3.2.1 global systems and global governance Flashcards

Question

what factors have accelerated the pace of globalisation since the 1990s?

Answer 1

trade: role of WTO, more free trade and trading groups communications: ICT/mobile phones + internet revolution transport: faster transport by air, road and rail increased size of aircraft and integrated air traffic networks collapse of communism: make countries develop market economies transnational corporations: growth of TNCs through mergers and expansion eg Microsoft capital/investment: increasing capital mobility global marketing: rise in significance of global brands eg McDonalds containerisation: vast quantities can be shipped globally at low cost break bull shipping - unloading and loading cargo into ships from trucks migration: role of WTO; more free trade, trading groups security: traditional security measures have reduced, more mobile and better informed populations

Answer 2

governments have trade departments whose aims will be to facilitate trade and encourage exports UK trade and investment departments offer support and advice on all aspects of trade to encourage business and help export countries customs is completed before they reach the docks deregulation of financial markets has allowed arrangements for the removal of government barriers to movement of finance international trading is easier and faster

Answer 3

global financial system governs the flow of capital between countries financial systems are based on companies called investment banks - aim to help companies raise capital by selling shares on behalf of those companies people buy shares which are called investors and they receive a small proportion of profits 1. information technology = allows investors greater access to information. Investors and investment banks could easily find out whether a company was doing well or struggling and make an informed decision on whether to invest 2. investment banks created new financial products that made foreign investments are less risky 3. financial deregulation = relaxed regulation on what banks are allowed to do, charge for their services as well as allowing banks to invest in their businesses Also involves removing barriers to capital coming in and out of a country 4. greater range of companies involved in finance - commercial banks also began selling shares. Enabled investment banks to take on a greater number of services eg exchanging currencies between countries to allow them to trade across national borders

Answer 4

1. companies supply chains have become global - a companies supplier may be in a different country to their factory - which is in a different country to their research and development department ALLOWS COMPANIES TO MINIMISE COSTS 2. large companies can benefit from economies of scale - average cost to a firm of making an item is usually high if not many is made. Large companies can reduce the average cost by PURCHASING SPECIALISED EQUIPMENT AND USING PRODUCTION LINE. May be able to buy raw materials in bulk for cheaper. GIVES ADVANTAGE OVER SMALLER COMPANIES 3. outsourcing - company pays another company to do work to save costs. CHEAP LABOUR MEANS COMPANIES CHOOSE TO OUTSOURCE ABROAD. 4. companies working practices have changed - casual and temporary contracts to take on workers and when they are required NO FIXED WAGES PER YEAR, SO THEY SAVE MONEY

Answer 5

1. improved transportation systems eg high speed rail networks have allowed people and products to get to places around the world more easily 2. uniform metal containers were introduced in the 1950s - this allowed more goods to be loaded onto ships at once and transferred straight onto other transport methods made it easier for goods to be moved quickly and cheaply around the world 3. communication satellites were first launched into orbit in the 1960s - allow relatively cheap wireless communication between two devices. Companies based in rural/remote areas can access the Internet and communicate with others 4. optic fibre cables - use signals of light to transmit more information than any other cable. Fast communication that is almost instant 5. significant growth in free communication eg text messages

Answer 6

1. trade is primarily regulated by countries governments - they control which products are let into the country and the prices they are sold at. Controls include tariffs, non-tariff barriers and banning products 2. controls make it more expensive for companies to sell their products above, as well as for consumers to buy them 3. trade agreements - contracts in order to remove barriers in both countries. BENEFITS BOTH COUNTRIES COMPANIES AND CONSUMERS bilateral trade agreements = trade agreements between two countries 4. multilateral trade agreements = trade agreements between several countries multilateral and bilateral agreements make up the global trade system 5. global trade system is governed by the World Trade Organisation (WTO). Established in 1995, the WHO sets rules on how countries can trade with each other FORUM FOR COUNTRIES TO NEGOTIATE TRADE DEALS AND SETTLE TRADE DISPUTES

Answer 7

- improves peace and security - increases global trade and cooperation - helps increase and develop their economies - allows entry into the global trading competition - increases representation in world affairs - allows people seek work to move easily - spreads democracy and human rights

Answer 8

- loss of sovientry and decisions are centralised - loss of financial control to central legislation - pressures to adopt central legislation - certain economic sectors

Answer 9

- oversees the global financial system - offers financial and technical assistance to members - only provides loans if it will prevent a global economic crisis - draws its financial resources from the subscriptions of countries - employs 2,300 staff from 185 member countries and ejects a European MD

Answer 10

- promotes economic development in LICs - provides long term investment to reduce poverty - provides interest free loans - gets resources from borrowing on the international bond market - employs 7,000 staff from 185 countries and American president

Answer 11

founded in 1995, has over 160 members and deals with the global rules of trade between nations supervises and liberise trade by removing barriers act as a arbitrator sorting out trade problems between member governments negotiate agreements that become legal ground rules provide stability by giving trading nations

Answer 12

companies that operate in two or more countries with headquarters based in one country but business operates in others 1. to escape trade barriers eg Nissan's decision to produce cars in Sunderland to gain access to the EU market 2. to find the lowest cost location for their production 3. to reach foreign markets more effectively 4. to exploit minerals available in other countries eg BP

Answer 13

maximising global economies of scale by organising production to lower costs sourcing raw materials/components at the lowest cost controlling key supplies control of processing at each stage branding of products outsourcing of products

Answer 14

TNC's become easily flexible in the global location of their assets HQs are based in the home country but TNC's may have subsidiary HQ in other countries TNCs will engage in research and develop

Answer 15

production of TNC's will be baed whether there are unexploded resources, moved to developing regions however due to a combination of rising world prices and new technologies, access to raw materials may also be viable in the home country USA + UK = fracking

Answer 16

production has largely occurred in the manufacturing regions of developing countries, especially in South East + South Asia

Answer 17

labour costs are lower investment in education makes workers easier to train strong work ethic means workers are willing to work long hours in a unionised environment may be government incentivities such as tax free breaks or less restrictive environmental legislation

Answer 18

service TNC's are more flexible and will locate when there is a balance of lower labour costs, a well educated labour force + proximity to market language may be also be important as seen with call centres in India

Answer 19

hot country: - investment in education and healthcare - new technology - work opportunties - multiplier effect TNC: - cheaper labour - avoids taxes - cheaper material - fewer control over legistation

Answer 20

host country: - poor working conditions - exploration of resources - negative impact on environment + culture - economic leakage TNC: - ethical issues eg damage and sweatshops - social and environmental conscience

Answer 21

concept of taking internal companies functions and paying a outside firm to handle them aims to save money, improve quality or free company resources revolution in ICT has allowed outsourcing to develop into a global business practice is largely one directional, taking manufacturing and service jobs from high wage economies in Europe and having them be undertaken by a subtracting organisation outsourcing provides jobs and investment in one country but removes from another consequences are negative (de-multplier effect)

Answer 22

modern technology in purpose-built science parks helpful Indian government policies towards new call centres low wages and costs compared with the USA and Europe 12 hour time zone difference from the USA makes rezoning calls simple graduates with required technical skills many english-speaking graduates

Answer 23

1. lorenz curve 2. gini coefficient

Answer 24

A graphical technique that shows the degree of inequality that exist between two variables 45° diagonal line represents equality Further, the curve is away from the diagonal line, the greater the degree of inequality Evidence suggest that inequalities in HICs is increasing

Answer 25

technique frequently used to show the extent of economic inequality over time within + between countries the lower its value the more equal household income is distributed measure of how different groups of households receive different shares of household income

Answer 26

defined as a ratio with values between 0-1 low value indicate a more equal income distribution high value shows more unequal distribution gini coefficient of 0 would mean that everyone in a country had the same income

Answer 27

* Reduced unemployment in places where there is a lack of work because of opportunities to work elsewhere * Addresses important skill and labour shortages in places * Reduces some inequality as foreign workers earn higher wages in HDEs * Remittances sent back to developing countries provide stability and opportunity for growth * Migrant workers increase workforce, pay taxes and spend money, which promotes growth and reduces dependency in HDEs with ageing populations * Some workers return to their country of origin equipped with new skills and ideas Reduces population pressure on resources, such as food and water, and services, such as healthcare, in developing countries

Answer 28

* Developing countries lose younger, more talented workers attracted by higher wages - this "brain drain' reinforces inequality and dependency * Loss of skilled workers adversely impacts on productivity, growth and development * Developing countries become over-dependent on remittances * Migrant workers and families may put pressure on health and education services in HDEs; they may be treated differently in these systems * If only workers are allowed to settle, families may be separated, which is unjust * Migrants may be segregated formally or informally into certain areas. * Resentment towards migrants may lead to ethnic and cultural conflict * Greater movement of labour may contribute to the risk of disease pandemics

Answer 29

benefits of stability: Dismantling state ownership of corporations can benefit consumers in LDEs by lowering prices disadvantages: Profits are retained rather than re-invested as is the case for nationalised industries), causing greater inequality and potentially inhibiting economic growth

Answer 30

benefits of stability: Reducing government regulation and intervention can encourage enterprise disadvantages: Deregulation can lead to more relaxed social and environmental laws in LDEs, causing social injustices and environmental degradation

Answer 31

benefits for stability: Free trade allows global markets to develop and thrive and may help some LDE's to attract investment disadvantages: Free trade may not always be beneficial to some LDEs; they may be disadvantaged. LDE (infant) domestic industries may be outcompeted by free trade so some protection may be needed

Answer 32

benefits for stability: multiculturalism enables developing countries to integrate into the global economy and to access markets disadvantages: citizens may see it as a dilution of their culture and even a threat to their national sovereignty and identity

Answer 33

remittances = money sent home by migrants working overseas is an important source for developing countries loans = developing countries borrow from the world bank to fund projects inflows of foreign direct investment = investments from TNC's to developing countries to raise average incomes and reduce poverty growth of TNC's = capital investment and taxes paid by successful businesses to their host government leakages = the repatriation of profits

Answer 34

communication and transport increase the integration of economies, developing countries are closing the gap with rich world counterparts increases inequality because richer members of society cop better with the changes in jobs and technology fastest growing economies contribute to Asia, although Africa have a large gap in living standards

Answer 35

gini index = indicates levels of inequality of income distribution within a country aggregates the inequalities in people's incomes into a single measure, giving a coefficient between 0-1 larger inequality between LDEs then in wealthier countries income inequality has increased in most developing countries suggesting that globalisation has had a negative effect on income distribution

Answer 36

G7 = group of 7 intergovernmental organisations made up of the largest advanced IMF economies: canada, France, Germany, Italy, Japan, UK and US G20 = an international forum, including the G-7 countries and the EU as a single member. Established in 1999 to give a voice to meet a developing countries. OECD = organisation of economic cooperation and development, 37% of the richest and most influential countries globally

Answer 37

1. access to goods that would not be available otherwise 2. lower costs, production efficiency and innovation = increase in competition forces to make their products more attractive to consumers through production features and lower costs 3. reduction in market fluctuations = sheer size of the international market compensating for EBBS + flows in consumer demand 4. outlet for surplus 5. resource specialisation = large countries like the US have access to almost every resource but rely on imports 6. investment = companies invest in internal research to receive a larger investment back. trade affects investment by opening markets for American investment dollars 7. jobs = chief complaint about international trade agreements is that it takes away jobs but does promote job growth 8. peace = countries with strong international trade agreements rarely go to wars. creates economic interdependency + incentives

Answer 38

international trade is still dominated by a few large economic blocks namely North America, Europe and east Asia G7 accounts for 50% of global trade Dominance has been challenged by emerging economies. China is largest part LICs tend to have a fairly limited range of exports, centred around primary products 1995 african countries account for 2% of world trade and 3% in 2010 forecasts suggest a continued growth in international trade, particularly in Asia-pacific regions machinery and transport sector will make the largest contribution to trade

Answer 39

foreign direct investment (FDI): when a person, company or other group spends money in another country to generate a profit volume of FDI has risen dramatically from about $400 billion in 1996 to %1500 billion in 2016 pattern has also changed - until the 1980s HICs invested into other HICs. Now HICs invest into NEEs NEEs invest into LICs

Answer 40

refers to the cost of goods that a country has to import, compared with the price of which they sell the goods they export HICs tend to import primary products from LICs and subsequently turn these into manufactured goods for export to world markets value of products increases as it passes through HICs price of manufactured goods increase but the price of primary products fluctuate, LICs need to export increasing volumes of primary products to purchase the manufactured goods they require

Answer 41

helps their economy grow and creates jobs LICs can present themselves as attractive locations because of potential profits - cheap labour - new markets - law taxation - cheap land and resources - relaxed planning and environmental regulations some growth economies and emerging markets like China, India and Brazil are seeing increase in FDI

Answer 42

unstable government poor transport and communication links poverty reducing potential market complicated regulations in foreign languages relaxed planning and environmental regulations

Answer 43

the theory that countries should specialise in providing goods and services that they excel at producing production should increase in each country, globally, because each country is concentrating on what it does best does not tend to happen due to regulations, protectionism and high transport costs eg Umbrella city

Answer 44

- tariff and tax on imports - import license, issued by a national government authorising the import of goods from a specific source - import quotes, these set a physical limit on the quantity on the quality of goods which can be imported - voluntary export restraints - subsidies, grants or allowances given to domestic producers to make them more competitive against imported goods - embargoes: partial or complete prohibition of commerce and trade with a particular country

Answer 45

fair trade is a social movement whose goal is to help producers in developing countries achieve better trading conditions and promote sustainability movement focuses mainly on agricultural products and on goods transported from LICs to HICs members advocate the payment of higher prices to producers as well as helping them to achieve social and environmental standards organise producers into cooperatives which can given more influence in governing market conditions and power to negotiate better deals with buyers alternative trading organisations eg oxfam trading

Answer 46

main goal: to increase nations economic growth focuses on: trade policies between countries primarily benefits: MNCs, powerful business interests critics say: punishing to marginalised people and the environment major action: countries lower tariffs, quotas, labour and environmental standards producer compensation determined by: market and government policies supply chain: includes many parties between producer and consumer key advocate organisations: WTO, world bank and IMF

Answer 47

main goal: to empower marginalised people and improve quality of their lives focuses on: commerce among individuals and businesses primarily benefits: vulnerable farmers, artisans and workers in LICs critics say: interferes with the free market, inefficient and too small scale for impact major action: business offer producers favourable pricing and environmental standards producer compensation determined by: living wage and community improvement costs supply chain: fewer parties and more direct trade key advocate organisations: fair-trade labelling organisations, world fair trade organisation

Answer 48

main trading entities are the USA, part of the North American free trade agreement and the EU trans-pacific partnership = free trade agreement currently being negotiated by 12 countries criticised because the negotiations lack transparency topics negotiated extend beyond traditional trade matters and set binding rule

Answer 49

A country specialises in producing only those goods that can be produced efficiently and at the lowest opportunity cost If demand falls or if the same goods can be produced more cheaply overseas, then production needs to shift to other products. Specialised production centres may be less flexible and unable to diversify. Producing a narrower range of goods and services means that a country can produce in high volumes and at a cheaper potential loss. Dumping refers to exporting at a price that is cost per item. Profit lines can be tight, even where goods are sold at a lower in the foreign market than prices charged domestically Increasing trade results in increased competition that lowers prices and allows consumers to be able to buy more for their become established when faced with existing foreign money. New home-grown industries may find it hard to grow and competition, where costs are lower Domestic prices may be kept high when a single firm controls a large proportion of the domestic market (25% +) as there is less competition. Imports from overseas competitors help to lessen this effect. Application of new technology is incentivised as this may lead to design improvements and cost savings Increased production for export is likely to result in increased employment and a subsequent multiplier effect. A country/government may protect important domestic industries by imposing additional taxes and tariffs on imported goods and or/encouraging exports Traditional skills and crafts may be lost when production technology replaces manpower. So called "screwdriver jobs" may dominate. The biggest cost for most industries is labour, this is particularly true for consumer manufacturing industries. By squeezing this cost, even if working conditions are compromised, profits can be maximised.

Answer 50

globalisation will make societies more creative and prosperous HOWEVER ALSO VUNERABLE NEEs, TNCs, IMF, world bank and regional trading blocs brings about more choice and lower prices

Answer 51

with greater movement and use of resources, the world's population is putting ever increasing pressure on finite resources concerned primarily with economic costs and largely ignores environmental costs - more transportation, increases CO2 - depletion of non renewable resources - TNCs outsourcing production to countries where environmental standards are less strict - weak controls allowing pollution of air - waste from packaging - IMF enforced spending costs reducing many nations spending on environmental

Answer 52

TNC profits are taken from countries, leakages low pay by TNCs inequalities in income increase small local producers suffocated by foreign investment overspecialisation is one industry too reliant on TNC investment increased risk associated with the interdependent of economies

Answer 53

over standardisation of many goods and services has led to increased cultural homogeny damages cultural traditions and less diversity access to foreign cultures is causing the distinction between countries fading to one corporate diversity increased awareness of global news and events

Answer 54

ways in which global affairs affect the way the whole world is managed commission on global governance define it as the sum of many ways individuals and institutions manage their global affairs

Answer 55

1. environmental protection 2. trade 3. reduction on poverty 4. human right violations 5. civil conflict 6. financial stability

Answer 56

norms = values, tradition and customs that govern individuals behaviour in any particular society may not be written down but widely understood norms become enshrined in laws that reflect the acceptable standards associated with a specific cultural background laws = obligatory and protect right and interests eg human rights and gender inequality

Answer 57

UN = promotes internation peace and cooperation, with 193 member states has an advisory role with it's purpose to post co-operation between state governments rather then exerting authority WTO = WHO take responsibility for managing specific areas NGOs ensure justice and equality for people to campaign for environmental sustainability

Answer 58

secretariat = executive branch of the UN, which oversees programs and policies and carries out the day-to-day operations security council = responsible for maintaining international peace and security economic and social council = coordinates various agencies and conducts programs in medicine, education and social needs general assembly = approves budgets, establishes agencies and programs, elects members to serve on the agencies

Answer 59

WHO = manages international public health issues by combating and eradicating spread of global pandemic eg eradication of smallpox UNDP = eradication of poverty and reduction of inequalities and exclusion eg successfully meeting millennium goals

Answer 60

Peace: Thanks in part to UN conflict resolution and peacekeeping initiatives, the number of people dying in conflicts has declined rapidly since 1945 - worldwide, fewer people died in conflict in the first decade of the 21st century than any decade of the 20th. Prosecutions of Charles Taylor and Slobodan Milosevic: The Liberian and Serbian leaders were both prosecuted for war crimes by tribunals set up by the United Nations Ending famine: Numbers have fallen from the 20th century, when more than 70 million died from famine. Again, intervention by the UN's World Food Programme, Food and Agriculture Organisation and UN-sponsored emergency aid management can take some of the credit. South Africa, Kazakhstan, and the other countries have committed to ending nuclear weapon research programmes and submit to inspections by the UN International Atomic Energy Agency. Protecting the Galapagos Islands... and 1,000 other World Heritage sites. Since the Islands became one of 12 initial sites named by the UN cultural organisation Unesco in 1978, its listings have become the international benchmark for protection of the world's most important natural and historic places.

Answer 61

Rwanda Genocide: The UN had an "Assistance Mission" for Rwanda in 1994, which knew about the impending genocide, but its peacekeepers failed to stop the majority Hutus going on a murderous rampage and killing almost a million members of the Tutsi minority. Rape and child sex abuse in the Congo UN peacekeepers were accused of paying women and young girls they were supposed to be protecting for sex, and sometimes raping them, in the Democratic Republic of Congo in early 2005. Spreading cholera in Haiti: Genome testing showed that the most likely source of the world's worst recent outbreak of cholera, which swept through Haiti after the 2010 earthquake, was a Nepali peacekeeping force. More than 700,000 were infected and 8,000 died. Iraq oil for food programme: This was the programme whereby Iraq could gain relief from international sanctions by selling oil through the UN, which would supervise the delivery of food and medicine with the resulting cash. However, large sums of money were channelled into private pockets through the programme Srebrenica: The massacre of more than 8,000 Bosnian Muslim men at the hands of Serb forces in Srebrenica in 1995 was an even more specific failure for the UN than Rwanda - in that the town had been declared a "safe zone" and given its own Dutch protection force precisely to stop this happening.

Answer 62

UNDP aims to eradicate poverty and reduce inequality and exclusion operates in over 170 countries notable successes of the UNDP has been their drive to meet the 8 millennium development between 2000-2015 been replaced by 17 sustainable development goals

Answer 63

people receiving HIV treatment x15 child mortality 1/2 1/9 go hungry each night

Answer 64

created at the earth summit. rio. 1992 adopted by the international community to focus on sustainable development plans are intended to be passed down via national government and local authorities to encourage more sustainable lifestyles and behaviour UK recycling scheme is an outcome of Agenda 21 top down approach encouraging a bottom up response shows the difficult in imposing a strategy for all countries to follow and has provoked much controversy especially in USA

Answer 65

in 2002, the WWSD to place in Johannersburg which brought together heads of states, national delegates and leaders from NGOs event focuses the world's attention and direct action towards meeting difficult challenges by improving lives further UN conferences were held to involve government leaders

Answer 66

responsible for supporting a coherent structure of international environmental governance since 1972 mission statement is to provide leadership and encourage partnership UNEP's work is part of sustainable development goals

Answer 67

is a failure more than success proved by the UNEP report shows us despite having several environmental laws since 1972 report showed between 2002-2013, almost 908 people were killed in 35 countries to protect the environment

Answer 68

UN framework convention on climate change is the body responsible for overseeing negotiations on reducing greenhouse gases WHO has coordinated battles against viral epidemics of Ebola Trump accused it of it being China-centric

Answer 69

1. environmental governance involving so many agencies 2. gap between international cooperation and motivation needed to undertake it 3. greater need for more collaboration between IMF, G20 AND OCED to improve regulation of finance 4. difficult to agree between countries 5. no agency tasked to think about new + emerging trends in agriculture and food security 6. need for better coordination to deal with epidemics 7. no rules to exist with the unsustainable debt burdens of some countries 8. cyber security

Answer 70

institutions work together and need to be interactive to be effective decisions made by global institutions affect institutions at all scales eg paris agreement NGOs operate on a range of scales to monitor and support institutions lobby governments to make laws

Answer 71

operational NGOs = provide frontline support services to the needy eg Oxfam raise money for each individual project they undertake advocacy NGOs = focus on campaigns to raise awareness to gain support for a cause eg friends of earth, donations and member subscriptions

Answer 72

1. protection = providing relief to victims of disaster and assisting the poor 2. prevention = reducing people's vulnerability through income diversification and savings 3. promotion = increasing peoples chances and opportunities 4. transformation = redressing social, political and economic, exclusion or oppression

Answer 73

resource demains that lie outside political reach of any one nation state describes supra-national spaces in which common shared resources can be found

Answer 74

1. high seas 2. atmosphere 3. antartica 4. outer space some would argue cyberspace has emerged as a new domain

Answer 75

international law is guided by the principle of common heritage of mankind establishes some localities belonging to all humanity and resources are available for everyone's benefit historically, such resources have been difficult to access but increasing population + greater security of resources is putting increased pressure on the global commons advances in science and technology provides easier access

Answer 76

natural disasters water and food security climate change fossil fuel dependancy resource consumption economic inequalities wars recession mass migration

Answer 77

high seas = UN convention on the law of the seas (UNCLOS) UNEP also has jurisdiction atmosphere = united nations framework convection on climate change (COP21) antartica = antartico treaty system (ATS) madrid protocol outer space = 1989 moon treaty

Answer 78

concept explains why common access resources of any type is likely to be exploited individuals act independently and according to their self-interest, this will be contary to the interests of whole groups because shared resources will deplete happening with global fish stocks which has been overfishing leading to depleting, marine pollution and loss of sustainability

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3.2.1 global systems and global governance Flashcards

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