Global Systems Flashcards
What are the 3 tiers of Global Systems Theory?
Core
Semi-periphery (mix of both)
Periphery
Describe Core
Processes that incorporate higher levels of education, higher salaries and more technology
Generate more wealth in the world economy
Describe Semi-Periphery
Places where core and semi-periphery processes are both occurring. Places exploited by core and then exploit periphery
Serves as a buffer between periphery and core
Describe Periphery
Processes that incorporate lower levels of education, lower salaries and less technology
Generates less wealth in world economy
Problems for destination country due to flows of people, money, ideas, and technology
Migration can lead to feelings of resentment especially in times/areas of economic decline. FDI by TNCs can result in local competitors losing out and in time to the negative multiplier effect if TNCs re-locate.
Benefits for destination country due to flows of people, money, ideas, and technology
Migrants boost productivity especially in sectors in which locals are difficult to recruit in sufficient numbers such as the NHS or agricultural processing. This is especially evident with young, energetic, innovative migrants. The spread of the internet and wireless mobile communications benefits both business and public services in LICs.
Problems for source country due to flows of people, money, ideas, and technology
The loss of migrants known as the ‘brain drain’ and the ‘brawn drain’ results in skills and labour shortages. FDI by TNCs into LICs is part of the process of Global shift which can lead to de-industrialisation in HICs – the source countries of the FDI.
Benefits for source country due to flows of people, money, ideas, and technology
Remittances provide a significant source of income and help to improve quality of life in areas to which they are sent. FDI by TNCs can provide employment and introduce new ways of working into LICs.
Define Globalisation
Globalisation is a process by which economies, societies and cultures become more integrated or connected. This is made possible by a global network of trade, communications and migration.
What is the idea of Global Systems Theory?
Global systems theory is the idea that the world is now one interdependent system in which countries are not separate but connected. These connections are economic, political, social and environmental. This theory was first put forward by Wallerstein in his book ‘The modern world system’. It is one theory which explains globalisation.
Describe Global Systems Theory
- Wallerstein argues that it is too simplistic to look at countries in isolation.
- He argues that it is ‘eurocentric’ or ‘ethnocentric’ to assume that what happened in countries in North America and Europe was ‘best’ and that all other countries in the world would follow the same route to development.
- Instead he argues that the world must be seen as a single system divided into 3 tiers in which the some exploit others and that the development of some is at the expense of others. He argues that this is the consequence of a long process of globalisation.
Why is the Global System Theory likely to be maintained?
Wallerstein argues that the consequence of the 3 tier arrangement is inequality.
He argues that it is beneficial for core countries to maintain this system.
