Globalisation Revision Booklet 1 PDF

# Globelisation Revision ## Definition The increasing integration of economies around the world, particularly through the movement of Goods and Services. ## Economic - The growth of TIVC's accelerates. - Online purchasing using Amazon on Smartphones. ## Social - Created extensive family netwo...

# Globelisation Revision ## Definition The increasing integration of economies around the world, particularly through the movement of Goods and Services. ## Economic - The growth of TIVC's accelerates. - Online purchasing using Amazon on Smartphones. ## Social - Created extensive family networks across cross national borders. - Global improvements in education and health can be seen over time. ## Political - The growth of trading blocks (EU, NAFTA) allows TIVC's to merge and make acquisitions of firms in neighbouring countries. ## Cultural - The circulation of ideas and information has accelerated thanks to 24 hour reporting. ## Migration - In 2013 $500 billion of remittances were sent home by migrants. - Mass migration means a large amount of money is sent back to HICs and NEEs from HICs. - For example, large amounts of USA profits get sent to India and parts of Asia along with Mexico. ## Shrinking World **Positives:** - More ideas are shared worldwide. - Developing countries develop quicker. - New technologies such as phones mean people can communicate much easier. - Online shopping and TIVC's mean products can be made cheaper and easier. **Negatives:** - Poorer countries or countries with large poor populations such as China get taken advantage of (e.g. in sweat shops). ## Most Noticable Difference - How long it takes to get anywhere in 2016 vs 1914. - In 1914, a 5-day journey could be completed. - In 2016, the slowest journey takes less than 1.5 days. ## Containerisation - A system of standardised transport that uses common size steel containers to transport goods. - Easily transferred between ship, lorry and train. **Before containers:** - Goods were crammed into the hold of the ship, loose cargo in wooden crates. - Loaded and unloaded by vest crews at docks. - Ships often spent longer docked than at sea. - Not all goods were stolen "$20 a day and all the scotch you could carry home." **After containers:** - Prices of everything fell, including the cost of loading and unloading. - $0.16 per tonne as opposed to $5.83 per tonne before. - Losses to theft plummeted, reducing insurance costs. - 30 tonnes an hour could be moved, used to be 1.7 tonnes per hour. - Fewer dockworkers needed. - Boosted Globalisation. ## Political - International Organisations - End of WWII, international meetings of governments took place in USA. - Aim to re-establish world economy. - Set up 2 major international organisations: - International Money Fund (IMF) - World Bank. ## IMF - Promotes international financial stability. - Promotes international trade. - IMF accountable for 189 countries. - Ensure stability of international monetary System. - Provide countries with bens - Interest free. ## World Bank - Fights poverty in NEE and LLE countries by giving loans and offering advice and training. - Gets funding from rich countries. - 184 members. - LS 5 largest Shareholders being, U.S., UK, France, Germany, Japan. - Policies - Sustainable growth, health, education, social development programs and more. ## Trade Blocks **Advantages:** - Larger markets created via trade blocks permits economic scale. Mass production decreases. **Cost:** - Trade blocks eliminate tariffs, therefor driving down the cost of import. **Disadvantages:** - **Regionalism:** Multinationalism: Trade blocks have a bias towards their participating countrizes, for example putting tariffs on other trade to make it less appealing. - **Loss of Soverignty:** Trade blocks are likely to lead to at least partial loss of sovereignty for its participants. - **Independence:** Because trade blocks increase trade among participants, the countries become increasingly dependent on each other. ## Maquiladoras in Mexico - Over 1 million Mexicans working in over 3,000 maquiladoras or export assembly plants in Northen Mexico, producing parts and products for USA. - Maquiladoras are owned by USA and considered "Sweat shops" young women working for as little as 50 cent an hour. - Many forced to live in shanty towns that lack electricity and water. ## China - Open Door Policy - 1978 - Poor, politically isolated country. - Communist leadership. - Millions had died from famine. - Open door policy embraces globalisation. - Farmers were allowed to make small profits. - Strict policies on number of children curb population growth. - Eventually, were 200 Chinese cities with 1 million inhabitants. - Law ages brought in. - Today, China is the world's largest economy, with 400 million said to have escaped poverty.