Geography Paper 3 old

The growing independence of countries worldwide through the increase in the volume and variety of cross-border transactions in goods and services of international capital flow and through the widespread diffusion of technology

Covers economic, social, political dimensions of globalisation

• measures all aspects equally

• Economic: trading of goods (33%)

• Political: number of international organisations (33%)

• Social: number of internet users (33%) - ‘the spread of ideas, information, images and people’

1975 (no headquarters and was created by the US)

• Russia kicked out in 2014 due to the conflict with Ukraine

• Cannot be considered global when ost of the population is not included (china, India)

• The most powerful nations undermine international corporation

• Can take action against aggression like standards

1999 (no headquarters)

• Guest can attend summit

• Africa is underrepresented

• Large economies are not shown

• They cannot force any countries to do something (recommend only)

• Represent 85% of the worlds gross product; 80% of the worlds trade and 65% of the population

1961 (headquarters in Paris France)

• Canada and the US joined in 1960

• 35 countries

• Africa and china not included

• The membership is hard and narrow to obtain

• Helps sustain economic growth boosts employment and raises living standards

1960 (headquarters in Vienna, Austria)

• monopolistic cartel (triggered oil inflation)

• If oil prices drop, members turn to IMF for help

• 65%

July 1944 (headquaters USA)

• decisions are made byt he top 20 countries

• policy making is American and Eurocentric

• Slow response with harsh conditions

• allows loaning and aim to achieve economic stability

• want to eradicate poverty

2015 (headquaters Shanghai, China)

• new addition of UAE, Uruguag, Bangladesh

• no major achievement despite it’s 5+ years of operation

• long time loans and boosts the economy

• lending only for sustainable development projects

• no need to agree on lending terms of the dominated US banks

• strong membership, good co-operation

not reliable

• does not measure any aspect of the environment

• scoail globalisation includes information from sources that may not have that particular global chain

• Book trade is unreliable as a country might have a low literacy rate/ disporable income

• tech progression means that emails are used rather than letters and newspapers

All the varied economic, social, political, cultural and environmental processes

the ability of the USA, USSR and the British Empire to project power and influence anywhere on the Earth to become dominant worldwide forces

The power of persuasion. Some countries are able to make others follow their lead by making their policies attractive and appealing (arts, music, cinema)

Getting their own way by using force. Invasion, war and conflict are very blunt instruments. Economic power can be used as a form of hard power where sanctions and trade barriers can cause great harm to other states

China vs USA

• since the global financial crisis (2007-9) it has been harder for the US to sustain their unipolar view of the world

• China is seen as the rival now

• the 320mill population own more than 40% of the gloabl personal wealth ( >1/20)

• of the 500 largest companies, ¼ are owned by the US (2015)

• have disproportionate influence over important intergovernmental organisations (all WB presidents were from the US)

• Americanisation and McDonaldisation widely used to describe the US food, fashion and media which have shaped global culture

• Combination of overt military power and covert intelligence operations to interviene in the affairs of over 50 states since 1945

• Their influence over international organisations have given greater influence over global politics than other states (inequitable)

• no other country has such a formidable combination of geopolitical, economic and cultural tools at its disposal

• Trump’s view is that the US have lost too much influence to China and that the US is no longer powerful enough

• 1978 (prior) China was poor and politically isolated (‘switched-off’ fromt he global economy) which changed when Deng xiaping began the the radical ‘open-door reforms’n which allowed china to embrace gloablisation

• Over 400million of it’s people are thought to have escaped poverty since the reform began

• FDI from China and it’s TNC’s are predicted to total US$1.25trillion (2015-2025)

• average income is still less than 1/3 of US citizens - slow economic growth

• rising challenges of the ageing population (one-child policy)

• lack the soft-power of the US due to cultural isolation from the rest of the world (few foreign films are allowed in china and internet freedoms are restricted by the government)

settlement or state which is highly connected with other places and through which an unusually large volume of global flows are channeled

Pros

• cheaper imports

• development due to economic stability

Cons

• disruptive social impact due to TNCs

• low salars and exploitations

• more connected people and places

• flows of trading and migration etc

• gloabl hubs - places especially important & powerful

• Raw material: used to be highest trading factor; rising demand from the industrial sector

• Manufactored goods: grown drastcially; textiles and electronic goods (Samsung and Huawei) - 1900s & 2000s

• Services: tourism, finance, insuraance etc, have increased; cities like Shanghai and Tokyo serve as an important global hub for service flows

The four fast-growing economies of Mexico, Indonesia, Nigeria and Turkey

• they have recieved large loans at some time

gift of money, goods or services to developing countries with no repayment

1. Bi-lateral: large scale from government to another (tied agreement)

2. Multi-lateral: from the IMF, often in loans

3. Emergancy: short-term relief for humanitarian disasters

4. Development: aid to assist at grassroot level to be more sustainable

• aid from the UK are directed towards Commonwealth countries : untill recently, india had recieved the most amount of aid from them

• India and China now provided aid to developing African countries like india spending US$6 billion on educationa projects

attempts to help poor countries use trade as a means of achieving economic growth and reducing poverty

• plans to increase market access for poor countries (mainly in asia and african)

the transfer of money or skills that require repayment over a set time (can be important financial flows for states at all levels at economic development)

Many developing countries (sub-saharan Africa is often classified as heavily indebted)

The cross-border moeny flow from one country (earned by someone) to their families in their home countries

• many migrants go to rich countries in order to make money to provide theirfamilies a better QOL

Transnational criminal markets destroy, bringing diease, violence and misery to exposed and vulnerable populations

• trafficked people

  • most victims come from relatively poorer countries and are exploited in relatively richer countries

• counterfeit goods

  • responsible for labour exploitation, environmental damafe and health implications for consumers

  • corruption and bribery are linked to the trade in counterfiet goods, especially when they are transported interntionally

  • fraudulent medecine: The world health organisation beleives that about 1% of medecines in HICs and up tp 30% in LICs are fraudulent

  • Counterfeit food and drink: Global issues of such include, ‘wild’ salmon produced by aquaculture, contaminated milk formula in China and the horse meat scandal

• Narcotics

  • Involes the cultivation, manufacture, distribution and sale of substances

  • the gloabl trade is estimated to be worth 1% of total global trade

foreign direct investment and outsourcing by TNCs and ways in which this networks places and markets

• expected to slow down in Asia as many economies mature

• expected remain low in Africa remained low because of low commodity prices, declining domestic markets and the impact of restrictive measures

TNCs move parts of their own production process (factories or offices) to other countries to reduce labour costs, avoid MGO import taxes and locate closer to the markets they will be serving

• UK tech company ‘Dyson’ moved its manufactoring division to Malaysia in 2002

• Nissan (Japan) built factories in the EU to serve the European market directky and avoid MGO import taxes

• creates spatial division of labour which increases profits fro the TNC and creates jobs in the states invested in

• Cause job losses in the TNCs origin country

• companies are also exposing themselves to a range of new political and physical risks by relocating

International corporate merger where two firms in different countries join to create a single entity

• 2010, UK chocolate maker Cadbury was taken over by US food giant Kraft

• Revenue from their sales now feeds the profits of a US registered subdivision of Kraft

• TNCs can expand markets and reduce costs through rationalisatopm

• changes in TNC ownership affects the geography of global financial flows

• large profit flows are redirected towards the state where the buyer is headquatered

Two companies form a partnership to handle business in a particular territory without merging

• In India, McDonald’s restaurants are part-owned by Connaught Plaza restaurants

• The local success of the venture owes much to glocalisation strategies such as McAloo Tikki Burger

• Can make ventures more successful as local knowledge may prove invaluable when trying to gain a competitive edge in a lucrative new emerging marketyo

• investment in new product designs as part of overseas investment stratergies

• involves adapting global products to account the geographical variation in people’s taste, religion and interest

• local success of venture

• some products may still not be popular in the country

A chain of connected supplies of parts and materials that contribute to the maufacturing or assembly of consumer goods

Tata vs Apple

• over 100 companies which emcompasses consultancy, software, steel, tea, transport, chemicals and hotels

• Operates in over 80 countries with 600k employees (60% revenue coming from outside of India)

• economic liberalisation was both an opportunity (able to compete in the international arena) and a threat (vulnerable to competition)

• conducting reasearch in nanotechonoly

Aquisition

• due to lack of coordination, teh chairman streamlined the company by focusing on the six industries of highest revenue and increased its shareholding in these core businesses

• committed to ‘frugal innovation’, designing products to appeal to the poor and middle class

• many cultural differences and market volatility

• richest corporations in the world'

• outsource much of it’s productions with 785 suppliers in over 230 countries globally

• Foxxcon (worlds largest electronic manufactoring service) is the principle supplier

• $565 billion revenue (2021)

• 272 shops in the US

• 147k employees (2020)

• factories in china for low labour costs

Offshoring

• heavy critisism on account of human rights, environmental and ethical issues in China

• followinng suicide attempts for better working conditions and higher wages in 2010, Foxconn provided counselling and increased wages

• Apple Inc. also had to ensure responsible and ethical practices

• sales unaffected by supply chain controversies due to brand loyalty

• $22 bilion revenue (2021)

• 1.9 million employees worldwide

• operate in over 100 countries

• 14k restaurants in the US

• outsource 100% of their supplies (local farms in that country)

• McDonalds own the land they are on

• reputation for sustainable programmes

glocalisation

• appeals to locals by changing the menues (global stratergies)

• use glocalisation to improve the likeliness of the product intergrating into the cultures

• many places are interconnected by a range of flows (aid, trade, remittances, illegal goods, drugs by TNCs)

• many stakeholders are involved and their power/ rights vary

• many places become interconnected by gloabl interactions (trade, goods/services, FDI,…)

The state of being independent and being able to make their own decisions

• operate across many countries and states

• most focus on economic matters in an attempt to increase trade and interactions, although there may be protectionism

• they attempt to limit their spartial interactions with other states and foreign stakeholders as they perceive gloabl flows as a threat to soverignty of states

Mexico and US are both part of NAFTA where America TNCs optimises their use of both nations human resources

An arrangangement among groups of nations to allow free trade between member countries bu to impose tariffs on other countries (EU)

• allow firms to grow by removing barriers to intra-community trade

• allow firms to possess a comparative advantage

• increase demand from expanded markets; raising the volume of production and economies of scale

• allowing small firms to merge forming a TNC

• free trade areas (members abolish tariffs and quotes on trade between themselves)

• custom unions (common external tariffs on imports from abroad)

• common markets (custom unions that allow the free movement of capital)

• economic unions (group of nations that share a common market and requre members to have common policies on sectors such as agriculture, industry and regional development)

Aspects of the new international division of labour, representing relatively easy paths to industrialisation

• China, India and Indonesia have embraced global markets as a means of meeting economic development throught the establimaent of SEZs, subsidies and changing attitudes to FDI

Many TNCs have estabilished offshore branck plants or built outsourcing relationsjips with chinese factories in low-tax SEZs

In 1960, they opened its markets having built an attractive new legal and economicm framework for foreign investors and turning its back on communism

• problems of indebtness and serious foreign exchange shortfalls in LICs since the 1980s

• spread of new liberal ideas that encouraged open economies, FDI and non-traditional exports

• The search by TNCs for cost-saving locations to shift manufactoring production from locations in the advanced economies

• Important for the growth of the labour market in ageing populations

• liberal immigration rules must be adopted to allow inward investment from TNCs

• removed border controls, allowing EU labour to move where there is most demand

• govs may try to prevent global flows due to fears of terrorism and uncontrolled refugee movements

• illegal flows of immigration persist irrespective of legal changes

• most countries are obliged to taken in genuine refugees, irrespective of economic migration rules

• trends have implications for policymakers

• there are new challenges for govs to provide for migrants and increased hostility in recieveing countries

• increasing gloablisation and the growing diversity of migrants make it harder for governments to restrict migration

The heightened connectivity changes our conception of time, distance and potential barriers to the migration of people, goods, money and information

as travel times fall due to new inventions that different places approach each other in ‘space-time’, they begin to feel closer together than in the past

• techonolgy communication with conventiional messages and also the transmission of data

• economic transactions are easier with lage courntries like USA, Europe and Singapore being at the centre of the world’s digital networkes

• trade with physical goods that can be tracked and paid online

• digital platforms (social networks, operating systems, digital media platforms and e-commerce websites)

• McDonald’s, nike and banks building extensive global production networks - building offices and factories in other countries as new markets

• Skype and an electronic remittance through the internet support

• 250 million people live in countries they aren’t born - so the online softwares help for communication

• Greenpeace and Amnesty fundraise and raise awareness globally for the support of political globalisation campaigning

• Apple, Google and Microsoft hace driven techincal innovation in the era of globailsation

The polarisation of the world’s population into ‘haves’ and ‘have-nots’. it is usually measure in terms of economic and social development indicators -exists both between and within states and societies

The multidimensional process of human development and ways to measure it

• 17 goals introduced in 2016 which replaced the millennium development goals 2000)

• goal 5 (gender equality) and 13 (climate action) are the most important now

• sustainable development

• democratic governence and peace building

• climate and disaster resillience (varing attitudes for importance for each SDG)

• indicator per capita

• HDI

• Gender inequality index

mean average income for a group of people (average income/ population size) - gives a crude average

• one of the most widely used

• final value of ouput of goods/ services inside a nations border including any foreign-owned businesses that have their operations their

• GDP not reliable because it doesn’t include informal sector & must be manipulated further for the costs of living

• Many websites give two estimates with Brazil (2015) nominal of US$1.9 trill to the PPP of US$3.6 trill

composite measure of development that was devised by the UNPD (united nations development programme) (2010gn) which includes:

• life expectancy

• education index

• standard of living - GNI per capita adjusted for purchasing power

• the three ingredients wealth, health and education are regarded as valid by the gov

• literacy and life expectancy not always reliable because many are displaced (Syria or drought in horn of Africa)

Derived by the UN which measures the aspects related to socail and economic development (reproductive health - maternal morality ratio+adolescent birth rates; gender empowerment - prop of women in parliment or with secondary education; economic status - labour force participation)

• countries like Kuwait don’t allow women in parliment

• Pakitstan’s taliban militia have burned down schools where there culture say that women should’nt have rights

• may be tricky to collect data because women who work are in the informal sector or have 0 hour contracts

• disparities often exist between groups of people within individual countries - they have been disproportionately affected

• women’s right to an education - Mala Yousafzai was shot by the taliban (2012) and she had adressed the UN about the education for women

• The attack had shocked Pakistan and the world as she has since become a symbol of resistance againts terrorist groups

• local schools in Pakistan’s Federal administration tribal areas (FATA) staged a day of action

• Pakistan’s gov have promised to improve the participation of girls in primary school

• Pakistan is committed tot he new SDGs which includes the target for education and gender equality

• cultural attitudes againts disabilitys are now changing on a gloabl scale meaning that there is a scale bring ‘full enjoyment without discrimination’(UN)

• US, however, have sterilisaiton programmes that sometimes target disabled people (lasted unitl well into the 20th century)

• international sporting events first began in 1948 with the WWII veterans participating

• First official paraolympics in 1960 Rome with participation from 23 countries

• in 2012in 164 countries took part

• 370 mill indi people (5% of pop) and they contribute to a rich diversity of cultures, religions, traditions and languages

• continue to face exploitation and discrimination by the most marginalised people

• the govs National indian foundation (FUNA) in brazil establish and carry out policies to map and protect lands traditionally habited

• Ogoni people (Nigeria) have campaigned tirelessly to gain compensation from TNC shell large oil spills (2015) - want US$70 mill for the 15.6k farmers

• recently canada have gradually helped to define and protect the land rights of indigenous first nations people

An economic policy favouring members of a disadvantaged group; it is sometime described as positive dicrimination

Mapajo lodge - amazon rainforest (est1999)

• increased incomes and improved the standards of living, making sure that the environment is protected

• profits used to finance small communtiy projects to improve the qol

• small impacts on their natural and cultural heritage with intiatice focusing on land rights, crafts, education, culture and hertiage

Malawi

• transformed the lives of subsistence farmers near the shores of lake malawi (land-locked tropical country in south-east Africa)

• farmers have become more deeply integrated into gloabl networks as a result of lending

• have recently helped malawian farmers buy new seeds types that yeild more cropes and fertilisers

• microfinance

• fair trade

• corportae social responisbilities

• language

• food

• clothing

• religion

• traditions

• TNCs - western corporations like Nike, Lego and Apple have rolled out uniform products gloablly, changing them based on the culture

• Global media - Disney exported stories of superheros and pricesses everywhere; he production of bollywood and or japanese Pokemon

• Migration and tourism - Europeans travelled aound the world during the age of empires, taking their languages and customs with them

• 95% of the pop speak one of 400 languages

• 40% of people speak the major 8 languages: Mandarin, Spanish, English, Hindi, Portuguese, Bengali, Russian, Japanese

• ¼ of the pops 7k minor languages are at threat of extinction

• Papua new guinea originally had 1.1k indigenous languages but as global interactions accerated, the physical, tech and economic barriers that allowed many isolated languages to develop have been removed

Theory that proposes that revelance and power of countries will reduce over time. Global flows of commodities and ideas ,ay result ultimately in a shrinking and borderless world

• look at the optomistic and pessimistic view

The practise of promoting culture and language of one nation. May occur