Globalisation

• Globalisation?

  the international integration of places that influences culture, politics and markets across the world. it can also help economic gain
• Flows of info, tech and capital?

  • cheap and reliable communications = info and capital shared easily
  • Electronic money flows = HICs invest in LICs - cheaper costs
  • Technology connects people and places
  • India provides IT services for HIC - outsourcing
• Flows of products and labour?

  • Transport systems are now cheap and efficient 
  • E.g high speed rail (HS1) , international airports and containerisation - 90% of all trade = revolutionised travel 
• Flows of services and global marketing?

  • services follow the flows
  • marketing is now globalised and delivers inter continental imagery ( McDonalds )
  • Nike relies on common global brand with same identity all over
• Factors in globalisation:

  • New tech, communication and information systems 
  • Global financial systems 
  • Transport systems 
  • Security 
  • Trade agreements
• New tech , communication and information systems ?

  • Info shared quickly 
  • Mobiles connect LICs to markets e.g rural farmers can check market prices - East  Africas i-herding , allows women to access microloans
  • 60% of Africans own a phone 
  • 25% of the world restricts internet - means China increases exports to 190 countries but reduces the imports 
• Global financial systems?

  • Banks linked together by vital transmission systems 
  • TNCs create competitive markets
  • Ability to borrow increases
  • 2008 global banking crisis = negative effects 
• Transport systems?

  • Increased movement of people and goods
  • Containerisation = 90% of trade
• Security?

  • Decrease in barriers
  • High profile information leaks - expose wrong doings
  • 2016 - leak of 12 million financial and legal records
  • Locks on containers decreases costs ( insurance ) and increases safety 
  • Cost of security breaches in UK = £1.5 million +
• Trade agreements?

  • Provide global trading rules 
  • WTO - 1994 - looks at 97% of global trade , increases negotiations and ensures agreements are followed
• Internet and globalisation : China?

  • 650 million internet users but restricted access
  • 1990’s = Great Firewall - censors content e.g US sites blocked 
  • Golden Shield uses fines to enforce censorship
  • Export to 190 countries - but few imports 
  • Leading trade companies - Alibaba group 
  • Communist government filters online world 
• Internet and globalisation : Africa?

  • 590 million internet users
  • ‘C Squared’ lay fibre optic cables in Uganda to allow 40 providers to offer internet and broadband 
  • 65% say internet has has a positive influence 
  • 42% increase in cyber attacks - costs South Africa $337 million
• Security + globalisation : Positives?

  • 24.9% increase in trade
  • Fewer passport checks 
  • Increased awareness of drugs and trafficking - UNODC
  • National cyber crime centre - stop 723 attacks per year - increasing
  • 16 UN peace keeping operations 
• Security and globalisation : Negatives?

  • Easier trafficking - forced marriages and violence 
  • Counterfeit goods cost $41 billion per year
  • Hackers find and leak information 
  • 66% of people in UK are victims of cyber attacks 
  • Allows $320 billion per year drug trade
  • Peacekeeping can put people at risk 
  • NCCC - National cyber crime centre-  stops safe connections 
• Management systems: Fordism?

  homogenised production of goods, increased productivity in economies of scale , uses assembly lines
• Management systems: Nike?

  No limit on branding , deinvestment in workers , outsource production, increase resources into marketing, push a global common image
• Management systems: Microsoft?

  Tight control of R+D workers, outsource everything to temporary staff, spatial division of labour - permanent workers in its origin - US
• Management systems: Export processing zones?

  used by governments to attract foreign investment, long work hours and below subsistence wages , fear and instability - factories fear loss of brands
• Single output economies: Nigeria?

  • Oil and gas exports = 80% of national income
  • Member of OPEC = increased development 
  • Increased rural-urban migration 
• Import tax?

  tax on the imports of goods from other countries

  • Positives : locals keep jobs , tax is collected
  • Negatives: less trade for LIC’s , decrease in global trade 
• Patterns of international trade?

  • World value of trade = $18301 billion - 2013
  • 49 poorest countries = 0.6% of global trade - low value primary exports 
  • Europe = biggest share of exports = 36.3%
  • South Africa = 0.5% of global exports
  • Europe = $305 billion of inflows 
  • 237 million tonnes of oil moved from Middle East
• BRICS?

  • Brazil , Russia, India , China , South Africa 
  • Emerging nations want to become serious economical and political forces
  • Represent 42% of the worlds population 
  • 23% of the worlds GDP
  • Pooled $100 million foreign currency for emergencies + have their own bank
  • 2024 - pushing for  the de-dollarisation in member countries where BRICS countries will end reliance on the US dollar.
• Financial deregulation?

  • Legal barriers and framework and reduced so capital can move more easily 
  • Started in the 1980s
  • IMF monitors the deregulation of barriers
  • Can create an unstable system - led to 2008 crisis 
• Trade Blocs ?

  • Integration and removal of trade barriers
  • NAFTA - no barriers between members 
  • Customs union = tariffs against non members ( EU )
  • EU = part monetary union - same tax system and currency 
• Positives of trade blocs?

  • Creates economies of scale - mass production costs decreases
  • Investment - attracts FDI due to large markets
  • Allows countries to compete on a global level for trade
  • Greater representations on world affairs 
  • Easier to find employment 
  • Raised health and education standards 
  • Promotes democracy and human rights 
  • Increases production and trade = specialisation 
• Negatives of trade blocs?

  • Trade diversion - non member products more expensive 
  • Increased competition for work - increased unemployment 
  • Dependency on other countries/ disagreements 
  • Loss of sovereignty - decisions become central 
  • Pressure to adopt central legislation 
  • Loss of financial control 
  • Over exploitation of resources 
• Global shift = relocation of the economic centre to Asia from the West
• Impacts of trade blocs

  • Trade diversion for non-members
  • Increased competition
  • Unemployment
  • Dependence on other countries
  • Disagreements
  • Loss of sovereignty - decision-making
  • Pressure to accept central legislation
  • Loss of financial control
  • Over-exploitation of resources
• Global shift - the relocating of the economic centre from the West to Asia
• Positive impacts of global shift

  • Creation of jobs in NEEs/LICs
  • Doubling of rural incomes
  • Poverty reduction - 600m Chinese lifted out between 1992-2015
• Negative impacts of global shift

  • Loss of productive land
  • Unplanned settlements
  • Slums in Mumbai - low health standards
  • Resource pressure and water pollution
  • Inequality
  • Exploitation of workers - restrictions on free time
• Interdependence - relationships that connect regions/countries e.g Ukraine on UK for support
• Different people living with different standards of living
• Global systems - organisations that link different parts
• 3 tiers of countries

  • Core - HICs
  • Semi-periphery - NEEs
  • Periphery - LICs
• Inequality = difference in standard of living
• Barriers to international trade?

  • Language
  • Trade war
  • Tarrifs / trade blocs - EU sugar tax
  • Embargo’s - US does not import high tech
  • Distance - US trades most with Mexico
• Sugar , EU and free trade ?

  • European farmers recieve £40 billion subsidies
  • £400 per ton for sugar farmers in 2005
  • 200% tariff on sugar from non member countries
  • Lower on favoured countries e.g Mauritius
  • Complaints from Australia , Brazil , Thailand = WTO imposed limit on EU tariff
• Positives of international trade

  • Economies of scale - lower costs
  • Purchasing power - more money to purchase products
  • Transfer technology
  • Exchange culture
  • Multiplier effect - employment
• Negatives of international trade

  • Over reliance
  • Favor domestic monopolies
  • Increase in movement of illegal goods
  • Loss of local jobs
  • Price and currency uncertainty
  • Environmental impacts
  • Exploitation