Global Governance Flashcards
What is globalisation?
Globalisation is the growing interdependence of countries through cross-border transactions. It involves becoming more globally connected through trade, transportation, communication, and immigration.
What are the main types of globalisation?
Social: e.g., international immigration and social networking.
Economic: e.g., transnational corporations (TNCs), trade blocs, and global transactions.
Cultural: e.g., the spread of media, Western cultural traits, and adaptations like McDonald’s localized menus.
Political: e.g., trade agreements, political influence, and examples like Brexit.
What are the five key flows in globalisation according to the specification?
Capital
Labour
Products
Services
Information
How do capital flows function in globalization?
Capital flows refer to the movement of money for investment, trade, or production. Examples include foreign direct investment (FDI), repatriation of profits, bilateral aid, and remittances. These flows occur between core regions (wealthier countries), periphery regions (developing countries), and institutions like the IMF and World Bank.
How do types of labour within migration differ, give examples.
Highly Skilled Workers: These include professionals (e.g., doctors). For example, 64% of doctors in the UK were trained overseas, largely from India.
Unskilled Workers: They take jobs requiring less formal training, often driven by higher wages and better employment opportunities, sometimes facing exploitation.
What distinguishes economic migrants, refugees, and asylum seekers within labour flows?
Economic Migrants: Voluntary migrants seeking better job opportunities and improved quality of life.
Refugees: People forced to leave their home country due to conflict or persecution.
Asylum Seekers: Individuals awaiting legal residency after fleeing their home country.
How do remittances play a role in globalization?
Remittances are funds sent by migrants to their home countries.
Talk about flows of products.
These are manufactured goods that move from areas of production to consumption. For instance, many goods are now produced in LICs (low-income countries) and exported globally.
Talk about flows of products in the past
produced goods were manufactured in HIC’s due to the access to resources like factories and materials. They were usually sold in the countries they were produced in.
Talk about flows of services.
These include financial services, IT, and customer-based services (e.g., call centers). Offshoring allows low-level services to be relocated overseas, while high-level services typically remain in high-income countries.
Talk about high and low level services
High Level Services- activities that require a higher skill level, important and complicated. An example includes financial services.
Low Level Services- Services that require less training mainly customer based like call centres
High level services are usually concentrated in HIC’s where low level services are offshoring (moving overseas) in order to take advantage of lower labour coasts. This has developed global connections and accelerated globalisation.
Talk about Flows of Information
Flows of information has been made more accessible due to social media platforms and increased internet use.
fast broadband and connections allows news and financial to be transferred quickly and globally
Large databases and archives for research
What is global marketing and how does glocalisation fit in?
Global marketing is the promotion and branding of products on an international scale. Glocalisation refers to adapting global marketing strategies to fit local cultures or tastes
Talk about globalisation and brand awareness
creating a trademark (legally registered representation) it can be easily recognised by consumers.Familiar brands are more likely to sell as they are chosen over less known brands, by keeping the logo worldwide, other countries are more likely to trust it.
In many countries, keeping the same marketing strategy is more efective due to the low cost.
What distinguishes flows of services in the global economy?
High-Level Services: Complex and specialized services (e.g., financial services), usually concentrated in high-income countries.
Low-Level Services: More routine, customer-based services (e.g., call centers), often offshored to lower-cost regions.
How do information flows contribute to globalization?
Information flows are enabled by the internet, social media, and global communications networks, allowing fast transmission of news, financial data, research, and cultural content. Wikipedia, available in over 330 languages, is a prime example of global knowledge sharing.
How do patterns of production, distribution, and consumption illustrate globalization?
Developed markets often dominate the production of high-value manufactured goods, while consumption patterns differ: high-income countries consume more finished products, whereas low-income countries tend to focus on raw materials like fuels and minerals. Additionally, production may shift to countries with lower labour costs.
Talk about new financial technology and globalisation
The financial system is the relationship between those who borrow money and those who invest. An example is a bank, those with momey invest in order to make interest by saving it there, those who need money take loans and pay this back with interest. Globalisation has made this process global making the world more connected:
- TNC’s invest profits
- Stock Markets
- Global Shipping
What technological and systemic developments have driven globalization?
financial technologies (e.g., global banking systems, cryptocurrencies),
transport (e.g., faster ships, planes, and the Panama Canal Expansion of 2016), communications (e.g., high-speed internet and social media),
management/information systems.
Trade agreements and security arrangements also play significant roles.
Talk about transport and globalisation
Innovations in transpoer have made it easier to transport goods faster and in larger quantities. High speed raik and faster and bigger planes and boats allowed globalisation.
Larger and faster aircraft have increased capacity and reduced travelling times meaning products can be sold over a larger distane in a shorter space of time.
What do global systems reflect in the contemporary world?
They reflect increased economic, political, social, and environmental interdependence—shaped by powerful nations and supported by international political organisations to promote stability and development.
What role do financial institutions play in the global financial system?
They support the world’s economic order by regulating national economies and acting as intermediaries in capital flows. Key examples include the IMF and the World Bank.
What is the main function of the World Trade Organisation (WTO)?
The WTO deals with the global rules of trade by supervising and liberalising trade (reducing barriers), arbitrating trade disputes, and negotiating agreements that become legal rules.
What issues are associated with the WTO?
Issues include maintaining high import duties and quotas in rich countries, protecting HIC agriculture while pressuring LICs to open markets, and underrepresentation of developing countries in decision-making.
How is interdependence defined in the global context?
Interdependence is the theory that nations depend on one another economically, politically, socially, and environmentally, creating mutual benefits and vulnerabilities. It can cause unequal flows
How do unequal flows of people impact global interdependence?
Migration generally flows from LICs to HICs for better opportunities. This benefits host countries nd sends remittances home, but can also lead to overpopulation, strain on services, dependency, and potential unemployment or underpopulation in origin countries.
What characterises unequal flows of money between LICs and HICs?
LICs typically receive capital via FDI, investment, aid, and remittances, while HICs gain profits and sales revenue. Although FDI and aid can boost quality of life, these flows may also create dependency and exploitative conditions (e.g., sweatshop labour).
How do unequal flows of ideas manifest in global systems?
High-income countries, having more money and power, often dictate how countries should be run and how trade should occur—promoting free-trade and deregulation strategies that LICs may feel forced to adopt, even if they aren’t optimal.
What issues arise from unequal flows of technology between HICs and LICs?
Technology (like manufacturing equipment) mainly flows from HICs to LICs, giving richer countries a technological advantage. LICs often cannot afford or produce advanced technology, which hampers their development and widens the gap
In what ways can unequal flows sometimes promote stability, growth, and development?
They can transfer capital, technology, and ideas that improve productivity, stimulate economic growth, and provide remittances that support local economies.
What are the potential negative effects of unequal flows in global systems?
They can lead to economic dependency, exploitation of workers, cultural homogenisation, social inequality, and may even spark conflicts or injustices for less advantaged nations.
How do institutions like the IMF and World Bank contribute to global stability and development?
They provide loans for development and disaster relief, regulate financial systems, and help stabilise national economies, although sometimes under conditions that favour HICs.
How do unequal power relations affect global trade and economic policies?
Richer countries control trade agreements and can pressure LICs into policies that benefit their own interests, thereby reinforcing global power imbalances and economic disparities.
How do power relations influence global environmental policies?
HICs may resist stringent environmental measures (e.g., reducing CO₂ emissions) to protect their own economic interests, while LICs, more vulnerable to climate change, have less influence in shaping these policies.
How do unequal power relations affect geopolitical events?
Powerful states use their economic and technological advantages to drive global systems to their benefit, leaving less powerful nations with limited options to influence or resist major geopolitical decisions.
What role does trade play in reinforcing global power imbalances?
Richer countries control trade agreements and use their wealth to pressure LICs into adopting policies that favour the interests of the powerful, often resulting in unequal benefits
How does migration illustrate social interdependence?
Migration not only fills labor shortages in HICs but also supports LIC economies through remittances, despite creating challenges like service pressure and potential dependency on these funds.
How does the unequal flow of technology affect the development of LICs?
While technology investments can boost growth, LICs often lack the resources to adopt or produce advanced technology, maintaining a technological gap and hindering their economic progress.
How do global financial and trade institutions help maintain stability?
They provide frameworks and rules that support economic order, facilitate capital flows, and resolve trade disputes, all of which help maintain stability despite inherent inequalities.
What is the overall impact of unequal interdependence in global systems?
While interdependence can drive growth and development, unequal flows of people, money, ideas, and technology—as well as power imbalances—can also cause conflicts, injustices, and persistent inequalities between nations.
Talk about globalisation and international trade
Due to globalisation, international trade is occuring more than ever before with the amount of exports globally been steadilt increasing with the only time it has been decreased during the Global Financial Crisis.
How have global trade and investment patterns changed in the past 40 years?
Previously, trade was dominated by HICs trading among themselves.
Now, HICs invest heavily in LICs, and emerging economies (e.g., China, India) also invest in LICs.
This investment accelerates development in LICs.
What are single product economies and what can this lead to?
countries which rely on one prodyct for its export earnings. Such countries are vunerable to market price fluctuations and may have limited options for generating other sources of income should a natural distaster strike or if tastes and fashions change. Leads to dutch disease: sharp inflow of foreign currency, such as the discovery of large oil reserves. The currency inflows lead to currency appreciation, making the country’s other products less price competitive on the export market.
Talk about trading blocs in trade and the positives and negatives
Trading Blocs are groups of countries in a trading agreement allowing them to have certain advantages over other countries such as tarrifs and quotas.
Trading blocs are good as they allow free trade and things like that however, some say trading blocs limit trade to other countries restriciting the development of the global economy.
Give examples of trading organisations
- World Trade Organisation
- World Banks
- International Monetary Fund
What is a transnational corporation (TNC) and how have they grown?
A TNC operates in multiple countries.
Due to globalisation, TNCs have grown in size and number.
They produce global products with strong brands, distributed and sold worldwide.
Exist across various industries and sectors.
How are TNCs spatially organised?
Headquarters (HQ): In HICs, responsible for investments and big decisions.
Research & Development (R&D): In HICs or multiple locations for varied research.
Manufacturing & Production: In LICs due to lower labour costs, material costs, and taxes.
What production strategies do TNCs use to maximise profits?
Economies of Scale: Large revenues allow TNCs to expand and reduce costs per unit.
Global Supply Chains: Production occurs in LICs for cheaper costs.
Outsourcing & Offshoring: Using foreign suppliers or relocating production for cost savings.
What are the impacts of TNC’s on host countries?
✅
Increased employment, raising living standards.
FDI (Foreign Direct Investment) improves the balance of payments.
Transfer of technology & expertise (e.g., telecommunications).
❌
Many jobs are low-skilled.
Managerial roles often go to foreign workers instead of locals.
Profits are usually sent back to HICs.
Investments may be short-term.
How do TNCs impact their country of origin (HICs)?
✅
Development of higher-order jobs (e.g., management, research).
Overseas investment brings national income.
Encourages wider share ownership, boosting investment.
❌
Workforce may relocate or require frequent international travel.
Some industries may decline due to outsourcing.
Talk about Fairtrade
set up in 1992 to ensure producers recieve better trading conditions. Insted of exploiting the free-market system, fairtrade agreements set a minimum wage and production standards in return for trade concessions. It also helps promote sustainable farming practices and provide reinvestment into local communities.
What are the issues global governance focus on?
- reducing environmental problems
- trade and investment inequalities
- reducing poverty
- human rights violations
- civil conflicts
- financial instability
Examples of Global commons
- International Waters
- The Atmosphere
- Antarctica
- Outer Space
- Internet
