Global Systems and Global Governance Flashcards
what is globalisation?
the process of the worlds economies, political systems and cultures becoming more strongly connected to each other
what is globalisation caused by?
the movement of information, capital, products, services and labour between different countries
when did globalisation start to accelerate?
the 1980s
what are the 5 factors that promote globalisation?
- flows of information
- flows of capital
- flows of products
- flows of services
- flows of labour
how does flows of information promote globalisation?
- can be spread across the world quickly and easily
- people in different countries can communicate and work together (email, social media)
- increasing flows of infrmation are making the world more interconnected
what is capital?
money thats invested
-its spent on something to produce an income or increased profit
what is foreign direct investment?
capital invested into foreign countries
why has manufacturing in more developed countries decreased?
lower labour costs overseas
is international trade in maufactured goods increasing or decreasing?
increasing
what are services?
economic activities that arent based around producing any material goods
what has allowed services to become global industries in recent decades?
improvements in ICT
what can services be split into?
low level and high level
where are high level services?
they tend to be concentrated in cities in more developed countries
where are low level services?
in less developed countries
why are companies increasingly relocating low level services?
labour is cheaper
what are flows of labour?
movements of people who participate in the workplace from one country to another
why are some highly skilled workers moving to more develped countries?
wages and working conditions are better
why do unskilled workers move to more developed countries?
to look for work because of unemployment and low wages in thier own countries
what is marketing?
the process of promoting and selling products and services
why has marketing had to become global?
many products and services are sold all over the world, rather than just in the country where they are produced
how does global marketing give economies of scale?
it is cheaper to have one marketing campaign for the whole world, rather than a different campaign for every country
what are economies of scale?
the cost advantages that enterproses obtain due to size
how can global marketing create a global brand awareness?
consumers around the world identify a name or logo with a particular product or service, so they will purchase that product rather than a lesser known competitor
why does marketing need to be adapted to regional markets?
different populations have different laws and cultural attitudes
what is globalisation a result of?
- new systems
- technology
- relationships
what do systems include?
ways of working, procedures and methods of organisation that allow a particular function to be carried out
what are country relationships based on?
trade and common rules
what governs the flows of capital between cuntries?
the global financial system
what are financial systems based on?
companies called investment banks
what is the main role of investment banks?
to help companies raise capital by selling shares on behalf of those companies
what are investors?
people or groups who buy shares
what do investors get?
a fraction of the profits that the company makes
what did investment banks create?
new financial products that made foreigh investment less risky
what is financial deregulation?
relaxed the rules about what banks were allowed to do
- allowing banks to charge people more for their services
- letting banks invest in a greater range of businesses
- removing barriers to capital coming in and out of a country
why did the financial deregulation involve removing barriers to capital coming in and out of a country?
to make it easier for investment banks to buy and sell shares and other products across the world
what happened in the 1980s to make the financial system more global?
- infomation technology allowed investors greater access to information
- investment banks created new financial products
- financial deregulation
- removing barriers
what did the changes in the 1980s, to make the financial system more global, do?
- greater range of companies getting involved in finance
- enabled investment banks to take on a greater number of services
what governs the flows of products between countries?
the global trade system
what is trade primarily regulated by?
countries governments
what do the governments controlling trade do?
- control which products they let into the country and at what price
- tarriffs
- non tarrif barriers
- banning of certain products
what are tariffs?
taxes on products coming into the country
do controls make products more or less expensive abroad and to consumers?
more
how can countries make trading products cheaper?
they can enter a trade agreement
what is a trade agreement?
one country agrees to remove controls in exchange in exchange for the other country doing so
what are trade agreements between two countries called?
bilateral trade agreements
what are multilateral trade agreements?
trade agreements between several countries
what is the global trade system governed by>
the world trade organisation (WTO)
what does the WTO do?
- sets rules on how countries can trade with each other
- acts as a forum for countries to negotiate trade deals with each other and settle trade disputes
what do uniform metal containers allow for?
more goods to be loaded onto ships at once and transferred straight onto other forms of transport
what have uniform metal containers made it easier to do?
move goods quickly and cheaply around the world
what have communications satellites allowed for?
relatively cheap wireless communication between two devices regardless of where they are
what do communication satellites allow companies and people in rural areas to do?
access the internet and communicate with others
what do optic fibre cables allow?
fast communication between two devices, allowing almost instant communication between two people
how can large companies benefit from economies of scale?
by purchasing specialised equipment and using product lines. they could also buy raw materials at a lower price as they can buy in bulk
what is outsourcing?
when a company pays another company to do work that in the past may have been done in house, usually to save cost
why does trade make war less likely?
if countries need each other to buy and sell products, it would not be in their interest to be at war
what does interdependant mean?
they rely on each other
how do countries rely on each other for economic growth?
products are produced by one group of countries and consumed by another group of countries
how does politics make countries rely on each other?
to solve issues that cannot be addressed by just one country
why does interdependence cause inequality?
tends to bring more benefits to developed countries rather than less developed countries because the flows of people, money, ideas and technology are unequal
what is remittance?
migrants sending money back to their families or home communities
why are flows of money unequal?
money often flows from developed countries to less developed countries and less developed countries rarely have the capital required to invest in other countries
how can flows of money bring benefits to countries?
- foreign companies can take advantage of cheap raw materials and low labour costs, while the host country can benefit from foreign capital and expertise
- foreign aid used to improve living standards and rebuild local infrastructure after a disaster
what is the issue with foreign aid creating dependency?
it gives governments little incentive to improve their own countries
how can unequal flows of captial cause conflict?
foreign aid can find its way to armed groups and help t fund conflict
how could companies pressure less developed countries to create uneual flows of capital?
may pressure governments to pass laws that make it cheaper to invest there
what is neoliberalism?
state owned companies were privatised and government spending was cut
what are the benefits of neo liberalism?
it has increased free trade which has led to more development within countries and less conflict between some countries
what are the negatives of neo liberalism?
increased inequalities, conflict, and injustice
why could neo liberalism lead to conflict?
if private companies and free trade in a less developed country are threatened by the decisions of that countrys government, developed countries may believe their intervention is justified, leading to conflict
how has globalisation led to unequal flows of technology?
it mainly flows from developed countries to less developed countries
how do unequal flows of technology lead to inequalities?
developed countries can afford the latest technology, whereas less developed countries cant, so with the technology they can make products more cheaply and have better access to information and services
how does the unequal flow of technology lead to comflict and injustice?
repressive governments of less developed countries have used weapons technology sold to them by developed countries to stop protests from their own people
how can developing and emerging countries drive global systems to their own advantage?
with alot of money and technology they have alot of control over the global economy and the political events
what governs the global financial system?
- the international monetary fund (IMF)
- the world bank
what does the International monetary fund (IMF) monitor?
the global economy and advises governments on how they could improve their economic situation
-gives loans to countries with ecnomic problems
what does the world bank provide?
loans to less developed countries to invest in areas like health, education and infrastructure
why do sme people think global financial institutions, like IMF and the world bank, and reinforcing unequal power relations between different countries?
- they are both based in the USA (less developed countries have less influence)
- loans are conditional
- WTO generally works to reduce trade barriers between countries, but many companies keep them in place, reducing imports from less developed countries
what is international trade?
the import and export of goods and services between countries
has the volume of trade increased or decreased since the 1980s?
increased
how is the pattern of global trade changing?
deveoped countries remain the biggest global traders, but some emerging economies are catching up
why are more companies opening themselves up to international trade?
by removing barriers to trade which is partly to do with with formation of trade blocs
what is fairtrade?
a way of trading that supports people in less developed countries who make products that are exported to develeoped countries
what is foreign direct investment?
when a person, company or other groupspends money in anther country in order to generate a profit
what are foreign investrs attracted by?
- the size of the market
- the stability of the market
- the possibility of extracting resorces for themselves
- the ability to access financial services
how has the pattern of foreign direct investment changed?
until the 1980s developed countries mainly invested in other developed countries, since developed countries have begun investing more in emerging economies and developing countries
do emerging economies invest in less developed countries?
yes
what is ethical investment?
when a person, company or group only invests in areas that are considered socially responisble
how can complanies limit trade?
uisng tariffs and non tariff barriers
why do some countries limit their trade with tariffs and non tariff barriers?
to sheild their industries from foreign competition
what is protectionism?
countries sheilding their industries from foreign competition using tariffs
what are the world trade organizations’ rules on how countries should trade with each other?
- cant give a country special access to their market and not the rest
- countries should promote free trade
- countries should act predictably in their trading
- there should be fair competition
what are trading blocs?
associations between different governments that promote and manage trade. They remove trade barriers, while keeping common barriers to countries who arent in the bloc
why are many trading blocs regional?
they make it easier for countries to trade with their neighbours
are trading blocs ever based around specific industries?
yes
what are special econmic zones (SEZs)?
areas that have different trade and investment rules to the rest of a country. They increase trade while keeping barriers in the rest of the country
what do special econmic zones increase the volume of trade with?
emerging economies and less developed countries
where does most trade in the world take place?
between developed countries
who do most less developed countries trade with?
emerging economies and developed countries
what is access to markets about?
how easy it is for countries and companies to trade with one another
how is international access to markets determined?
by the extent of export and import barriers between two countries
hw is access to markets affected by wealth?
- developed countries often put higher tariffs on goods imported from less developed countries
- developed countries have more money to invest so can avoid high tariffs by opening factories whith them
- less developed countries may rely on loans that depend on removing trade barriers and increasing access to their markets
how is access to markets increased by being a member of a trading bloc?
memeber countries have access tothe markets of all other member countries
why does the world trade organisation form special and differential treatment (SDT) agreements?
to let the least developed countries bypass developed countries’ tariffs which gives them greater market access
what doe the profits made from special and differential agreements allow?
less developed countries to diversify the range of industries that have
what are the negative impacts of special and differential treatment agreements?
in developed countries it allows cheap imports into the country
what do some people argue is more effective than special and differential treatments agreements?
regional blocs which allow less developed countries to negotiate prices collectively
why is it hard for countries with poor market access to establish new industries?
- they face high tariffs when trying to sell abroad
- making their products uncompetitive
- may be undercut in their domestic markets by TNCs producing similar products more cheaply
why do countries with poor market access often have low gross national income?
they are dependant on selling low-value primary products that tend to fluctuate in price
why do countries with high levels of market access tend to see more economic growth?
they can trade more which means their citizens are wealthier, they can afford to import a range of products and can develop high tech economies which boost the economy further
why do people in countries with better market access have a better standard of living?
they tend to have higher paid jobs which gives them more disposable income
why is quality of life generally lower in countries with less market access?
they have less money available for deucation and healthcare
why does trade benefit developed countries more than developing countries?
many developing countries export mostly primary products which are processed in developed countries and exported at higher prices
-the developed country makes more profit than the developing country, so wages are higher
what are TNCs?
companies that produce, sell or are located in two or more countries
what types of industry do TNCs operate in?
- primary industry
- secondary industry
- tertiary industry
what % of global trade was linked to TNCs?
80%
whats gives TNCs a potential influence?
- potential investement
- creation of jobs
- provisions of new technology
why are TNCs one of the main driving forces behind globalisation?
the economic , political and cultural interactions that occur between the countries where they operate
how do TNCs connect countries together because of their spatial organisation?
they create a global supply chain because the different parts of their businesses are located in different countries
where are TNCs headquarters usually located?
in big cities in more developed countries
-cities that are well connected in terms of global transport and communications and a supply of highly skilled workers
where do TNC research and development facilities tend to be located?
in cities and towns where there’s a supply of highly educated people (often same country as headquarters)
why do some TNCs locate regional research and development facilities closer to the markets they are selling to?
so they can make products that are sepcifically for that market
where are TNCs factories usually located?
in less developed countries where production costs are lower and in the country where their market os to avoid import and export taxes
what are mergers?
when two companies agree to become one bigger company to help links form between countries where the two companies operate
what is an acquisition?
one company buys another company
how do TNCs use subcontractors?
they use foreign companies to manufacture products without actually owning the business
what is foreign direct investment?
involves merges, acquisitions and using subcontractors
why do TNCs expand their operations?
to gain more control over their markets
what are two ways TNCs can expand to gain more control over their markets?
- vertical integration
- horizontal integration
what is vertial integration?
when a company takes over other parts of its supply chain
what is horizontal integration?
when a company merges with or takes over another company at the same stage of production
TNCs in primary industry often invest in what?
countries with natural resourses that they can extract
what is primary industry?
extracting natural resourses
what is secondary industry?
making material goods
what is tertiary industry?
providing services
what countries do TNCs in secondary industrys often invest in?
countries with low labour costs and cheap land, especially where governments encourage investments with tax breaks
what countries doe TNCs in tertiary industrys often invest in?
countries with a well educated population
why do TNCs invest in countries with weak labour and environental regulations?
weak regulations allow TNCs to cut costs
what is intra firm trading?
when one division of a TNC trades with another part of a TNC
what is intra firm trading counted in?
trade figures
who decides intra firm prices?
by the company management rather than the market, giving TNCs an advantage over smaller businesses
what effect is created when a TNC first invests in a new country?
a multiplier effect
do TNCs make it easier or harder for local companies to trade as part of the global supply chain?
easier
what is the aim of many TNCs?
to create a brand that is recognisable globally
why do TNCs gain knowledge of local markets?
to adjust their marketing accordingly and even changing their products to reflect national cultures
what are international laws?
rules that are established by countries through international agreements
- they are legally binding
- cover human rights, labour standards, trade regulations, etc
what are norms?
accepted standards of behaviour
-usually negative consequence if not followed
what are institutions?
political and legal institutions. To pass and enforce laws, decide whether a law has been broken or act as a forum for different groups to discuss issues and sort out their differences
what does global governance regulate?
global economic and political systems
how does global governance regulate glocal economic and piolitical systems?
- setting up rules countries and companies should follow
- monitoring whether they follow the rules
- enforcing the rules if they aren’t followed
how can global governance enforce rules?
- taking a country or company to an international court
- imposing economic sanctions like withdrawing trade
what are international institutions designed for?
to provide growth and stability
why does international institutions enforcing coon rules create greater stability?
countries know how other countries are likely to react to a situation, making conflict less likely
why does the world trade organisation aim to increase global trade through common rules?
more trade leads to economic growth and rules make trade more predictable, increasing stability
why does the world trade organisation give developemnt loans to less developed countries?
to increase their economic growth
why is it a problem that countries sign up to internation laws and institutions voluntarily?
if a country doesnt sign or formally approve a particular treaty, then they are not bound by the laws that the treaty sets out
how can global institutions create inequalitiea and injustices?
- there are conditions to recieving a loan from the IMF and the world bank
- economic groups strengthen the power of developed countries, rather than encouraging equality with less developed countries
- members of security insititutions can veto resolutions
whay was the united nations set up?
to establish a peaceful and fair world
why does the UN have a lot of authority?
practically every country in the world is a member (193 member countries)
what do countries that join the UN have to sign?
the United Nations Charter
what is the united nations charter?
it sets out the basic principles of global governance and the fuctions of the UN
what are the UNs aims?
- maintain global peace and security
- develop friendly relatiuons between nations
- use cooperation to solve international problems
- bring countries together to settle disputes
what has the UN Millennium Development Goals helped?
- reduce the number of people in poverty
- increasing the number of children in primary school
- reduce child and maternal mortality rates
how can the UN peacekeeping mission help?
to end wars
how has the UN created inequalities?
developed countries hold the most power over decisions taken at the UN
how has the UN created injustices?
at times it has been ineffective
why do institutions aall need to interact?
to ensure that governance is effective
decisions made by global institutions affect institutions at what scale?
international, national, regional and local scale
can decisions at the local or regional level affect institutions at the global level?
yes
why do nongovernment organizations operate on a range of scales?
to monitor and support institutions
what are global commons?
areas that arent owned by any one country or organisation
-they belong to everybody
what are the four global commons?
- Antarctica
- The high seas
- Earths atmousphere
- Outer space
what are the global commons governed by?
different pieces of internation law
why do environmental NGOs want to protect the commons from exploitation?
they offer unique habitats for wildlife and have a positive impact on environmental systems. Valuable for scientific investigation
why may countries and organizations feel they can exploit the global commons without dealing with the consequences?
the cost of exploiting the global commons is shared by everyone. Known as ‘the tradgedy of the commons’
why does technology make global commons more vulnerable to exploitation?
made it easier to get to global commons that were relatively inaccessible before
why does pressure on the global commons cause problems for the planet?
- overfishing in the high seas, affects food chain
- atmospheric pollution causing climate change
- increased carbon dioxide causes acidification of the oceans, affecting marine organisations
is there a need to protect the global commons?
yes
how many km^2 does Antarctica cover?
14 million km^2
how much of the earth’s ice is in Antarctica?
90%
is there a lot of water available in Antarctica for plants to grow?
no, there is very little
what is the average temperature in Antarctica?
-49*c
does Antarctica have very much sun in the winter?
no, the sun doesnt rise for several months because of the earths tilt
why do very few plants survive in Antarctica?
it is cold with very little sunshine
why is Antarctica’s terrestrial (land) ecosystem very fragile?
lack of water, warmth, and sunlight
where do microscopic plankton thrive in the Antarctic?
at the Antarctic convergence
where in the Antarctic is there upwelling of nutrient rich cold water?
Antarctic convergence
what are the 4 main threats to Antarctica?
- climate change
- fishing and whaling
- search for minerals
- tourism and research
over the past 5 decades, how much has the temperature risen along the west coast of Antarctica?
3*c
-one of the fastest temperature rises on earth
what has global warming caused to happen to the ice shelves in Antarctica?
to melt
-as ice sheets retreat the Antarctic environment has changed dramatically
what has happened to penguins as the ice shelves have melted in Antarctica?
they have declined and been replaced by penguins that are adapted to open sea conditions
why is the decline of krill causing a problem in the Antarctic?
they are the main food source for penguins, whales and seals, so the decline of krill leads to the decline of these animals
why is the population of antarctic krill decreasing?
the sea ice is melting a
-they depend on the environment the sea ice provides
how many mm a year has global sea levels risen?
3mm
what is ocean acidification?
when carbon dioxide in the air reacts with saltwater it creates carbonic acid, which deplets the amount of calcium carbonate in the water
why could ocean acidification be devastating to Antarcticas plankton?
they use calcium carbonate to form their shells
why are there legal limits on how many fish can be caught per year in Antarctica?
to keep stocks at a sustainable level
does illegal fishing take place in Antarctica?
yes because it is difficult to monitor
why has whaling in Antarctica declined since 1982?
regulations were brought in to ban all commercial whaling
why will it take whales a long time to recover the population from whaling?
they are slow breeders
are there alot of minerals in Antarctica?
yes there is believed to be
where are there large reserves of oil in Antarctica?
in the southern ocean
has there been any mining in Antarctica?
no, it is currently banned
why are conditions not favourable to mine in Antarctica?
- too far to transport machinery
- the landscape and climate would make mining difficult and expensive
what minerals are in Antarctica?
- coal
- iron
why may mining begin to occur in Antarctica in the future?
due to increasing demand for minerals and oil as supplies are depleted elsewhere
would mining in Antarctica damage the environment?
yes
tourism increases shipping and air travel to Antarctica, why is this a problem
leads to water and air pollution
why is litter and waste desposal by tourists in Antarctica a problem?
damages habitats and can harm wildlife because decomposition rates in cold environments are slow
why is trampling by tourists an issue in Antarctica?
damages fragile vegetation and erodes the landscape
how can non native species be introduced to Antarctica and why is it an issue?
they can be brought on tourists clothing and may alter foodwebs and ecosystems
what is the Antarctic treaty?
an agreement about how to sustainably manage Antarticas ecosystem
when was the Antarctic treaty introduced?
1959
how many countries have signed the Antarctic treaty?
53
what are the 3 Antarctic treaty rules?
- should only be used for peaceful reasons
- countries should cooperate on scientific research
- should remian in the global commons
who can inspect the Antarctics bases and equipment?
different countries
do inspections on Antarctica take place very often?
no
what is the protocol of Environmental protection to the Antartic treaty?
focuses on protecting Antartics fragile environment
when was the protocol of environmental protection to the antarctic treaty signed?
1991
what did the protocol of environment protection to the antartic treaty do?
- banned all mining in Antarctica
- protects plants and animals
- regulates waste disposal and prevents pollution
what happens is there are disputes between countries in the Antartic treaty?
they are encouraged to negotiate, but then it can be taken to the international court of justice
why can tackling problems in the Antarctic treaty be slow and difficult?
the countries involved must reach a consesus over all decisions regarding Antartica
what is Antartica governed by?
global institutions
name two institutions that help govern Antarctica?
- international whaling commission
- united nations environmental programme
what is the international whaling commission responsible for?
regulating whaling and ensuring that the whale population is at a sustainable level
when, where and why did the international whaling commission set up a whale sanctuary>
- 1994
- southern ocean around Antarctica
- to protect whales
why have campaigners criticised the international whaling commission?
for not properly monitoring the number of whales in the sanctuary
what is the united nations environment programme?
its a UN agency and is the main institution that governs the world’s environments
what is the united nations environment programme responsible for?
reporting activity in the Antarctic to the UN
Who is the united nations environment programme run by?
the commission for the conservation of antarctic marine living resources, which aims to stop illegal fishing and conserve the Antarctic ecosystem
why is the united nations environment programme effectiveness limited?
by individual countries protecting their own interests
who introduced a whaling moratorium and when?
the international whaling commission in 1982
what did the whaling moratorium do?
banned all commercial whaling around the world
-believed to have helped whale populations increase in Antarctica
how is the success of the whaling moratorium monitored?
by estimating whale populations based on sightings and modelling
why do NGOs believe the whaling moratorium is poorly enforced?
Japanese whalers killed over 300 Antarctic whales for ‘scientific research’ despite the rulling
do NGOs play a role in monitoring possible threats to Antarctica and protecting it environments?
yes an important role
does the way Antarctica is governed affect the rest of the world?
yes
how has the monitoring of melting ice in Antartica affected people around the world/
it has informed efforts to combat climate change
what is global governance?
all the rules and organisations aimed at making sure everybody works in a fair way
what are the 4 benefits globalisation brings?
- integration
- development
- stability
- economic growth
how does globalization bring integration?
it allows countries to pool their resources to solve global issues that are too great for a single country to deal with
how does globalisation bring stability?
as countries become more interconnected, they become more dependent on one another. This discourages any actions that would upset global stability, because of the negative consequences for all countries
how does globalisation bring developement?
foreign investment brings capital into a country, which can be used to improve education and infrastructure. This can attract further trade and investment which leads to further development
how does globalisation bring economic growth?
participation in global trade allows countries to profit from their natural resourses and specialist industries, generating wealth. countries can gain products and services they are unable to produce
how does globalisation create inequalities?
as companies move low skilled workers to less developed countries, low skilled workers in developed countries find it hard to earn money. Rich/poor divide
how does globalisation create conflict?
developed countries have intervened in conflicts in order to secure access to natural resourses like oil
how does globalisation cause injustice?
improved transport and communications systems have made human trafficing easier. People in less developed countries work in sweat shops to make products for people in developed countries
why is it a problem that global trade increases the amount of transportation?
more pollution and greenhouse gas emissions
why does global governance allow greater scientific exploration of Antarctica?
people from all over the world can conduct research in Antarctica
