Global systems and global governance Flashcards
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
What are the different flows of information?
- Information is governed by the movement of people through migrations and the speed of data and communication transfers
- Both are responsible for the transfer of cultural ideas, language, and design
- Digitalism and satellite technology have changed the flows of international information and this is supported by improvements to global telephone and networks
How have the flows of information changed over time?
Mobile telecommunication technology, email, and the internet have enabled large amounts of information to be transferred across the world, and live media coverage, journalism, and newspapers help with this
What are the different flows of global marketing and how have they been?
- Flows of information contribute to knowledge of goods and services
- Goods and services include those which require a lot of research and development and to use highly skilled and useful educated information
- Global marketing is the process of promoting, advertising, and selling products and services
What is the aim and goal of global marketing?
- The goal is to sell the same product in the same way in every country everywhere
- A country or company becomes a global marketeer when it can create products that fit certain country’s and it sees the world as one big market
- State led investments occur which can promote and sell products on a global scale
What are flows of Labor?
- This is the net global movement of people migrating to find work around the world internationally
- Most migrants move between the same region or between adjacent regions and regions nearby
- There are many barriers to the flows of Labor however including language barriers, immigration laws, conflict, and money and finance problems and issues
What happened to Somalia in 2012?
- 40% of Somalians need remittances to meet their basic needs daily, according to the world bank
- Remittances make up 50% of the GNI and 80% of all total investment in the country and Germany and the US are the main investors in Somalia as it has huge potential for natural resources and production such as hydrocarbons, livestock and fishing and agriculture
- In 2012 there was a concern that peoples remittances money was being used by terrorist groups which led to many UK and US banks and trading agencies withdrawing from their services and investments in Somalia
What are the concerns of international financial institutions?
- There is not much regulation from the government, which would be useful in ensuring that remittances are fair and that financial institutions actually do bring equality in NEEs
- There need to be more laws enforced by the government against money laundering
- There was a 40% increase in migration from 2000 to 2015, including forced and voluntary migration
How have transport costs changed over time?
- The cost of shipping has decreased because ships transport 90% of our goods and ships have gotten bigger and their fuel efficiency has increased
- Almost all goods are now shipped and containerized causing standardization
- Supply chains are now global, now allowing for now mass production of goods
How do trade agreements benefit trade?
- They help trading partners and they help reduce chances of conflict as they’re independent
- Trade agreements remove barriers to trade, this includes global trade and the flows of goods
- NATO is an example of a group coming together for common good and to promote capitalism