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Global Systems and Global Governance Flashcards

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1
Q

What is globalisation?

A

The process of the world’s economies, political systems and cultures becoming more strongly connected to each other.

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2
Q

What factors affect globalisation?

A

Flows of information, capital, products, services and labour between different countries

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3
Q

What are the three driving forces of globalisation?

A

New systems, technology and relationships between countries

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4
Q

How does new systems affect globalisation?

A

Systems include ways of working, procedures and methods that allow a particular function to be carried out

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5
Q

How does technology affect globalisation?

A

The Internet allows people from all over the world to access information

Aeroplanes allow people and goods to be transported around the world swiftly and efficiently

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6
Q

How do relationships affect globalisation?

A

In the past, most relationships involved one country winning and one country losing

Nowadays, relationships are based on trade and common rules that allow everyone involved to gain

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7
Q

How do financial systems promote globalisation?

A

It governs the flow of capital between countries

Financial deregulation by governments relaxed the rules about what banks were allowed to do - this removed barriers to capital coming in and out from a country

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8
Q

How have trade agreements promoted globalisation?

A

It has removed barriers to trade, making it more common and beneficial for both countries

This is done by removing tariffs for both countries

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9
Q

What does the World Trade Organisation do?

A

They govern global trade

They set rules on how countries can trade with each other and can negotiate trade deals and settle disputes

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10
Q

How has transport promoted globalisation?

A

Improved transportation (faster and larger trains, aeroplanes, ships etc…) has made it easier to move products around the world

Containerisation (same containers) has helped to reach this

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11
Q

How has communication systems improved global businesses?

A

The ability to communicate between two areas allow an increased flow of information

This has increased with the Internet, social media and email

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12
Q

How has management and information systems promoted globalisation?

A

They have increased the efficiency of companies

Supply chains have now become global

Large companies benefit from economies of scale

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13
Q

What are economies of scale?

A

Buying in bulk or making lots of the same product can reduce the price of the individual item

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14
Q

What is outsourcing?

A

A company pays another company to do work to save money

For example, a call centre may be used for customer services instead of creating a new one

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15
Q

How has security promoted globalisation?

A

Trade makes war less likely as countries become interdependent

Countries can work together to improve security e.g. NATO by deterring common enemies

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16
Q

What is interdependence?

A

The relying of a country on another

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17
Q

What is economic interdependence?

A

Countries rely on each other for economic growth e.g. oil is produced by a country and sold to another. This means that a country relies on the oil and the other country relies on the money

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18
Q

What is political interdependence?

A

Countries are dependent on each other to solve issues that cannot just be addressed by one country e.g. refugees were taken into many countries in the Ukrainian War in 2022

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19
Q

What is social interdependence?

A

There is a greater connection between people living in different countries e.g. in 2015, there were 244 million migrants - these people build relationships with people from other countries

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20
Q

What is environmental interdependence?

A

Every country in the world is dependent on the rest of the world to look after the environment e.g. the Chernobyl disaster in 1986

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21
Q

What benefits come from the unequal flows of people?

A

People move towards places with more jobs

People move to escape war and famine

Remittances are sent home to their families, creating economic growth in the developing country

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22
Q

What inequalities come from unequal flows of people?

A

People moving for economic reasons are not usually the poorest in society

It is easier for people in the developed world to migrate

Developing countries experience the ‘brain drain’

Differences in pay between migrants and locals can cause conflict

Many are made to work in dangerous conditions for little pay e.g. several thousands migrants have died building facilities in Qatar for the 2022 FIFA world cup

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23
Q

What is a remittance payment?

A

Money sent back to families or home communities from working in a developed country

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24
Q

What is the ‘brain drain’?

A

Skilled people leave a developing country in the search for work and take their knowledge with them

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25
Q

What benefits come from flows of money?

A

Remittance payments, foreign aid, FDI and income from trade all contribute towards a country’s wealth

Foreign aid can improve living standards and local infrastructure

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26
Q

What inequalities come from unequal flows of money?

A

Foreign aid can create dependency on another country

Foreign aid can find its way to armed groups and fund conflicts

Companies may pressure governments to pass laws that make it cheaper to invest there e.g. cutting environmental regulations or weakening laws on working conditions

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27
Q

What is neo-liberalism?

A

Governments thought the economy would work better without state intervention so barriers to trade were removed, government spending was cut and companies were privatised

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28
Q

What are the benefits of neo-liberal ideas?

A

Increased free trade leads to development within countries and lowered conflict between some countries

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29
Q

What are some of the disadvantages of neo-liberal ideas?

A

It tends to concentrate wealth in the hands of a few e.g. large businesses

It could lead to more conflict if there are disagreements

Governments and TNCs may argue that free trade is the best way for a country to develop, promoting poor working conditions and environmental degradation

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30
Q

How have unequal flows of technology been beneficial?

A

Concentration of technology e.g. Silicon Valley has rapidly improved healthcare and communications

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31
Q

How has unequal flows of technology produced inequalities?

A

Developed countries can afford the latest technology, increasing their access to information and services due to better communication infrastructure - this gives developed countries an advantage

Repressive governments of less developed countries have used weapons technology sold to them by developed countries to stop protests from their own people

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32
Q

Where is coffee grown?

A

In hot, wet areas close to the equator

Coffee production is dominated by countries like Brazil, Vietnam, Colombia, Indonesia and Ethiopia

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33
Q

What are the issues with coffee production?

A

The plants are susceptible to a range of diseases e.g. bacterial blight and coffee leaf rust which prevents growth

Insects and other pests can harm the growth of the plants

Farmers use fertilisers and pesticides but these are often imported into the country and so can be expensive

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34
Q

What is trend for coffee production and consumption?

A

It is mainly produced by less developed countries and consumed by developed countries

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35
Q

What country is the largest coffee producer?

A

Brazil is the largest coffee producer (20%)

It has around 300,000 coffee farms and produces around 2.5 million tonnes per year

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36
Q

What country is largest importer of coffee?

A

The USA is the largest importer (20%)

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37
Q

How much of the price of the coffee goes to coffee farmers?

A

Around 7 - 10% because they sell the unprocessed bean which is low value

TNCs receive the majority of the profits by roasting the beans

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38
Q

What movement helps farmers receive a fair wage?

A

Fairtrade

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39
Q

How does Fairtrade help coffee farmers?

A

They work with the farmers to maintain environmental standards and prohibit forced labour and child labour

They have set up a minimum price which has to cover all of the farmer’s costs

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40
Q

How has the Fairtrade movement grown?

A

The number of producer organisations grew from 175 in 2002 to 329 in 2011

It also grew from around 15,000 tonnes to 80,000 tonnes per year

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41
Q

What is the Fairtrade premium?

A

Extra money that allows infrastructure like schools, farm machinery and computers

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42
Q

What is a TNC?

A

Companies that operate in two or more countries

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43
Q

What percent of global trade was linked to TNCs?

A

80%

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44
Q

What is Access to Markets?

A

How easy it is for countries or companies to trade with one another

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45
Q

Do developed or developing countries have greater access to markets?

A

Developed countries as they have more money to invest so they can avoid the high tariffs imposed by developing countries by opening factories within them

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46
Q

Why do developing countries have less access to markets?

A

They may rely on loans that depend on them removing trade barriers and increasing access to their markets

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47
Q

What can increase access to markets?

A

Being a member of a trading bloc

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48
Q

What is a trading bloc?

A

It is where member countries have access to the markets of all the other member countries

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49
Q

Why are trading blocs better for HICs?

A

They have access to lots of wealthy buyers

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50
Q

Why are trading blocs worse for LICs?

A

They are less likely to be in a trading bloc and therefore will have to pay high tariffs to export their goods to those markets

51
Q

What is the SDT?

A

Special and Differential Treatment agreements - these let the least developed countries bypass developed countries tariffs e.g. the EU’s 2001 Everything but Arms Agreement

52
Q

What are the advantages of an SDT?

A

The profits allow the less developed countries to diversify the range of industries they have e.g. by introducing manufacturing or tourism sectors

53
Q

What are the disadvantages of an SDT?

A

They have a negative impact on developed countries by allowing cheap imports into the country

Some people think that setting up trading blocs are more effective at improving market access

54
Q

What are the economic impacts of having differential access to markets?

A

It is hard for countries with poor market access to establish new industries

This makes them dependent on selling low-value primary products e.g. agricultural goods that tend to fluctuate in price

Countries with higher access to markets tend to see more economic growth because they can trade more

55
Q

What are the social impacts of having differential access to markets?

A

People in countries with better market access tend to have higher-paid jobs, increasing their standard of living

Countries with less access to markets have less money available for education and healthcare so quality of life is generally lower

Less developed countries use child labour or harsh working conditions to make sure they get some profits

56
Q

Who benefits more from trade: developed or developing countries?

A

Developed countries as they produce processed goods so they can sell for a higher price

57
Q

What does trade create?

A

Trade increases interdependence between countries e.g. the financial crisis in 2008 increased rates of unemployment in many countries

58
Q

How do TNCs connect countries?

A

They connect it through their spatial organisation - they create a global supply chain because the different parts of either business (from manufacture to retail) are located in different countries

59
Q

Where are TNCs headquarters located?

A

HQs are usually in big cities in developed countries e.g. New York

60
Q

Where are the Research and Development (R&D) facilities located?

A

Located in towns and cities where there are highly educated people, often in the same country as the headquarters

61
Q

Where are the factories located?

A

They are often located in less developed countries where the manufacturing costs (e.g. labour, material and land) are lower e.g. Nestlé has a factory in Bangladesh

62
Q

How do TNCs make links between countries and companies?

A

By expanding their operations to gain more control over their markets

63
Q

What is a merger in terms of TNCs?

A

It is where two companies (usually of a similar size) agree to become one bigger company

BP and Aramco merged in 1998, creating stronger links between the countries where the two companies operate

64
Q

What are acquisitions?

A

An acquisition is when one company buys another (usually smaller) company

For example, Ford bought Volvo Cars in 1999

65
Q

How are sub-contractors used in relation to TNCs?

A

TNCs can use foreign companies to manufacture products without actually owning the businesses

For example, Nike subcontract a clothing company to make the clothes for them, linking the countries of the TNC and the subcontractor’s country together

66
Q

How does FDI increase linkages between TNCs and Countries?

A

All mergers, acquisitions and subcontractors all lead to an FDI increase in the area

67
Q

What are the two ways TNCs gain more control over their markets?

A

Vertical Integration

Horizontal Integration

68
Q

What is vertical integration?

A

When a company takes over other parts of its supply chain

For example, Shell owns every part of its supply chain, from extracting and refining oil to selling it to consumers at petrol stations

69
Q

What is horizontal integration?

A

When a company merges with or takes over another company at the same stage of production

For example, Disney took over PIXAR in 2006 - both were film production companies making family-oriented films

70
Q

Why do TNCs organise production?

A

To take advantage of a global supply chain, giving them economies of scale so they get the most value from the whole of their supply chain

71
Q

Where do TNCs in the primary industry often invest in?

A

They invest in counties with natural resources they can extract

Shell acquired fellow oil company BG Group to gain access to oil reserves in Brazil and Australia

72
Q

Where do TNCs in the secondary industry often invest in?

A

They invest in countries with low labour costs and cheap land, especially where governments encourage investment in tax breaks

They also invest in countries with a large market for their products

73
Q

Where do TNCs in the tertiary industry often invest in?

A

TNCs in the tertiary industry often invest in countries with a well-educated population

For example, Aviva has invested in France, Canada and India

74
Q

Where else do TNCs invest?

A

They invest in countries with weak labour and environmental regulations as they can cut costs, increasing their profits

75
Q

What is intra-firm trading?

A

One division of a TNC trade with another part of the TNC

Intel assembles some of its microchips in Costa Rica but sells them to the USA

76
Q

What percentage of international trade is made up of intra-firm trading?

A

30-50%

77
Q

How does intra-firm trading give a lot of power over global trade and smaller businesses?

A

The prices are decided by the company management and not the market

78
Q

What is the multiplier effect?

A

When one impact creates many other impacts

For example, by opening a new factory, a corporation creates jobs for the people, meaning they have more money to spend, helping local businesses and governments through taxes

79
Q

When is the multiplier effect created?

A

When TNCs invest in a new country

80
Q

What is global marketing?

A

When one marketing strategy is used to advertise a product all over the world

81
Q

How do TNCs gaining knowledge of local markets help them sell products?

A

They can slightly change their products to suit different cultures

For example, McDonald’s sells the McSpicy Paneer burger in India

82
Q

What is the aim of a TNC through marketing?

A

To create a brand that is recognised globally e.g. Coca Cola

Consumers will still buy the product without continued marketing

83
Q

What is international trade?

A

International trade is the import and exports of goods and services between countries

84
Q

How has the volume of global trade increased dramatically between 1980 and 2008?

A

Its value has increased nearly 8 times

85
Q

How is the pattern of global trade changing?

A

Developed countries remain the biggest global traders, but some emerging economies are catching up

China is now the largest exporter of goods in the world, largely due to its rapid growth in the manufacturing sector

86
Q

How is the pattern of global trade changing in developing countries?

A

It is increasing, but the growth is slow

In 1995, African countries accounted for 2% of world trade whereas, in 2010, they accounted for just over 3%

The poorest 49 countries in the world make up around 10% of the world’s population but only account for 0.4% of global trade

87
Q

How has the rise in fair trade increased?

A

Since the 1970s, nearly a thousand fair trade producer groups have been set up in less developed countries

88
Q

What are foreign investors attracted to?

A

The size of the market (how many people they can sell to), the stability of the market (e.g. not in a war zone), the possibility of extracting resources (e.g. mines in Africa) or the ability to access financial services

89
Q

How has the volume of FDI changed between 1996 and 2016?

A

The volume of FDI has risen dramatically from about $400 billion in 1996 to nearly $1500 billion in 2016

90
Q

How has the pattern of investment changed?

A

Until the 1980s, developed countries mainly invested in other developed countries. Since the 1980s, developed countries have begun investing more in emerging economies and developing economies e.g. China, India, Brazil and Mexico

Emerging economies now invest heavily in less developed countries e.g. China invests a lot of money in countries in Africa and South America

91
Q

What is ethical investment?

A

When a person, company or group only invests in areas that are considered socially responsible - e.g. companies that cause environmental or humanitarian harm are generally avoided by ethical investors

The amount of ethical investment by US companies almost tripled between 2005 and 2016

92
Q

What are international laws?

A

Rules that are established by countries through international agreements that are legally binding

Examples are human rights, labour standards and trade regulations

93
Q

What are norms?

A

Accepted standards of behaviour - there are usually consequences for countries, companies or individuals who don’t follow them

94
Q

What are institutions?

A

Political and legal organisations

They exist to pass and enforce laws, decide whether a law has been broken, or act as a forum for different groups to discuss issues and sort out their differences.

Examples are the UN, the WTO and the International Criminal Court

95
Q

What does global governance try to promote?

A

Growth and stability

96
Q

How does global governance promote growth and stability?

A

Countries must abide by common rules

Trade rules set by the WTO aim to increase global trade

The World Bank gives development loans to less developed countries to increase economic growth

The WHO combats epidemics, increasing social stability

UNESCO helps to ensure the benefits of scientific advances are shared amongst all countries

97
Q

What are some problems with global governance?

A

Countries sign up to international laws and institutions voluntarily - if a country doesn’t sign up, they are not legally bound to the treaty

It can be difficult to make countries and TNCs comply with the rules

Some people think that global institutions act for political reasons e.g. it is alleged that some countries have used the International Criminal Court to remove people they don’t want in power in African nations

98
Q

How can global institutions create inequalities and injustices?

A

There are conditions to receiving a loan from the IMF or World Bank e.g. less developed countries may have to implement free trade policies

Economic groups like the G7 strengthen the power of developed countries, rather than encouraging equality between them and less developed countries

Members of security institutions e.g. the United Nations Security Council can abstain from resolutions e.g. between 2011 and 2016, Russia and China abstained from several resolutions to intervene in the Syrian Civil War

99
Q

Why was the United Nations set up?

A

It was set up in 1945 to establish and a peaceful and fair world

100
Q

What are the four main principles of the UN?

A

To maintain global peace and security

To develop friendly relations between nations

To use cooperation to solve international trade problems

To bring countries together to settle disputes

101
Q

How many members are there in the UN?

A

193 different countries so it has a lot of authority

102
Q

How has the UN promoted growth and stability?

A

The UN Millennium Development Goals have helped reduce the number of people living in poverty, increased the number of children in primary schools and reduced child and maternal mortality rates

UN peacekeeping missions can help end wars e.g. peaceful elections were held in Cote d’Ivoire in 2015 after years of civil war

103
Q

How has the UN promoted inequalities and injustices?

A

Developed countries hold the power over decisions taken at the UN - many of the global issues tackled by the UN affect African countries the most, but there is no permanent seat on the Security Council for these people

At times, the UN has been ineffective e.g. in 1995, UN peacekeepers failed to protect 8,000 people in south-east Europe when they were massacred by Bosnian Serbs

104
Q

On what scales do decisions made by global institutions affect?

A

International, national, regional and local

105
Q

On which scales do NGOs operate?

A

They operate on a range of scales to monitor and support institutions for example some NGOs lobby for national governments to create laws

106
Q

What is the main threat to Antarctica?

A

Fishing and whaling

107
Q

What species does over-fishing threaten?

A

The Patagonian Toothfish

Antarctic krill is the most fished creature (200,000 tonnes in 2013), having a knock-on effect in the food chain

108
Q

Why is it hard to make sure fishing quotas are followed?

A

The ocean is so large and lots of illegal fishing takes place

109
Q

What other species are affected by fishing by getting caught in fishing lines?

A

Albatrosses and Petrels

110
Q

What is happening to the whale population currently?

A

It is increasing, but slowly due to them being slow breeders

111
Q

When was commercial whaling banned?

A

1982

112
Q

Why does some whaling still take place?

A

For ‘scientific reasons’

Japan, Iceland and Norway do not agree to the ban on whaling

113
Q

What was set up by the International Whaling Commission in 1994?

A

A whale sanctuary in the Southern Ocean around Antarctica

114
Q

What benefits does globalisation bring?

A

Integration

Development

Stability

Economic Costs

115
Q

How is integration beneficial?

A

It allows countries to pool their resources to solve global issues that are too great for a single country to deal with

116
Q

How is development beneficial?

A

FDI brings capital into a country which can be used to improve education and infrastructure

This can attract further trade and investment, leading to further development

Global institutions like the world bank can direct resources to help countries develop further

117
Q

How is stability beneficial?

A

Countries are becoming more interdependent, which discourages any actions that would upset global stability because of the negative consequences for all countries involved

118
Q

How is economic growth beneficial?

A

Participation in global trade allows countries to profit from their natural resources and specialist industries, generating wealth.

Countries can also gain products and services that they would be unable to produce themselves.

Greater access to money and products improves people’s standard of living

119
Q

What disadvantages are there of globalisation?

A

Inequalities

Conflict

Injustice

Negative consequences on the environment

120
Q

How are inequalities a negative of globalisation?

A

Low skilled workers in developed countries struggle to find work when businesses move out, creating a greater rich/poor divide

Developed countries have greater access to capital and technology, giving them an advantage

121
Q

How is conflict a negative of globalisation?

A

Developed countries have intervened in conflicts to ensure their supply of natural resources like oil

Cyberwarfare is becoming a new source of conflict

122
Q

How is injustice a negative of globalisation?

A

Improved transport and communications systems have made human trafficking easier

Many people in less developed countries have to work in sweatshops to make products for people in developed countries

123
Q

How is globalisation bad for the environment?

A

Global trade increases the volume of GHGs produced

Access to resources causing deforestation and overfishing

The abundance of cheap products around the world means people can afford to be more wasteful, creating lots of landfill

Geography (33 decks)

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