Global systems and Global Governance

Question 1

What is Globalisation

Answer 1

process of becoming more globally connected on a variety of scales.
The movement of services, people, knowledge, ideas, goods and money across national borders

Question 2

Economic Globalisation?

Answer 2

-TNCs use of transnational outsourcing and offshoring
-outsourcing-obtaining key products from alternative cheaper locations (other than original location-origin)
-offshoring- process of moving part of company’s own production process to another country (usually developing country with cheap labour and relaxed work regulations-long hours)
-Trade blocs-group of country’s that act together to promote trade and free movement of services and goods between member states- crated integration between states, promoting development
-source of income from international companies
-global transactions of money (buying somet from china)

Question 3

Political Globalisation?

Answer 3

-governments form connections to trade (trade deals/blocs)
-western democracies especially had global influence on political ideas (development of market economies)
-deregulation (removing state regulations) policies allow markets to grow with an international reach
-international organisations exist to harmonise national economies/political relations (UN)

Question 4

Cultural Globalisation?

Answer 4

-exposure to media sources (television, social media) allow recognition/understanding of other cultures
-ability to travel internationally, people can experience cultures
-individuals have greeter awareness and understanding of world events due to education and news sources
-westernisation-domination of western cultural traits in non western areas (Starbucks seen in Asia)

Question 5

Social Globalisation?

Answer 5

-international immigration, creating multicultural societies where people adopt cultures (cultural food shops)
-social networking has revolutionised human connections, technology platforms has enabled interactions with people living in different countries, access to international info
-Global NGOs/charities involved in global improvement of education and health (World health organisation)

Question 6

Capital Flows

Answer 6

Flows of money for purpose or investment, trade and production

Question 7

Where do major flows occur between?

Answer 7

-core regions (wealthier developed countries that have power)
-Periphery regions (less wealthier/developing/less developed countries that have less power)
-The international Monetary fund (IMF) (an international cooperation that aims to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, reduce poverty)
-The world bank (group of global institutions that give out loans for development or relief

Question 8

Core regions:
What is foreign direct investment (FDI)?

Answer 8

-investment init a foreign country with the intention to make lasting interest
-money from core regions

Question 9

Core regions:
What is bilateral aid?

Answer 9

-money sent from one country to another with the intention of providing help to a country in need
-sent from core regions to periphery regions

Question 10

Core regions:
What are Remittance Payments?

Answer 10

-money that is transferred from workers in core regions back to their home country (country of origin) e.g. family
-money made in core regions transferred to developing countries (periphery regions)

Question 11

International military fund:
What are stabilising loans?

Answer 11

-low interest loans to stabilise economies and prevent economic collapses
-from international military fund usually within core regions

Question 12

The world bank:
What is disaster relief?

Answer 12

-loans to aid response after disasters
-loans from the world bank situated in core regions

Question 13

The world bank:
What are development loans?

Answer 13

-loans to fund projects that will allow economic development
-from the world bank situated in core regions

Question 14

Periphery regions:
What is repatriation of profits?

Answer 14

-profits from TNCs making money overseas are sent back to core regions
-money made from periphery regions (or people from there) that’s given to core regions

Question 15

Flows of products

Answer 15

-flows or physical goods
-globalisation has caused product flows to become international
-meaning products are produced by a country and then transported to another

Question 16

Flows of products
where are they produced and traded?

Answer 16

-used to be produced mainly in HICs as they had money to manufacture
-now traded internationally due technological advancements (better transportation and communication)
-lots of production relocated internationally (offshoring) as low labour costs and reduced taxes (enhancing profits for company’s)
-HICs import products from LICs to hen sell them at higher prices (make profit)
-emerging economies have increased flows of consumer products to those countries (as more wealthy)

Question 17

Flows of labour

Answer 17

-movement of people who move to work in another country
(migration) contribute to work force
-3-4% of worlds population are international migrants
-majority move to high income counties

Question 18

Flows of labour:
Migration within continents

Answer 18

-Asia, 63million migrants, South Asia to West Asia
-Europe, 41 million migrants, Eastern to west usually Germany to UK
-Africa, 19million

Question 19

Flows of labour
migration between continents

Answer 19

-Latin America/Caribbean to North America, 26million migrants, Mexico to California
-Asia to Europe, 20million
-Asia to North America, 17million, Asian pop highest in California

Question 20

Flows of labour
Skills of workers

Answer 20

-highly skilled workers are highly trained in jobs that require great deal of skill (medicine, science, ICT)
move to HIC as wages are higher for same job than in LIC.
-unskilled workers those under qualified do not possess expert knowledge. More to developed counties for better wages and due to high employment rate
however can lead too over population and exploration as many workers left underpaid and often illegal work, many migrants stay underpaid and low skilled.

Question 21

Flows of services

Answer 21

-footloose industries, they can locates anywhere without constraints from resources
-services flow as can be produced in different country’s to where they are received

Question 22

Flows of service
High lvl service vs low lvl service

Answer 22

High lvl services- activities that require higher skill level, person should be qualified an trained. Example: Financial services- need to be fully trained and qualified as need to be well informed to mark decisions about money
located usually in HICs especially as hubs in city’s

Low lvl services- require less training, not as important to consumers. Mainly customer service based (call centres) workers only need basic training to offer advice. Low lvl services are offshoring in order to take advantage of low labour cost, developing global connections, accelerating globalisation.

Question 23

Flows of information

Answer 23

-any type of info can flow from place to place via internet, SMS, phone calls etc
-info flows for different purposes and across many platforms

Question 24

Flows of information
Things affecting the flow

Answer 24

-Fast broadband and connectionsallow news an financial info to be transferred almost instantly, ppl more informed on global events
-social media allows people to communicate across countries, experience other cultures, people become more interconnected
-real time data and data transfers contribute to knowledge economy, which is an industry that requires info to develop rather than actual products. The ability to transfer info created development in stock markets, high tech products, education sector.
-large data bases an archives used for research and education
-ability to research allows pls to seek better employment opportunities, creates more global connections, and online work from home jobs.

Question 25

Global Marketing

Answer 25

-globalisation allowed businesses to market their products on an international scale
-grown many businesses, increased recognition and profit

Question 26

Global marketing
different marketing strategies

Answer 26

-awareness of brand- trade mark such as a logo so easily recognised by consumers.
-American brands (apple, nike, coke) developed global awareness allowing buyers to assume their success and popularity equate to good products, seen as trustworthy
-keeping the same strategy any changes will be costly (costs for employment). Usually only need to change language to promote product, sometimes marketing campaign may need to change in order to respect cultural differences.

Question 27

Production

Answer 27

-developed markets dominate global exports, usually in HICs, dominating automotive products (steel, iron and agricultural products)
-middle eastern emerging economies large contributors to oil industry (Russia, Saudi arabia in top 10 exporters of fuel)
-textiles and clothing industries concentrated within emerging economies and LICs (Asian regions) China worlds biggest exporter of textiles and clothing.
-consumer technology exports concentrated in emerging economies, china makes up 3rd of entire market, due to cheap labour cost and ability to make and ship products in bulk.

Question 28

Consumption

Answer 28

-HICs consumer manufactured products more than LICs, as less demand for goods in LICs.
-developing countries have high demand do fuel due to rapid industrialisation (Brazil, China and India)
-least developed imports are low, Democratic Republic and two former soviet states Georgia and Uzbekistan import medical supplies more than any other country