Global Systems and Global Governace Flashcards
Globalisation-What?
The increasing connections between places and people across the planet, established through trade, politics and cultural exchanges, and is helped by technology and transport
Types of Globalisation
There are 4 different types of Globalisation:
- Economic Globalisation
- Political Globalisation
- Social Globalisation
- Cultural Globalisation
Economic Globalisation-What?
Countries are connected to each other due to financial reasons
Political Globalisation-What?
Countries are connected to each other for political reasons
Social Globalisation-What?
Countries are connected to each other by the actions of people eg: an American eats a Banana from Ecuador
Cultural Globalisation-What?
Countries are connected to each other by sharing cultures
Interconnected-What?
The ways that geographical phenomena are connected to each other
How can things be connected to each other?
- Environmental Processes
- The Movement of People
- Flows of trade and investment
- The Purchase of Goods and Services
- Cultural Influences
- The Exchange of ideas and Information
- Political Power
- International Agreements
No Globalisation-What?
If everyone stayed in their own country and didn’t interact in any way with other countries
Total Globalisation-What?
If everyone interacted freely, all countries would be fully integrated into the global economy, forming a single society
The Real world is?
Between No Globalisation and Total Globalisation
The Main Dimensions of Globalisation
There are 4 main dimensions of Globalisation:
- Information, Technology and Capital
- Products and Labour
- Services and Marketing
- Production, Distribution and Consumption
Examples of Information, Technology and Capital
- Cheap, reliable and near instantaneous communication between all ports
- Electronic Money flow
- NIC’s proving services to HIC’s (Outsourcing)
- The Internet
Examples of Products and Labour
- People move around the world for employment
- High speed rain and international airports
- Cheap global transport
- Tourists travelling further to reach more exotic destinations
Examples of Services and Marketing
- TNC’s use the same adverts around the world
- Global Brands
- Globalised Marketing
- Services follows flows of information, people and products
Examples of Production, Distribution and Consumption
- TNC’s dictate where their products are made
- Peoples are distributed around the world to meet the demands of HIC consumers
How to Measure Globalisation
To measure globalisation, the KOF scale is used
KOF Scale-What
An index that was introduced in 2002 and is calculated for each country, with 100 being the most globalised
KOF Scales-Aspects Percentage-Economic
36% of a countries score on the KOF scale is due to economical reasons
KOF Scales-Aspects Percentage-Social
38% of a countries score on the KOF scale is due to social reasons
KOF Scales-Aspects Percentage-Political
26% of a countries score on the KOF scale is due to political reasons
KOF index-Categories-Economic
- Trade (% of GDP)
- Hidden Import Barriers
- Capital Account Restrictions
- Mean Tariff Tax
- Foreign Direct Investment (% of GDP)
- Trade in Newspapers
- Taxes on International Trade
- Transfers
- Trade in books
- Portfolio Investment
KOF index-Categories-Social
- TV (per 1000)
- Number of IKEA’s
- Telephone Traffic
- Internet Users (per 1000)
- Foreign born population
- International Tourism
- Number of McDonalds
- Income payments to foreign nationals
- International Letters
KOF index-Categories-Political
- Membership of International Organisations
- International Treaties
- Participation in UN Security Council
- Embassies in Countries
KOF Scale-Positives
+Way to measure globalisation
+Range of categories/factors
+Covers all aspects of globalisation
+Constantly updated-Countries can move up and down
KOF Scale-Negatives
- IKEA and McDonalds are western companies
- Westernised approach to globalisation
- To be a member of the UN Security Council , you have to be invited
- Location based-Some countries cannot enter some groups/agreements
- Data measuring problems
Case Study-Globalisation is Good Film-Taiwan- 30 years ago
- Poorer than many African Nations
- Malnourished
- No natural resources
Case Study-Globalisation is Good Film-Taiwan-Now?
- No poverty
- 10x higher raises than 40 years ago
- Very wealthy
Case Study-Globalisation is Good Film-Taiwan-Early factory features
- 24 hour shifts
- Dangerous Equipment
- Sweatshop like conditions
Case Study-Globalisation is Good Film-Taiwan-Arguments for Sweatshops
- Cheap goods are made
- People get jobs
Case Study-Globalisation is Good Film-Taiwan-Key to their success
- Competition in Markets
- Innovation
- Government support
- Global Success
- Market Deregulation
- Locals are trained
Case Study-Globalisation is Good Film-Taiwan-Americanisation
- Very democratic society
- Western cultures and companies are in Taiwan
- People take American concepts are creating a local variation of it
Case Study-Globalisation is Good Film-Vietnam
- Lots of Sweatshops
- Child labour rates has dropped
- Regulations on sweatshops
- In 50 years, Vietnam’s economy has doubled
- Absolute poverty rate halved
Case Study-Globalisation is Good Film-Vietnam-Positives of Sweatshops
- Long term investment
- People have jobs
- Regularly paided
- Employees get benefits
- Economy stimulated
Case Study-Globalisation is Good Film-Vietnam-Negatives of Sweatshops
- People migrate to work there-Problems in local area
- Job competition
Case Study-Globalisation is Good Film-Kenya-Why is it Poor
- Restrictions
- Need licence to start business, need money to get licence
- 1 in 3 live in absolute poverty
- No land ownership
- No services
Case Study-Globalisation is Good Film-Kenya-Successes
- Mobile phone industry means more are connected
- Cheap clothes market
- Flower exports to Europe
Factors that accelerate globalisation
There are 5 key factors which accelerate the globalisation process:
- New Technologies
- Global Financial Systems
- Improved Transport
- International Security
- Trade Agreements
Factors that accelerate globalisation-New Technologies
- Information can be shared quickly with billions on sites like Facebook and Twitter
- Mobile phones help connect people, markets and trade
- GPS allows people to see where they are
Factors that accelerate globalisation-Global Financial Services
- World Bank provides loans
- Countries can “Bail out” different countries
- 2007 collapse of US housing market lead to a period where banks no longer wanted to lend money- Lead to 2008 Global Financial Crisis
Factors that accelerate globalisation-Transport Systems
- More accessible world-Global transport network for people and goods
- Creates new treats-Quick transport of disease
Factors that accelerate globalisation-International Security
- Open Borders-Reduced security measures e.g.: Countries In the Schengen Area
- Technology-Cyber Attacks and leaks of information
Factors that accelerate globalisation-Trade Agreements
- Countries can pick who they trade with
- World Trade Organisation overseas 97% of trade and ensures trade agreements are followed
- The W.T.O agreement is over 26,000 pages long-World trade is very complex
Global Network-What?
The links between different countries of the world
Network-What?
An illustration or model which shows how different places are located and connected
Nodes-What?
The points on a network map
Flows-What?
The connections between nodes
Global Hub-What?
A well connected node e.g.: A world city
The Shrinking World-What?
Distant places start to feel closer and take less time to reach due to technological advancements. This is sometimes referred to as the Time-Space compression
The Main Causes of The Shrinking World-Telephones
Telephones replaced a 3 week boat trip to talk to someone in another country. This laid the ground for TNC’s to operate in different countries
The Main Causes of The Shrinking World-Air Travel
Faster planes with greater capacity have allowed mass air travel
The Main Causes of The Shrinking World-Internet
Large amounts of data can be moved across cyberspace and allows office staff to work from home
The Main Causes of The Shrinking World-GIS/GPS
GPS, now called GIS is 24 satellites in orbit. GIS’s can collect, analyse and manage satellite data
Containerisation-What?
the development of standardized metal containers for cargo which can be transhipped between train, lorry and ship carriers. Revolutionized haulage by reducing transhipment times and replacing large numbers of labourers with crane technology
Containerisation by Numbers
- There are 17 million shipping containers in the world. At any one time, between 5 and 6 million are in transit on ships
- Containers make around 200 million trips a year
- Ships operate 24 hours a day for about 280 days a year
- Shipping is responsible for 18-30% of all of the worlds nitrogen oxide pollution
- Shipping is responsible for 9% of all the world’s sulphur oxide pollution
- 85% of the pollution is in the northern hemisphere
- Shipping is responsible for 3.5% to 4% of all climate change emissions
Containerisation-Which kind of products
Containerisation only occurs on secondary products
Containerisation-Advantages
+Improves efficiency of transport
+Opens far away markets
+Increases the speed of international trade
+Helps develop emerging economies
Trade Bloc-What?
A trade bloc is where a set of countries trade freely with each other with few, if any barriers. Countries outside this area that wish to trade anywhere within the bloc has to pay an agreed tariff
Trade Bloc-Examples
- European Union (EU)
- Association of Southeast Asia Nations (ASEAN)
- North American Free Trade Agreement (NAFTA)
- Organisation of Petroleum Exporting Countries (OPEC)
- Mercado Comun del Sud (Common Market of the South) (MERCOSUR)
Levels of Integration
There are 4 different levels of integration of Trade Blocs
- Preferential Trade Area
- Free Trade Area
- Custom Union
- Common Union
Levels of Integration-Preferential Trade Area
When countries within a geographical region agree to reduce and eliminate tariff barriers on selective goods imported from other member of the area
Levels of Integration-Free Trade Area
When two or more countries in a region agree to reduce or eliminate barriers to trade on all goods coming from other members
Levels of Integration-Custom Union
A customs union involves the removal of tariff barriers between members, plus the acceptance of a common external tariff against non members. This means that members may negotiate as a single bloc with 3rd parties, such as another bloc. E:G: EU negotiating with MERCOSUR
Levels of Integration-Common Union
A “Common Market” is the first significant step towards full economic integration and occurs when member countries trade freely in all economic resources. This means that all barriers to trade in goods, services, capital and labour are removed
Trade Blocs-Advantages
+Poorer countries get treated well-Richer countries can bail them out
+Single Currency- Stability, travel more easily and trade with others easily
+Policies-Everyone is on the same page
+Untariffed Goods
+Grants to fund initiatives in member states to help the country develop
+Free Border e.g.: Schengen Area
+Easy to import goods and services
Trade Blocs-Disadvantages
- Single Currency-If currency is devalued and collapse, this causes a crisis in many countries eg: Eurozone Crisis
- Free Borders mean that anyone can come in without being checked
- Bigger countries have to pay into the union, smaller countries don’t have to
World Bank-What?
Organisation of 188 countries who work to promote financial cooperation between countries to reduce poverty. This is normally in through the promotion of trade and high employment
United Nations-What?
Known as the “Guardian of International Peace, Security and Human Rights”. It promotes the development of poorer nations through work with the IMF and the World Bank
World Trade Organisation-What?
Deals in the rules of trade between countries ensuring trade flows freely
International Monetary Fund-What?
It is an important source of financial and technical assistance to developing countries, It’s main aim is to reduce poverty
TNC-What?
A global company which operates in more than one country. Headquarters are often in MEDC’s with factories in LEDC’s where workers are cheaper
Advantages of Globalisation
\+TNC 's invest in LEDC countries -Creates jobs for locals \+Lets us experience New cultures \+Raises awareness to local causes \+Can lift people out of poverty \+Can make the world rich \+Creates trade with countries \+Improves economy \+Multiplier Effect occurs in reality
Disadvantages of Globalisation
- Money earned by TNC ‘s go to their Headquarters, not the country where the factory is
- Creates unregulated TNC factories
- Creates market competition between local and international business
- Local businesses may close
- Can make LEDC countries poorer
- Local traditions are eroded
- Countries can isolate themselves to prevent globalisation
- Corruption
Inequality -What?
The unequal distribution of resources (power, wealth income) and opportunities (health, education, employment)
Global Inequality -Who owns what?
According to a report from Oxfam, 62 people own the same as half the world
Global Inequality -How can it occur
Global Inequality can occur within countries as well as between countries. Inequality can occur on the grounds of
- Gender
- Religion
- Social Class
- Racial Groups
- Location
Global Inequality Case Study -Uganda -Location
Uganda is a landlocked country in East Africa
Global Inequality Case Study -Uganda -Should Uganda be poor?
Uganda should not be poor as it is green and fertile and has plenty of resources such as copper and cobalt. However, due to Civil War and HIV/AID, the country has been damaged
Global Inequality Case Study -Uganda -How many life in Poverty?
Nearly a third of the population live below the poverty line and the average life expectancy is 59 years
Global Inequality Case Study -Uganda -Poverty
Poverty is greatest in rural areas, particularly in the north, where the majority of the population are farmers
Global Inequality Case Study -Uganda -Colonialism
When Uganda was in the British Empire, the British East Africa Company strongly influenced the countries exports. Low value crops were exported
Global Inequality Case Study -Uganda -Fish
Fish is a traditional food staple for Ugandans living in the shore of Lake Victoria. Hkwever, this is unsustainable due to overfishing and the predatory Nile Perch which has Caused stocks of fish to be reduced to near extinction. This has caused fish factories to close
Global Inequality Case Study -Uganda -Telephone
A “Village Phone” system has been set up in rural areas . This offers loans for people wanting to start up a mobile phone business. This is an emerging business in Uganda, and can help the country develop and bring people out of poverty
Trade -What?
The action of buying and selling goods and services
Why do we trade?
- Each country has specific resources
- Resources are unevenly distributed
- What one country has, another needs
What is indicated about trade?
- LIC countries need to export large values of primary products in order to purchase manufacturer goods
- Prices of these goods are higher than raw goods
- HIC countries import primary goods, manufacturer them and export them to produce a profit
- HIC countries dictate the terms of trade
Terms of Trade -What?
The cost of goods that a country has to import, compared with the price at which they can sell the goods they export
Trade Deficit -What?
When a country imports more than they export
Trade Surplus -What?
When a country exports more than they import
What is Trade So uneven
S.H.E.E.P
S.H.E.E.P?
Social Historical Environmental Economical Political
Factors that lead to uneven trade -Social
- Poverty
- Diseases
- Civil war in countries
Factors that lead to uneven trade -Historical
- Colonialism
- The country’s history
Factors that lead to uneven trade -Environmental
- Landscape
- Climate
- Natural Resources
- Natural Disasters
Factors that lead to uneven trade -Economical
- Technology
- GDP
- Country’s Wealth
Factors that lead to uneven trade -Political
- Trade Blocs
- Trade Embargoes
- International Relationships
World Trade Models -Wallerstein
-HIC countries give high profit goods to LEDC countries, and receive cheap labour and raw materials from LEDC countries
World Trade Models -Wallerstein-The role of NIC ‘s
- NIC countries (Known as Semi Periphery Countries) get goods from HIC’s and receive Labour and materials from LEDC countries
- They also give goods to LEDC countries, and give HIC countries material and labour
World Trade Models -Frank (Pre Wallerstein)
Core countries (Normally MEDC countries) give goods to Periphery Countries (Normally LEDC countries). Periphery Countries give labour and material to Core countries
World Trade Models -Roston
Roston’s Modernisation Theory used stages, which over time a country goes through
World Trade Models -Roston-Stages -One
A countries works with primary goods, normally these are LIC countries
World Trade Models -Roston-Stages -Two
A country in this stage works with secondary goods. These are normally LIC countries
World Trade Models -Roston-Stages -Three
A country works with both secondary and tertiary goods. These countries are normally NEE countries. To reach this stage and higher, a country needs Foreign Direct Investment, normally by a TNC