Globalisation

Explain how mobility has been a factor that has led to how vital TNC's are to the spread of globalisation

• faster and cheaper transport (eg containerisation) • rapid communication systems using fibre optics, satellite, etc. • new production technology, eg just in time (the means by which the time gap between production and delivery to the customer is sharply reduced, cutting warehousing and storage costs), and flexible production systems, which provide cheaper products and fast turn around from orders to delivery. • global production networks (linking raw materials, manufacturing, sales, etc) which are almost always in HICs However, mobility flows mean that production and sources of materials can be flexible and lead to controversial sedcison making (see diagram)

List the causes of change in an area

• globalisation • employment change • inward migration •

What are characteristics of a country that make it distinct from others

• physical landscapes • human landscapes • economic past • religious past • food and drink • how its potrayed in the media

What is time space compression

The fact that communication technologies have been revolutionaised. This has massively reduced the time it takes to trade and communitcate globally and has led to a shrinking world

Explain Variations in educational achievement

The level of good GCSE passes in england is related to employment. London has the hgihest in each column, with NE England at the lowest. Those with the highest qualifiations are more likely to work in London and move there. Their children are then more likely to pass their GCSEs with high grades due to extra tuition or a home culture of doing homework

Explain how motive has been a factor that has led to how vital TNC's are to the spread of globalisation

The motive is profit. This is done by companies by controlling and minimising costs, and increasing revenues by expanding markets and merging with or taking over competitors Companies do this by: 1. Acheiving economies of scale by expanding their capacity, for example Amazon expands warehouse size, in order to reduce unit costs 2. Develop new markets: they are essential and depend on creative product design and product desirability. This process can involve expanding the market to new customers or creating frequently updated models that existing customers will want to buy 3. Horizontal integration: when a country expands at one level in the production process by involving other businesses in able to help make improvements to their own. 4. Vertical integration: when a country controls and owns every stage of production 5. Diversifying product range: future proofs companies' sales. If one fails, another will succeed.

What is the global shift

The movement of economic activity from more developed countries to newly industrialising countries, and more recently to less developed countries.

Explain what globalisation is

The process by which people, culture, finance, goods and information transfer between countries with few barriers. Globalisation is no longer about commodities like it used to be, it also concerns people, capital, culture and information technology

Why did the tertiary and quaternary sectors grow

They grew to replace the lost jobs in the primary and secondary sectors. This encouraged the growth of a new post industrial economy. Growth took place in: 1. Tertiary sector: particularly tourism and retail grew because of higher incomes, cheaper air travel and increased car ownership.. Some parts of the UK also sought to rebrand their past to create a new image. However, many jobs are seasonal and often low paid and part time 2. Quaternary sector: has shown the fastest growth. It provides highly specialised jobs that use expertise in fields such as finance, law and IT. Quaternary industries are described as footloose as they can locate anywhere. They have good locations and connectivity.

Describe the KOF index

This is an annual Index of Globalisation. KOF is an acronym for a german word that means business cycle rearch institutes. The KOF Index score is calculated using specific interactions: • economic globalisation: eg cross border transactions and the volume of FDI • social globalisation: eg cross border contacts • Political globalisation: eg the number of foreign embassies in the country, or the country's membership of different international organisations. The three sets of indicators are then aggregated into one value for each of economic, social and politial interactions which are then ranked. It measures all international interactions, and European countries are small compares to China and the USA. China and USA have large domestic economic markets, but these don't count in the KOF values.

Explain Income and Health

Those on the lowest incomes are the most deprived. The top 10% are the most deprived at decile 1 and the least deprived are at decile 10.

Define rebranding

Ways in which a place is deliberately reinvested for economic reasons, and then marketed using its new identity to attract new investors

What does glocalisation mean

When a company restyles its products to suit local tastes

What are hubs/hub cities

World cities/hub cities: cities with a major influence, based on finance, law political strength, innovation and ICT. World cities that represent hubs in the global economy are where political and economic desicisons are made and most investment takes place. Hub cities attract flows of economic migrants as well as capital. They are the best connected cities and their international airports provide gateways to the rest of the country as well as secondary cities

Define ecological footprint

a measure of the land area and water resources that a population needs in order to produce what it consumes using current technology

Define capitalism

an economic system based on private ownerhsip of nvestment capital and wealth production, whereby goods and services are sold for profit.

Case study: Evaluation of the WTO

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What are megacities?

cities with more than 10 million people

Define off shoring

when a company does for overseas, either itself or using another company

Define outsourcing

when work is contracted out to another company

Globalisation has opponent and supporters. Explain this

• Supports: those in favour of globalisation claim increased connectedness (being switched on) improves many countries economic development, which leads to a higher standard of living for their citizens • Opponents: those against globalisation and argue that it leads to corrupt practices and some countries being left behind (being switched off). This creates a two speed world

How does globalisation work?

• Those who deermine consumer opinions and make decisions to invest and manufacture overseas come from North America, Japan and Europe. • China, India and SE Asia have become the manufacturers of the world • India provides financial and IT support services for HICs • Global brands use the same advertisements worldwide and dictate where products are made

International agreement are needed to achieve the WTO's aims, however, countries sometimes make their own deals. Give examples

• USA negotiated free trade agreements with a range of countries • EU has eocnomic partnership agreements with 69 African, Caribbean and Pacific nations

Define corporation

A business which exists separately from its owners. Its owners are shareholders, who mostly appoint directors to run the busines

Explain Occupation and life expectancy

A person's occupation has social consequences. By recording parental occupation at birth and a person's occupation when they die, these results have been discovered,

Define communism

A socio-economic system or organisation where the land and all property is owned by the community or the state, so that every person contributes and receives according to their abilities and needs.

Explain the link between economic development and environmental quality

Air quality deteriorates as economic development increases. The causes are all linked to energy production, industrial processes, and road transport. Key pollutants include SO2, NOx, particulates and volatile organic compounds. They can all lead to respiratory problems. Most HICs have improved air quality by controlling vehicle emissions and transferring manufacturing overseas. Can be measured with the EPI (environmental performance index)

What is the HIPC

Heavily Indebted Poor Countries Initiative: 38 of the least developed countries with the greatest debts. They have been eligible to have their debts with IMF and World Bank either cancelled or rescheduled.

Indicators used to compare countries socially

Human Development Index (HDI) uses 4 indicators: - life expectancy - education: literacy rate and number of years of edcation - GDP per capita (using PPP$) By linking GDP to education and health, the HDI shows how far people are benefiting from economic growth. Each indicator is converted into a value ranging from 0-1 and the four values are combined into a single index (HDI). However, HDI health education data tend to lag behind economic data, since may countries do not have sophistacated agencies for accurate calculation, so as shown in the diagram, the most recent data are for 2007.

Impacts of global shift on developed countries with case study

In MEDCs: Pros - cheaper imports of relatively labour intensive products can keep cost of living down and lead to a buoyant retailing sector - promotion of labour market flexibility and effiency, greater worket mobility to areas with relative scarcities of labour is good for the country -greater industrial efficiency should lead to development of new technologies, promotion of entreupreneuship and should attract FDI Cons - rising job exports lead to inevitable job losses - big gap develops between skilled and unskilled workers In NICs and LEDCs Pros - higher export due to more labour leads to multiplier effect in national economy - can lead to exposure of new tech, improvement of skills and labour productivity - employment growth in relatively labour intensive manufacturing spreads wealth Cons - unlikely to decrease inequality as new jobs tend to be concentrated in urban areas - can destabilise food supplies as people give up agriculture - environmental issues: industrialisation

Explain Variations in quality of life

In london there are higher incomes, but also other higher costs like housing. People are happiest where houses are the cheapest.

Explain Regional inequalities

Incomes in London are the highest because: 1. its the capital so incomes are higher in senior positions in government, the civil service and many company headquarters 2. those who work in the Docklands-based knowledge eocnomy have higher incomes than the average

Why have elite migrants moved into London

Its a safe place for oligarchs to store money, invest in property as values on properties increase, and protect their fortunes. Buyers are typically from Qatar and Russia: • Qatari Investments have bought into The Shard, Canary Wharf, East Village and Harrods • Russians accounted for 1/3 of all foreign purchases of residential property in London. This high demand has led to property price inflation and now much London houseing has become too expensive for many native Londoners.

Explain the difference between modern globalisation (1940s) and global economy

Lengthening connections: Connections between people and places were shorter and more local, but products are sourced from futher away than ever before Deepening connections: Connections used to be less specific and less intergrated, but now are far more specific Faster connections: Used to be less efficient and slower, but now using technology, and travelling quickly by aircraft speeds it up.

Case study: change from primary and secondary industry to tertiary and quaternary industry part 1

London Docklands

Case study: change from primary and secondary industry to tertiary and quaternary industry part 2

London Docklands

Case Study: rapid growth in cities

New Delhi

Describe the UK's role as an individual national government in globalisation

1980s: Conservative government was the first to embrace globalisation strategies fully. Some industries were left to close if their profitability depended on government subsidies, and the government also refused to artifically support industries facing competiton from cheaper overseas products. The conservative government developed two strategies for growth: 1. Tax breaks (subsidies) to companies investing in areas such as London Docklands. This has happened in most companies in Canary Wharf. This has attracted large overseas financial institutions to relocate here 2. Grants and subsidies given to encourage FDI

Define FDI

Foreign Direct Investment: investment made by an overseas company or organisation into a company or organisation which is based in another country

Describe the A T Kearney Index

Four main indicators it uses: 1. political engagement: eg particpation in internatial treaties 2. technological connectivity: eg number of internet users, hosts and servers 3. personal contact: eg through telephone calls, remittances, etc 4. economic integration: eg the volumes of international trade and FDI Uses holistic indicators (eg number of web servers rather than internet communications) and volumes of trade as well as FDI. Includes countries that are players on the political stage so the participation of the uK and Ireland in international treaties is recognised.

What are the Gini Index and Lorenz Curve?

Gini Index: an index with values between 0 and 100% shown using a lorenz curve. • A low index value indicated a more equal income distribution. 0 Represents perfect equality with everyone having the same incoe. This would be shown in the diagram with a curve close to the straight line • A high index value indicates unequal distribution. 100 corresponds to perfect inequality, where one person has all the income. This would be shown int eh diagram with a curve far from the straight line Advantage of gini index: measures inequality rather than giving a single indicator like GNI. Disadvantage of gini index: only 1/3 of countries publish a gini index.

How is interdependence between regions created

Globalisation has increased international migration, increasing interdependence between regions. For example, countries rely on certain regions for tourism to generate their encome

Positive effect of global shift/changing values: case study

Paralympics

What are the classifications of the economic sector?

Primary sector: producing food crops and raw materials Secondary sector: manufacturing finished products Tertiary sector: providing services, either in the private or public sectors Quaternary sector: providing specialist services in financance and law or industries in R&D These terms don't full describe a person's job, so there are other classifications: • Full time or part time • Temporary or permanent • Employed or self employed

What are diasporas

Process of movement or migration of people who share a national and/or ethnic identity away from their homeland

How have countries benefitted from low wage economic migrants? Give examples

QAE and Qatar have benefited form flows of cheap labour. The UAE and Qatar both have labour shortages due to their small populations, so they recuit many manual workers from overseas. Migrant workers make up 90% of the UAE's workforce. Their entry visas are tied to specific jobs so there's always a risk of being deported if their contract ends. In both countries, low wage migrants work for US$4 a day. This has led to rapid building of infrastructure for high end international tourism and services. In Qatar, these migrants worked on football stadiums and other facilities for the 2022 World Cup

What are some indicators that can be used to compare countries economically? Define them

Some include single indicators: 1. GNI (gross national income): The value of goods and services earned by a country. 2. GDP : the same as GNI, but includes foreign earnings 3. Per capita: data averages per person 4. Purchasing Power Parity (PPP): average earnings to local prices and what they will buy. This is the spedning power within a country and reflects the total cost of living Some exist in composite form and use several sets of data: Economic sector balance: the percentage contribution of primary, secondary and tertiary sectors to GNI. As countries develop manufacturing idustires, the value of their priary sector output falls in relative terms and the value of the secondary sector rises.

What are SEZs

Special Economic Zones set up by National governments to offer financial or tax incentives to attract FDI, which differ from those incentives normally offered by a country. China uses the term Export Processing Zones

Define regeneration

redeveloping former industrial areas or outdated housing to bring about economic and social change. It plans focus on the fabric of a place: new buildings and spaces with new purposes

The connections shown between places represent different kinds of network flow. These flows are the movement of...

1. Capital: money flows are routed through the world's stock market 2. Commodities: valuable raw materials and manufactured goods. Flows of manufactured goods have increased due to low production costs and low wages 3. Information: internet, social media, TV 4. Tourists: budget airlines have made distant places easier to reach for toruists of HICs 5. Migrants: flow with the greatest obstacles due to border controls and immigration laws. Therefore, governments embrace trade flows but resist migration flows. Remmittances are used to help this problem.

What are the impacts of global shift on the UK's industrial cities

1. Dereliction and Contamination - Many textile companies in Leicester were forced to close when businesses declined and a lot of the previous industrial land was left abandoned or derelict. - much of derelict industrial land was contaminated from previous deumping of chemical waste or from manufacturing domestic gas from coal as well as from other industrial waste disposal 2. Unemployment, depopulation and deprivation - in the 1970s and 1980s, the populations of the cities declined. This happened as traditional industries closed and many inner city areas became run down and the housing was low cost. As a result, many people on low incomes or unemployment benefit moved to these cheap areas, which became pockets of deprivation.

How ICT affects the 4 strands of globalisation

1. Economic - easier for disance offices and companies to stay in touch - headquarters can connect with the rest of a company 2. Social - long distance relationships - supports migration 3. Cultural - cultural traits are adapted, imitated and hybridised - language and music 4. Political - social networks used to raise awareness about political issues to fight for change on a global scale - eg. Greenpeace: environmental charity - eg. Isis: spreads message of terror globally to gain new recruits

What are the four strands of globalisation

1. Economic: - growth of TNCs, means more cross border trade - ICT: more internationa economy - online purchases with tech 2. Political globalisation - growth of trade blocs: TNCs merge, leading to reduced trade retrictions and tariffs, leading to growing markets - global concerns such as free trade, credit crunch and response to natural disasters 3. Social Globalisation - international immigration creates extending family networks across borders creating a multi enthnic world - improvements in education and health globally increase life expectancy and increase literacy rates - social interconnectivitiy due to spread of univeral connections (eg phone) 4. Cultural globalisation - Western cultural traits dominate some territories (Westernisation) - glocalisation and hybridisation happens as old cultures merge with globalisaing influences - 24hr reporting and social media leads to circulation of ideas and information

Explain the processes and impacts of globalisation

1. Financial - global capitalisation is spread through large TNCs, some with incomes larger than GDPs of many countries - cheaper labour in developing countries helps suppy consumers in wealthier nations with goods - money is exchanged globally by electronic means everday 2. Political - some TNCs seek to influence how people think. UK politicians seek its support to inflluence voters' opinion - TNCs and interntailonal political organisations can influence natioanl governments - trade barriers have been removed/reduces to liberalise world trade 3. Population - those with skills in management, finance and IT migrate globally to find where they're most in demand - economic migrant labour flows to areas with higher incomes 4. Communication and Information - lower transport costs allow increasing long distance tourism - cheaper global phone networks, increasing mobile usage and fast fibre optic connections allow exchange of info and ideas online

who are the international organisations/national governments in globalisation. Explain their role in globalisation and evaluate it. Give examples.

1. International Monetary Fund (IMF) 2. World Bank 3. World Trade Organisation Also includes: 4. International trading blocs 5. Individual National governments (4 and 5 further on)

What are the ways in which globalsation are measured

1. KOF Index 2. Kearney Indexes

State the three factors that have led to how vital TNC's are to the spread of globalisation (due to the fact that their expansion involved the free flow of capital, labour, goods and services).

1. Motive 2. Means 3. Mobility

List the 5 types of socio-economic inequalities

1. Regional inequalities 2. Variations in quality of life 3. Occupation and life expectancy 4. Income and Health 5. Variations in educational achievement

Factors accelerating globalisation

1. TNCs invest FDI and build links between places that make products and the places that consume them 2. International organisations: trade relies on trust and cooperation and the global economy has rules and referees 3. New markets: companies invest in new markets to make profit. More consumers create more potential sales thus higher potential profits. Opening up of global trade of populous new markets like China has enocuraged businesses to invest money in the hope of generating more sales 4. Lower transport costs: travel is now more common and affordable 5. ICT and mobile communications development: manufacturing in diverse locations can be coordinated with tech. Social media has also enabled the creation of recognisable brands

List the ways in which people can live more sustainably

1. Transition towns 2. Fair trade 3. Ethical Shopping

State the two individual national governments

1. UK 2. China

Trade and transport go hand in hand. Therefore, there have been innovations in technology in order for TNCs to establish a spatial division of labour on a global space. What are some innovations

1. steam power: steam ships and trans move goods and armies to Asia an Africa in the 1800s 2. railways: 1900s: railway connection Moscow with Japan and China and the HS2 In London 3. jet aircraft 4. container shipping: intermodal, large containers

What are inter-governmental organisations (IGOs)? Give examples

Amongst the most influential players are partnerships constructed by governments of the world's wealthiest countries to develop policies of mutual interest. Some develop polieices of mutual interest. Some develop informal economic partnerships. For example: • OPEC: represents 40% of global oil producers • G8: represent 50% of global GDP • G20: comprises 19 individual countries plus the EU, formed in 1999 to bring together developed and developing economies to discuss key econoic issues

Cultural diffusion can be transferred by the media. Explain this

As the ownership of global broadcasting, film and music industries become ever more concentrated into the hands of large media TNCs, the use of an increasingly common vocabulary is starting to erode cultural diversity. This is called the global homogenisation of culture. Music, TV programmes and films made by large TNCs now combine with migrants of people to create cultural mixes. What we see on television or in newspapers is provided by a small group of huge companies which now own 90% of the global music market.

Why has there been a global shift to Asia

Asian nations allow foreign TNCs in (open door policy). Manyfacturing and labour intensive industries have been relocated to Asia due to plentiful cheap labour. Also, land and natural resourced are cheaper. High populations have made Asia an attractive emerging market for TNCs to invest into.

Describe the China's role as an individual national government in globalisation

China's Open Door Policy

What are transition towns? Advantages and disadvantages Give examples 1

Community projects that seek to build resilience in repsonse to the issues of peak oil, climate change and economic instability by creating local groups that uphold the values of the transition network. They promote: - reducing consumption by repairing or reusing items - reducing waste, pollution and environmental damage - meeting local needs through local production, where possible

What are international trading blocks? How effective have they been?

Countries are grouping together members of trade blocs to promote free trade between them. They support trade for their members by: - removing tariffs between member states - creating barriers for non member states by placing tariffs on imports, increasing the price of imports and helping to protect their own industries They have been: • Advantageous: rapid economic growth in countries like Asia • Non-advantageous: non members are excluded, preventing their development. Some blocs even subsidise their producers, such as EU farmers, in order to protect them from the influence of the global market.

Why have the primary and secondary sectors declined

Good produced by primary and secondary industries in the UK were more expensive than the goods produced overseas because: 1. british coal was located deeper underground so was more expensive to mine 2. UK wages were often higher than those overseas, making British products more expensive. Large numbers of mines and factories closed in the 1980s creating derelict land and unemployment

Women are not equal to men in any country? Why? What indicator can be used to measure the equality between men and women and explain it.

For example: in many LICs, fathers may prevent daughters from receiving education beyond puberty as school is expensive. Why support them financially when they will leave home on marrying and sons ont? Even in HICs, women earn less than men and are less likely to be promoted. The UN created the GII (Gender Inequality Index) which uses factors related to: 1. reproductive health: as gender equalities decline, fertility rates and maternal mortality rates fall, and the age of having a first child rises 2. empowerment: women enter politics as they become more empowered 3. education and employment: staying on at school and university opens more opportunities for women. The higher the GII, the greater the inequality

London has become a 'melting pot'. Explain this

London is a melting pot with residents from every country speaking almost every language. This has been accomplished by: 1. Open borders: EU citizens are free to move around the EU as a right 2. The freedom to invest in business or transfer capital: eg in the UK, any bank or individual can trade in shares without having to use the London Stock Exchange. Individuals are free to invest wihtout barriers. There is no restirction for financial institutions in setting up offices and no government approval is required 3. FDI: in 2015, the UK atteacted over 32k jobs from overseas owned companies investing in software and financial services. London attracted 35% of all companies who moved their European headquarters to the UK. Is also the leading recipient of FDI investment from many HICs. A cultural mix has been created. There are now many diverse groups in the UK, for example large Latavian and Polish populations. This has led to diasporas.

Describe China's economic and environmental inequalities

Most of its economic growth is based on industries exporting law value products. The chinese people have been used to provide a cheap labour pool and many Chinese workers ae not much better off than they were before industrialisation. An east-west divide now exists in China as incomes decline the further west you go. Almost all major cities and industrial zones are located on the coast, and urban dwellers have higher incomes than rural. The 2010 Gini Index for China was 47% and its inequality is rising.

Explain how means has been a factor that has led to how vital TNC's are to the spread of globalisation

Motive wouldnt be possible without means. This is banking and free flow of capital. These flows between countries are variable: • from year to year • over the medium term • over the longer term Reverse colonialism has happened, as countries like China, India, and Brazil are now HICs/MICs and are all net providers of overseas investment. For example, in 2015, over 800 Indian owned businesses in the UK employed over 110 000 people. • China has bought Japanese household brands and is investing in infrastructure in Africa.

Define subsidies

grants given by governments to increase the profitability of key industries

define reimaging

how the image of a place is changed.

Define cultural diffusion

the spread of cultural beliefs and social activities from one group to another