Global systems Flashcards
1
Q
Give an example of a human global system
A
services capital people information products
2
Q
What is a global system?
A
a term used by human geographers to understand how human activity operates on a worldwide scale
3
Q
What is the first principle of global systems?
A
all peoples, industries and economies, form part of a single, unified, complex and interconnected structure
4
Q
What is the second principle of global systems? (2)
A
- connections linking people and places are viewed as ‘flows’
- physical systems driven by energy and matter. Human systems depend on flows of money, people, ideas and products
5
Q
What is the third principle of global systems?
A
all global flows are embedded in a broad, political and legal framework
6
Q
What is the fourth principle of global systems?
A
the complexity of global systems has heightened human interconnectivity, interdependence and mutual dependence
7
Q
How have global flows changed?
A
global flows have deepened -> lengthened and -> accelerated
8
Q
Outline the history of flows in Ancient Egypt (3)
A
- land and sea trade routes
- construction techniques
- reed boats in 4000BC
9
Q
Outline the history of flows in Babylon (2)
A
- developed a system of manufactured goods
- established trade with India, Turkey etc.
10
Q
Outline the history of flows in Rome (3)
A
- only had a population of 1 million people
- had roads for trade and territory
- had trade routes through the Mediterranean and black sea
11
Q
Outline the history of flows in colonialism
A
- the grab for Africa
12
Q
Outline global flows now (3)
A
- the internet
- data sharing
- financial deregulation
13
Q
What is financial deregulation?
A
the removal of government rules around financial services like banks etc., which allowed foreign banks to set up HQ in the UK after the deregulation in the 70s
14
Q
Outline financial deregulation
A
- before deregulation, your bank had to be your nationality
15
Q
What is glocalisation?
A
the customisation of a service to suit the local use and audience
16
Q
Analyse globalisation in terms of the flow of ideas (3)
A
- diffusion and spread of dominant culture (‘McDonaldisation’)
- glocalisation of goods and services to meet local and cultural needs
- new political movements and changes
17
Q
Analyse globalisation in terms of product and capital flows (2)
A
- growth of TNCs and cross-border trade
- World Bank and IMF lending to support development and globalisation
18
Q
Analyse globalisation in terms of the flow of people (2)
A
- changing ideas about gender and sexuality
- international migration and diaspora growth
19
Q
Analyse globalisation in terms of the flow of tech and services (4)
A
- ICT supporting remote learning and healthcare
- social connections through social media
- online shopping and data sales
- ICT supporting labour spatial divisions
20
Q
What enabled global time-space compression to accelerate? (2)
A
- developments in 19th century transport and trade (railway, telegraph, steamship)
- developments in 20th century jet aircrafts, fibre optic tech and containerships
21
Q
What are all the different transport developments? (4)
A
- containerisation
- freight
- aeroplanes
- high speed rail
22
Q
What are the different transport developments known as?
A
the enablers of globalisation
23
Q
Outline containerisation as a transport development (4)
A
- movement of containers in large amounts
- carries raw materials and manufactured goods
- largest containership version contains 21,000 containers
- 200 million containership trips made per year
24
Q
Outline freights as a transport development (3)
A
- carried by lorries
- US developed 25m long version
- mega sheds made for more freights
25
Outline aeroplanes as a transport development (2)
- Boeing 787 -> first time travelling from the UK to Australia non-stop
- revolutionising places like India and China
26
Outline high speed rail as a transport development (3)
- most popular in China and India which are emerging superpowers
- the sky train from China to Tibet
- the train passed through -35C temperatures
27
Despite such rapid advancements in tech, what's happening?
- billions of people remain weakly connected to global systems
28
Sub-Saharan Africa and phones
most people in sub-saharan africa have mobile phones but most don't use them for the internet
29
Arpanet as a technology development(3)
- first version of he internet
- 1960s, US Defence
- linked different computers in different stations
30
Mobile technology as a technology development
- innovation driven by need of TNCs to protect market share
31
AI as a technology development (2)
- Kiva robot
| - Management, info and security systems increasingly rely on AI
32
The Kiva robot (3)
- amazon bought company that made them
- 15,000 in use across 10 US warehouses
- 426 items sold per second last year (36.8 million in a year)
33
What is M-pesa?
Africa's most successful mobile money service
34
What does M-pesa provide?
access to financial services to those that have a mobile phone
35
How many countries is M-pesa live in?
7
36
How many 30 day active subscribers of M-pesa are there?
over 37 million
37
How many 30-day active agents of M-pesa are there?
over 396,000
38
How many transactions through M-pesa were made in 2018?
around 11 billion
39
What does M-pesa offer? (4)
- customers can send, receive and store money safely
- markets can have digital platform
- faster purchases with QR code
- transaction through a SIM card
40
How does M-pesa work?
- customers register at an authorised agent
- cash deposited in exchange for electronic money
- recipient doesn't need to use the same network
41
What does M-pesa enable?
connections many thought weren't possible
42
What have some NGOs used M-pesa for?
sending patients the money to pay for travels (e.g. CCR or Comprehensive Community-based Rehabilitation)
43
M-pesa and M-Kopa Solar (2)
- M-Kopa solar has connected off-grid homes to solar power electricity through M-pesa
- customers can pay in small installments
44
M-pesa and G4S
G4S can pay its security staff around the country in bulk directly to their phones
45
M-pesa and the UN
contributed to the achievement of the UN sustainable development goals
46
Communication technology in the 1860s
first telegraph cables across the Atlantic
47
Communication technology in 1971
the microprocessor (aka the internet of things) allowed household items to use Wifi
48
Communication technology in the 1980s thru 90s
broadband development. Ocean floor fibre-optic cables owned by governments and TNCs
49
Communication technology in the 1970s
first GPS satellite launched in 1970s. 20 now situated 10,000km above Earth
50
How many kilometres of fibre-optic cables are owned by TNCs
1 million
51
What are the 4 flows of capital?
- FDI
- International lending and debt relief
- International aid
- Remittances
52
How much money does FDI bring each year?
$2 trillion
53
When was the last peak in FDI?
$12.4 trillion in 2007-8
| it has declined since
54
Where does $70 billion in FDI come from?
- investment banks
- pension funds
- private citizens
55
How much does the IMF and WB loan?
billions of dollars
56
Which country is a significant lender of money?
China
57
Which country received the msot UK aid until recently?
India
58
Which countries is UK aid mainly aimed at?
commonwealth countries
59
How much money in remittances is there currently?
$500 billion
60
How many times more is remittances than international aid?
3x the value
61
What are the 5 TNC investment strategies?
```
offshoring
mergers
acquisition
joint venture
glocalisation
```
62
Offshoring
TNCs moving parts of their own production process overseas
63
Give an example of a TNC that has offshored production
Dyson to Malaysia
64
Positives of offshoring (3)
- cheaper labour
- looser regulations
- expansion of a country's "territory" and market
65
Negative of offshoring
the TNC loses some of its direct control over the production of its goods
66
Merger
the joining together of 2 companies on equal terms
67
Positive of merging
double brand recognition/ larger brand recognition
68
Joint venture
2 companies forming a partnership, not a merger
69
Glocalisation
adapting a global product for the local market
70
Positive of glocalisation
sometimes, glocalisation reflects different laws in different countries. e.g. BMW making right-hand drive cars for the UK
71
What is a TNC?
a company that has operations in more than one country to produce/sell products and services
72
Where do TNCs have their roots?
the colonial business of the 17th century e.g. East India Company
73
What did TNCs mainly control?
trade routes
74
How much of the world's population did they rule?
20% including large areas of India with private armies
75
How do TNCs often build their businesses?
by buying foreign firms in mergers and acquisitions
76
In 2006, how many of the top 10 TNCs were in the US?
6
77
In 2010, how many of the top 10 TNCs were in the US?
2
78
In 2010, how many of the top 10 TNCs were in China?
3
79
Where are the bulk of a TNCs assets?
in the place where the parent company is registered
80
What are most TNCs?
assembly industries
81
How much of world financial assets do TNCs own?
20%
82
How many people do the top 100 TNCs employ?
6 million
83
How much of consumer sales do the top 100 TNCs have?
30%
84
Roughly how many TNCs are there worldwide?
100,000
85
Who owns Mini?
BMW
86
How many suppliers provide parts for the Mini?
2500
87
Why are some suppliers for Mini parts from inside the EU?
in order to avoid tariffs
88
Where is the Mini's engine made?
in a factory in Brazil that's part-owned by BMW
89
How do TNCs grow? (2)
by their investment decisions and by glocalisation
90
What tends to be a TNCs motive?
profit: they control costs of raw materials and production costs and do this by mergers and take-overs in 3 ways
91
What are the 3 ways a TNC can control production and material costs via take-overs and mergers?
horizontal integration
vertical integration
economies of scale
92
What is horizontal integration?
buying up competition
93
What is vertical integration?
controlling and owning every stage of production
94
What are economies of scale?
the expansion of production to increase efficiency and reduce unit production costs
95
What are the means of TNC growth? (2)
the banks
| global capital flows
96
The banks as a means of TNC growth?
companies invest overseas as well to boost their market or take advantage of labour/environmental laws
97
Global capital flows as a means of TNC growth?
flows of money around the world connect businesses and countries
98
Top 5 countries for investing in 2005 (in order)
```
USA
UK
Germany
France
Japan
```
99
Which Indian firms bought how many companies for how much?
Hindaleo and Tata Steel
34 companies
$10.7 billion
100
How does mobility make a TNC grow?
- accelerated and cheaper transport
| - just in time manufacturing
101
What are the accelerated and cheaper transport options for TNCs? (2)
containerisation
| cheap flights
102
How does just in time manufacturing make a TNC grow?
it provides cheap, fast turn around which enables companies to be faster than their competition
103
What are the social aspects of TNCs in terms of jobs? (3)
- provision of jobs for local workers
- often better paid than in the local area
- lack of union membership for workers
104
What are the social aspects of TNCs in terms of culture? (5)
- causes a waking up of the country to the west
- it can culturally infiltrate
- everywhere becoming westernised (homogenous)
- culturally infiltrating
- harms cultural diffusion
105
What are the social aspects of TNCs in terms of the company itself? (3)
- corporate responsibility
- can bring health schemes
- no protection
106
What are the economical aspects of TNCs? (Part 1: 4)
- raised living standards where TNCs invest providing a stimulus
- integration of global economies
- profits and investment (movement of capital)
- economic multiplier effect
107
What are the economical aspects of TNCs? (Part 2: 4)
- even if wages are low, money will be spent, stimulating growth of local services
- tech transfer is one of the most effective methods of wealth distribution
- profit repatriation
- profit returned home
108
Outline Apple as a TNC
- Apple’s HQ is based in Cupertino, North California
| - employs 98,000 full-time employees
109
Outline Apple's overall stats (3)
- 10th largest company
- 2nd largest IT company
- 11th largest TNC
110
How has Apple been successful? (4)
- Apple well known for stylish, well-designed products
- smooth branding + marketing
- continuous generation of brand-loyal customers
- sell on numerous platforms
111
Where are Apple's core products designed?
in Silicon Valley, California
112
Where are Apple's mainstream products produced?
in China by a company called Foxconn in Foxconn city
113
Where are the majority of Apple's sales?
in HICs such as America, UK, Australia and Japan
114
How many of Apple's data centres are based in the US?
3 data centres
115
Why did Apple pick China? (3)
- highly skilled but low paid workers -> cheaper
- creates jobs and brings investment
- Foxconn city is a high security business park
116
What are the controversies surrounding Apple? (4)
- working conditions
- health and safety
- child labour
- suicides
117
Outline the controversy of working conditions at Foxconn
In 2006, 200,000 workers in Shenzen factory worked 60+ hours for $25 a week with enforced overtime being reported
118
Outline the controversy of Health and Safety at Foxconn (2)
- 2010: 50 workers poisoned by chemical
for screen cleaning.
- Apple tried reducing costs by no ventilation leading to backlash and being sued
119
Outline the controversy of child labour at Foxconn (4)
- it brings down costs
- authorities support it
- people are labelled as interns/trainees
- often a condition of graduating
120
Outline the controversy of suicides at Foxconn
2010: people started killing themselves sometimes in broad daylight
121
How many reported suicide attempts, deaths and talk-downs were there at Foxconn in 2010
18 attempts
14 deaths
20 talked down
122
What lured Apple to locate in Ireland?
the low corporation tax at 12.5%
123
How many Irish workers does Apple employ?
4000 direct workers
| 2500 indirectly
124
What did Apple attract while in Ireland? (2)
- other high-tech firms
| - highly skilled workers
125
What effect has Apple had on the area? (2)
- provided inspiration for local education, research and development
- contributed to infrastructural improvements
126
What was Apple accused of? (2)
- corporate tax avoidance
| - not creating sufficient jobs for local Irish workers
127
How did Apple avoid tax? (2)
- they used subsidiary firms in other countries to declare profits and pay lower tax
- they had favourable treatment from the government
128
What happened between the US and EU (in relation to Apple)?
tension rose and it was realised that taxation systems needed to be updated to accommodate TNCs like Apple
