Global Gov Flashcards
give an example of a law and regulation put in place that affects what we can do to our environment?
Montreal protocol (1987)- called for drastic reduction in the production of CFCs internationally
what is it called when countries share things with each other?
flows
what are the different flows in globalisation?
- capital
- labour
- products
- services
- information
what are capital flows?
movement of money fro the purpose of investment, trade or business
what are flows of labour?
movement of people who move to work in another country
what are product flows?
flows of physical goods
what are service flows?
known as ‘footloose’ meaning they can locate anywhere without contrasts from other resources or obstacles. e.g. call centres
what are information flows?
information flowing from one country to another SMS
some of the worlds major flows occur between 4 main groups what are they?
core regions- HICs
Periphery regions- NEEs
International Monetary Fund- International corporation that aims to ‘foster global monetary cooperation, secure financial stability’
the world bank- ‘ a group of global institution that give out loans for development or relief
what are the three types of migration?
economic migrants- people who have moved voluntarily for reasons of work and improved QOL
refugees- people who have been forced to leave there countries due to conflict, political or religious persecution. granted residency by the host or UNHCR
asylum seekers- people who have left their country and are seeking asylum in another.
what is international labour flows?
flows from one country to another. 3-4% of the worlds population are International migrants
where is the majority of international migration?
HICs 14.1%
LICSs 1.6%
what continents are the three major labour flows between?
asia
europe
africa
what area Asias labour flows?
63 million people moved to a different area of Asia, making largest labour flows. 5 million migrated from India, Pakistan and Bangladesh to Qatar, Saudi Arabia, the UAE and Bahrain. for better jobs
Europes labour flows?
41 million moved to other areas within Europe.
Germany holds the largest amounts of European migrants. (1.9 mil).
uk 2nd largest amounts (1.2 mil)
Africas labour flows
19 mil move within African countries
what are the largest labour flows between continents?
Latin America and caribbean to NA
Asia to Europe
Asia to NA
explain Asia to Europes labour flows?
20 million migrants move to Europe from Asia. Germany has highest amount of 1,000,000 from Kazakhstan. Englands largest Asian pop from India 840,000
where do highly skilled workers move to? give an example?
HICs for higer wages
NHS- 63.4% all doctors in uk are trained here
what are product flows?
movement of produced goods from an area of production to consumption
in 2015 what was the value of world trade of food and manufactured commodities?
$25 trillion
in the past where were goods manufactured?
HICS
what has happened in recent years with where goods are manufactured?
international trade has created major flows, due to techno advances products now produced in LICs. lower labour costs= offshoring. produced at low price sold high price
what has happened to the employment in the manufacturing business since 1985?
3.4 million job decrease
what are the two types of services?
high level services
low level services
what are high level services?where? e.g.?
activities that require a higher skill level, need qualifications and training. financial services (HICS)
what are low level services? where? e.g.
services that require less training and are not as important to consumers. mainly customer service based. offshoring (India) call centres
what has allowed information flows to grow?
- internet use
- social media
- entertainment servies
what are the purpose and the role played by fast broadband for information flows?
allows new and financial informtation to be transferred instantly allows people to be more informed on current events
what are the purpose and the role played by social media for information flows?
allowed people to communicate across countries, experiencing other cultures making people across world more interconnected.
what are the purpose and the role played by real time data for information flows?
contribute to “knowledge economy”. developments in stock markets, high tech products, education sector
what does awarenesses of a brand create?
trademark, and can be easily recognised easily by consumers
how else can famous brands be recognised? e.g.
logo
- maccies, apple, Coca Cola, nike
what have apple\ nike created globally?
global awareness, buyers assume their success and polarity equates to good products so the familiar brands are seen as trust worthy and grow
what is “keeping the same strategy” e.g.
more beneficial for a product to be marketed globally using the same strategies. KitKat British company appeared in Japan 1973, now its only place in world to sell unusual flavours. edited its marketing strategies to appeal to Japanese culture (globalisation)
developed markets dominate what?
the global exports in manufactured goods, especially the EU and US.
who are the top exports of agricultural products?
EU and US
where does fuel come from ?
EU (top exporter) a large majority of emerging economies in Middle East are also large producers due to oil industry.
who is the largest exporter of clothing?
China, India, Turkey and Indonesia- emerging economies and lots of (LICS)
who are the top exporters of office and telecom equipment?
China (1/3) due to cheap labour and ability to ship products in bulk
who are the top exporters of automotive products?
- EU
- Japan
- US
- Canada
what globalisation increased or decreased recently?
increased due to advances globally
what is the financial system?
relationship between these who borrow money, those who invest money and the institutions that hold, give out and take in this Money.
give an example of a financial system?
bank
how has the financial system become global?
multinational corporations invest their profits
people buy and sell shares
countries borrow and lend from each other
how has financial technologies made money more easily accessible?
informed decisions due to global communication technology
global banks operate due to ability to communicate globally
transfer money due to internet
remittances
how how innovations in transport made it easier it transfer goods faster and in larger quantities?
- high speed rail
-faster/bigger planes (cargo aircraft) and boats
containerisation- cheaper and less trips needed
how have new innovations of transport allowed for more flows of labour?
high speed rail
Air travel- faster and cheaper flights and more destinations
what has been implemented due to globalisation and countries facing threat?
stricter regulations upon entering a country (international customs)
cyber security
UNSC (United Nations security council) safety for countries- MI5
CCTV
how has the ability to communicate globally and transfer flows of information, services and capital to accelerate?
satellites and fibre optic communication enables growth of internet and phones
what is economies of scale?
concept of increasing profits by producing a larger amounts of products, on average price to manufacture is cheaper
how can companies save money in production?
by upscaling their production
how can companies upscale their production?
raw products to be bought in bulk
large amounts of products can be made more quickly on production lines
what are global supply chains?
a supply chain is the organised management of product flows, form when they are manufactured to when they are delivered to consumers.
what is outsourcing?
the hiring of other companies to complete company task that are essential. saves money especially when done in LICS
what is offshoring?
relocating a company process abroad. easier to do due to ability to transfer money
what are trade agreements? and impact on globalisation?
trading products across the world, globalisation has deepened and accelerate as international trade is cheaper and easier
why are trading products without an agreement so expensive?
tariffs
non tariff barriers
outright bans in countries
how are trade restriction beneficial?
restrictions between countries can be removed
makes products cheaper
all trade agreements are overlooked by who?
World Trade Organisation (WTO)
Give an example of a trade agreement?
NAFTA (USMCA)
North America fair trade agreement
United States, Mexico, Canada agreement
how many people does NAFTA include?
450 million people
percentage exports between countries?
74% of Canadian exports go to U.S
30% of US exports go to Canada and Mexico
75% of Mexican exports goes to US
when was NAFTA signed?
July 1st 2020
what are NAFTAs main aims?
- gradual eliminations of all trade barriers
- promotion of economic competition between members
- increased investment opportunities
- general improved co-operation between the three members
what have supporters of NAFTA said?
-trade between members has tripled between 1993 and 2007
-manufacturing in US grew= increased employment
-Mexico= increased foreign investment= higher wages
overall there lots of benefits for Mexico less for Canada and USA
what have opponents of NAFTA pointed out?
- some Canadian firms have closed because of comp from lower cost US firms
- some US jobs moved Mexico= loss of US jobs
- food surplus in US/ CAN= DUMPED in Mex
- Mex could be exploited because of its natural resources and less stringent pollution rules
what is interdependence?
theory that nations depend on each other £, politically, socially and environmentally.
how do countries rely on each other economically?
rely on flows of labour, product and services entering the country in order for the eco to grow
how do countries rely on each other socially?
migrants as there are now diasporas all over the world that are dependent on the place they live in
how do countries rely on each other environmentally?
all nations are effected by each others green house gases, they rely on each other to protect each other.
how do countries rely on each other politically?
international political issues require countries to work together to solve them.
what issues can interdependance cause?
unequal flows
what are unequal flows?
when the flows of people, money, ideas and technology are not equal around the world
what are 3 benefits of unequal flows?
- migrant workers become an important part of the host country as they become intertwined in work forces and take jobs that must be done - 44% of cleaning workforce in London is made up of ethnic minorities
- workers send remittances back home, helping their economy grow
- people are fleeing from conflict and poor quality of life
what are 3 problems with unequal flows?
- overpopulation
- the country that migrants originate from may become dependant on remittances
- as migrants can be desperate for work they may be vulnerable to exploitation
what are the flows into LICS
foreign direct investment, aid, remittances
what are the flows into HICs
profits/ product
what are 3 benefits of unequal flows of money?
- country receiving money FDI can improve quality of life
- aid and remittances can also help improve quality of life
- richer countries can take advantage of lower labour costs, maximising profits
what are `3 problems with unequal flows of money?
- injustice towards people living in LICs
- LICs operating from HICs can create dependencies for workers, they are dependant on high wages meaning they subject themselves to dangerous situations
- foreign aid can cause issues, as it can reduce incentive for governments to help their own countries.
what are 3 benefits of unequal flows of ideas?
- HICS have introduced ideas of deregulation to NEEs
- free trade allowing global markets to thrive
- countries with successful strategies can educate LICs on how to create economic growth
what are 3 problems with unequal flows of ideas?
- some argue deregulation is occurring too quickly for LICs to keep up
- privatisation allows large companies who buy originally state-owned industries to grow
- ideas of multiculturalism may be disputed by come people
what are unequal flows of technology?
different flows of technology flow between countries
why are there flows of technology in LICS now?
HIs invest in LICS dues to the benefits they bring so technology that can make capital gains flows to LICS.
name 1 benefit of unequal flows of technology?
- economies of LICs can develop through technology investments, creating jobs and strengthens trade deals between HICS and LICS
name problem of unequal flows of technology?
injustice that the employees that manufacture and assemble consumer technology such as computer, phones etc receive so little compared with what they are sold for.. company makes profit and workers get paid so little
what are unequal power relations caused by interdependence for HICS?
in general richer, more developed countries are more powerful countries, they have more money, tech as well as deeper relations with other countries, meaning they are able to influence global systems to their advantage.
what are unequal power relations caused by interdependence for LICS?
LICs that lack money and technology gave less influence over geopolitical events. this is problematic, they rely on decisions made by richer countries, and only have the power to respond to the events rather than directly interview
some examples of how unequal power relations affect global systems are?
trade- rich countries control trade agreements
WTO- biased towards richer countries, developing countries are not represented as much/
what is the volume of international trade?
international trade is occurring more than ever before.
what has trade decreased?
during the global financial crisis.
World exports of manufactured goods has increased from what (2006) to what (2016)
$8 trillion- $11 trillion
has the volume of global investment rose? if so figures?
$400 billion to $1500 billion in 20 years
where are investments mainly concerned?
HICS into LICS, due to profits the can be made form lower labour costs
why have investment patterns changed?
because emerging economies are begging to invest in LICS causes emerging economies to rapidly develop
what developing country is the worlds largest exporter?
CHINA $2,263
what % of commercial service exports does the least developed countries make up?
less than 1%
when was the Fair trade foundation set up and why/
1992, to ensure producers receive better trading conditions, and since then has developed into a well known trademark
what are trade blocs?
groups of countries in a trading agreement, allowing them to have certain advantages over other countries e.g. reduced tariffs
who are trade blocs normally between ?
neighbouring counter but not always
give an 3 examples of trade blocs?
NAFTA
EU
ASEAN
What was the aim of NAFTA
Remove barriers to agricultural products, manufactured products and services
what is the EU?
27 Countries, free trade within EU allows gods and services to be transported with ease
what is ASEAN?
the association of Southeast Asian countries. 10 countries the bloc has free trade agreements to ensure political, economic and social sustainability
what is access to markets within international trade?
all counteries have differential access to markets, refers to a nation Or comapnays ability to trade within the international market.
what factors impact access to markets?
trade agreements
other agreements
wealth
how do trade agreements impact access to markets?
pos- a country access to markets may be improved
neg- disallow countries within them to trade as well as within other countries
how do other agreements impact access to markets?
special economic zones are areas within a country that do not have the same trading regulations ad the country they are located in.
special treatment agreements help developing markets with poor access to markets
how does wealth impact access to markets?
generally, countries with less wealth have less access to markets
what are Transnational corporations?
TNCs are companies operating across multiple countries
what do TNCs do?
make products, produce jobs, invest in countries, and contribute to cultures some even have a political influence.
where are the dead quarters of TNC’s usually located?
in HIC’s
what are research and development for TNC’s responsible for?
carry out customer research, multiple facilities in different countries, so that research can be varied and specific to the target market
where are manufacturing and production facilities mainly concentrated in?
LIC’s due to increased profits
TNC’s use global management systems in order to maximise their profits what are they?
economies of scale- large revenue meaning they can afford to upscale their production. (increase profits)
global supply chains- production global (secondary industry sector) increases profits
give an example of global supply chain?
Boeing aircraft.
engine UK - rolls Royce
wing- Japan
tail fin- US
what is outsourcing?
TNCs that provide tertiary industry products will often outsource tasks to other companies to save time and money. APPLE
What is Offshoring?
companies that make manufactured products have their factories in LICs due to lower labour costs and other ethical issues.
what are linkages in terms of TNCs?
creating links between countries and other companies
what are links through FDI?
links with countries by investing in them
what are the different forms of Links through FDI?
mergers- join to form one larger company
acquisitions- A TNC buys another company
what are links through integration?
expand company
what are the two links through integration?
horizontal integration- ownership of part of supply chain
vertical integration- taking over ship of another company, similar industries
trading and marketing patterns?
TNCs trade with HICs as the market for consumer goods is concentrated within richer countries. however noe there is now a rapid increase in demand for popular brands in emerging economies, trading has expanded
what benefit does TNC’s as larger companies have?
have a lot of revenue, they can afford to take advantage of global marketing, use trademarks and can adjust marketing strategy to different countries to maximise profits
what is global governance?
process of multiple nations acting together in matters that affect the entire world
global governance maintains global system through what?
global societal norms, global laws and global institutes
what are norms in global governance?
gender equality, equality is not a social norm, some countries may disagree with societal norms in other countries, there is little that can be done to globally govern a countrys norms and ideologies which is where International laws are helpful
what are laws in global governance?
how multiple nations act together to maintain global systems. a law is legally binding, unlike norm, meaning failure to comply with this law can result in prosecution.
what has been created to oversee the maintenance of global system?
international institutions
what is the aim of international institutions?
represent all nations as well as protect these nations
what type of work do international institutions do?
enforcement laws, dealing with law breaks, international peace and equality
name 3 positives of global institutions?
- economic equality allowing less developed countries to grow economically.
- societal growth maintaining social equality.
- environmental stability WWF NGOs
name 3 negatives of global institutions?
- companies manipulate the rules of global instituations
- world bank only give out loans conditionally
- some create more inequalities
what is ‘The Global Commons’ ?
the concept of an area that does not belong to a single country
what are ‘The Four Global Commons’?
international waters- areas of the sea that doe snot belong to a country
-the atmosphere- gases that surround the earth
outer space- area after our atmosphere
Antarctica- the only continent without citizens; only scientists live there
why are global commons beneficial to humanity?
provide untouched environments for research and wildlife growth. animals thrive in these environments where humans cannot interact
what is the tragedy of the commons?
because the commons do not belong to one country it leaves them vulnerable to exploitation especially as they are rich in resources
what needs to be done to the Global Commons to ensure they stay an asset to mankind?
proper protection
what can every country use the commons for?
development but must be sustainable
in order for the use of the commons to be sustainable, there are measures in place to ensure it is protected such as?
- global institutions directly created to manage issues associated with the global commons, the UN created the United Nations convention on the law of sea to tack marine pollution
- international laws set by UN
- NGOs campaign to protect the commons by spreading awareness
what is an issue with the protection of the commons ?
It’s hard to police and regulate due to size, isolated, hard to reach nature.
what is comparative advantage?
countries specialise in providing goods and services they are excel at producing, then trade things they are not as good as good ay producing
