global systems

Question 1

what are global systems?

Answer 1

any organisation, groupings, or activities that link different parts of the world

Question 2

what is globalization?

Answer 2

growing interdependence of countries worldwide- through increasing trade, investment and technology

Question 3

what did Marshal McLuhan argue?

Answer 3

‘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

Question 4

describe and explain the KOF index

Answer 4

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

Question 5

what do the main areas of globalization include

Answer 5

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

Question 6

name the factors promoting globalisation

Answer 6

flows of: services, labor, information, capital, products

Question 7

Describe: flows of information

Answer 7

through internet- financial data, knowledge, communication - interconnected

Question 8

Describe: flows of capital

Answer 8

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)

Question 9

explain Frank and Wallerstein’s model of a world system

Answer 9

core- small block of developed nations with concentrated power
periphery- less developed- could be exploited and suffer from lack of investment

Question 10

explain why it is outdated

Answer 10

rapid growth of large medium income countries- semi periphery, now investing FDI into periphery

Question 11

what is the IMF

Answer 11

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

Question 12

what is the world bank

Answer 12

1944, financial and technical assistance to developing countries- partnership to reduce poverty and support development
low interest loans, grants, zero to low interest credits

Question 13

Describe: flows of products

Answer 13

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

Question 14

Flows of services

Answer 14

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

Question 15

Flows of Labour

Answer 15

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%

Question 16

example of a major destination for movement of labour

Answer 16

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

Question 17

definition of diaspora

Answer 17

large group of people with a similar heritage or homeland who have moved and settled in places all over the world

Question 18

definition of profit repatriation

Answer 18

profits made by TNCs being taken back into their home country/ HQ

Question 19

definition of remittance

Answer 19

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

Question 20

explain Somalia’s remittance problem

Answer 20

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

Question 21

definition of a refugee

Answer 21

person who is residing outside the country of their origin

Question 22

definition of asylum seeker

Answer 22

refugee who formally applies to reside in the country they arrive in

Question 23

what is distance decay

Answer 23

no. migrants decline as distance between origin and destination increases

Question 24

explain containerisation

Answer 24

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

Question 25

why does globalisation cause inequality

Answer 25

dependency, exploitation, conflict, weakening of laws , closure of local businesses

Question 26

measure of income inequality

Answer 26

GINI coefficient- condenses income distribution to a single number between 0 and 1-
UK=0.35, unequal rich country