Global systems and global governance Flashcards
What is globalisation?
A process by which national economies, societies, and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration
What do we mean by ‘capital’?
Capital includes all money that moves between countries which is used for investment, trade or production
What are ‘dimensions’?
They are the clues that globalisation is occurring. Thanks to globalisation, there are flows of these things around the world. These flows are what characterises a globalised world. (Essentially dimensions = flows (which are things that move around the world))
What are the capital flows?
Foreign Direct Investment
Repatriation of Profits
Aid
Migration
Remittances
What is foreign direct investment?
Investment mainly made my TNCs based in one country, into the physical capital or assets of foreign enterprises. For example, setting up a subsidiary company, or by acquiring shares
What is repatriation of profits?
TNCs investing in overseas production will normally take any profit made from that investment back to their home- country headquarters. This is sometimes called an economic leakage, and most of these flows return to companies based in richer countries.
What is aid?
An important source of financial support for poor countries. It can take many forms and can be provided through the UN, or from one government to another, or from NGOs
What is migration?
Most of the out-migration of labour takes place from poorer to richer countries. This will exacerbate disparities as the less developed nations lose their most skilled and talented labourers, who will pay taxes and spent their earnings in their destination country.
What are remittances?
These are transfers of money made by foreign workers to family in their home country. These have become the second most important source of income in developing countries, above international aid.
What are core regions?
A small block of relatively developed nations
What are periphery regions?
Less developed nations that have been exploited and have suffered from a lack of investment, leakages and out-migration
The International Monetary Fund
A major financial agency of the United Nations, and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C
The World Bank
One of the world’s largest sources of funding and knowledge for developing countries
