Global Systems and Global Governance Flashcards
Capital Flows
The movement of money for the purpose of investment, trade or to produce goods/provide services
Globalisation
A process by which national economies, societies and cultures become increasingly integrated
International Trade
The exchange of capital, goods and services across international borders
Factors of production
Land
Labour
Capital
Enterprise
The 3 main dimensions of globalisation
Economic
Social/Cultural
Political
Foreign direct investment (FDI)
Investments made mainly by TNCs based in one country, into the physical capital or assets of foreign enterprises
Reparation of profits
TNCs investing in overseas production will normally take any profit made from that investment back to their home country. This is also known as economic ‘Leakage’
Aid
This is an important source of financial support for poor countries
BRICS
Brazil, Russia, India, China, South Africa - An international organisation (IGO) that aims to coordinate its economic and political ambitions
Diaspora
A large group of people with a similar heritage or homeland who have moved and settled around the world
Remittance Payments
Transfers of money made by foreign workers to family in their home country
WTO
World Trade Organisation
Protectionism
A deliberate policy by governments to impose restrictions on trade in goods and services with other countries
Trariffs
A tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods - A strategy of protectionism
Factors that impact the locational decisions made by entrepreneurs
-The availability of skilled and educated workforce
-The opportunity to use the latest technology
-Access to large markets without tariffs barriers
Deindustrialisation
The decline and loss of jobs in the manufacturing sector
USMCA
US-Mexico-Canada agreement (Trade)
CARICOM
Caribbean Community (trade)
MERCOSUR
South American trade agreement
ASEAN
Association of south east Asian nations (Trade)
EU
European Union (Trade)
Pacific Alliance
Chile, Colombia, Peru and Mexico trade agreement
OPEC
Organisation of petroleum exporting countries (Mainly middle east and north Africa)
Trading bloc
Trading blocs are usually groups of countries in specific regions that manage and promote trade activities
IGO
Intergovernmental organisation
NGO
Non-governmental organisation
IMF
International Monetary fund - works to promote economic and social growth
WB
World Bank - Provides loans to countries to help reduce poverty
WTO
World Trade organisation - Oversees international trade and aims to see free trade around the world
UN
United Nations - Leading organisation for global governance
WHO
World Health Organisation - Helps to battle health crises around the world
Global commons
Areas of the world such as Antarctica and the seas are governed by international legislation
UNEP
UN Environment Program
Positives of global flows of people
-Reduced unemployment
-Addresses skill and labour
shortages
-Remittances sent back can provide
stability and growth
-Migrant workers increase workforce
Negatives of global flows of people
-Developing countries often lose younger and more talented workers
-Developing countries become over-dependant on remittances
-Resentment towards migrants can cause cultural and ethnic conflict
-Families may be divided
Unequal flows of people
The unequal movement of people from one country to another. Largely people moving from LDEs to HDEs
Remmittances
Money sent home by migrants working overseas
FDI
Foreign direct investment
Leakages
The loss of money from a country as TNCs and other organisations take money elsewhere
Unequal flows of Ideas
Ideas generally flow from HDEs to developing coutntires
Unequal power in global systems
Wealthier countries tend to have more power in intergovernmental organisations which enables them to steer global systems to their advantage
Comparative advantage
The theory where each country should specialise and trade for all the products they are not so good at producing
Multilateral Trade agreement
A trade agreement between more the two countries or groups of countries
Tariff
A tax on imports
Import license
A document issued by national governments authorising the importation of certain goods from a specific source
Import Quotas
Quotas set a physical limit on the quantity of a commodity that can be imported within a specific time
Subsidies
Grants or allowances given by the government to domestic produces to help reduce their costs
Sanctions
Restrictions on exports implemented for political reasons
Embargoes
The partial or complete prohibition of commerce and trade with a particular country
Factors that drive trade
-Comparative advantage
-Proximity
-Market size and strength
-Geopolitical relations
Factors that attract FDI
-Manufacturing industries
-Natural resource development
-Financial business services
-Large and accessible consumer markets
-Lower business tax
Fairtrade
A social movement whose goal is to help producers in LDEs achieve better trading conditions
Free Trade
Trade with no restrictions. EG: Tariffs or Quotas
Differential access to markets
A countries ability to trade with other countries
Factors that cause differential access to markets
-A countries ability to pay tariffs
-A countries ability to invest in foreign markets
-A countries ability to enter trading blocs (HDEs have less difficulty entering trade agreements)
Disadvantages to trading blocs
-Restricts a countries ability to negotiate new deals and expand trade out of the bloc
-Free trade agreements may remove the protection on smaller domestic firms
Advantages of trading blocs
-Gives you more leverage when trying to gain access to new markets
-Can open up wider markets through deals between trading blocs
Transnational Corporations (TNCs)
Companies that operate in two or more countries
Reasons for TNCs operating in more than one country (5 reasons)
-To escape trade tariffs
-To find the lowest cost of production
-To take advantage of foreign exchange rates that make exports cheaper
-To reach foreign markets more effectively
-To exploit minerals or other resources available in foreign countries
Offshoring
Relocating a part of the organisation to an overseas location
Outsourcing
A strategy that involves subcontracting part of the business operations to another company
Special economic zones (SEZ)
Areas within a country that have different business and trade laws than the rest of the country
Agglomeration
When companies in similar industries locate near each other because of the benefits gained by sharing ideas and resources
Multiplier effect
A situation where an initial injection of investment or capital into an economy in turn creates additional income
Vertical intergration
When a business integrates or takes over another business on a different level of the supply chain. Eg: a supermarket buying a farm
Horizontal integration
This is when a business integrates or takes over another business on the same level of production. Eg: a supermarket buying another supermarket
Glocalisation
A term used to describe products or services that are distributed globally buth which are fashioned to appeal to the customers in a local market
Environmental Sustainability
A state in which the demands placed on the environment can be met without reducing the quality of the environment for the future
Global commons
Resource domains or areas the lie outside the political reach of any one nation state
Global Governance
A movement of political integration aimed at negotiating responses to problems that effect more than one state or religion
Norms
The shared values, traditions and customs that govern individual and group behaviour in society
When was the UN created
1945
Sustainable development
Development which meets the needs of the present without compromising the needs of the future
When where the millenium development goals (MDG) created
2000
When were the sustainable development goals (SDG) made
2015
When do the sustainable development goals (SDG) last till
2030
What does the international monetary fun (IMF) do
Regulates financial flows and stabilises the global monetary system
What does the World bank (WB) do
Promotes the reduction of poverty in developing countries by providing assistance for development
What does the UN security council do
Aims to maintain world peace and security
What does the UN general assembly do
Aims to develop good relations and co-operation between nations
What does the world health organization (WHO) do
AIms to manage international public health issues
When does the UN development programme do
Aims to eradicate poverty and reduce inequalities and exclusion
Bottom up scheme
When local people are consulted and supported in making decisions to undertake projects or developments
Top down scheme
When the decision to undertake projects or developments is made by a central authority such as the government with little or no consultation with the local people
Bilateral agreement
An agreement in trade that is negotiated between two countries or two groups of countries
Multiscalar power
When the ability to influence change is invested in citizens, governments, institutions and other interested groups located and acting at different geological scales
Multilateral trade agreements
An agreement negotiated between more than two countries or groups of countries at the same time
Non-governmental organisations
Any non-profit, non-commercial organisation with a common interest working independently from the government
What is Agenda 21
A plan for sustainable development made by the UN that aims to have regional and local government implement a bottom up style response
When was Agenda 21 created
1992
What are the 4 global commons
-The seas
-The atmosphere
-Antarctica
-Outer space
Antarctic Convergence
The area of ocean circling Antarctica up to the 60 degrees south latitude
What are the main threats to Antarctica (5 threats)
-Fishing and Whaling
-Climate change
-Search for mineral resources
-Tourism and scientific research
-Vulnerability to environmental change
What nations are notably pro-whaling (3 nations)
Japan, Norway, Iceland
What was the percentage decrease in whale populations in 1960
90% decrease
When did the International whaling committee (IWC) place a temporary ban on whaling
1986
What glacier is the one of the largest contributors to sea levels rising and what side of Antarctica is it on
Thwaites Glacier (if fully melts could add 63 cm to global sea levels) - West side
What was the extent of Antarctic sea ice in 2014
20.11 million square kilometers
What is the name of the protocol that protects Antarctica until 2048
Madrid Protocol
How many tourists did Antarctica receive in 2018-19
56,000
When was the Antarctic treaty signed
1961
What does the Antarctic treaty do
It prevents any misuse of Antarctica and bans any military activity and any activities that might damage it
What is the environmental protocol with Antarctica
It protects Antarctica as a natural reserve and forbids all mining and mineral extraction from Antarctica
When was the Environmental protocol for Antarctica signed
1998
Sovereignty
The ability to make your own laws and control your own land without anyone making laws for you
