Global systems

Question 1

What is globalisation?

Answer 1

This is the process by which economics, societies and cultures become more interconnected.

Question 2

Whats the idea of global systems?

Answer 2

The idea that the world is now one interdependent system in which countries are all connected.
- These connections are economic, political and social and environmental.

Question 3

What is the globals systems theory?

Answer 3

• Too simplistic to look at countries in isolation.
• World should be seen as a single system which is divided into 3 tiers.
• Its ethnocentric to assume that westernisation is the ‘bets’ and that all countries should follow this theory.

Question 4

What is Wallerstein’s world systems theory?

Answer 4

Core:

• Highest levels of education, with high salaries and the best technology.
• These generate the most wealth in the economy.

Semi-Periphery:

• Places where core and periphery processes both occur.
• Exploited by the core countries but also exploit periphery countries.

Periphery:

• Places where there are lower levels of education, lower salaries and standards of technology.
• Generate the least wealth in the economy.

Question 5

Summary of the worlds systems theory:

Answer 5

• World systems theory suggests that the world is a very unequal place.
• There are unequal flows of people, money, ideas and technology.
• Suggests that exploitation needs to occur in order for the theory to run smoothly.

Question 6

Benefits and problems for the source country:

Answer 6

• If over-populated people leaving may improve standard of living for remaining citizens.
• People send remittance payments back to source.
• TNCs located in LICs will likely send profits back to HQs in HICs.
• People leaving to find work elsewhere may create a ‘braindrain’.
• Result in a loss of skills and cause about shortages.
• FDI by TNCs into LICs is part of the process of de-industrialisation within HICs.

Question 7

Benefits and problems for the destination country:

Answer 7

• Migrants boost productivity in sectors which locals are difficult to recruit e.g. car washing etc.
• Internet and mobile communications benefit businesses and public services in LICs.
• FDI by TNCs provides new employment and ways of working.
• Migration can lead to resentment especially during times of economic decline.
• FDI can result in local businesses losing out on business and custom.
• Negative multiplier effect if TNC moves back out of the country is economic conditions change e.g. cheaper to locate elsewhere.

Question 8

Unequal flows in Qatar-
Benefits and problems arisen for Qatar and the source countries from which migrants have come to work:
(90% pop are migrants)

Answer 8

Qatar:

Infrastructure projects can be completed quickly at low cost:
- Hope to diversify the economy.
- Includes 2022 world cup.
Bad publicity from reports of exploitation:
- Revealed the evidence of forced labour, and overcrowding.
Rapid change can cause social disunity:
- Conservative country concerned with westernisation.
Not long term sustainable:
- Cannot afford to continue with the pensions etc.

Source:

Loss of workers from over populated countries:
- Provides those who remain with more resources.
Remittance payments:
- Some earn well and will send remittance back to support family.
North Korea takes 70% of earnings.
Exploitation and poor conditions:
- NO unions
- 1000 workers from India and Nepal died in 2012.
Source country loses potential workers.

Question 9

Explain how TNCs can create unequal flows?

Answer 9

People:
- Highly skilled workers are in demand and can flow around the world globally largely from the core.

Money:
- FDI flows to host country but the majority of the profits will return to home nation.

Ideas:
- Originate in the core but can flow as part of FDI to countries where they will be made and developed.

Technology:
- FDI allows technology to flow but the source of the innovation will remain in the core. As this is where R&D remains.