7 Global Governance Flashcards
What is social globalisation caused by?
Cultural change
Migration
Communication
What is social globalisation characterised by?
Spread of ideas and information
What is political globalisation caused by?
Global policies
Tariffs
Western political Influence
Decline of communism
What is political globalisation characterised by?
Diffusion of governmental policies
What is economic globalisation caused by?
Global marketing
Trade
FDI
Transport
What are the characteristics of economic globalisation?
Long distance flows of; Goods Capital Services Information exchange
Define BRIC
Brazil Russia India China (Rapid advancement since the 90’s)
Define MINT
Mexico Indonesia Nigeria Turkey (Recently emerging)
What was the remittance dilemma in Somalia 2012?
Main source of income for Somalian families was remittance (40% relied)
US and UK banks withdrew service because some money was given to terrorist
In 1954 how much of manufacturing was concentrated in Europe, North America, and Japan?
95%
What has decentralisation/global shift done for LIC’s?
Access to larger markets
reduced tariffs
more trade agreements
Better global representation
What has decentralisation/global shift done for HIC’s?
Loss of jobs in manufacturing (in UK dropped by 50% from 1980 to 2013
What is a Maquiladora?
Manufacturing operations located in free trade zones in Mexico - can import materials and export products with no trade barriers
How have governments supported globalisation?
Increasing local exports e.g. UK Trade and Investment encourage businesses to export oversees
Less developed countries like Pakistan offer inland dry ports which reduce transport costs, goods are shipped to sea ports like Karachi
What organisations tackle the security issues associated with globalisation?
World Customs Organisation
What is NAFTA?
The North American Free Trade Agreement
What is the EU?
The European Union
What does the WTO do?
Supervise and liberalise trade by reducing barriers. Solves problems with trade and negotiates agreements that become legal grounds.
What was the 1986-1994 Uruguay Round?
Formed by the WTO - reduced barriers for trading manufactured goods
What was the 2001 Doha Development Agenda?
From the WTO - reforms trade in agricultural produce between advanced and developing countries - tariffs could be reduced by 30%.
Reduction could be in subsidies paid to produce farm products and for HIC’s there would be reduced consumption price and fairer prices for NEC farmers.
What are the problems of the WTO?
Western civilisation insisted that in return, large trading nations of NEC’s like Brazil, China and India would open their markets to western manufactured goods.
Emerging nations insisted on larger cuts in farm subsidies and tariffs paid to protect farmers in USA and EU
What are the successes of the WTO?
Ended the trade wars on bananas - bilateral agreement helped by the Doha Agreement
2013, Bali - first multilateral trade in 20 years with the Bali agreement between all 159 members on trade facilitation - to speed up the movement of traded goods and reduce costs by removing red tape in customs procedures
What is a common market?
A group formed by countries in geographical proximity in which trade barriers for goods and services are eliminated
What is a customs union?
A trade bloc which allows free trade with no barriers between members but imposed a common external tariff to trading countries outside of the bloc - like the EU
What are the issues with interdependence (outsourcing, inequalities etc.)?
Countries find it difficult to retain best industries when taken over by higher payed jobs
Increase of skilled workers caused a training gap
Outsourcing of production from high to low wage economies causes unemployment in HIC’s
Increase of labour movement means greater disease pandemics
What is an import license?
License used by a national government authorising the importations of goods from a specific source
What are import quotas?
A set physical limit on the quantity of goods that can be imported into the country
What are subsidies?
Grants awarded to domestic producers that reduce their costs to make them more competitive against imported goods
What are voluntary export restraints?
Diplomatic strategy offered by the exporting country to appease the importing country and deter it from imposing trade barriers
What are trade restrictions?
Import restrictions can be based on technical or regulatory issues such as quality or method of production. E.g. EU attempting to put restrictions on the import of products made via. Child labour.
What are the three main pull factors for FDI?
Natural resources
Large consumer markets
Financial services
What is the difference between fair trade and free trade?
Fair trade is a social movement to help producers in developing countries achieve better trading conditions and promote sustainability
Free trade is to increase LIC growth as a whole by reducing trade barriers
What is ethical investment?
Where investors make a deliberate choice to invest based on the activities of a firm or organisation - e.g. environmental impacts or the treatment of workers.
What is the TPP?
The Trans-Pacific Partnership which is a free trade agreement between 12 countries; Japan, USA, Australia,, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Has been criticised because negotiations lack transparency.
Sets rules on subjects including investment, patents and copyright, financial regulation, labour and environmental standards.