Global Governance Flashcards
What is Globalisation?
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.
How can we identify globalisation?
-Access to Internet
-Improved communication and political co-operation
-TNC’s
-Population and Immigration Laws
-Trade and Investment
-Language integration
etc.
What are the two empirical measurements which indicate levels of globalisation?
- KOF Index
- Kearney Globalisation Rankings
How is KOF calculated?
-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%).
Define Interconnectivity
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.
What is the difference between no and total globalisation?
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.
What is a BRICS nation?
(Brazil, Russia, India, China and South Africa) These are the newly growing economies that are having an impact worldwide.
What is a Trading Bloc?
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.
What are the five major blocs worldwide?
- 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)
What is the highest and lowest level of integration?
Highest - Political Union
Lowest - Independent Economy
What is the difference between a preferential trade area, a free trade area and a customs union?
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.
What is the first significant step towards economic integration?
A common market as this allows member countries to trade freely in all economic resources (such as services, labour and capital as well).
Define Global Network
This refers to the link between different countries of the world (Such as flows of capital, traded goods and services, information and people).
What is a network?
An illustration or model which shows how different places are connected.
What is a node, a flow and a global hub in a global network?
Node - Points on a network map.
Flow - Connections between the nodes.
Global hubs - A node which is well connected.
What does it mean for a shrinking world?
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.
Define Economics of Scale
Producing a narrower range of goods and services meant that a country can produce in higher volumes and at cheaper costs per item/unit.
Define Product Dumping
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.
Define Protectionism and Tariffs
A country/government may protect important domestic industries by imposing additional taxes on imported goods and.or encouraging exports.
Define Comparative Advantage
A country specialises in producing only those goods that can be produced efficiently and at the lowest opportunity cost.
Define Over Specialism
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.
Define The Term, Fewer Domestic Monopolies
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.
Define A Decline Of Local Or Emerging Industries
New home-grown industries may find it difficult to grow and become established when faced with existing foreign competition, where costs are lower.
Define Purchasing Power
Increasing trade results in increased competition that lowers prices and allows consumers to be able to buy more for their money.
