Geographical Consequences of Global Systems and the impacts of globalisation

Question 1

Who have benefitted most from globalisation?

Answer 1

1. Newly Industrialised countries - economies have grown much faster through foreign investment than would have otherwise been the case
2. TNCs - have grown by using economies of scale in production and taking advantage of lower wages / less onerous restrictions in LDCs
3. International Organisations such as WTO and World Bank and IMF have contributed to globalisation and thereby increased their position, power and control in world affairs
4. Regional trading blocs - development of alliances through trade agreements has stabilised economies and benefitted members

Question 2

Benefits of Globalisation / Free trade for the LDE or host country?

Answer 2

1. Investment generates jobs and improves living standards
2. Brings new technology and education
3. Gives workers new skills
4. Investment brings improvements in infrastructure (improvement of roads / rail / land and sea transport) & schools and hospitals
5. Has a “multiplier effect”: increased investment results in a more than corresponding increase in employment wages spending and tax revenues

Question 3

Benefits of Globalisation / Free trade for the TNC?

Answer 3

Benefits for the TNC
1. lower land and labour costs (less trade unions)
2. Greater access to new resources and to larger wealthy and emerging markets
3. Fewer controls such as environmental legislation / worker legislation (minimum wage / hours of work / holidays / maternity benefits / employment rights etc)
4. Greater economies of scale through increased specialisation

Question 4

Benefits of Globalisation / Free trade for the home country?

Answer 4

For the Country of origin:
1. Cheaper goods for consumers
2. Can specialise in financial services and Research and Development occupations
3. Greater foreign competition may weaken domestic monopolies which is a benefit for consumers (eg. UK supermarkets
c) Competition leads to greater innovation

Question 5

Costs / Disadvantages of Free Trade / Globalisation for the host country?

Answer 5

For the host Country:
1. Not giving enough protection to emerging industries in developing countries so that they are unable to compete with developed countries in the free market. Tax breaks or tax avoidance by TNCs means that local industries cannot compete domestically or internationally with TNCs
2. Unlike LDEs more developed countries still protect their home industries by tariffs on agricultural imports
3. Unjust exploitation of workers and poor working condition. Low pay by TNCs forces wages down
4. Over specialisation on one product or industry in one area may make countries vulnerable if there is a change in global demand eg. a collapse of a few Japanese banks in 1990s triggered the financial crisis in East Asia.
5. Exploitation of resources and depletion of non-renewable resources
6. Negative impacts on environment:
- more transportation increases greenhouse gases
- depletion of non-renewable resources
- TNCs outsourcing production to countries where environmental restrictions less strict
- lack of controls in LDEs pollute rivers seas air and land
- more waste from packaging as goods need better packing for long distance distribution
- greater movement of people creating higher chance of pandemics
7. Negative impacts on local culture - over standardisation of goods and products globally has damaged individual traditions and means less diversity diminishing differences. As the West has the greatest influence, imposition of western culture is leading to one global identity. Consider glocalisation.
8. Economic leakages
9. LDEs may become too reliant on TNC investment

Question 6

Costs / Disadvantages of Free Trade / Globalisation for the TNC?

Answer 6

For the TNC
1. Ethical issues such as bad reputation “sweatshops” can damage reputation
2. Social and environmental conscience

Question 7

Costs / Disadvantages of Free Trade / Globalisation for the country of origin of TNC headquarters?

Answer 7

For the Country of origin:
a) Loss of manufacturing jobs
b) De-industrialisation
c) Structural unemployment

Question 8

What is Glocalisation

Answer 8

To counter over standardisation of goods and products globally thereby diminishing diversity a strategy of glocalisation has been adopted by TNCs who make a conscious effort to adapt goods and services to local markets eg. McDonalds adapts its menu to suit local tastes. Mac Buritto in Mexico City

Question 9

What is Global Governance?

Answer 9

A movement of political cooperation aimed at dealing with decisions or issues that affect more than one state or region by development of laws rules or regulations to manage global systems such as international trade and the environment etc.

Question 10

What are the organisations that take responsibility for global protection and development

Answer 10

1. UN - United Nations
2. WTO - World Trade Organisation regulating the rules of international trade
3. World Health Organisation regulating the rules of international health care
4. NGOs - non-governmental organisations such as Greenpeace, WWF etc

Question 11

What is the role of the UN?

Answer 11

The UN was founded in 1945 after WWII and is made up of 193 member states. It has a mainly advisory role to assist with cooperation between states. The UN developed the UNDP - United Nations Development Programme. This operates in over 170 countries. It aims to eradicate poverty and reduce inequality. It set certain goals: “Millenium Development Goals” (MDGs) which were supposed to be achieved by 2015 to tackle poverty. The UNDPs current focus is on “Sustainable Development Goals” (SDGs) which are to tackle:
- development
- disaster risk reduction
- climate change
- global sustainable development

Question 12

What is the role of NGOs and what are the 2 types?

Answer 12

In the 21st century these have moved from national to international organisations becoming a global force:
- persuading governments to consider “bottom up” approaches
- protect human rights
- provide essential services

There are two types of NGO:
1. operational NGOs - providing frontline services to the needy (Oxfam) and tend to raise money on a specific cause basis
2. Advocacy NGOs focus on campaigning for human and environmental issues and derive donations from membership subscriptions or for general causes.(Amnesty International Greenpeace etc

Question 13

What are the main issues or global systems which have recently been the focus of Global Governance?

Answer 13

1. Reducing environmental problems by creating a state of “environmental sustainability” ie. reaching a point where demands on the environment are not reducing the quality of the environment for the future.
2. Trade and investment inequities
3. Reduction of Poverty
4. Human rights violations
5. Civil conflict
6. Financial instability

Question 14

What are the Global Commons?

Answer 14

Areas not owned by any one nation in which common shared resources can be found:
1.the High Seas
2.the atmosphere
3.Antarctica
4. Outer Space

There is also an argument that “cyberspace” is another domain within the Global Commons as the development of the worldwide web has been instrumental in driving globalisation.

Question 15

The principle of Common Heritage

Answer 15

The concept that some localities belong to all humanity. It includes taking into account the needs of future generations and developing countries.

Question 16

Why is the principle of common heritage being put under increasing pressure?

Answer 16

Advances in technology have given rise to a range of new resources which has meant that developed nations have taken more of their share of resources in comparison to UDEs. Eg. Advances in deep sea fishing from traditional local fisherman has created a depletion of fishing stocks marine pollution and loss of sustainability.

Greater scarcity of resources such as minerals, fuels and food, has put pressure on the global commons to meet the needs of the developing world. Those with the greater money and technology can reach the resources first creating inequality between the LICs and HICs.

Question 17

What laws govern the High Seas?

Answer 17

The High Seas is governed by the UN Convention on the Law of the Sea ((UNCLOS)

Question 18

What laws govern the Atmosphere?

Answer 18

The Atmosphere is governed by:
1. the United Nations Framework Convention on Climate Change (UNFCCC);
2. the Montreal Protocol - which deals with substances that deplete the Ozone layer
3. the Kyoto Protocol - which sets limits on emissions into the atmosphere

Question 19

What law governs Antarctica?

Answer 19

The Antarctic Treaty System (ATS)

Question 20

What law governs outer-space?

Answer 20

The 1979 Moon Treaty
Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space