Key terms

• What are the dimensions of globalisations.

  capital, labour, service, information, products
• Definition of Globalization


  the growing interdependence of countries worldwide OR the increasing connectivity of people and places.
• What are the factors in globalisation?


  technologies, financial, transport, security, communications, management, trade agreements, information systems.
• What is time-space compression?

  the idea that the amount of distance between things has become less significant because of increase in communications and transportation
• Flows of capital examples

  FDI, repatriation of profits, aid, remittances
• Flows of labour examples

  migration- national and international. Nepal to Middle East. 25% of GDP is from remittances
• what is the change of FDI since 1996

  1996- $400 billion. 2016 - $1500 billion
• services and information flows examples

  banking, deregulation of financial markets, low level services (call centres in Bangalore). Email (data)
• Product flows examples


  Asia/ NEEs global shift to production.
• What percentage of the worlds goods to china make?

  28% in 2018
• Global marketing


  marketing that targets markets throughout the world
• global brand?


  one good sold all over the world e.g cocacola
• Glocalisation


  products adapted to suit a location
• examples of globalisation


  tikka burgers in india (beef is sacred).
• patterns of production, distribution and consumption - past

  HICs manufactured own products and consumed them
• patterns of production, distribution and consumption - present

  LICs and NEEs produce, Consumption is in HIC and NEEs (rise of a middle class). Distributed by containerisation.
• what is the global shift?

  deindustrialisation meant that production occurred in asian LICs and NEES such as India and china. Can be linked to chinas open door policy (1990s)
• Patterns of production, distribution and consumption - future

  Production may move back to HIC (trump making America great again). Maybe production more in Africa now. NEEs may be consuming more due to growing populations and maybe a decrease in HIC due to sustainability awareness.
• What is just in time production?

  Computerised stock control ensures that parts are only received when they are needed in the production process and go straight to the production site rather than being stored
• Financial systems in the globe:

  they govern flows of capital. e.g WTO, WB. 1980s deregulation of markets
• Transport systems


  2 key forms - container ships and air travel
• neoliberal policies


  encourage free trade which is a westernised view. Often benefits the HIC more so there are inequalities
• Negatives of containerisation?


  cannot be regulated or scanned - illegal activity
• Security


  can contribute and limit globalisation. increased security of transport (laws for illegal goods) means that it is increased but migration policies can limit globalisation
• Communications


  instant satellite phone-calls now and submarine communication cables which allow many online processes
• Management and Information Systems

  making companies efficient. Global supply chains and networks where countries can specialise in production (comparative advantage) which leads to economies of scale
• Offshoring


  moving part of your company abroad e.g factories
• Outsourcing


  employing another country to carry out section of work e.g Foxconn for apple
• trade agreements


  countries grouping together to govern the flow of products/ flows
• Who governs world trade?

  WTO, IMF, WB
• what is a free trade area?

  Where all barriers are removed between members of the bloc. But individual members can still impose barriers on non-members. e.g NAFTA
• What is a custom union?

  eliminates internal barriers but one common external barrier. e.g EU
• common market


  free movement of resources among member countries. E.g EU
• political union


  as above and uniform set of economic policies E.g EU
• positives of trade agreements - globally


  global peace, co-operation and developed standard in trade
• Positives of trade agreements on a national scale

  competition on a global level.
• Disadvantages of trade agreements

  exploitation of cheap labour in Mexico for example. jobs have been lost in HIC.
• BREXIT is an example of what?

  deglobalisation
• trade blocs are normally ........

  geographically close
• New trade agreements are...

  no longer geographically close