Global systems and global governance Flashcards
globalisation
globalisation:
- globalisation - where the world has become more economically, politically and socially interconnected
- economic - exchange of goods/services across borders// global supply chains (where companies locate different parts of the production process in different countries to take advantage of low labour costs, availability of resources and local expertise)
- political - international agreements e.g. paris climate agreement
- social - exchange of cultures and ideas e.g. people sharing their thoughts via social media
- cultural - greater knowledge and understanding of other cultures via social media, sharing foods across the world e.g. china town in london
flows of globalisation:
flows of capital:
- money is invested by companies overseas – known as FDI
- e.g. FDI (1996 - $400bn and in 2016 - $1500bn)
flows of labour:
- international migration increased by over 40% between 2000 and 2015
- highly skilled and unskilled workers migrate from one country to another, bringing aspects of their culture with them
flows of products:
- due to the global shift, production has moved to NEEs e.g. china, where production is cheaper
- china is the largest manufacturing country - made 28% of all goods globally in 2018
flows of services:
- high level services such as finance usually occur in HICs e.g. london and new york
- low level services such as customer services e.g. call centres for BT moved to india
flows of information:
- the development of email, the internet and social media has allowed people living in different countries to communicate and work together
global marketing:
- global marketing involves treating the world as one single market and using one marketing strategy to advertise a product to customers all over the world
- global marketing allows firms to exploit economies of scale - it is cheaper to have one marketing campaign for the whole world, rather than having a different campaign for every country
- example: coca-cola uses the same branding everywhere (same logo, same colors) and same slogan - “taste the feeling”
- glocalisation - products adapted to suit location e.g. mcdonald’s - india don’t have beef in their menu as it’s sacred
patterns of production and consumption
production:
past:
- in the past, most manufacturing was concentrated in industrialised countries such as USA, UK and Germany
present:
- through deindustrialisation and the global shift - manufacturing has moved to NEEs such as china - cheaper labour costs
consumption:
past:
- HICs - goods were made in the same place as they were consumed
present:
- goods mainly consumed by HICs but growing is in NEEs - e.g. due growing middle class in china
- as NEEs continue to develop, it is likely that patterns of production and consumption will shift again - their populations get wealthier - in the future, more goods will be consumed in NEEs rather than just in HICs// as wages in NEEs rise, it may become cheaper to move production to even less developed countries e.g. parts of africa
factors affecting globalisation
technology and communications:
- rise of technology - allow people to communicate with each other around the world quickly
- technological developments such as fibre optics and satellites have enabled large volumes of data to be transmitted long distances at high speeds - makes it easier for people to communicate instantly
- contributes to the shrinking world effect- the world seems smaller as its becoming more connected e.g. via communication/travel
systems and relationships:
- systems - ways of working e.g. across borders
- just in time production - get products instantly - requires efficient ordering system e.g. managed through ICT
finance:
- global financial system facilitates quicker and easier flows of money, goods and services between countries
- financial deregulation (1980s) has reduced barriers to capital flows - has allowed money to flow freely across borders - this means investors can invest in different countries more easily
transport:
- container ships - large containers which allow for more goods to be transported across seas - goods can be transported around the world very quickly - economic globalisation
- air transport - goods can be transported around the world very quickly - economic globalisation// the increased accessibility to cheap flights leads to increased tourists and migrants - social globalisation
security:
- some countries work together to stay safe by making political and military alliances e.g. NATO was set up after world war II to keep peace in europe during the cold war
- however, globalisation can also increase threats to security - more opportunities for crimes such as fraud
rise in trade agreements:
- trading bloc - a group of countries that join together and agree to increase trade between themselves
- bilateral/multilateral trade agreement - agreement to reduce tariffs and quotas between 2/multiple countries
- trade blocs remove or reduce barriers to trade between them such as tariffsand quotas
trading blocs
trading blocs:
- trading bloc - a group of countries that join together and agree to increase trade between themselves
- bilateral/multilateral trade agreement - agreement to reduce tariffs and quotas between 2/multiple countries
different types of trade blocs:
- free trade area (FTA) - countries come together and decide to eliminate all trade barriers between each other but they are free to trade however they want with any country outside FTA e.g. NAFTA
- customs union - a group of countries that agree to allow free trade among themselves while maintaining common external tariffs on imports from non member countries e.g. EU
- common market - a group of countries that agree to allow free trade among themselves while maintaining common external tariffs on imports from non member countries// also allow free movement of labour and capital among member countries e.g. EU
- economic and monetary union - countries within union decide to adopt the same currency, same central bank and same monetary policy e.g. euro zone
- WTO - international organisation that regulates world trade
functions/roles of WTO:
- set and enforce rules on international trade
- resolve trade disputes
- provide a forum for negotiating trade liberalisation - get countries together and agree on trade policy
- if agreements have been signed, WTO ensure that trade is happening as it has been agreed
interdependence
interdependence
- economic - countries rely on each other for economic growth
- political - countries are dependent on each other to solve issues that cannot be addressed by just one country
- social - greater connections between people living in different countries creates social interdependence
- environmental - every country in the world is dependent on the rest of the world to look after the environment
- interdependence can create inequalities between and within countries - tends to bring more benefits to developed countries and richer people - this is because flows of people, money, ideas and technology are unequal
unequal flows of people:
benefits:
- immigrants can create economic growth, as they do jobs that a country’s citizens can’t do (e.g. skilled jobs like engineering) or don’t want to do (e.g. dangerous jobs)
- many migrants send money back to their families - this is called a remittance - remittance payments can significantly increase the amount of capital flowing into less developed countries - creates economic growth in the home country
issues:
inequalities:
- less developed countries suffer from ‘brain drain’ - skilled people leave and take their knowledge with them
- (gini coefficient)
conflict:
- low-skilled migrants are often happier to work for less money than low-skilled locals - as a result, companies may depress wages for the local population - can cause conflict between the local and migrant populations
injustice:
- migrant workers are sometimes made to work in dangerous conditions for little money e.g. in qatar, 1400 people died when building facilities for the 2022 FIFA world cup
unequal flows of money:
- flows of money can include remittances, foreign aid (money given to a less developed country to increase development or help in a crisis), foreign direct investment and income from trade
benefits:
- FDI - companies invest in other countries to benefit from cheap raw materials and low labour costs
- FDI can improve quality of life as it provides an income, usually an income that is higher than other employment in low income countries
- foreign aid can be used to improve living standards or to rebuild local infrastructure after a disaster
issues:
inequalities/conflicts:
- aid can create dependency
- FDI can force out local businesses, because foreign companies can make products more efficiently
- (gini coefficient)
injustice:
- companies may pressure governments of less developed countries to pass laws that make it cheaper to invest there e.g. by cutting environmental regulation or weakening laws on working conditions
- low wages and poor working conditions in developing countries e.g. apple
unequal power relations
unequal power relations:
- developed countries have a lot of power, whereas less developed countries have limited power
power relations and climate change example:
- many of the biggest contributors to climate change are the richest countries - these countries can be reluctant to agree to proposals to limit climate change - think it’ll harm their economy
- in contrast, some of the countries that are most affected by climate change are also the poorest - find it difficult to influence other countries to reduce greenhouse gas emissions because they lack power
global institutions can reinforce unequal power relations:
world bank and IMF:
- world bank - important source of financial aid to developing countries - aims to reduce poverty
- IMF - gives out loans to support economic development and advises governments on how they could improve their economic situation (however, less developed countries are expected to pay back the loans)
- the IMF and the world bank are both based in the USA and are led by the USA and other developed countries - less developed countries (who are most likely to require a loan) therefore have less influence over the decisions of the organisations
- the IMF and world bank’s loans are conditional - the less developed country has to make changes e.g. cutting regulation to make investment easier
world trade in a food commodity
facts:
- staple food for 400 million people
- of all fruits, more bananas are produced than any other fruit
spatial distribution:
production:
- asian, latin america, africa - largest producer is india and china but most are consumed domestically
largest exporter:
- latin america and caribbean - bananas make up 20% of equadors exports
consumption:
- EU and USA
social:
- TNCs (Chiquita, Dole, Del Monte) control 45% of the banana market and aim to maximise profits
- as a result, producers in ecuador’s banana industry use child labour, dangerous conditions e.g. exposure to harmful pesticides/long hours and unfair wages
- half of the workers exceed 14 hour workdays and are paid an average of $3.50 each day
- benefits go to TNCs and consumers from HICs (cheaper bananas), while farmers from LICs earn a little
- evaluation: schemes like fairtrade help improve wages and conditions - however, fairtrade products still make up a small portion of the market on a global scale, fair trade only covers 2% of bananas
economic:
- benefits go to TNCs and consumers from HICs, while farmers from LICs earn a little
- bananas make up 20% of equadors exports - provides millions of jobs - while banana trade supports LIC economies, the profits remain concentrated in HICs & TNCs
- in the UK, for every £1 spent on bananas, only 5-10p goes to the farmer - supermarkets and TNCs take the majority
- the largest slice of profits - 42% is taken by the retailer e.g. supermarkets like tescos
environmental:
- bananas are susceptible to disease - treated with chemicals - e.g. large TNCs such as chiquita apply around 30kg of chemicals per hectare per year
- soil becomes contaminated with agricultural chemicals and nutrients is lost
- deforestation occurs to clear land for plantations
- banana plantations are monoculture (only grow one type of plant) - reduces the number of species that can be supported in the ecosystem
- evaluation - however, some producers are beginning to implement more sustainable practices
fair trade:
- in the uk, 1/4 of all bananas sold are classified as fair trade - supports local farmers and producers by paying them a decent living wage
- on a global scale, fair trade only covers 2% of bananas
- to sell bananas under the fairtrade label, farmers must become fairtrade-certified - involves expensive fees - many small-scale farmers cannot afford these costs - miss out on fairtrade’s benefits
antarctica
global commons:
- the global commons are areas that aren’t owned by any one country or organisation - they belong to everybody
4 global commons:
- antarctica
- high seas - areas of the sea that do not belong to any country
- atmosphere
- outer space - the moon and the rest of the solar system
pressures that global commons face:
1. countries and organisations may feel they can exploit the global commons without dealing with the consequences - costs of exploiting the global commons are shared by everybody - known as ‘the tragedy of the commons’
2. industrialisation and development are increasing the demand for resources (e.g. food, oil, minerals) - many of these are extracted from the global commons (increasing problem)
3. new technology has made it easier to get to areas like the high seas, antarctica or outer space that were relatively inaccessible before - this makes them more vulnerable to exploitation (increasing problem)
geography:
- 98% of antarctica is covered by ice
- surrounded by southern ocean
- average temperature is -49 °C
- cold desert - only 16cm of rain per year
antarctic convergence zone:
- at the antarctic convergence zone, there’s an upwelling of nutrient-rich cold water - krill, plankton and sea birds flock along the convergence - disruption can impact the ecosystem - knock-on effects on other animals in the food chain
4 main threats to antarctica:
climate change:
- over the last 30 years, temperatures have increased by 3 degrees
- antarctica impacted from global warming at a rate 5x higher than the average rate
- warming has caused large sheets of ice around weddell sea and ross sea to melt - adélie penguins have declined as the ice has melted
- the krill population has declined by around 80% since the 1970s as the sea ice has melted - krill are the main food source for penguins, whales and seals, so the decline in the number of krill is leading to declines in the populations of these animals as well
- climate change also causes ocean acidification - affects marine organisms
fishing and whaling:
- overfishing can lead to extinction e.g. the patagonian toothfish - extinction is a long term threat
- krill fish have dropped by 80% since 1970s - Krill are the main food source for penguins, whales and seals, so the decline in the number of krill is leading to declines in the populations of these animals as well
- there are legal limits on how much fish can be caught per year to keep stocks at a sustainable level - however, lots of illegal fishing takes place, which is difficult to monitor
- whaling was common, but has declined since 1982 when regulations were brought in to ban all commercial whaling - however, some countries continue to kill whales for ‘scientific’ purposes// whales are slow breeders, so it will take a long time for populations to fully recover
minerals:
- large deposits of minerals in antarctica e.g. coal, iron ore
- in the southern ocean - lots of oil
- mining is currently banned - madrid protocol 1991 - however, some countries want the ban to be revisited e.g. UK/japan/USA in 2048
- however, this may change in the future due to increasing demand for minerals and oil as supplies are depleted elsewhere
tourism and research:
- 1990: 5000 visitors per year// 2016: 44,000 visitors per year
- tourism increases air travel to antarctica - increased pollution
- trampling damages fragile vegetation
- litter and waste disposal damages habitats and can harm wildlife
- antarctica is important for scientific and environmental research - requires lots of facilities, including bases for the researchers to live
future:
- will climate change speed up?
- fishing/whaling? will it become easier to manage
- will tourism be restricted in the future?
governance in antarctica:
laws:
1959 - the antarctic treaty:
- agreement about how to sustainably manage antarctica’s ecosystems - has now been signed by 58 countries
rules laid out in the treaty include:
- antarctica should only be used for peaceful reasons - no army bases or weapons are allowed on antarctica
- countries should cooperate on scientific research in antarctica by sharing plans, researchers and results
- antarctica should remain in the global commons - individual countries cannot make a claim to it
1991 - the protocol on environmental protection to the antarctic treaty:
- the protocol on environmental protection to the antarctic treaty was signed in 1991 - focuses on protecting the environment - banned all mining in antarctica (madrid protocol)
global institutions:
international whaling commission (IWC):
- the IWC is responsible for regulating whaling and ensuring that the whale population is at a sustainable level
- in 1994 the IWC set up a whale sanctuary in the Southern Ocean to protect whales
- evaluation - campaigners have criticised the IWC for not properly monitoring the number of whales in the sanctuary
- in 1982 the IWC introduced a whaling moratorium that banned all commercial whaling around the world - the success of the whaling moratorium is monitored by estimating whale populations based on sightings and modelling - some countries (like the US and Australia) believe there should be a better monitoring system e.g. placing independent observers on all whaling boats - other countries (like japan and norway) say that the IWC does not have the authority to do this
- evaluation - the whaling moratorium is also poorly enforced - in 2018, japanese whalers killed over 300 antarctic whales for ‘scientific research’ despite the rules
united nations environment programme (UNEP):
- UNEP governs the world’s environment and is responsible for reporting activity in antarctica to the UN
- the programme in Antarctica is run by the CCAMLR - aims to stop illegal fishing
- evaluation - not enough protected areas – only a small part of the southern ocean is protected, so many areas are still open to overfishing and exploitation - some fishing companies move just outside protected zones to avoid restrictions
NGOs:
- ASOC - a group of 30 NGOs from around the world including greenpeace (campaign to ban commercial whaling) etc - interested in protecting antarctica’s environment
- checks whether countries are sticking to the rules e.g. monitoring whether countries are following the 1991 environment protocol
- protects areas like the southern ocean whale sanctuary from commercial whaling
- evaluation of NGOs - small scale, less money, cannot create rules
pros and cons of globalisation
benefits of globalisation:
- integration - globalisation allows countries to share resources to solve global issues that are too great for a single country to deal with// greater integration of people creates a better understanding between people of different backgrounds and cultures
- development - foreign investment brings capital into a country, which can be used to improve education and infrastructure - this in turn can attract further trade and investment, which leads to further development
- stability - as countries become more interconnected, they become more dependent on one another - this discourages any actions that would upset global stability
- economic growth - global trade increases economic growth// countries can also gain products and services that they would be unable to produce themselves - improves people’s standard of living
costs:
- inequalities - as companies move low-skilled jobs to less developed countries, low-skilled workers in developed countries find it more difficult to earn money - this creates a greater divide between rich and poor people within countries// developed countries have greater access to capital and technology, meaning they have an advantage over less developed countries - this increases inequalities between countries
- conflict - cyber warfare is a new source of conflict - countries, companies and individuals are now dependent on the internet, so attacks on their computer systems can have a large impact
- injustice - 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
- environmental - global trade increases the amount of transportation required, which means more pollution and greenhouse gas emissions// access to resources from around the world causes deforestation and overfishing// global trade can lead to a race to the bottom, in which countries and companies ignore environmental impacts in order to produce cheaper goods// the abundance of cheap products around the world means people can afford to be more wasteful, creating lots of landfill
e waste:
- globalisation increases the flow of e waste from developing countries to developed countries
- environmental: land and water pollution as toxic materials sink into the ground, air pollution through the burning of e waste
- social: toxic materials e.g. lead found in old electronic goods - damage blood, kidneys
ship breaking:
- breaking down of container ships
- environmental: hazardous materials seep into soil/land/water
- social: workers have little/no protection, low wages
new shipping routes:
- north of russia - due to increased ice melt from global warming
- reduces travel time from china - can increase trade
- however contributed to global warming as containers release CO2
rana plaza:
- factory collapse in bangladesh - 1100 people died
- clothes were made for high street shops e.g. h+m
- inequality/injustices - factories located there due to cheap labour, poor working conditions
TNCs
TNCs - companies in two or more countries
production:
- outsourcing and offshoring to increase profits e.g. cheaper labour and economies of scale
linkages:
- TNCs make links to expand their operation
- mergers - 2 companies of similar size join together
- acquisitions - one company buys another e.g. facebook and instagram 2012
- FDI - investment of money into a company/country - can include mergers and acquisitions
- vertical integration and horizontal integration
apple:
spatial distribution:
- most R+D headquarters are located in HICs e.g. silicon valley
- manufacturing is concentrated within NEEs e.g. foxconn factories located in china, shenzhen - labour is cheaper
TNCs:
host country e.g. china:
social:
- job creation - 4.8 million jobs created in china via apple - multiplier effect - higher employment - more spending - increased tax revenue etc ✅
- poor working conditions - long working hours - work up to 12 hours per day// workers are paid an average of $1.70 per hour ❌
- 14 suicides since 2010 due to poor mental health and overwork ❌
economic:
- job creation - 4.8 million jobs created in china via apple - multiplier effect - higher employment - more spending - increased tax revenue etc ✅
- repatriation of profits - profits return to the country of origin ❌
environmental:
- manufacturing and transport of apple products result in significant CO2 emissions - 20 million tonnes of CO2 ❌
- some manufacturing processes use harmful chemicals, which can pollute local environments if not handled properly - NEEs such as china are less able to handle these problems ❌
TNC origin:
social:
- size of TNC benefits consumers - size means firms can benefit from economies of scale - lower average costs - lower prices for consumers ✅
- deindustrialisation as labour is cheaper abroad ❌
economic:
- size of TNC benefits consumers - size means firms can benefit from economies of scale - lower average costs - lower prices for consumers ✅
- TNCs themselves benefit from cheaper labour abroad etc ✅
- loss of local firms - apple can cause smaller shops in the area to shut - loss of local jobs ❌
environmental:
- mainly impacts host country ❌
apple as a global marketer:
international trade
international trade:
- international trade - imports and export of goods and services between countries
- the volume of global trade has increased dramatically since the 1980s - its value increased by nearly 8x between 1980 and 2008
investment:
- the volume of FDI rose dramatically from around d $400 billion in 1996 to nearly $1500 billion in 2016
patterns of international trade and investment:
international trade:
- the pattern of global trade is changing - NEEs and LICs are playing a more significant role e.g. china is now the largest exporter in the world
investment:
- the pattern of investment is changing - until the 1980s, developed countries mainly invested in other developed countries
- since the 1980s, developed countries have begun investing in NEEs
- moreover, NEEs are now investing in LICs e.g. china invests a lot of money into countries in africa
