome obstacles before moving to final location.

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What are the benefits of migration to the host country?

Businesses, pay rent, pay tax, fill skills shortages, new market for ethnic foods, do labour locals are reluctant to do.

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What are the costs of migration to the host country?

Shortages of education places, political parties change policies to address public concern, social tensions, more money on services.

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What are the benefits of migration to the source country?

Migrants send money home, less public spending, unemployment in Poland halved since 2004, migrants returning bring new skills.

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What are the costs of migration to the source country?

Migrant s schooled at government expense leave, brain drain of skilled workers, increase in elderly dependants, reduced economic growth as consumption falls, closure of universities, services and entertainment.

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Detriot

Old industrial area, many left for Asia, population dropped by 2.5x in 50 years, 70 schools closed, car industries bankrupt, peak of 30% unemployment, now 20%

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What is elite migration?

Encouraged by hub cities, people with high wealth, social status, political or cultural influence, Brazil to EU Highly Skilled Migrants Programme, e.g. Russian Oligarch merchants 1/3 London property purchases 2014, bought most expensive

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What is low wages migration?

Attracted to global hubs to work for rich, 2 million Indian migrants live in UAE= 30% population, 90% UAE are migrants

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What are culture and traits?

Ideas, customs and social behaviours of a people or society and traits are the parts of a culture that make it unique

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What is cultural diffusion?

The spread of culture, a soft power: large influence over global media and entertainment changes the culture of a place.

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What is cultural imperialism, give an example?

One culture is imposed on another, e.g. Westernisation/Americanisation/MacDonaldisation. Nigeria open its doors to TNCs in 1982, indigenous languages under threat, music adopting western values, western styles, prefer American Rice, lost agriculture

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MacDonald's

32,000 outlets, 119 countries, 58 million served a day, 'McJob' low paying, little skilled job, Big Mac Index measures purchasing power parity between 2 countries, 'glocalise' adapts food to country's culture, Asia now eats more meat, more obesity

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What is the environmental impact of eating more meat?

Livestock fed corn, uses fertilisers and pesticides, spreads disease, e.g. ecoli, deforestation for cattle, overgrazing e.g. China desertification increases 2300km squared a year.

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How does cultural diffusion increasing awareness of issues?

Media allows for more open and accepting Western values globally, Paralympics, up to 20th century disabled people in USA were sterilised, UN created decade of disabled persons in support of them

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Give examples of cultural mixing.

2.2 million Brits live elsewhere in Europe, 813,000 Poles in Britain, migrant rush when country joins EU e.g. 2004 when 8 countries joined EU.

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New York

5 boroughs, 800 languages in Queens, 36% migrant population, parades for different cultures

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How did Whitehorse village oppose globalisation?

Farmers told to sacrifice land and homes for a better urban future, villagers protested, put in temporary houses for 3 years, refused to move to apartments, 4 years to build a new city, 1000s migrants, property prices doubled

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How did Whitehorse village oppose globalisation? (2)

Only government and developers can build, villagers do not like busy city life, some wanted to join the new economy, emerging wealth gap and middle class.

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Brexit

UK voted to leave EU, drive to reduce immigration, migrants brought new languages, cultures and religion, some strongly opposed this = social tensions

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What is extremism?

Due to rapid rise in immigration, e.g. Britain First. Usually from less multicultural areas and less skilled workers, extremism support from lower-middle class and unskilled workers. Increase in Germany e.g. 75 arson attacks on refugee shelters

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What opposition has occurred in China?

Government controls internet searches, censorship, communist party in power, keep out other ideology, 2014 had highest number imprisoned journalists.

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How have Canada tried to maintain cultural identity?

Canada is globalised, but has tribes who try to avoid this. There are 634 recognised First Nations bands, they are aboriginals and make up 2.7% population. Canada tried to assimilate these groups, but now their land and lifestyles are protected

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What is meant by 'Buy Local'?

Encourages people to support local businesses so money stays in the community, instead of using chain stores where money is sent elsewhere.

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What are the advantages of buying local?

Worth about £10 more to local economy, multiplier effect as it also provides employment, more money within community.

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What are the disadvantages of buying local?

Some services are coordinated centrally so are hard to influence, difficult in big cities, locals buyers use cars to get to shops which uses more energy than home deliveries from supermarkets.

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What is fair trade?

Helps farmers in developing countries, certificates if meet ethical criteria, e.g. environmentally friendly, investment in community, techniques to improve future, increased 60% in 5 years, supermarkets still receive biggest profits.

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Give an example of free trade.

Kuapa Kakoo: Ghana farmers formed cooperative to sell cocoa, supported by international groups, ensures workers are paid for what they produce, represents 45,000 farmers, distributes money for community projects

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What are the negatives of free trade?

Organic destroys more forests as more land is needed to compensate for no pesticides/fertilisers. Potential for overproduction where farmers aren't paid for what they produce. Cash crops, resulting in farmers not having enough to feed families.

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What is Eco-footprint?

How many hectares of land a person uses, if everyone used a certain amount we would need several Earth's to sustain this, high Eco-footprints= Qatar, USA, Canada, Australia. Some African due to tourism.

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How does globalisation impact recycling?

Increase in waste recycling due to global awareness and ethical consumption

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What ways can globalisation be measured?

Development gap:difference between most and least advanced countries, or wealth between people, in education and economy. HDI: ranks countries by development. GDP: money made per person.

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What is the gini index/coefficient

The extent to which the distribution of income among individuals and households within an economy deviate from a perfectly equal distribution, 0=perfect equality, 100=perfect inequality

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China- positive impacts

Average annual earnings 1978: $227-> $7591 in 2014, had a closed economy until 1978 'open doors' policies allowing in globalisation, 300 million rural to urban migration, 200 cities over 1 million people, Pearl River Delta population 120 million

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China- positive impacts (2)

50% from SEZs, joined WTO in 2001, 'workshop of the world', still has some closed doors polices e.g. Google, blocked Coca Cola acquisition of Haiyan Juice

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Africa- bypassed by globalisation

Corruption= risk of losses, little government support, in debt, unskilled labour, negative image, politically unstable, weak market, unstable currency, crime, poor infrastructure, e.g. Sahel region: landlocked, physical difficulty

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Indonesia- negative impacts

Should be rich, but brutal colonisation resulted in poverty for 70 million, low wages, undernourishment, corruption. Economic processing zone= sweatshops, poor conditions, 24hr shifts, punishments.

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Indonesia- negative impacts (2)

Was closed, General Suharto opened doors, millions murdered under his regime, IMF and WB redesigned economy by giving loans in return for state-adjustment policies, but 1/3 money given to Suharto's friends, poor stuck in poverty.

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Coca Cola, India- negative impacts

Moved due to free water in India, India keen for investment. Village of Mehdiganj was a thriving agricultural economy. Coca Cola used all the local water so agriculture has been abandoned. 1000s employed at Coca Cola, now only 141.

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Coca Cola, India- negative impacts (2)

High waste, poorly paid workers, unions disbanded, strikers sacked, 50 villages have water shortages, water table declined 25-40 feet in 4 years

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Globalisation

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