Geography 3

• Globalization


  Increasing interdependence and interconnectedness between countries and the flows of goods, capital, services, trade, culture, and ideas
• Types of flows in globalization

  • Capital (money and investment, trade)
  • Labor (people moving to work)
  • Products (physical goods)
  • Services (industries that are footloose, like call centers)
  • Information (internet, texts, phone calls)
• Globalization


  • Lengthening of connections between people and countries
  • Deepening of connections within countries
  • Increasing speed of connections
• Interdependence


  Countries' reliance on each other politically, economically, socially, and environmentally
• Globalization trends started in the early 19th century and 20th century with the adoption of steam power, jet aircraft, containerization, and the telegraph
• easyJet


  Budget airline that has made tourism more accessible, taking advantage of technology and the internet to sell tickets directly
• easyJet's passenger numbers increased from 30,000 to 6 million between 1996-2000, and it now receives over 4 billion pounds in revenue and 65 million passengers per year
• World trade has steadily increased up to the 2000s and rapidly increased since then
• Protectionism


  The idea that a nation wants everything for itself, wants to protect its culture, and imposes high taxes, tariffs, quotas, and restrictions on foreign firms and investments
• Organizations promoting free trade and ending protectionism

  • World Bank
  • World Trade Organization
  • International Monetary Fund
• World Bank


  Bank of reconstruction and development, lends money and gives grants to reduce poverty and fund economic development, promotes trade liberalization
• World Trade Organization


  Creates free trade by requiring countries to lower tariffs and barriers, based in Switzerland
• International Monetary Fund


  Promotes free trade and globalization, maintains international financial system stability, provides loans to countries in crises, criticized for being based on Western ideals
• Major trade blocs


  • NAFTA (North American Free Trade Agreement)
  • European Union
  • ASEAN Free Trade Agreement (Association of Southeast Asian Nations)
• European Union


  Single market with 28 members, guarantees free movement of goods, capital, and people, has integrated economic policies like the Common Agricultural Policy
• Trade blocs can create trade distortion, short-term unemployment, cultural erosion, and loss of national sovereignty
• Ideals promoted by national governments to encourage globalization

  • Free market liberalization
  • Privatization
  • Encouraging business startups
• Free market liberalization

  Governments promote free markets and less intervention, leading to higher outcomes, lower prices, and better standards of living
• Privatization

  Governments sell off nationalized industries, increasing efficiency, reducing waste, and promoting foreign investment
• Business startups

  Governments encourage small and medium-sized business startups through grants and loans
• Governments promote globalization through three ideals: free market liberalization, privatization, and encouraging business startups
• Free market liberalization

  Governments promote free markets and less intervention in the economy, leading to higher outcomes, lower prices, and better standards of living
• Business startups

  Governments encourage small and medium-sized business startups through grants, loans, and low tariffs and taxes, as well as promoting foreign direct investment
• The UK and China are examples of countries that have adopted these three ideals to promote globalization
• In 2001, China joined the World Trade Organization, leading to even more foreign direct investment and economic growth
• While China has opened up to globalization, it has also remained closed off in some ways, such as limiting access to information and cultural content
• COGI index


  Measures the political, economic, and social indicators of a country's globalization on a scale of 1 to 100
• Kearney index


  Measures the globalization of cities based on economic integration, personal contact, technology, and political engagement
• Wealthier countries are generally more "switched on" and globalized, while places like North Korea and the Sahel region are "switched off" due to political isolation or poverty
• Transnational corporations (TNCs)


  Firms that operate in multiple countries, creating foreign direct investment and spreading globalization
• Globalization


  The process of a TNC adapting its products to suit local markets
• Offshoring


  The process of a company moving part of its manufacturing process to another country, such as China becoming the "workshop of the world"
• Outsourcing


  A company contracting out a part of its work to another company, often in a country with lower labor costs, such as India's call centers
• Advantages of the global shift

  • Wage work created in China, India, Bangladesh
  • Higher, more stable, reliable incomes and wages
  • Poverty reduction
  • New education and training opportunities
  • Investment in infrastructure and skills
• Disadvantages of the global shift

  • Loss of productive farmland
  • Rise in air and water pollution
  • Unplanned settlements and slums in megacities
  • Environmental pressures and depletion of resources
• Example of winners and losers from global shift

  • China
  • Severe air pollution in cities
  • Polluted rivers and lakes
  • Soil erosion
• Decline in manufacturing in the West (UK, USA, Europe) due to global shift is called deindustrialization
• Rural-urban migration

  People moving from rural to urban areas in developing countries for employment, higher wages, services, and infrastructure
• Pull factors for rural-urban migration

  • Employment opportunities
  • Higher wages
  • Access to services (education, healthcare, government)
  • Better infrastructure (transport, internet)
• Push factors for rural-urban migration

  • Poverty
  • Conflict over scarce resources
  • Agricultural modernization reducing farm jobs