Globalisation

• The situation is made worse by deforestation and over-grazing, which lead to soil erosion.
• Over-exploitation of resources is a major issue. The situation is made worse by deforestation and over-grazing, which lead to soil erosion.
• Due to its large population, China’s resources cannot keep up with demand.
• Habitat loss and degradation of natural environments have caused a loss of 50% of China’s terrestrial vertebrates since 1970.
• North East England was one of the first industrialised regions in the UK, with tens of thousands of people employed in heavy industry including coal mining and shipbuilding.
• North East England was also one of the first regions to be affected by de-industrialisation, with the closure of coal mines and shipyards.
• De-industrialisation also led to a negative multiplier effect, with many smaller businesses that supplied and supported heavy industries closing, affecting thousands of people.
• North East England has suffered huge job losses and a rise in unemployment as factories and industrial sites closed.
• Many of those employed in heavy industries struggled to find new jobs with the skills they have.
• The KOF Index and the AT Kearney Index are two different ways of measuring globalisation.
• Development is a complex matter and can be measured and contemplated in a huge variety of ways.
• Economic measures of development include Gross National Income (GNI), Gross Domestic Product (GDP), Purchasing Power Parity (PPP), and Income per capita.
• Social measures of development include Adult literacy rate, Life Expectancy, Number of years in education, and Human Development Index (HDI).
• Economic sector balance is the percentage contribution of primary, secondary, tertiary sectors to Gross National Income (GNI).
• The Development Gap refers to the widening gap between the wealthiest and poorest nations, and between countries between the elite super-rich and the rest of the population.
• The Gini Coefficient is a number between 0 and 100 which represents income inequality within a country.
• Time-space compression refers to the changes in our conception of time, distance and potential barriers to the migration of people, goods, money and information due to heightened connectivity.
• The shrinking world is a term used to describe the changes in our perception of distance due to travel times falling due to new inventions.
• The global financial crisis that began over a decade ago in 2008 has left plenty of economic and political scars and has reshaped the way capital flows around the world.
• In 2007, almost three times as much money crossed borders than it did in 2016, even as investors chase yields and pump up markets in a world of low interest rates.
• Banks that once saw rich futures in lending overseas are staying closer to home.
• More of the money that does cross borders is in the form of long-term direct investment, ostensibly to build factories or buy stakes in companies in promising markets.
• The surge in the trade of goods over the past half-century and its impact on societies is dominating debates about globalisation today.
• The excesses of capital flows were one of the main causes of the financial crisis and are where the next crisis might lie.
• The world’s financial system is more resilient today than it was a decade ago, according to the McKinsey Global Institute.
• The fall in money washing through the system is a reminder of where the global economy has come from.
• The main reason for the fall in flows has been a collapse in cross-border bank lending, primarily by European banks.
• The growth in foreign direct investment reflects an unhealthy trend, according to some economists, as it is often seen as a race by countries to service the demand for lower tax rates.
• The main factor behind the expansion in foreign direct investment has been the flow of investment booked in financial centres, such as Ireland, which are known for their low tax rates.
• The IMF still sees risks in the financial system, with the chase for returns by investors driving down the cost of debt for borrowers across the developing world.
• Cross-border capital flows are down significantly from where they were when the global financial crisis began.
• The $4.3tn that flowed around the world in 2016 was only a third of the peak of $12.4tn in 2007.
• No one thinks a return to those levels would be healthy, however.
• COVID and globalisation have prompted a new wave of globalization obituaries, but the latest data and forecasts imply that leaders should plan for and shape a world where both globalization and anti-globalization pressures remain enduring features of the business environment.
• The pandemic has caused the largest and fastest decline in international flows in modern history.
• Current forecasts, while inevitably rough at this stage, call for a 13-32% decline in merchandise trade, a 30-40% reduction in foreign direct investment, and a 44-80% drop in international airline passengers in 2020.
• These numbers imply a major rollback of globalization’s recent gains, but they do not signal a fundamental collapse of international market integration.
• The World Trade Organisation (WTO) is a global organisation which sets the rules for how countries trade with one another.
• The WTO has 164 members and is the largest economic organisation in the world.
• Pakistan joined the WTO in 1995 and one of the rules of membership forced it to open up its fishing grounds to foreign competition.