Global Governance

Question 1

What is Globalisation?

Answer 1

This is the increasing connections between places and people across the planet, established through trade, politics and cultural exchanges and helped by technology and transport.

Question 2

How can we identify globalisation?

Answer 2

-Access to Internet
-Improved communication and political co-operation
-TNC’s
-Population and Immigration Laws
-Trade and Investment
-Language integration
etc.

Question 3

What are the two empirical measurements which indicate levels of globalisation?

Answer 3

• KOF Index

- Kearney Globalisation Rankings

Question 4

How is KOF calculated?

Answer 4

-Calculated for each country which attributes a score between 100 (most) and 0 (least). It covers 3 main aspects: Economics (36%), Social (38%) and Political (26%).

Question 5

Define Interconnectivity

Answer 5

It is about the ways that geographical phenomena are connected to each other through environmental processes, the movement of people, flows of trade and investment, the p[urchase of goods and services, cultural influences,m the exchange of ideas, and information, political power, international agreements and other types of interactions across space.

Question 6

What is the difference between no and total globalisation?

Answer 6

No globalisation - Everyone stayed within their borders and didn’t interact in any way with other countries.
Total globalisation - If everyone interacted freely, all countries were fully integrated into the global communities - forming a single society.

Question 7

What is a BRICS nation?

Answer 7

(Brazil, Russia, India, China and South Africa) These are the newly growing economies that are having an impact worldwide.

Question 8

What is a Trading Bloc?

Answer 8

A trade bloc is where a set of countries trade freely with each other with few if any barriers. Countries outside this area that wish to trade anywhere with the bloc have to pay an agreed tariff.

Question 9

What are the five major blocs worldwide?

Answer 9

• EU (European Union)
• NAFTA (North American free trade agreement)
• OPEC (Organisation of the petroleum exporting countries)
• MERCOSUR (Mercado Comun der sur)
• ASEAN (Association of South East Asian nations)

Question 10

What is the highest and lowest level of integration?

Answer 10

Highest - Political Union

Lowest - Independent Economy

Question 11

What is the difference between a preferential trade area, a free trade area and a customs union?

Answer 11

Preferential Trade Area - Exists when countries within a geographical region agree to reduce/eliminate tariff barriers on selected goods imported from one member to another.
Free Trade Area - These are areas that are created when two or more countries in a region agree to reduce or eliminate barriers to trade on all goods.
Customs Union - Involves the removal of tariff barriers between all members plus the acceptance of a common external tariff on all non-members.

Question 12

What is the first significant step towards economic integration?

Answer 12

A common market as this allows member countries to trade freely in all economic resources (such as services, labour and capital as well).

Question 13

Define Global Network

Answer 13

This refers to the link between different countries of the world (Such as flows of capital, traded goods and services, information and people).

Question 14

What is a network?

Answer 14

An illustration or model which shows how different places are connected.

Question 15

What is a node, a flow and a global hub in a global network?

Answer 15

Node - Points on a network map.
Flow - Connections between the nodes.
Global hubs - A node which is well connected.

Question 16

What does it mean for a shrinking world?

Answer 16

Distant places start to feel closer and take less time to reach due to technological advancements, which is sometimes referred to as time-space compression.

Question 17

Define Economics of Scale

Answer 17

Producing a narrower range of goods and services meant that a country can produce in higher volumes and at cheaper costs per item/unit.

Question 18

Define Product Dumping

Answer 18

Profit lines can be dangerously tight even to the point where goods are sold at a potential loss. It refers to exporting at a price that is lower in the foreign market than the price charged domestically.

Question 19

Define Protectionism and Tariffs

Answer 19

A country/government may protect important domestic industries by imposing additional taxes on imported goods and.or encouraging exports.

Question 20

Define Comparative Advantage

Answer 20

A country specialises in producing only those goods that can be produced efficiently and at the lowest opportunity cost.

Question 21

Define Over Specialism

Answer 21

If demand falls or if the same goods can be produced more cheaply overseas, then production needs to shift to other products. Specialised production centres tend to be less able to diversify.

Question 22

Define The Term, Fewer Domestic Monopolies

Answer 22

Domestic prices may be kept high when a single firm controls a large proportion of the domestic market (25% or greater), as there is less competition. Imports from overseas competitors help to lessen this effect.

Question 23

Define A Decline Of Local Or Emerging Industries

Answer 23

New home-grown industries may find it difficult to grow and become established when faced with existing foreign competition, where costs are lower.

Question 24

Define Purchasing Power

Answer 24

Increasing trade results in increased competition that lowers prices and allows consumers to be able to buy more for their money.

Question 25

Define De-Skilling

Answer 25

Traditional skills and crafts may be lost when production technology replaces manpower. So-called “screwdriver jobs” may dominate.

Question 26

Define The Term Increased Employment

Answer 26

Increased production for export is likely to result in job creation and due to the multiplier effect, further jobs will subsequently be created.

Question 27

Define Transfer Of Technology

Answer 27

Application of new technologies is incentivised as this may lead to design improvement and cost savings as well as supporting innovation and enterprise.

Question 28

Define what is meant by exploitive and labour intensive industries

Answer 28

The biggest cost for most industries is labour; this is particularly true for consumer manufacturing industries. By squeezing this cost, even if working conditions are compromised, profits can be maximised.

Question 29

Define Trade

Answer 29

Trade is defined as the action of buying and selling goods and services.

Question 30

Why do we need trade?

Answer 30

• Each country has specific resources
• Resources are unevenly distributed
• One country surplus is another country’s need.

Question 31

What do we refer to when the export value is greater than import value?

Answer 31

A trade surplus.

Question 32

Describe the Wallerstein world system theory model.

Answer 32

There are three main segments: Core, Semi-Periphery. High-profit consumption of goods links core to Periphery. Whilst cheap labour and raw materials connect periphery back to Core. Semi-Periphery is in the middle, connected by them all as well.

Question 33

What are the axis of the Rostow’s Modernisation Theory, and what are the main stages to this?

Answer 33

• Development against Time.

- Primary, Secondary, Tertiary and Quartenary.

Question 34

Define Fairtrade

Answer 34

This is an aim to raise awareness of trade injustice and imbalances of power in the conventional trade structures and to advocate or change in policies to favour equitable trade.

Question 35

What is horizontal and vertical integration?

Answer 35

Horizontal Integration - Involves improving links between different firms in the same stage of production.
Vertical Integration - An industry where one company either owns or controls multiple stages in the production and distrubiton chains.