Global Governance Flashcards
What is globalisation?
Globalisation is the increasing interconnectedness of people, trade, capital, info, technology, and governance of nations across the world.
What is containerisation? + benefits
The enforced regulation on the dimensions of a container.
+increases speed of of trade
+more reliable as easier
+increased volume as containers can be packed, and not touched until it reaches its destination
What is a trade bloc?
A trade bloc is an agreement between governments where barriers (tariffs) are reduced/eliminated.
What are advantages of trade blocs?
Liberates trade - makes it free/cheaper
Increases access to markets
Increases purchasing power - can buy whatever good they might want
What are disadvantages of trade blocs?
Limited to trade bloc - Ethiopian famine 1984 the UK was not allowed to give food due to set prices
Unequal distribution of benefits - larger economies would make sacrifices so that smaller economies can benefit.
Forced to adopt trade prices
What is USMCA? Pros + cons
United States, Mexico, Canada Agreement
+ trade between 3 nations quadrupled
+ manufacturing increased so jobs increased
+ FDI increased
- most new jobs in Mexico
- migration was poorly controlled so lots of migrant workers took jobs in USA
- nearly 1.3million Mexican farmers were put of business
What is OPEC? Who? Why are they so powerful?
Organisation of Petroleum Exporting Countries
- made up of Saudi Arabia, Iraq, Venezuela, Iran, Kuwait
Powerful due to controlling so much of the oil market. Can drive up price of oil by reducing production.
What is the TPP and TTIP?
TPP = trans-pacific partnership (USA + Japan + Australia + Canada etc
TTIP = trans-Atlantic trade and investment partnership (USA+EU) - failed
What has happened to world trade over the last 100 years?
The global shift has lead to a deindustrialization in richer countries and a loss of jobs in the manufacturing sector.
More than 50% of all manufacturing jobs are located in the developing world
Why is there a differential access to markets?
Trade agreements
What is inter-regional trade?
Trade within 2 different regions - e.g. trade between EU, Asia, and USA
What is intra-regional trade?
Trade within one region - e.g. trade in Asia
An example of unequal flow of money + data
Remittances to Somalia
-40% of Somalians rely of remittances to meet basic needs
-$1.2 billion in 2012
An example of unequal flow of people + data
Qatar World Cup
-1.5million migrant workers from Nepal, India, and Bangladesh were employed to build stadiums etc for the world cup
-90% of the population are migrant workers
What is China’s belt and Road initiative?
It is a plan to reroute world trade routes. It spans 3 continents and touches 60% of the worlds population.
Huge investments - a $1.5 billion port was built in Sri Lanka, which China now controls as the country could not afford to pay back he loans costs
In 2023, a report suggests the initiative has failed due to the huge loans pushing poor economies into huge volumes of debt.
China had to spend $185 billion between 2016 & 2021 to sustain the B&R initiative
Why has China heavily invested in Sub-Saharan Africa?
The lack of development was seen as a opportunity for investing in resource development & increasing trade.
The investment also provides China with a huge oil and metal resource, which China will be able to get for a lower price - $170 billion in trade between China and Africa in 2017
How has China’s economy and influence changed?
Economy is 50x larger than it was in 1980’s
Has become the worlds 2nd largest economy
How much was the global trade of coffee worth in 2020?
$460 billion
How many people depend on coffee for their livelihood?
125 million