GLOBALISATION

Question 1

Globalisation definition

Answer 1

A process by which national economies, societies and cultures have become increasingly integrated and connected through the global network of capital, labour, technology, transportation and trade.

Question 2

Flows of Capital

Answer 2

• Capital includes all money that moves between countries which is used for investment, aid, trade or production.
• FDI, foreign direct investment is investment made mainly by TNCs and governments into the physical capital or the foreign enterprises.
• Aid, This is a important source of financial income for LICs, it can be provided through the UN or from contributions from other countries.
• Repatriation of profits, TNCS investing in overseas production will normally take any profit from that investment back to their homes country.
• Remittance payments, Transfers of money made by foreign workers in their homes country.

Question 3

Flows of labour

Answer 3

• Labour flows is the movement of people from one country to another in search of work, this is essentially migration. It can include economic migrants, refugees and asylum seekers.
• Much of this movement is from developing countries such as South Asia, Africa and Latin America to the richer areas of North America and Europe.
• Another major destination of labour is the oil rich gulf states of Qatar, Saudi Arabia and UAE. Construction boom has provided plenty of opportunities.
• The largest Inter-regional flow of labour is in Asia, between 2010 and 2015 3 million people moved from south Asia to west Asia.

Question 4

Flows of products

Answer 4

• Flows of manufactured goods have increased significantly in recent years. This has been stimulated by demand from affluent populations in developed countries, combined with low production costs and low wage economies in exporting regions.
• Global shift, Shift in manufacturing to NEEs and countries where labour and production costs are lower, and away from HICs.
• This is facilitated through transport and time…
• Transport and time costs have been reduced by containerisation, a system of standardised transport that uses large standard size steel containers to transport goods. Cheap and efficient.

Question 5

Flows of services

Answer 5

• Services are economic activities that are traded without the production of material goods, for example financial services.
  -High level services, services to businesses such as finance, investment and advertising. These have become increasingly concentrated in cities in the more developed world, such as London, New York and Tokyo. Major centres of financial control. Although empowerment of east Asian economies has risen, Singapore, Seoul and shanghai.
  -Low level services, services to consumers such as banking, travels and tourism.

Question 6

Flow of information

Answer 6

• Information flows are governed by the movement of people through migration and by the speed of data and communication transfers. This is responsible for the transfer of cultural ideas, language, industrial technology and design.
• Improvements to global telephone networks, making communications cheaper and easier.
• Email and the internet.
• Transport networks improvements.

Question 7

Global marketing

Answer 7

• Marketing is the process of promoting, advertising and selling products or services.
• When a company becomes a global marketer they view the world as a single market and creates products that fit the various regional marketplaces.
• It is cheaper to have one marketing strategy for the whole world and can create brand awareness where people identifty a name or logo with a particular product or service.

E.G Coca-Cola, only minor elements are tweaked for different markets.

Question 8

Patterns of production, distribution and consumption - Labour

Answer 8

• The highly skilled, highly paid, decision-making and managerial occupations which, on a global scale are largely concentrated in more developed countries.
• The unskilled, poorly paid assembly occupations, which tend to be located in developing countries that have labour costs.

Question 9

Patterns of production, distribution and consumption - Production

Answer 9

• In 1954 around 95 percent of manufacturing was concentrated in the industrialised economies of Eastern Europe, north America, Japan. Products were largely consumed in the country of origin.
• FDI from TNCs into developing countries has allowed manufacturing tasks at competitive prices.
• More than 50% of all manufacturing jobs are located in developing countries.
• This resulted in global shift, manufacturing industries moved to LICs where labour and production costs were cheaper.
• Transfer of technology driven by TNCs in the developing world has allowed productivity to increase.

Question 10

Patterns of production, distribution and consumption - Deindustialisation

Answer 10

• This is one of the consequences of global shift, in richer countries people have lost jobs in the manufacturing sector.
• Employment in the UK fell by around 50 percent in the 30 years from 1983 and 2013.

Question 11

Patterns of production, distribution and consumption -Distribution and consumption

Answer 11

• Product consumption still lies predominantly in the richer countries of the developed world, products that are manufactured in NIC economies and are largely exported to countries in Europe, North America and Japan.

E.G Dyson, UK vacuum cleaner manufacturer moved most of its products to Malaysia but still sells a bulk in the UK.

Question 12

FACTORS IN GLOBALISATION - Development of technology

Answer 12

Links between countries have significantly grown since the development of computer technology and particularly since the advent and the advancement of the internet. Which has enabled quick and speedy global communication.

This has allowed information, culture and societies to spread around the globe much faster, aeroplane technology has allowed for people and goods to be transported around the world swiftly and efficiently.

Question 13

FACTORS IN GLOBALISATION - Financial

Answer 13

• Financial technology has made financial information and money easily accessible for people across the world, deepening the connections between countries…
• You can make informed decisions about investments.
• Transfer of money thanks to the internet has revolutionised global finance, allowing the world to be connected.
• People can now buy and sell things globally.
• Remittances can be sent back home with speed and ease.
• International trading is easier and faster due to advancements in tech, financial transactions between importers and exporters are quick and secure.

Question 14

FACTORS IN GLOBALISATION - Transport

Answer 14

• Innovations in transport have meant products and commodities can be shipped more quickly and in larger quantities as a result.
• These technologies for example…
• Increase size of aircraft, integrated air traffic networks. Planes are built with the intention of carrying goods.
• Growth of low cost, budget air lines increases and increase travel links, facilitates the movement of people. In 2018 the first non-stop flight between Australia and the UK
• Use of standard containers through sea, rail, road and air. Cheaper as less trips need to be made.
• Computerized logistics systems
• High speed rail networks, increase global flows of labour.

Question 15

FACTORS IN GLOBALISATION - security

Answer 15

• Trading security is a issue, this includes supply chain security, crime and anti-terrorism, food and smuggling.
• WCO, world customs organisation control the flow of goods and people in and out of countries and have introduced measures to prevent this, for example the EU initiative to introduce a ‘secure operator’ quality label, awarded to operators who are meeting EU minimum standards of security.
• Introduction of X-ray tech at airports allows for suspicious objects to be traced.

Question 16

FACTORS IN GLOBALISATION - Trade agreements

Answer 16

• The purpose of these is for countries to join together and form blocks in order to stimulate and create trade opportunities. Gaining economic benefits from cooperation.
• Makes international trade less expensive and easier. Facilitating the movement of goods and capital between countries.
• Trading goods is expensive due to controls and restrictions…
• Tariffs
• Quotas
• Bans
• Trade agreement remove these barriers and restrictions, making trade easier and less expensive.
• Deals between rich and emerging economies had lifted the number of goods that are traded duty-free from 68% to 87% over the previous ten years.
• Duty free deals between emerging countries has advanced from 28% to 92%, demonstrating a increase in regional trade.

E.G NAFTA, EU

Question 17

Pros of trade agreements

Answer 17

Global scale
- To improve global peace and security and reduce conflict.
- To increase global trade and co-operation on trade issues.
- Helps members develop their economies and standard of living.
- Manufacturing grew in USA after NAFTA, increasing standards of living.
Regionally
- To compete on a global level with other trading entities.
- Increase free trade. Trade between the three members of NAFTA between 1993 and 2015 quadrupled, rising from 297B USD to 1.14T USD.
- Allow freedom of movement
- Allow labour and people seeking work to move between countries more easily
- Eliminate trade barriers such as tariffs and making it easier for smaller LICs to become involved in trade. AFTA Asian free trade area, Indonesia, singapore and malaysia
- E.G The G7 is represented by 7 member countries that account for 27% of Global GDP. They dominate world trade.
- Raise standards of education and spread human rights.

Question 18

Cons of trade agreements

Answer 18

• Some loss of sovereignty, decisions are centralised by what some see as undemocratic bureaucracy.
• Certain economic sectors are damaged by having to share resources, E.G the UK sharing its traditional fishing grounds with other EU nations such as France.
  NAFTA, some Canadian companies have closed due to low cost US competition.
• Reliance on others for certain products, Austria inported 80% of its gas from Russia before the war.

Question 19

Independence definition

Answer 19

This is the theory that nations depend on each other economically, politically, socially and environmentally. Many countries rely heavily on the decisions of other countries, meaning they would struggle without them.

Question 20

Political independance

Answer 20

• International political issues require countries working together In order to sole them. Issues raised must have unanimous decisions from nations.
• Countries rely on others to intervene if there is political unrest. Many nations intervened to help the 2016 european migrant crisis, supporting refugees from syria together.

Question 21

Economic independence

Answer 21

• Countries are dependant on the flows of labour, products and services entering the country in order for the economy to grow. Labour provides a workforce and products and services mean countries can develop and undergo growth.

Oil is produced by one group of countries and consumed by another, they relu on each other to buy and sell the oil and therefore to grow and develop.

Question 22

Social independance

Answer 22

• Migration has caused social interdependence as there are now groups of the same origin living in another country living all over the world and are dependant on where they live.
• Rely on each other for leisure activities, TV programmes, music and other culture.

In 2015 there were 244 million migrants worldwide, migrants build new relationships and become interndependant with people from others coutnries.

Question 23

Enviromental independance

Answer 23

All nations are affected by other nations greenhouse gas emissions, nuclear waster emissions etc. meaning all countries rely on each other to protect the environment.

Question 24

Unequal flows of people

Answer 24

Majority of migration moves from low income countries to high income countries, this is because there are more opportunities to work in high income countries. More people therefore enter high income countries then low income countries.

It is easier for people in developed countries to travel to less developed countries.
In 2017 UK citizens could travel to 173 countries without a Visa, while for citizens of afghanistan it was only 24.

Question 25

Unequal flows of people - BENEFITS

Answer 25

- Migrant workers can lead to economic growth. - Migrant workers become an important part of the host country as they become intertwined in work forced and take jobs that must be done. In London 44% of the cleaning workforce is made up of ethnic minorities. It is largely beneficial for the economies of HICs. - Workers can return to their country of origin with new skills and ideas. - LICs may also benefit, workers send remittances back to their home country, helping their home economy to grow. Over 2 million Indian migrants live in the UAE, 30% of the population. An estimate of $15 billion is returned to India annually as remittances. - Positives for individuals who are escaping conflict or poor conditions and quality of life in LICs, and possibly gaining employment opportunities.

Question 26

Unequal flows of people - Issues

Answer 26

- Negative effects on countries being migrated to, host countries may become dependant on migrant workers and this causes issues if there is a change in circumstances. Covid has created a issue in the UK AND reliance on polish migrants on UK potato farms has caused issues with potato crops in Jersey. - Unequal flows can cause overpopulation, many countries experiencing large flows of people believe they suffer due to pressure on services such as healthcare and social tension with migrants ‘taking jobs’. - LICs and countries that migrants originate from may become dependant on remittances. In 2009 the UK entered recession, many building projects were cancelled, meaning migrant workers in construction industries lost their jobs and stopped sending remittances home. Estonia’s economy shrank by 13% as a result. - Less developed countries suffer from 'brain drain' reinforcing inequalkities between developed and developing countries. - Workers looking for work are usually desperate and therefore vulnerable from exploitation, such as poor working conditions and low wages. In Qatar for example 1,200 migrant workers have died when building for the 2022 world cup.

Question 27

Unequal flows of money

Answer 27

The majority of money flows into low income countries from high income countries, this is through DFI, aid, remittances etc. The majority of money flowing in the other direction is profit and product sales from TNCs. Governments and TNCs tend to invest in infastructre in less developed countries.

Question 28

Unequal flows of money - Benefits

Answer 28

- Benefits for the country receiving the money, FDI can improve the quality of life as it provides an income, usually an income that is higher than other employment in low income countries. - FDI drives export lead growth in LICs, allows them to hire work at competitive prices. - Aid and remittances can also help improve quality of life, such as rebuilding after disaster. $11.28M USD in foreign aid was given to Figi after the devasting Cyclone Winston in 2016, the majority of which has been invested into help for homes scheme, which helps rebuild stronger homes. - Also benefits to the country sending money, richer countries can take advantage of lower labour, and undergo outsourcing. Beneficial for TNCs as they can increase profits.

Question 29

Unequal flows of money - Issues

Answer 29

- Injustices associated with unequal flows of money are mainly concerning injustices towards people living in low income countries. - Companies in low income countries operating from high income countries can create dependencies for workers. They are dependant on the higher wages, meaning they have to subject themselves to dangerous situations. For example sweatshop Rana Plaza in 2012 killed 1234 people. - Foreign aid can reduce incentives for governments to help their won countries. - Aid and foreign investment leaves LICs in dept, African countries dept is around 25% of GDP

Question 30

Unequal flows of technology

Answer 30

Globalisation leads to unequal flows of technology, it mainly flows from developed countries to less developed countries, concentration of technology in particular places can lead to rapid innovation that can help people alover the world, for example silicon valley. Inequalities mean developing countries can afford the latest tech, countries who can can make goods mroe cheaply and have better access to information and services. In 2016 97% of hte Netherlands citizens had access to the internet, compared to around 20% in Myanmar, this gives developed countries a advantage over developing countries