Globalisation Flashcards
(29 cards)
globalisation definition
a process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transport and immigration
how is communication influenced by globalisation
people are interlinked more so can communicate more easily. social media heavily involved. means we know what is occurring around the world more
how is the environment impacted by globalisation (positively and negatively)
countries can come together to help and set policies - also companies such as the WWF can benefit more as we are all joined together
more trade can also mean more pollution- bad. rainforests cut down
in 1983 90% of American media was owned by how many companies
50
in 2011 90% of American media was owned by how many companies
6
what do international flows of capital refer to
refers to all financial transfers between companies for investment, trade or production
the flow of capital in the 20th century was boosted by..
the deregulation of financial services- allowing banks and companies to more freely move money across national boundaries
what is remittance
transfers of money from migrants to relatives back home- flows of capital back to periphery nations
what is FDI
foreign direct investments– money or assets invested by TNCs
what is the IMF
international monetary fund- aims to allow economic stability and foster international trade
how much global FDI was there in 2016
$1500 billion
how has flows of trade changed in recent years
manufacturing has decreased in more developed countries due to lower labour costs overseas. companies then import the products to the countries where they are sold (eg Dyson is produced in Malaysia but sold in the UK)
international trade in manufactured goods is increasing, in the UK how much was imported in 1990 compared to 2008
UK imported £200 billion of manufactured goods in 1990 and £550 billion in 2008
changing flows of products has caused countries to be …
interdependent
causes of globalisation
the movement of: information, capital, products, services and labour
how has globalisation impacted information and communications technology (ICT)- particularly banking
has allowed services to become global industries. banking depends on communication and the transfer of information. improvements to ICT has meant that services can locate anywhere in the world and be able to serve customers around the world
what is an economy of scale
cost advantage of large scale output of a product as savings are made by spreading the costs over more units
example of an economy of scale
ford fiesta new bonnet – research ($1.5 mil), design ($0.5 mil), development ($2 mil), manufacture ($3 mil). all together= $7 mil. sold 10 million cars so each new bonnet cost 70 cents
how many countries is coca cola sold in
all countries bar north Korea
main dimensions of globalisation (flows)
flows of capital flows of labour flows of products flows of services flows of information
where is the largest flow of labour
mexico to the USA
why is there a large flow of labour from Mexico to the USA
increased opportunity in the USA
geographical proximity
what is global shift
global shift is the movement of manufacturing to lower wage economies
what is high skilled labour
high paid, decision making, research and managerial occupations. largely focussed in developed countries
