Global Systems and Global Governance

Question 1

What are periphery areas?

Answer 1

Poor areas that may receive exploitation, economic leakage and out migration. E.g. parts of Africa, Central Asia and Latin America.

Question 2

What are core areas?

Answer 2

Economically important areas that attract investment, capital and people. E.g. Much of Europe, North America and parts of East Asia.

Question 3

What are remittances?

Answer 3

Money sent home to friends and family by migrants often living aboud.

Question 4

What is foreign direct investment (FDI)?

Answer 4

Investment made by overseas governments, businesses or individuals in foreign enterprises.

Question 5

What is globalisation?

Answer 5

The increasing connections between places and people across the planet, established through trade, politics and cultural exchanges and helped by technology and transport.

Question 6

What is aid?

Answer 6

Providing support or help.This could be money, supplies, expertise or more.

Question 7

What is reparation of profits?

Answer 7

TNCs operating in foreign countries sending profits back the TNC headquarters. This is sometimes known as economic leakage.

Question 8

What is an economy of scale?

Answer 8

A proportionate saving in costs gained by an increased level of production.

Question 9

What is containerisation?

Answer 9

a system of freight transport using containers. The containers have standardised dimensions.

Question 10

What are the advantages of containerisation?

Answer 10

• international standardisation
• reductions in costs and increases in speed
• containers packed and sealed in factories reducing theft

Question 11

What is a trading bloc?

Answer 11

A group of countries within a geographic region that protect themselves from imports from non-members. they are a form of economic integration and shape the pattern of global trade.

Question 12

What is a common market?

Answer 12

A group of countries imposing few or no duties on trade with one another and a common tariff on trade with other countries.

Question 13

What is a customs union?

Answer 13

A type of trade bloc which is composed of a free trade area with a common external tariff.

Question 14

What is a free trade area?

Answer 14

Areas created between 2 or more countries where they agree to reduce or eliminate trade barriers on all goods between member states.

Question 15

What are some examples of trade blocs?

Answer 15

North American Free Trade Agreement (NAFTA) (to be replaced by USMCA)
European Union (EU)
Association of Southeast Asian Nations (ASEAN),
OPEC (Organisation of the Petroleum Exporting Countries)

Question 16

What is the World Trade Organisation (WTO)?

Answer 16

An intergovernmental organisation that is concerned with the regulation of international trade between nations. It ensures trade flows as easily as possible and resolves trade disputes.

Question 17

What is the International Monetary Fund (IMF)?

Answer 17

An intergovernmental organisation working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world

Question 18

What is a Transnational corporation (TNC)?

Answer 18

A company that is headquartered in one country but sells products or owns factories in other countries. They can bring employment to LICs while taking advantage of low wages.

Question 19

What is the World Bank?

Answer 19

A financial institution providing loans for developing countries for capital programmes. Its goal is reducing poverty.

Question 20

What is the United Nations (UN)?

Answer 20

an intergovernmental organisation that aims to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmonising the actions of nations. It is the largest, most familiar, most internationally represented and most powerful intergovernmental organisation in the world.

Question 21

How many UN members are there?

Answer 21

193

Question 22

What is outsourcing?

Answer 22

An agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another.

Question 23

What is offshoring?

Answer 23

Relocating some part of a firm’s activity to another country.

Question 24

What are some of the departments of the UN?

Answer 24

• FAO (Food and Agriculture Organisation)
• UNCTAD (United Nations Conference on Trade And Development)
• UNESCO (United Nations Educational, Scientific and Cultural Organisation)

Question 25

What does comparative advantage suggest?

Answer 25

That countries should specialise in providing goods and services they excel at producing. They should then trade these goods with products they are not good at internally producing.

Question 26

What is Fair Trade?

Answer 26

An institutional arrangement designed to help producers in developing countries achieve better trading conditions. Members of the fair trade movement advocate the payment of higher prices to exporters, as well as improved social and environmental standards.

Question 27

What are import licenses?

Answer 27

A license issued by a national government authorising the importation of goods from a specific source.

Question 28

What are import quotas?

Answer 28

A trade restriction that sets a limit on the quantity of a good that can be imported into a country in a given period of time.

Question 29

What are subsidies?

Answer 29

Grants or allowances usually awarded to domestic producers or reductions in their costs to make them more competitive against imported goods.

Question 30

What are voluntary export restraints?

Answer 30

Trade restrictions on the quantity of goods that an exporting county is allowed to export to another country.

Question 31

What are embargoes?

Answer 31

Government orders that restrict commerce or exchange with a certain country or the exchange of specific goods.

Question 32

What is a barrier to trade?

Answer 32

A government-imposed restraint on the flow of international goods and services.

Question 33

What is global governance?

Answer 33

The way in which global affairs are managed through norms, laws, regulations and institutions.

Question 34

What are some of the pros an cons of the UN?

Answer 34

• Sometimes difficult to gain consensus form 193 countries
• Developing countries often do not have the financial and technological resources to carry out international directives

Question 35

What are some of the pros an cons of the WHO?

Answer 35

• International cooperation remains primarily with governments, with some more powerful than others
• There is question over countries like China which protect their sovereignty
• Some claim it to be too bureaucratic

Question 36

What are some of the pros an cons of the WTO?

Answer 36

• Positive terms of trade can lead to financial stability and the economic multiplier effect
• Many poorer countries still have limited access to global markets
• Seen as ineffective in resolving trade disputes

Question 37

What is the World Health Organisation (WHO)?

Answer 37

A specialised agency of the United Nations that is concerned with international public health.