Global Systems and Global Governance Flashcards
What is the global village?
A modern term suggesting the characteristics of a village are manifested through globalisation.
Name an example of the global village.
Shopping online globally
Who suggested the global village and where?
Marshall McLuhan in his book ‘Understanding Media’ (1967)
What is cultural imperialism?
The fact of the culture of a large and powerful country, organisation etc. having a great influence on another less powerful country.
What is Americanisation?
The action of making a person or thing American in character or personality.
What is KOF index?
The KOF Index of Globalization (2011) is a ranking of the most global countries based on three dimensions of globalization: economic globalization, social globalization and political globalization.
How is the KOF index calculated?
It is on a scale of 1-100. Higher values denote greater globalisation.
How does the KOF index analyse economic globalisation?
Long distance flow of good, capital and services and information. This can be subdivided into;
Actual flows (e.g FDI and trade as a % of GDP)
Restrictions (e.g tariffs and trade barriers)
Economic globalisation is said to have a 37% weighting.
How does the KOF index analyse social globalisation?
Expressed as the spread of ideas, images and people. There are sub-indices;
Personal contact (e.g. international telephone calls and tourism)
Information flows (e.g. internet users per 1000 people and trade in newspapers as a % of GDP)
Cultural proximity (e.g. number of McD’s)
Social globalisation is said to have a weighting of 39%
How does the KOF index analyse politicial globalisation?
The diffusion of government policies. There are sub-indices;
Memberships of international organizations (e.g. united nations)
Number of foreign embassies (e.g Danish Embassy in New Delhi, India)
Participation in international treaties (e.g. the UK agreed to the Baghdad Pact.)
Political globalisation is said to have a weighting of 24%
What are some advantages of KOF?
Comparable; The index allows comparing degree and changes in globalization over many countries and more than 30 years.
Availability; The KOF Index of Globalization 2009 is available for 158 countries over the period 1970–2006.
Considers many; It is calculated based on 24 variables.
What are some disadvantages of KOF?
Smaller countries seem to be over-represented at the top of the rankings suggesting there may be some bias in how the final values are calculated. E.g. distances to neighbouring countries are short making it easier to engage in foreign travel (e.g. Belgium), or there are few places to visit at home (Luxembourg).
Trade in books and newspapers is falling in many places due to the rise of e-books and online news sites. Also, in some countries people may access books and newspapers through libraries. This is not reflected in the KOF data.
Internet users is based on people with access to the Internet, but how can this be found accurate (i.e Internet cafes vs home connections).
Trade calculations often ignore the informal economy which can account for a large proportion of actual trade (e.g. Mumbai, India).
Many countries have large numbers of illegal foreign migrants. They are not counted in the KOF.
What are some criticisms of KOF?
Some countries choose to be neutral and do not participate in UN peacekeeping missions or other international organisations as a result. This does not mean they are less globalized than those that do.
By publishing ranking KOF seem to be implying that those at the top are ‘better’ than those at the bottom. This is not necessarily true as globalisation brings problems as well as benefits to countries.
What is the Kearney index?
A.T. Kearney seeks to identify emerging trends in the data and illuminate current topics of interest. It can be broken down into 4 categories Economic Integration, Personal Contact, Technological Connectivity, Political Engagement
The Global Cities Index (By AT Kearney) examines the current performance of cities
How is the Kearney index calculated?
The lowest value is given a 0. The highest is given a 1 and then relative values are given to the ones in between.
FDI, Internet and Telephone Traffic is weighted double
All scores are then summarized
How does the Kearney index analyse economic globalisation?
Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country.
e.g. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India.
What is FDI?
Foreign direct investment
How does the Kearney index measure social globalisation?
PERSONAL INCLUDES;
Telephone traffic
Travel
Remittances (an amount of money that you send to someone) and Personal Transfers
TECHNOLOGICAL INCLUDES;
Internet Users
Internet Hosts
Secures Servers
How does the Kearney index measure political globalisation?
International Organizations (e.g. united nations)
U.N Peacekeeping (UNP helps countries torn by conflict create conditions for lasting peace)
Treaties (e.g. the Treaty of Paris was signed in 1783 between Great Britain on one side and America and its allies on the other)
Government transfers (for e.g. welfare financial aid)
What are some advantages of the Kearney index?
Coverage;
It covers 96% of worlds GDP
It covers 84% of world’s Population
Comparable;
Allows for comparison between countries
Allows for comparison over time
What are some disadvantages of the Kearney index?
Only 64 Countries are included in the index- not inclusive
Weightings – who decides? May be subjective
How do you measure cultural trends? Something as complex cannot be reduced to a statistic
What are some criticisms of the Kearney index?
Smaller countries tend to take the top places in the index due to higher proportion/importance of FDI – therefore suggesting an over importance of the size of the country.
In the 2009 KOF index, what was the most globalised country?
Belgium, despite not being on top of any of the three dimensions.
What is repatriation of profits?
TNCs operating in foreign countries will normally send any profits made back to the TNC headquarters. This repatriation of profits is sometimes known as economic leakage.
What is capital?
Capital can take many forms but for the purpose of this section we will refer to capital as money.
What are remittances?
Money sent home to friends and family by migrants living in a different location (often abroad).
What are core areas?
These are economically important and attract investment, capital and people. For the purpose of this section we will consider MEDCs like the US, Canada, Western Europe and Japan to be the core areas.
What are periphery areas?
These areas are poorer and may experience exploitation, economic leakage and out migration. For the purpose of this section we will consider LEDCs in Africa, Central Asia and parts of Latin America to be the periphery.
What are loans?
Money that is borrowed from someone.
What is aid?
To provide support or help. Aid can take many different forms ranging from giving money and loans to providing technology and expertise to providing food and rescue teams.
What is debt repayment?
The paying back of money that you have borrowed.
What is foreign direct investment?
Investment made by overseas governments, businesses or individuals in foreign enterprises.
What are the 4 factors of production?
Land
Labour
Capital
Enterprise
What did deregulation result in?
In the age of neo-liberalism it meant that banks and investment firms as well as other financial services could operate outside their own national boundaries.
Name a model which shows the dimensions of globalisation.
Wallerstein’s core-periphery model of a ‘world system’.
From 1974 and it builds on the dependency theory.
What is the dependency theory?
Deprived and poor countries are caused by their periphery position in international division of labour.
What is a diaspora?
A large group of people with a similar heritage or homeland who have moved or settles in places all over the world.
What are BRIC countries?
Brazil
Russia
India
China
Countries with economies which have advanced rapidly since the 1990s.
What is economic leakage?
Loss of income from an economic system.
It most usually refers to the profits sent back to their base country by transnational corporations- also known as profit repatriation.
What are MINT countries?
An acronym referring to the more recently emerging economies of Mexico, Indonesia, Nigeria and Turkey.
In 2018, what was the recorded amount of remittances?
$529 billion
This is three times more than the volume of ODA.
What is ODA?
Official Development Assistance
Contributions from richer countries to poorer countries.
Name three countries which are a main source of remittances.
USA
Saudi Arabia
UAE
Name 4 countries where remittances surpass 25% of total GDP.
Tonga
Kyrgyz Republic (29%)
Tajikistan (46%)
Nepal
What is a flaw of circular flow diagrams?
They do not show all flows.
What are two benefits of remittances?
They are an effective way of alleviating poverty because they go directly to families.
They present a more stable and steadily rising source of income, unlike FDI which fluctuates and dips significantly during recessions.
In 2019, what was the average cost of sending $200?
7% but can be up to 12-15%.
What is a UN goal involving remittances?
They want to reduce remittance costs to 3% by 2030 which is a global target under the Sustainable Development Goals.
What is containerisation?
Standardisation of transport that uses a common size of steel container to transport goods.
It makes transport easier and cheaper.
What has trade liberalisation led to?
Reduced tariffs and duties so as a result transaction costs are reduced so increased international trade.
What are services?
Economic activities that are traded without production of material goods.
What are high-level services?
Services to businesses such as finance.
What are low-level services?
Services t consumers such as call centres.
What do flows of information depend on?
Speed of data transfers and migrations.
Live media coverage
Email and internet
Improvements in telephone networks
Digitalisation and satellite technology.
Name an example of a flow of information?
In the early 1900s there were morning and evening newspapers to spread information.
What does global marketing involve?
Treating the world as one single market and using one market strategy.
Creates economies of scale and global brand awareness.
Will have to be adapted to regional markets as different areas have different cultures and laws.
What is trade?
The movement of goods and services from producers to consumers, spanning many sectors of industry.
What is comparative advantage?
The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.
What can be a basis for specialisation?
Comparative advantage
Give an example of a human geography comparative advantage.
Belgium and chocolate
Give an example of a physical geography comparative advantage.
Central America and coffee
Name five advantages of international trade.
Increased GDP
Increased consumer choice (could be accessing better products)
World peace
Increased wages
Could increase diets
Name four disadvantages of international trade.
Worker’s may not always benefit
Possibly environmental disadvantages
Deindustrialisation (Redcar Steel, UK)
Peripheral countries (Wallerstein’s model) are likely to suffer as the global core countries pay more for products.
Where is umbrella city?
Songxia
How many umbrella’s are made in China?
70%
How many models of umbrellas are on Amazon?
Over 5000
How many umbrella factories are in Songxia?
1000
How many umbrellas are made per person per day in Umbrella City?
300
What is Umbrella City an example of?
Comparative advantage
Why does Umbrella City have a comparative advantage?
Specialisation
Cheap costs
Access to markets
Umbrella Industrial Park
Who came up with the idea of containerisation?
Malcom McLean in 1937
What is containerisation an alternative solution to?
Break bulk shipping
When did the MSC Napoli crash?
January 2007
The containers fell into the sea
How many containers could the MSC Napoil hold?
Up to 4700
Where was the MSC Napoli travelling from and to?
Belgium to South Africa
How many containers fell overboard off the MSC Napoli?
114 and 80 washed ashore
What was found in the containers from the MSC Napoli?
Explosives
Fertiliser
Weedkiller
Car engines
Chocolate
What was the main export crop in Senegal by 1960?
Peanuts
Increased productivity due to a comparative advantage
Name another country which produced peanuts in Africa.
Mozambique
Why did Senegal start earning less from peanuts and what did they do?
Increased production in Africa
Borrowed money from World Bank
How did Senegal get into debt?
Borrowing money but peanuts kept decreasing in price.
They had more debt than what was spent on health and education combined.
How many peanut farmers in the US?
50000
Who is the current largest producer of peanuts?
USA
How did the US increase peanut trade?
Giving famers bonuses.
What is free trade?
When international trade is left to its natural course without governments imposing tariffs or quotas.
Who benefits the most from free trade?
HICs
Give an example of the effects of international trade.
18th century indian textiles-
India had a comparative advantage
UK inefficient at textile production
UK put protectionist policies to stop all imports
When UK successful they imposed high tariffs on indian textiles causing them to be undermined
This destoryed the Indian textiles industry.
Name an example of war damaging international trade.
Russia/Ukraine with sunflower oil.
How many of the poorest countries account for 0.6% of global trade?
49
Who are the top 5 exporters.
China
USA
Japan
Germany
UK/Netherlands
How many of global trade do the top 5 exporters make up?
37%
What are trade blocs?
Associations between different governments that promote and manage trade.
Remove trade barriers
Name 5 examples of trade blocs.
European Union (EU)
North American Free Trade Agreement (NAFTA)
Pacific Islands Forum (PIF)
European Free Trade Association (EFTA)
Organization of the Petroleum Exporting Countries (OPEC)
Is OPEC regional?
No
When was OPEC formed?
1960