Global systems and global governence Flashcards
Globalisation
process by which economies have become increasingly integrated through the global network of trade, communication, transportation and immigration.
Dimensions of globalisation
-Flows of capital
-Flows of labour
-Flows of products
-Flows of services
-Flows of information
Economic leakage
Loss of income from an economic system. It mostly refers to profits sent back to their base country by TNCs.
Flows of capital (d.o.g)
-Foreign direct investment (made by TNCs or governments investing into the physical capital or assets of foreign enterprises)
-Repatriation of profits (TNC investing in oversea production will take any profit made back to home country)
-Aid (financial support for poor countries multilaterally or bilaterally)
-Migration (migration of labour from poor to rich countries)
-Remittance payments (transfers of money by foreign workers to their families back home)
Flows of labour (d.o.g)
-Increases in cross border movements
-Most migration over short distances in the same or neighbouring regions.
-The bulk of economic migrants moving between continents are not the poorest but those with some educational and financial means
-Largest inter-regional flow is in Asia, and second is Latin America to North America
Flows of products (d.o.g)
-Regional trading blocs (tariff-free trade)
-Tariffs (regulatory barriers reduced by the WTO)
-Containerisation (transport and time have been reduced, enabling long distance and complex flows of products)
-Improvements in transactions (flows of data with ease of capital transfer)
Flows of services (d.o.g)
-High level services (to businesses in the more developed world in major centres of global finance)
-Low level services (to consumers- decentralisation from developed to developing world)
Flows of information (d.o.g)
-global telephone networks
-mobile telecommunication
-email and internet
-live media coverage
Global marketing
-Process of promoting, advertising and selling products and services.
-When becoming a global marketeer it views the world as a single market, and develops a recognisable brand
Internal division of labour
-highly skilled, highly paid, decision making research and managerial occupations in developed countries.
-unskilled, poorly paid assembly occupations in developing countries.
Patterns of production
Manufacturing has become decentralised from HDEs to NDEs (global shift) due to:
-lower land and labour costs,
-incentives offered by governments (tax break for TNCs)
-technology transfer by TNCs
Deindustrialisation
Decline and loss of jobs in the manufacturing sector, normally in HDEs
What are governments doing in HDEs to reverse decline in industrialisation
-encourage foreign TNCs to invest in industrialisation regions by offering incentives
-investment in skills and technology
-protectionist policies, such as import tariffs, to protect domestic production
Patterns of consumption and distribution
-Product consumption still lies predominantly in the
richer countries of the developed world.
- manufactured in emerging NIC economies
Factors that have influenced globalisation
Communications, transport, collapse of communist economies, TNCs, financial investment, global marketing, travel, containerisation, migration, trade
How communications have influenced globalisation
-24/7 internet
-7 billion mobile phone subscribers worldwide
-computer control and robotics for manufacturing
-computerised logistic systems
How finance has influenced globalisation
-Financial deregulation has made it easier to move money across borders so it’s easier to trade
-global financial system provides a framework to facilitate flow of capital globally
-International Monetary Fund (IMF) regulates
-High speed electronic transmission for fast transactions.
What are the disadvantages of deregulation
Leaves the system exposed to volatile capital flows which triggered the global banking prices in 2008-2009
How transport has influenced globalisation
-increased size of aircraft
-low cost airlines
-standardised containers
-handling and distribution efficiencies
-high speed rail networks
What are dry ports?
Where distance to sea terminals are long, especially in less developed countries, exporters are recommended to use dry ports to save time and money on transportation.
How security systems have influenced globalisation
-counter terrorism measures
-ensure food meets safety regulations
-biosecurity
-cyber crime
-secure supply chains
