Globalisation

• Globalisation

  The increasing interdependence between countries through flows of capital, trade, goods and services as well as culture and ideas
• 3 reasons why globalisation has accelerated

  Advances in technology

  Advances in communication

  Advances in transportation
• 5 global flows

  Social migrants

  Social tourists

  Economic capital

  Environmental commodities

  Cultural and political information
• How are social migrants a flow that increases globalisation

  Migrants move through a country. This causes the spread of culture which increases interdependence meaning globalisation is increased
• How are social tourists a flow that increases globalisation

  People go on holidays and use planes to travel. This is good for the economy
• How are environmental commodities a flow that increases globalisation

  Goods such as jeans are made in one country and sold in another. This generates money for both countries. Meaning more interdependent
• How does cultural and political information increase globalisation

  Internet has allowed instant contact throughout the world meaning people can share culture easier
• How economic capital increases globalisation

  Flows of money between people, banks and governments
• How are connections lengthening

  Products are made in one country and sold in another
• How are connections faster

  Growth of technology means instant communication across the world
• How are connections deepening

  Migrants are moving around the world meaning culture is spread
• Concept of the shrinking world

  Idea that developments in transport and communications reduced the cost and speed of communication which helps increase globalisation
• Concept of time space compression

  Developments in transportation and communications makes placers closer together I'm terms of time taken to travel between them
• FDI

  controlling ownership in a business enterprise in one country by a company based in another country
• Organic FDI

  Foreign investment expands the operators of an existing business in Foreign country
• Inorganic FDI

  Foreign firms buys a company in another country
• International monetary fund (IMF)

  Help governments balance their payments Grants loans to countries if they can't pay their debts
• World trade organisation

  Countries seek reduction of tariffs and other trade barriers and the elimination of preferences makes trade easier
• The international bank

  Provides loans to help rebuild economies Aims to reduce inequalities and encourage income growth
• Bretton woods institutions

  The Bretton woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australia and Japan
• Global shift

  Relocation of manufacturing and production on a global scale from the west to the east
• Positives of global shift

  Improved environmental quality in developed country Provides jobs in emerging and developing country This provides gdp which helps develop the country Improve skills in poorer countries
• Negative of global shift

  Loss of jobs in developed country Deindustrialisation Over reliance on tncs for emerging country Environmental and health issues in emerging country
• Negatives of globalisation in developed countries

  Deindustrialisation Loss of jobs Loss of income Areas become deprived
• Income per capita

  A measure in dollars How much each person has Single indicator based off economic factors
• Economic sector balance

  Countries economy split into 5 economic sectors Primary secondary tertiary quaternary quinery Shows which sectors decrease and increase based off development
• Human development index

  Rank countries based off literacy rates, life expectancy and gdp per capita Number between 0 and 1 1 best Composite indicator
• Happy planet index

  Based off life expectancy, life satisfaction, ecological footprint Score of 0-100 Composite
• Gender inequality index

  Reproductive health, maternal mortality, empowerment Composite
• Air pollution index

  Shows amount of air pollution between 0-500 higher means worse
• Lorenz curve

  A Lorenz curve is a graphical representation of the distribution of income or wealth within a population

  
• Gini coefficient

  It measures inequality on a scale from 0 to 1, where higher values indicate higher inequality
• Tensions caused by globalisation

  Extremism Censorship Policies to limit migration Trade protectionism Protect cultural identity Water conflict
• What is extremism

  Beliefs which most people and parties consider unreasonable and unacceptab
• Trade protectionism

  Policy that protects domestic industries from unfair foreign competing Helps protect culture and stops cultural erosion
• The role of national policies on globalisation

  Privatisation allowed foreign investors to gain a stake in Privatised national services and infrastructure eg man City owned by Abu Dhabi
• The role of special economic zones (SEZs) on globalisation 


  SEZs are large of land set aside by government in locations well placed for international trade
• Promoting free trade blocs

  Trade blocs reduce import/export tariffs which reduces barriers to trade which increases globalisation
• Protect cultural identity

  Some groups seek to return to their cultural identity Preservation and restoring of historic and significant relics to culture and heritag
• Switched off location

  Poorly connected and isolated from global networks