Global Systems and Global Governance Flashcards
1.1 WHAT IS GLOBALISATION?
What do you take ‘dimensions of globalisation’ to mean?
FLOWS of: products & labour, services & global marketing, information & technology & capital (wealth and profit)
these are what allow globalisation to happen
1.1 WHAT IS GLOBALISATION?
Give 4 examples of flows of information, technology and capital
- cheap, reliable and practically instantaneous communication between virtually al parts of the world => info and capital to be shared
- money flows electronically around the world (HDEs take advantage of LDEs to take advantage of cheaper production costs)
- technology largely ignores political boundaries when connecting people and places
- countries such as India provide a range of financial and IT services for higher income countries
1.1 WHAT IS GLOBALISATION?
Illustrate flows of products and labour (4 ideas)
- global transport systems have never been cheaper+ more efficient at moving people and goods
- travel has been revolutionised: high-speed railways, containerisation (speeds up trading of goods), international airport hubs
- people move all around thee world for work and employment
- tourists travel increasing distances, encouraged by cheap flights and global marketing
1.1 WHAT IS GLOBALISATION?
Exemplify what ‘glocalisation’ is
“the global distribution of products that are tailored to specific markets”, i.e. globalisation but specific to an area
e.g.) Coca-Cola advert: same script, same music, same setting, but different languages and actors to reflect the target nation
1.1 WHAT IS GLOBALISATION?
Illustrate patterns of production, distribution and consumption using an example
- (TNCs)
- cocoa produced in poor countries (Ghana)
- they don’t get fair pay
- the people in Ghana don’t taste chocolate because it’s too expensive
- cocoa is bought by Nestle and manufactured and distributed within EU (demonstrates an uneven flow of distribution and consumption)
1.1 WHAT IS GLOBALISATION?
List the 6 factors in globalisation and give one example to illustrate each
- new technologies, communications and info systems, e.g.) mobile phones connect people and markets
- global financial systems, e.g.) online banking apps
- transport systems, e.g.) flights to anywhere, opportunities for trade but also threats of disease spreading
- security, e.g.) average cost of most severe online security breaches in UK for big companies now starts at £1.5 million
- trade agreements, e.g.) prevents countries from resisting some foreign imports whilst favouring others. e.g.) the World Trade Organisation oversees 97% of global trade, makes negotiations + forums and ensures trade agreements are followed
1.2 INTERDEPENDENCE AND UNEQUAL FLOWS OF PEOPLE
How can colonialism be seen as linked to today’s global systems? Illustrate with an example
- former British colonies (e.g. Uganda) can join the voluntary organisation of the Commonwealth
- British Empire imposed the British way of life (gov, laws, religion, language) on colonies
1.2 INTERDEPENDENCE AND UNEQUAL FLOWS OF PEOPLE
How can Uganda have unequal flows of money people and technology, yet promote stability, growth and development?
village phone model:
- loan offered to people who wish to start a mobile phone business
- allows the purchase of a mobile phone, car battery to charge it and a booster antenna that can pick up signals from 25km away
- rapidly growing market of users who are willing to pay for this mobile service
- e.g.) farmers use it for info on seed prices/new farming techniques
1.3 THE INTERNET AND SINGLE-PRODUCT ECONOMIES
How does China illustrate unequal power relations that enable them to drive global systems to their own advantage?
Chinese gov controls the internet at its source to influence geopolitical events and, in turn, their citizens:
Great Firewall (difficult to bypass):
- online censorship since 1990s
- blocks access to foreign sites
- filters keywords
- bandwidth throttling (deliberate slowing of internet services, done by provider)
Golden Shield:
- domestic surveillance since 1998, set up by the minister for public security
- fines, arrests, libel lawsuits (making false statements about someone) and dismissals to enforce censorship
1.3 THE INTERNET AND SINGLE-PRODUCT ECONOMIES
Give reasons why Nigeria cannot influence geopolitical events like China can (5 ideas/bullet points (developed off each other))
- Nigeria is a single-product economy; oil and gas = 80% of national income) => there’s a greater emphasis on exports of oil and gas
- this makes Nigeria less internationally competitive in manufactured goods + increases reliance on foreign imports
- Nigeria has neither the skills nor the technology to exploit the oil => major oil companies (TNCs) were encouraged to develop these oil reserves
- the usual high income from oil is undervalued => consumer goods are cheap => domestically manufactured goods are too expensive to export (dutch disease) (gov doesn’t control the oil or its prices)
- => deindustrialisation => problems amplified
1.3 THE INTERNET AND SINGLE-PRODUCT ECONOMIES
Use at least one example to illustrate how unequal flows of people, money, ideas and technology can cause inequalities, conflict and injustices
FINISH
NIGERIA
- has oil reserves of 36 billion barrels and gas reserves of 2800 billion m³; oil and gas make up 80% of their national income (single-product economy)
- membership of OPEC (Organisation of Petroleum Exporting Countries) => dramatic decline in traditional industries (agriculture and manufacturing) => focus on oil alone
- Nigeria has neither the skills nor the technology to exploit the oil => major oil companies (TNCs) were encouraged to develop these oil reserves
- these TNCs have been criticised for having scant regard for the local env and indigenous people, e.g.) oil spills are common, people’s rights abused
- dutch disease: the usually high income from oil means Nigeria’s currency is overvalued => imported consumer goods => deindustrialisation => amplifies problems
- increase in rural-urban migration => increase in overcrowding and rural poverty
1.4 INTERNATIONAL TRADE
Does international trade and investment make the world a safer place?
No:
- global systems may provide greater opportunity for international conflict (global trade of arms/military equipment, increasing use of social media to influence others)
- global wars make trade difficult - many firms and businesses are vulnerable due to their reliance on global trade and investment, should a war break out then we’d be in trouble
1.4 INTERNATIONAL TRADE
Outline the trends in the volume and pattern of international trade and investment.
- no country has everything it needs and materials and resources are unevenly distributed so trading with other countries is inevitable
- so, the foreign producer is able to sell more and make increased profits, and the consumer has access to products that might not be available in their country or ones that better suit their needs
- countries arguably exert their political and economic power globally to ensure that they gain from international trade whilst other countries lose out
- the value and volume of trade has increased dramatically since WW2 (from 1948 to 2013, the value of world exports (in US$ billion) increased from 59 to 18,301)
1.4 INTERNATIONAL TRADE
Contrast 3 benefits of international trade against the costs.
- increased employment due to increased production for export BUT working conditions are often compromised to maximise profits, leading to exploitative and labour-intensive industries
- single-product economies have a comparative advantage since the product can be produced efficiently and cheaply BUT over-specialisation leads to vulnerability to demand falling for the product or if the product becomes cheaper overseas - single-product economies are less flexible and less able to diversify
- incentivisation of new technologies (people want to use new tech) which leads to design improvements and cost savings BUT leads to de-skilling as a result of manpower being replaced by production technology and ‘screwdriver jobs’ will dominate
1.4 INTERNATIONAL TRADE
What example do we use of China’s (an NEE) trading relationship with HICs? (don’t need to give details, it’s all on the case study quiz)
Umbrella city in Songxia ! :)
1.5/1.6 TRADE AGREEMENTS AND ACCESS TO MARKETS
Outline the trading relationships between HICs and LICs in sub-Saharan Africa, South Asia and Latin America.
CHECK WITH MISS ***
Trading relationships between HICs and LICs in South Asia: Tata Steel, UK case study
In sub-Saharan Africa: Collum Coal Mining Industries, Zambia case study?
In Latin America:
1.6 TRADE AGREEMENTS AND ACCESS TO MARKETS
Explain how trade blocs are different from trading organisations and match the following trade organisations to their purpose:
- World Trade Organisation (WTO)
- Organisation for Economic Cooperation and Development (OECD)
- Organisation of Petroleum Exporting Countries (OPEC)
- G8
- G20
- World Bank
- International Monetary Fund (IMF)
______________________________________________________________________________________
- group of 8 countries (Canada, France, Germany, Italy, Russia, Japan, UK, USA) who represent 49% of the world’s trade and meet annually to discuss economic development; in 2005 G8 became G8+5 to include China, India, Brazil, Mexico and South Africa
- consists of 14 states who supply 40% of the world’s oil, tries to regulate the global oil market to ensure a fair, good price
- standardises global financial relations and aims to promote global monetary and exchange stability by monitoring the global economy and encouraging the growth of international trade. it can force countries to privatise (or sell off) government assets, which are then bought by large TNCs, and open up trade in return for refinancing debt.
- includes all the finance leaders of G8+5, plus South Korea, Australia, Türkiye, Saudi Arabia, Argentina, Indonesia and the leader of the EU as well as representatives from IMF and World Bank. they discuss the global economy and methods to encourage economic growth
- a global ‘think tank’ for 30 of the world’s wealthiest nations
- formed in 1993, aims to cut trade barriers (subsidies, tariffs, quotas) that stop countries trading freely, so goods can flow more easily
- promotes investment globally and provides loans for countries under certain conditions
trade blocs: a set of countries agree to freely trade with each other with few, if any, barriers such as tariffs. countries outside this area that wish to trade anywhere within the trade bloc have to pay an agreed tariff.
trading organisations:
- World Trade Organisation (WTO): formed in 1993, aims to cut trade barriers (subsidies, tariffs, quotas) that stop countries trading freely, so goods can flow more easily
- Organisation for Economic Cooperation and Development (OECD): a global ‘think tank’ for 30 of the world’s wealthiest nations
- Organisation of Petroleum Exporting Countries (OPEC): consists of 14 states who supply 40% of the world’s oil, tries to regulate the global oil market to ensure a fair, good price
- G8: group of 8 countries (Canada, France, Germany, Italy, Russia, Japan, UK, USA) who represent 49% of the world’s trade and meet annually to discuss economic development; in 2005 G8 became G8+5 to include China, India, Brazil, Mexico and South Africa
- G20: includes all the finance leaders of G8+5, plus South Korea, Australia, Türkiye, Saudi Arabia, Argentina, Indonesia and the leader of the EU as well as representatives from IMF and World Bank. like G8, G20 discusses the global economy and methods to encourage economic growth
- World Bank: promotes investment globally and provides loans for countries under certain conditions
- International Monetary Fund (IMF): standardises global financial relations and aims to promote global monetary and exchange stability by monitoring the global economy and encouraging the growth of international trade. it can force countries to privatise (or sell off) government assets, which are then bought by large TNCs, and open up trade in return for refinancing debt.
1.6 TRADE AGREEMENTS AND ACCESS TO MARKETS
Name at least 2 major trade blocs and explain their purpose.
European Union:
- origins based on the idea that economically interdependent countries are less likely to be in conflict
- EU is a trade bloc, it also governs life through legally binding treaties (agreed by all member countries) for 500 million EU citizens, 175 million of whom all share a common currency (the euro)
- UK left on 31st January 2020
- the unique yet complex institutions of the EU have provides 50 years of relative stability , peace and prosperity for its member states
Association of South East Asian Countries (ASEAN):
- 10 countries
- the bloc has free trade agreements to ensure political, economic, and social stability
1.6 TRADE AGREEMENTS AND ACCESS TO MARKETS
Use an example to illustrate differential access to markets associated with levels of economic development and trading agreements, and outline its impacts on societal well-being.
GREECE AND THE EU
- Greece was €3 billion in debt to the European Central Bank and came close to leaving the EU in Summer 2015
- first applied to join the EU in 1975 but was rejected so 5 years later they joined in a so-called ‘Mediterranean expansion’
- since gaining membership, increasing amounts of money were spent by a government funding a massive, inefficient and unsustainable public sector (which accounted for 40% of the total economy)
- situation made more challenging after the global financial downturn of 2008
- by 2010, Greece had run out of money and was granted euro bailouts by the IMF and the EU of 110 billion euros in 2010 followed by a further 109 billion euros in 2011
**CHECK WITH MISS
1.7 TRANSNATIONAL CORPORATIONS
What case study of a TNC can we use to explain its spatial organisation, and the impacts they have on the countries in which they operate? (don’t need to give details, it’s all on the case study quiz)
Apple! :)
1.7 TRANSNATIONAL CORPORATIONS
