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Globalisation - Coggle Diagram
Globalisation
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GLOBALISATION = THE PROCESS OF INCREASING INTERCONECTIVITY BETWEEN PLACES AND PEOPLE
socially, economically, politically
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Degrees of globalisation
indicies of measurment:
- KOF index= measure the extent to which countries are socially politcally and economically compared to others
weakness is that lots of countries have no political info avaliable
eg ireland ranked most globalised in 2014
- AT kearny index= uses a measure of business activity, human capital and information exchange, culture and political experiances to rank cities in global connections
eg in 2014, new york and london were top
however, smaller countries will have higher fdis due to smaller markets so is unfair
role of TNCS:
- outsourcing = when a company makes agreements with other companies for them to complete their work/maufacturing in order to reduce costs due to cheaper labour, resources and taxes
very common in chniese SEZs
- offshoring = where a company moves part of its operation to another country to reduce costs like labour an increase profit
- glocalisation = adapting the goods or services of businessses to increase consumer appeal eg mcdonalds having food made specifically for culotural intrest of location or BMW making right-hand drives for UK
(negatives include cultural erosion, environmental degradation, exploitation)
switched off areas from globalisation:
- physical isolation
- political isolation eg north korea
- economic isolation due to possibly high debts, less skills, transport IT...
the global shift
= relocation of the global centre of gravity to Asia, from europe and north america involving shifting of maufacturing jobs and service/administration jobs
Benefits:
- provides reliable waged work, especially significatn in countrieas that rely alot on primary sector jobs
- poverty reduction The world bank defines extreme poverty as an income less than $1.25 per day (2005). incomes have risen possibly due to more waged work
- education and training, invested in by TNCs providing more countries with skilled workers eg in China, 15x more uni grads
- better investment and infrastructire as FDI has attracted more TNC investment eg allowed china to build 11,000 new motorways.
costs:
- loss of productive land by increased construction
- increased air and water pollution by contamination and increased fossil fuel usage eg china has predicted 60% groundwater contaminated
- resource pressures so more land is getting exploited and more defrostation.
- labour exploitation where some ppl getting £2-3 per hr and have very long hours and could be exposed to dangerous machines and chmicals (has led to sever mental health issues and suicides)- eg in China, ppl working for apple have 70hr work weeks, there were 14 sucides in 2010
De-industrialisation in Detroit:
happens as a result of closing maufacturing in a place due to it being done elsewhere as it it cheaper
- detroit was once a thriving car munufacturing industry, but global shift has moved this to japan
- now has a declining population: fell by 0.8 million between 1060-2012
- crime rates increased to 2000 per 100000 violent crimes in detroit per peaople which is highets in usa
- leads to dereliction of homes and buildings making area ugly and unattractive
- unemployment as factories and mufactuiring closes down
economic migration
social and environmental challenges in megacities:
- overcrowding
- poor housing
- congestion
- air pollution
eg in karchai, pakistan, pop of over 24 million.most migrants come from rural areas of pakistan. half of karachis pop live in slums and work informally.
international migration:
- when regions are strongly connected to others, they experiance flows of elite migrants. these are affluent, richer individuals whose investment is wanted by the strong region.
- eg russian oligarchs in london:
significant numbers of elite russians have bought homes in london in areas like mayfair
also there are some who buy out major european countries to gain control eg roman abramovich buying out chelsea.
- this allows russian economy to be liked to the European market
- eg low-wage migration to dubai
many educated indians have moved to live in dubai as they will have higher standard of living
some aisian women move to dubai to do things like clean for richer ppl and they live there to work and send money back to familes as they will earn more this way
costs and benefits:
- costs:
brain drain, depopulation and demographic imbalance in source country
- benefits:
reduced welfare spending, returning migrants bring proffessional socail and political experiance
global culture
cultural diffusion = the exchange of ideas between differnet ppl as they mix and interact with other cultures- westnisation is a result of cultural diffusion
cultural erosion = the erosion of cultures in countries throughlanguage, food, clothing, music, art and film
eg in papa new gineau
due to british colonisation, there was the spead of christianity, english. familes stopped passing on native language
oppositions to globalisation:
happening due to concerns about losses of culture and environment leading to oppostion groups
- globalisation has dramaticall increased pollution, and defroestation
environmental concerns specifically in india due to it having ony 209 sewages and 3113 cities , people dump waste into rivers
also indian gov are agian us soft drink tncs such as coke due to too much water used up
- exploits workers
- increasing inequality
- cultural erosion
the development gap
indicators:
- economic
GDP
GNI
incomes per capita
- social
HDI
GII (gender inequality index)
life expectancy + birth rates
- environmental
environmental performance index
winners and losers:
can be measured socially and economically (also environmentally)
- winners:
billionaires making their wealth from owning TNCs
rise of emerging countries such as china
rise of job opportunites for ppl in places like asia where there are more call centre job opportunities
ppl who work for TNCs get good salary (could be arguged they develop more stress and mh issues)
- losers:
isolated rural populations like in asia and sub-saharan africa where farming and subsistence still dominates
workes in the developed world losing jobs
ppl migrating from families to get higher wage jobs
ppl suffering exploitation
environmental winners and losers:
some countries will get worse carbon footprints as TNCs move there, but others may get better and the factory will have moved away
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ethical and environmental concerns due to globalisation and how societies are changing through rise of localism
transition towns:
encourages towns to grow their own food so less transport of products leading to decreased carbon footprint
some towns promote a local currency
- eg the bristol pound
this wil keep money circulating benefitting local areas businesses, it will create stonger bonds between consumer and seller, reduces dependancy on international trade
fairtrade:
promotes ethical consumption where there were less people exploited, weren't using excessive resources, less contribution to global warming
- scheme involves ensuring farmers grownign coco, bananas, cotton, tea, coffee are gettin gpaid a fair amount for their work, which will help reduce inequalites
recycling:
has a role in managing a nations ecologucal footprint from resource consumption
uk councils play a role with large recycling collections
increased recycling in EU reduced greenhouse gases by 56% in 2010
- keep britain tidy scheme
organisation forunded by natioanl womens fedaration to adress litter issues in streets, so now there are many bins on the streets and many environmental programmes in schools and communities to reducte throwing things on floors