global systems Flashcards
what are global systems?
any organisation, groupings, or activities that link different parts of the world
what is globalization?
growing interdependence of countries worldwide- through increasing trade, investment and technology
what did Marshal McLuhan argue?
‘global village’ to describe the breakdown of spatial barriers around the world
similarities between places were greater than the differences -> economic at a global scale
describe and explain the KOF index
2002- covers economic, social and political dimensions of globalization- networks and mutual interdependence
3 main types of dimension: economic, social, political
calculate overall index of globalization and sub indices
what do the main areas of globalization include
economic- actual economic flows, restrictions to trade and capital
social- personal contacts(telecom, degree of tourism, transfers), information flows (internet, newspaper trades), cultural proximity, migration
political- no. memberships, embassies, high commissions, western democracy growth
name the factors promoting globalisation
flows of: services, labor, information, capital, products
Describe: flows of information
through internet- financial data, knowledge, communication - interconnected
Describe: flows of capital
capital= money that is invested
FDI increased by 4x from 1996-2016
IT improvements have encouraged capital to be moved (economies dependent)
deregulation of world financial markets (late 20th centry)
explain Frank and Wallerstein’s model of a world system
core- small block of developed nations with concentrated power
periphery- less developed- could be exploited and suffer from lack of investment
explain why it is outdated
rapid growth of large medium income countries- semi periphery, now investing FDI into periphery
what is the IMF
189 countries, 1945, foster global monetary cooperation, secure financial stability, facilitate international trade, high employment, sustainable economic growth…
loans to member countries experiencing actual or potential BoP problems
what is the world bank
1944, financial and technical assistance to developing countries- partnership to reduce poverty and support development
low interest loans, grants, zero to low interest credits
Describe: flows of products
UK moved in to service sector- manufacturing moved overseas so now less than 18% of employment is based in manufacturing- (steel= Sheffield, ships= london)
manufacturing decreased in MEDCs, low labour costs abroad (e.g. Dyson moved to Malysia in 2002)
£200 billion manufactured goods imported to UK in 1990, £550 billion in 2008
transaction costs, transport and time, tariffs/trade barrier
Flows of services
IT improvements mean that services can locate anywhere- transfer info. for banking/insurance
low level services are being outsourced (customer services) -> deregulation in 1970s/80s opened up markets to rest of world
Flows of Labour
2000-2015- international migration increased by 40%
high skilled- move to MEDCs where wages are higher
unskilled- move to escape low wages or unemployment - unemployment in Poland vs UK in 2005= 18.5% vs 5.1%
example of a major destination for movement of labour
oil-rich Gulf States of Kuwait, Qatar, Saudi Arabia
USA and UK
most migrants move over short distance within same region or between neighboring regions
definition of diaspora
large group of people with a similar heritage or homeland who have moved and settled in places all over the world
definition of profit repatriation
profits made by TNCs being taken back into their home country/ HQ
definition of remittance
transfer of money from foreign workers to family in their home country (2nd most important source of income for developing countries)
host country- hard working and pay taxes
explain Somalia’s remittance problem
40% rely on them for basic needs
informal economy- little gov. regulation, lack of anti money-laundering laws/due diligence, terrorist group Al-Shabaab
UK, US and Australia are unable to send money home
definition of a refugee
person who is residing outside the country of their origin
definition of asylum seeker
refugee who formally applies to reside in the country they arrive in
what is distance decay
no. migrants decline as distance between origin and destination increases
explain containerisation
shipping responsible for 18-30% of all worlds nitrogen oxide pollution
97% shipping containers manufactured in China
2009- largest 15 ships emitted as much greenhouse gases as 760 million cars
av. 675 containers lost at sea each year
