Global Governance Flashcards
1
Q
Factors - Financial Systems
A
- Governs the flows of capital between countries
- Investment banks raise the capital of a company by selling shares to investors
- Financial deregulation removed barriers to moving capital and relaxed the rules on what banks were allowed to do.
- Money more accessible so companies can operate when relocated (economic leakage) and foreign workers can send pay back home (remittances)
2
Q
Factors - Transport
A
- Allows people and products to move between countries
- High speed rail service and cheaper air travel for holidays of to experience a wider variety of cultures
- Containerisation increases ease of transportation
- Has encouraged deindustrialisation as MNCs have moved manufacturing to other areas where labour is cheaper
- Allows products to be made cheaply in developing countries
- Eg, 49 million people work in the garment industry in Asia for western markets
3
Q
Factors - Trade Agreements
A
- Governs the flows of products between countries
- Governments place tariffs on foreign imports so trade agreements can lower these tariffs and non tariff barriers e.g., quotas.
- WTO (World Trade Organisation) governs the global trade system.
- For example, NAFTA(North American Free Trade Agreement)/USMCA(United States Mexico Canada Agreement)
4
Q
Factors - Information and Communication Systems
A
- Increased technology of satellites and optic fibre cables as more than 1 million kilometres of flexible undersea cables carry the world’s data.
- Reduced communication costs and increased global communications after 1900
- Increase in mobile phones, even in developing countries, the internet as 50% of the world’s population uses the internet.
- Social networking eg, Skype
- Economic banking, a mobile phone service that allows credit to be directly transferred between phone users
- Faster flows of informations across the globe
5
Q
Factors - Security
A
- Trade agreements allow countries to be more dependent on each other so trade wars are less likely to occur.
- Can work together to improve security
- EG, NATO (North Atlantic Treaty Organisation) formed to provide security during the Cold War.
6
Q
Factors - Management and Information Systems
A
- Systems used by companies to be more efficient
- Economies of scale - increasing profits by producing a large amount of products (bulk)
- Global Supply Chains - different stages of production in different countries minimises costs.
- Outsourcing - hiring other companies in low income companies due to low labour costs
- Offshoring - relocating a company abroad minimises costs due to low labour costs, availability of resources and taxes.
7
Q
Explain what is meant by the term flows of capital.
A
- The movement of money for the purpose of investment, trade of business to produce an income or increased profit.
- Originally, money was originally invested within a country eg, companies expand by building new factories
- Investment of capital into foreign countries has increased as was made easier by improvements in information and communications technology (ICT)
- Increased capital flows has made the world more interconnected as most countries are dependent on flows of foreign investment to and from other countries.
8
Q
Explain what is meant by the term interdependence.
A
- Countries rely on each other for different purposes.
- Economic Growth - Oil is produced by middle eastern countries (OPEC) but consumed by countries such as the USA and China so they become dependent on each other.
- Political - dependent to help solve conflicts and issues eg, 2015 migrant crisis, European countries had to work together to support refugees from Syria.
- Social - more connections between people living in different countries creates social interdependence eg, migration caused diasporas all over the world. Influences cultures eg, media.
- Environmental - countries depend on the rest of the work to look after the environment eg, Chernobyl affected many countries.
9
Q
Outline how TNCs have accelerated the pace of globalisation.
A
- TNCs have been relocating manufacturing to countries with cheaper labour costs, usually developing countries, in order to increase profits and returns for shareholders. Increases employment in the developing country.
- Have an important role in the global economy eg, 80% of global trade in 2013 was linked to TNC’s.
- Through outsourcing - hiring other companies in low income companies due to low labour costs.
- More flexible than offshoring but the TNC has less control over that part of production.
- Through offshoring - relocating a company abroad minimises costs due to low labour costs, availability of resources and taxes.
- Eg, Apple is building factories in China.
- Often in SEZs of Asia
- Reduced costs, wages, taxes and transport costs are lower and there is less environmental regulation.
- TNCs connect countries due to their spatial organisation with headquarter and research and development in developed cities and manufacturing and production in lower income countries where labour and raw materials and tariffs are cheaper.
- Links through FDI - create links with other countries by investing in them such as investments into a factory, mergers, acquisitions (buying another company).
10
Q
Outline some threats to Antarctica
A
- Tourism - eg, path erosion (as are constricted to one area), disruption of wildlife, bringing non-native insects. Marine pollution from tourism affects food chains eg, discarded fishing nets.
- Mining - Non-renewable resources are finite so will permanently affect the environment.
- Fishing - Hard to control illegal fishing is over 6x the amount of legal fishing. Overfishing of krill affects marine food chains. Overwhelming causes a rapid depletion in the whale population.
- Climate Change - Upper ocean temperatures have risen 1 degree in the past 50 years - melting sea ice causes decline in ecosystems eg, penguins/krill due to warmer ocean temps. Retreating glaciers increases vegetation growth, affecting the balance within the fragile ecosystem.
11
Q
Explain how flows of people has increased remittances on a global scale.
A
- Increased migration of people, often from a developing country to a developed country.
- Foreign workers send home money to families called remittance payments which becomes a large portion of the developing countries income, creating economic growth.
- Eg, $15 billion dollars sent home to India a year.
12
Q
Explain what is meant by an NGO
A
- Non-Governmental Organisation - operates on a range of scales to monitor and support institutions
- Eg, Greenpeace is an NGO that campaigns for environmental protection
- NGOs have little power to intervene in political situations, unless they are invited to by a sovereign state, or they are protected by the forces of another.
- Not aim to profit unless for social or political purpose, and to provide a service that people need.
13
Q
Outline what the UN’s role is in global development.
A
- 4 Main Aims; To maintain international peace and security. To develop friendly relations among nations. To achieve internal cooperation in solving international problems. To be a centre for harmonising the actions of nations.
- 193 Global Members
- Formed in 1945
- The UN acts as a form of global governance through its several organisations eg, UN peacekeeping, UNESCO, UNDP.
- Overall aim to maintain international peace and security
- To promote growth and stability, the UN sanctions allowed inequalities and injustices to be resolved by punishing countries that do not abide by international law.
- Eg, the UN has imposed tough sanctions on Iran to deter Iran’s use of nuclear enrichment for weapons.
14
Q
Explain what is meant by the sustainable development goals.
A
- Sustainable Development Goals promote stability and growth as they aim to improve the quality of life, reduce poverty, famine, and conflict.
- There are 17 goals created by the UN in 2015 which cover 169 targets
- The goals tend to be interlinked so the progress of one goal tends to influence the success of another
- An example of some goals are; no poverty, zero hunger, clean water and sanitation
- These replaced the 8 Millennium Development Goals created by the UN in 2000.
15
Q
Unequal Flows of People
A
Positives
- People move from a place with low job opportunities (less developed) to high job opportunities (more developed). These migrant workers are important to the country as they often do ‘unwanted’ jobs.
- Foreign workers send home money to families called remittance payments which becomes a large portion of the developing countries income, creating economic growth.
Eg, $15 billion dollars sent home to India a year.
- Large diasporas in countries can help make strong geopolitical links
Eg, between India and UK.
Negatives
- Host countries can become dependent on migrant workers which could cause issues.
- Migrant workers are happier to work for lower wages so get depressed wages or work in dangerous conditions.
- Can cause overpopulation putting pressure on services such as healthcare.
- Less developed country becomes underpopulated as it loses a large amount of the most skilled workers.
- Countries may become reliant on remittances which can affect the economy if many migrants lose jobs.
