Global systems and global governance Flashcards
(84 cards)
What is the definition of globalisation?
- It is a process that involves the trading of culture, money, goods, and information on a global and international scale
- It involves links and connections between countries that change over time and it is different in different areas
How has the rate of globalization changed over time and why?
- The rate of globalization has steadily speeded up and grown over time
- This leads to impacts both positively and negative on the economic, environmental and social sides
- It has steadily increased over time due to factors such as immigration, technological and social developments, and increased trading
What does the idea of the ‘global village’ mean?
- It was an ideology created by Canadian philosopher Marshall McLuhan in the 1960’s
- It is the idea that there would be free information and the economy flowing and everyone would think on an international scale, and there would be international actions and decisions if the world was fully globalized
How does interdependence impact globalization rates?
- Interdependence is the reliance of countries on other countries and the global economy
- Connections need to be made internationally between countries for globalization to be fully in effect.
What is international trade and what does it do?
- It allows for a ‘world economy’, meaning that global events affect the demands and supplies of resources
- Trade has grown from US$100 billion in 1956 to US$19 trillion alone in manufactured goods
- It is the exchange of goods across countries internationally and includes imports and exports.
What are the different systems and factors that make up globalization?
- Different factors include economy, goods, communication, and information
- The focus of globalization has been primarily on the economic relationships such as international trade, foreign direct investment, and international capital flows
- The different factors that form their own systems and make up the globalization process are the economy, politics, society, culture, technology, and the environment
What does the ‘global community’ mean?
- We are all interconnected socially through transport, culturally through international migration, and also economically through trading flows
- These all make up the global community
What is containerization?
- It is the movement of container ships internationally around the world
- it is cheaper, faster, and easier to use one universal container size for transportation
What is scale and what are the different types of scale?
- Scale is a measure of the size in quantity or the length in magnitude of something
- Micro is a small scale and macro is a larger scale
What are some of the disadvantages of dimensions?
Some countries have corrupt governments and migration may be illegal. Inflations can affect the global economy. There are technology hackers and natural hazards and disasters in certain countries etc.
What are the different factors of production?
They include:
- Land and natural resources
- Capital and the flow of investments
- Labor and number of skilled workers
- Businesses, enterprise and organizations
How are production and consumption patterns distributed?
- Globalization created a new international division of labor with two main classes
- The highly skilled are higher paid and are researching and managing on a global scale, and the unskilled and poorly paid assembly occupations which are usually located in less developed countries and areas
- The invention of the computer has increased relations and trading in the flow of production
How has the division of globalisation changed over time?
- The division in globalization has drastically changed in recent years
- Countless countries that used to be classified as less developed nations have become Newly Industrialized Countries
- Those countries have developed their own industrial and commercial bases with their own transnational cooperation’s
How have manufacturing and technology usage rates changed over time?
- In 1954, around 95% of manufacturing was concentrated in the industrial economies of Western Europe, North America, and Japan.
- Over time, deindustrialization has occurred, as a result of direct investment by TNC’s into those developing countries
- This allows TNC’s to take over manufacturing at a cheaper price
How has deindustrialization increased over time and affected the UK?
- Global shift has resulted in deindustrialization in the richer countries and a loss of jobs in the manufacturing sector
- Employment in manufacturing in the UK fell by 50% from 1983 – 2013
- More than 50% of all manufacturing jobs are located in the developing world. Outdated production encourages this decline
How has manufacturing increased over time?
Manufacturing transfers around the world with great ease. Factors affecting the location choice of entrepreneurs of some of the largest manufacturing companies include:
- Availability of skilled workforces
- Opportunity for building new plants with the latest and most productive technology
- Access to large markets without tariff barriers enables trade agreements
How have flows of products changed over time?
- The International movement of production facilitated for developing countries by the reduction of the cost of trade, which included transaction costs, tariffs, and transport
- Transport and time costs have been reduced by the process of containerization, which has enabled more complex and long-distance flows of productions
- Air transport speeds up the delivery and reduces the cost of more valuable goods
What are services?
- The services are economic activities that are traded without the production of material goods e.g. Financial or insurance services
- High level services are services to businesses such as finance, investments, and advertising and low levels services are services to consumers such as banking, travel and tourism, customer call centers and communication services
- They are footloose, meaning that they can be located anywhere
How does technology affect services?
- Technology allows them to serve customers on a worldwide scale
- Deregulation in the 70’s and 80’s meant that there was an improvement in ICT, opening up markets in other countries
- Low level services are located in LIC’s and high-level services are located in HIC’s
How have flows of capital changed over time?
- Capital includes the money that moves between countries which is investment, used in trade or production
- Flows of finance and capital show capital experienced in the global economy, and it is based on the Frank and Wallerstein’s model of a world system
- Rapid growth of medium income countries e.g. BRIC (Brazil, Russia, India, China) and MINT (Mexico, Indonesia, Nigeria, Turkey) countries has occurred
What is diaspora?
- Diaspora is a large group of people with similar heritage who moved somewhere else in the world
- Economic leakages are losses of income from the economic system and this refers to profit from TNC’s sent back to their base
- Money can now be moved around the world and ICT allows companies to work on a global scale. In the late 20th Century, there was a deregulation on the world financial markets which meant that investment companies could invest in overseas markets
What is FDI?
- This is an investment made mainly by TNC’s and it is based in one country into the physical capital or assets of foreign employment in foreign enterprises
- Companies make an overseas investment by setting up subsidiary companies and corporations
- Repatriation is the sending back of money to one’s country also known as remittances
What is aid and what are the different types?
- Instant support for poorer countries is an aid, and it can be provided from the UN contributions or from richer countries
- Bilaterally from a government to another government, and multilateral aid involves contributions from certain countries to be redistributed
- Tied aid is giving money strictly for a certain purpose and then NGOs are the other types of aid
Migration and remittances benefits and costs?
Positive:
- Majority is ‘out’ migration from poorer to richer countries
- Pay is higher in richer countries than in poorer countries
- Transfers of money made by foreign workers to home country
- India receives the highest remittances from its Diaspora
Negatives:
- Negatives for poorer countries include losing their most talented workers