Global Systems And Global Governance Flashcards
What is globalisation?
Globalisation is the process of becoming more globally connected through the the movement of people, knowledge, ideas, goods and money across national borders.
What are the 4 types of globalisation?
-Economic
-Political
-Cultural
-Social
Ways economic globalisation occurs?
-TNC’s trade products internationally and use international outsourcing and offshoring to lower costs.
Industries move to developing countries to save money on labour, bringing economic growth there.
-Trade blocs create economic integration and promote development.
-Sources of income from international companies
-Global transactions of money
Ways political globalisation occurs?
-Governments form connections to trade, such as trade deals and trade blocks.
-Deregulation policies allow markets to grow with an international reach.
Ways cultural globalisation occurs?
-Exposure to media sources such as television and social media allow a recognition and understanding of other cultures.
-the ability to travel internationally lets people experience cultures.
Ways social globalisation occurs?
-International migration is creating multicultural societies where people share and adopt cultures.
-social networking has revolutionised human connections, as tech platform as enable interactions with people in different countries and access to international information.
-global NGO’s and charities are involved in the global improvement of education and health.
What are the five different flows of globalisation?
-Capital
-Labour
-Products
-Services
-Information
What is the flow of capital?
Capital flows are the movement of money for the purpose of investment, trade or business production.
What is the flow of labour?
Flows of labour are the movement of people who move to work in another country.
What is the flow of services?
services flow as they can be produced in a different country to where they are received.
What is the flow of information?
Any type of information can flow from one place to another via the internet, SMS, phone calls.
What are periphery regions?
Less wealthy, developing/less developed countries that have less power.
What are core regions?
Wealthier, developed countries that have power.
What are economic migrants?
People who have moved voluntarily for reasons of work and improved quality of life.
What are refugees?
People who have been forced to leave their homes and travel to another country due to fleeing conflict, political or religious persecution.
What is an asylum seeker?
People who have left their country and are seeking asylum in another country.
Within continents, where the three major labour flows between?
Asia - 63 million people
Europe - 41 million people
Africa - 19 million people
What are product flows?
Product flows are the movement of produced goods from area of production to area of consumption?
What is the flow of services?
Service industries can flow due to the ability to transfer information in the globalised world. Services can also be transferred on phone calls via the internet as well as being tied down to a location.
What are high level services?
Activities that generally require a higher skill level, they are usually important and complicated, meaning the person delivering the service should be qualified and trained so that they can deliver the best possible service.
What is a low level service?
Services that require less training, and are not as important to consumers. These services are mainly customer service based.
What is global marketing?
Businesses marketing(advertise, promote and sell) their products on an international scale
Who are the biggest exporters of agricultural products?
The EU and the US.
Who is the top exporter of fuels and mining products?
The EU and a large majority of emerging economies?
Who is the top producer of automotive products?
HIC’s and developed markets (The EU, Japan, US)
What are the factors affecting globalisation?
1)New financial technology and systems
2)Transport technologies, systems and relationships.
3)Security technologies and systems
4)Communication technologies
5)Management and information systems
How do new financial technologies and systems Affect globalisation?
Global financial systems make the world more connected and financial technologies have made financial information and money easily accessible for people across the world.
How has transport technologies, systems and relationships affected globalisation?
Innovations in transport made it easier to transport goods faster and in larger quantities. Larger and faster aircraft with increased capacity have reduced travel times. Containerisation makes global transportation cheaper.
What is containerisation?
The process of using large shipping containers to transport goods.
How has security technologies and systems affected globalisation?
-Stricter regulations upon entering a country and transporting goods.
-technologies ensure cyber attacks can be traced, no matter the country they originate from.
How do communication technologies affect globalisation?
-satellites and fibre-optic communication enabled the growth of internet and mobile phone systems.
-relationships can be maintained even from great distances.
How do management and information systems affect globalisation?
-Raw materials can be bought in bulk, meaning they are cheaper(EOS)
-Outsourcing is done in LIC’s.
-Offshoring is easier due to better transport and the ability to transfer money.
What is outsourcing?
Outsourcing is the hiring of other companies to complete company tasks that are essential, but are not necessary to complete by the company itself.
What is offshoring?
Offshoring is relocating a company process abroad.
What are trade agreements?
Trade agreements is when there is an agreement between countries to remove the controls and restrictions of importing and exporting goods.
What are the restrictions of trading products overseas?
-Tariffs. (A tax on importing goods)
-Quotas. (a limit/fixed number of goods)
-Outright bans on products or country imports/exports.
What is interdependence?
Interdependence is the theory that nations depend on each other economically,politically, socially and environmentally.
How are countries interdependent politically?
-International political issues require countries working together in order to solve them.
-Countries rely on each other to intervene if there is a political unrest.
How are countries interdependent Environmentally?
All countries rely on each other to protect the environment by reducing greenhouse gas emissions, nuclear waste emissions etc.
How are countries interdependent socially?
-Migration has caused social interdependence as migrants rely on the people and country of the new place they live in.
-reliance on leisure. E.g. TV programmes produced in other countries.
How are countries interdependent economically?
Dependent on the flow of labour, products and services entering the country in order for the economy to grow.
What are the issues associated with interdependence?
The issue associated with interdependence is that it causes unequal flows which can cause inequalities, and in some cases can lead to injustice or conflict.
What is unequal flows of people?
Migration occurs from LIC’s to HIC’s due to there being more opportunity in HIC’s. Therefore, the flow of people globally is unequal.
What are the benefits of unequal flows of people?
-Provides a greater workforce for the country people are migrating to.
-workers send remitteces back to their home country
-fleeing from conflict and poor quality of life
What are the problems associated with unequal flows of people?
-host countries may become dependent on the migrant workers.
-Can cause overpopulation.
-as migrants are desperate for work, they may be vulnerable to exploitation, such as poor working conditions.
What is unequal flows of money?
Flows into low income countries are FDI, aid and remittences. Flows into high income countries is mainly revenue of product sales
What are the benefits of unequal flows of money?
-FDI can improve quality of life as it provides an income.
-Aid and remittences can also help improve quality of life.
What are the problems with unequal flows of money?
-Companies in LIC’s operating from HIC’s can create dependencies for workers.
-foreign aid can reduce incentives for governments to help their own countries.
-Companies can pressure governments to alleviate taxes or relax environmental laws.
What is the unequal flow of ideas?
-HIC’s usually dictate ideas of how countries should be run, due to the country having more money and therefore more power than developing countries.
Wht are the benefits of unequal flows of ideas?
-free trade has increased globally due to deregulation.
-countries with successful strategies can educate LIC’s on how to create economic growth.
What are the problems with unequal flows of ideas?
-LIC’s may feel forced to keep up with ideas of wealthy countries.
-deregulation may lead to more relaxed social and environmental laws in LIC’s, causing social injustice and environmental damage.
What are the benefits of unequal flows of technology?
-The economies of LIC’s can develop through technology investments, opening up factories and increasing employment.
-Companies benefit from products being produced overseas(maximise profits)
What are the problems with unequal flows of technology?
-HIC’s with developed markets have a technological advantage over LIC’s because they can afford to buy the technology.
-injustice as the employees that manufacture and assemble technology get so little compared to what it is sold for.
-companies investing technology into LIC’s means that HIC manufacturing jobs are often lost.
What is fair trade?
Many small scale farmers in LIC’s struggle to compete with the competitive prices.This has lead to farmers being paid much less than deserved. The fair trade foundation set up in 1992 to ensure producers receive better trading conditions.
What is a trade bloc?
Trade blocs are groups of countries in a trading agreement, allowing them to have certain advantages over other countries, such as reduced tariffs or higher quotas.
what are the factors impacting access to markets?
-Trade agreements
-Other agreements
-Wealth
How do trade agreements impact access to markets? (Politely and negatively)
Positive - A country’s access to markets may be improved by trade agreements, as relationships between countries are created that allow more trade to occur.
Negative - trade agreements sometimes disallow countries within them to trade as well with other countries, which may negatively affect these countries.
How does wealth impact access into markets?
-Generally, countries with less wealth have less access to markets. In HIC’s countries can afford to pay for higher tariffs.
-HIC’s also increase access to markets through FDI into foreign markets, as it allows countries to save money through cheaper labour and often avoid tariffs.
What are transnational corporations?(TNC’s)
They are companies operating across multiple countries, usually having their headquarters, production and sales in different countries, meaning they are a crucial aspect of globalisation.
Where is a TNC’s headquarters generally located?
In HIC’s as it is responsible for the big decisions, such as investments, meetings with global organisations etc.
Where is a TNC’s manufacturing generally located?
Mainly in LIC’s due to increased profits due to the lower costs of labour, lower raw material cost and lower taxes/tariffs.
How are linkages caused through FDI?
TNC’s create links with other countries by investing in them, which creates job opportunities and contributes to the economy.
What is vertical integration?
Taking ownership of part of the supply chain e.g. buying a plantation.
What is horizontal integration?
taking ownership of another company, often one that is in a similar industry.
What is global governance?
The process of multiple nations acting together in matters that affect the entire world. E.g. climate change.
What is a norm?
Generally refers to a social norm. This is normal and therefore accepted behaviour.
What is a law?
A law is legally binding, unlike a norm, meaning failure to comply with this law can result in prosecution.
What are global institutions?
Institutions that have been developed to oversee the maintenance of global systems. These institutions may represent all nations, as well as protect these nations.
What are the positive effects of global institutions?
-aim for global economic equality through trade laws set by the WTO.
-stabilise economise. World bank provides development loans and aid avoiding economic crashes.
-societal growth, maintaining social equality.
-social stability maintained by the prevention of conflict and promoting global health.
-Environmental stability.
What are the negative effects of global institutions?
-Create more inequalities as they are not representative of every country.
-World bank and IMF only give loans conditionally which can lead to countries exposed to exploitation.
-some countries and companies may still act against the policies, which can create inequalities.
-companies may also manipulate the rules of global institutions in order to enhance their profits, which creates injustices.
What are the Global Commons?
The concept of an area that does not belong to a single country, rather than belonging to nobody, the commons are supposed to belong to everyone, meaning every country has the right to benefit from it.
What are the four global commons?
-International waters
-The atmosphere
-Outer space
-Antarctica
How are global commons beneficial to humanity?
They provide untouched environments for research and wildlife growth. Animals can thrive in these environments where humans cannot interact, such as deep sea creatures.
What is the trade by of the commons?
As the commons do not belong to a country, this can leave the commons vulnerable to exploitation, especially considering these environments are rich in resources. Unless an international law is created the commons are left vulnerable to issues such as mineral exploitation, fossil fuel extraction and overfishing. Furthermore the pristine and untouched nature is also under threat due to climate change.
How do global institutions protect global commons?
They manage issues associated with the global commons so that these issues can be solved in a fair and sustainable way.
How do international laws protect the global commons?
Laws are usually set by the UN. This means non member countries will not be prosecuted under these laws.
