🟣Global Systems And Globalisation Flashcards

Question

Global marketing

Answer 1

Process of adapting a company’s products, services and marketing campaigns to appeal to customers in different countries. Eg. McDonald in India - Veggie Chicken Tikka Burger. Global expansion - millions more customers so increased products

Answer 2

Tailoring marketing campaigns to certain countries to appeal to the customers in that area more. - Culturally aware

Answer 3

Use of same marketing campaign strategies worldwide. - Coca Cola - same slogan worldwide

Answer 4

Relations of mutual reliance between different areas, governments, companies.

Answer 5

Can cause dependance issues and unequal flows: - Global flows of people /labour / money / ideas / technology are not equal around the world - some countries give more and some counrties receive more. Unequal flows can be beneficial (social / economic) but can also lead to war, conflict, injustice and famine.

Answer 6

Countries rely on other countries to intervene if political unrest occurs. Eg. Many nations intervened when Serbian Satan sponsored ethnic cleaning of Kosovo Albanians - leading to Kosovos Independence. Political international issues require countries working together to solve them. Issues raised must have unanimous decisions from all nations.

Answer 7

All nations affected by other nations GHGs and nuclear gas emissions so all countries rely on each-other to protect the environment. - Global Warming - all countries effected and all countries need to make change. Nuclear fallout from Chernobyl Disaster in Ukraine reached the UK.

Answer 8

Countries are dependant on the flows of labour / products / services entering the country in order for the economy to grow. Labour provides a workforce, products and services meaning countries can develop and make more money. Some counrties economy is dependant on external businesses. Eg. India TNC Call centres

Answer 9

Migration has caused social interdependence as theres diasporas (groups of migrants of same origin living in a different country all over the world that are dependant on the place they live in. Countries rely on eachother for leisure activities: - Olympics - TV, Shaun the sheep shown in 50 different countries, produced in the UK.

Answer 10

Over the past 40 years - 95% of manufacturing comes from Japan, North America, Western Europe (now been a shift to LICs / developing countries) - global shift. HICs - automotive production / steel / iron NEE - oil ( Russia/ Saudi Arabia / UAE / Qatar - fuel and mining) China / NEE LICs - textiles and clothing China - 1/3 technology production + shipped globally

Answer 11

Manufactured products consumed by HICs more than LICs due to higher demand. Developing counrties require more fuel and mineral due to rapid industrialisation. LICs - lower imports (Chad / DR of Congo / Uzbekistan - mostly medical imports)

Answer 12

Products transported in bulk internationally - same type of container used world wide (same sizing) Manufactures load boxed then the internal contents not touched again until arrived to desired location. - has helped create gloval economy - shipping is inexpensive - overall allows items to be shipped rapidly and cheaply

Answer 13

Artificial sea level waterway in Egypt that connects Mediterranean Sea to Red Sea. Facilitates trade between Asia and Europe. Used by container / tank / bulk carrier ships. 2019 - container ship (400m long) blocked the call due to windy conditions causing over 100+ ships to be delayed.

Answer 14

HICs control trade agreements - those who enter trade agreements are those who benefit from them. HICs have more wealth therefore influence trade agreements with a LIC more, pressuring them to make a deal more useful for the HIC. LICs - decrease taxes, reduce tariffs, set up SEZ to encourage investment - however in Bangalore this causes major inequality between SEZ and non-EZ zones. TNCs influence trade - create sanctions on other countries ‘ refuse trade with them - Caribbean Banana Wars.

Answer 15

Restrictions on exports implemented for political reasons by countries / international organisations to maintain international peace and security.

Answer 16

Partial / complete prohibition of commerce / trade with a country due to political reasons

Answer 17

Restrictions on import based obsiticles such as quality of goods / how theyre produced Eg. EU places restrictions on products that use child labour.

Answer 18

1. Comparative advantage 2. Proximity 3. Agglomeration 4. Market size 5. Geopolitical relations

Answer 19

1. Comparative advantage - countries specialise in producing / exporting goods that they can produce more efficiently at lower costs.

Answer 20

2. Proximity - countries more likely to trade with neighbouring countries - less cost and time / less cultural difference / historic and linguistic reasons

Answer 21

3. Agglomeration- some industries tend to cluster in geographical areas as sharing of regional skills and specialist information saves costs and money

Answer 22

4. Market size / strength - exporters are drawn to larger more affluent and growing markets where theres potential to increase volume

Answer 23

5. Geog political relations - political alliances determine how different countries co-operate and trade with each-other. Also conflict could cause sanctions / embargo’s

Answer 24

- tries to gradually lower trade barriers and aims for free trade - negotiates with any country involved in a trade dispute with the aim of marketing free trade as efficient as possible - provides stability and gives members confidence in international trade systems

Answer 25

Shielding a fledgling / emerging countries domestic industries by taxing imports.

Answer 26

2018 value of world trade goods was 0.5 trillion US Dollars greater than it was in 2013

Answer 27

Increased complexity of global supply chains for many manufactured products, eg. Car parts are produced in different parts of the world

Answer 28

- Increase product variety for population - Companies expl and their market - International cooperation - Decrease production costs - Companies buy from countries with a weak currency - cheaper - Trade partners support each-other - Increased global welfare

Answer 29

- Increased dependency on other countries - Countries forced into trade deals and conflict - Economic injustice - smaller counrties at a disadvantage as more likely to be left out of world trade - Cultural differences - Exchange rates vary - Political instability - Local unemployment - Pollution - Resource depletion - Big companies avoid taxes - inequality

Answer 30

African Continental Free Trade Area Worlds largest free market - 54/55 African nations - 1.3 billion people - plans to increase regional trade (historically low - 16%) - critical for growth and job creation - gives African nation voice and leverage Advocates payment of higher prices to producers, as well as helping them achieve improvement in social ad economic standards - fair trade

Answer 31

Groups of countries that apply 1 common system of procedures / rules / tariffs for all or almost all imports imports / exports / transiting goods. Usually countries participating in customs unions share common trade / competition policies.

Answer 32

companies operating across multiple countries. These companies usually work by having their headquarters, production, and sales all in different countries across the globe, meaning they are a crucial aspect of globalisation. They can provide raw products, manufactured goods, services or information. TNCs make products, produce jobs, invest in countries, and sometimes contribute to cultures. Some TNCs are very powerful, and can even have political influence, e.g. the pressuring of some countries to reduce taxes and create SEZs so that the TNC will invest there.

Answer 33

Headquarters - usually located in HIC and responsible for making big decisions such as investment / meetings with global organisations. - Majority in NAmerica, West Europe, China and Japan Research and development - facilities in which customer research / software development / plans for manufacturing are carried out. - Usually in the country the TNC operates in so research can be varied and specific to target market. Manufacturing - concentrated in LICs due to increased profits from lower material and labour costs and lower tariffs and taxes.

Answer 34

Use global management systems in order to maximise profits. Economies of scale - TNC’s have large revenue, meaning they can afford to upscale their production. Allowing for profits to increase as less money spent in production. Global supply chains - increase profits as HQ and R&D are in HICs, but production occurs globally especially with TNC;s in the secondary industry sector. - Eg. Boeing - an American Aircraft has parts manufactured in Japan, Sweden France, Australia, Italy, Korea etc. - allows products to be made for cheaper and better due to specialisation

Answer 35

TNCs that provide tertiary industry products (services) will often outsource tasks to other companies in order to save money and time. TNCs like Apple outsource their manufacturing process so that profits can be maximised.

Answer 36

Companies that make manufactured products will often have their factories in LICs due to lower labour costs, better taxes, weaker regulations for workers and weaker environmental regulations. This leads to much dispute about the ethical issues with TNCs exploiting poorer citizens in order to maximise their products.

Answer 37

TNC’s create links between other countries and companies and help the company to expand. Links through: - FDI - Mergers - Acquisitions - Integration (horizontal and vertical)

Answer 38

TNCs create links with other countries by investing in them, which benefits the country as this creates jobs and contributes to the economy. TNCs can be investments into a factory. Mergers - TNCs join to form one larger company, helping to form foreign links if the TNC is from a foreign country. Acquisitions - A TNC buys another company in order to expand (usually a smaller company). Acquisitions are frequently associated with local job loss as a large TNC will take full control.

Answer 39

TNC’s expand their company by creating linkages between other companies. Vertical - taking ownership of part of the chain - eg. Buying a plantation Horizontal - taking ownership of another company, often one that’s similar in industry. - eg. Food industry Nestle managing Wonka, Nerds, Laffy Taffy, L’Oréal, Garnier

Answer 40

Majority of TNC’s trade with HICs for consumer goods is concentrated in richer countries, however now rapid demain in NEE’s - LAmerica, EAsia - so TNC trading expanded. Lowest income counrties still see a lack of trade with TNC’s due to lower disposable income. TNC’s - large global revenue so make use of global marketing and use standardisation trademarks as well as glocalisation in products.

Answer 41

Banana Wars

Answer 42

LAmerica, Caribbean, India, China, Indonesia, Brazil

Answer 43

ACP group (Africa, Caribbean and Pacific) - small / medium sized producers - Family farms, cooperatives Latin America (Ecuador and Columbia) - controlled by large US TNCs - Most grown on large monoculture plantations Philippines and Africa - combination of small, medium growers and increasing TNC involvement Trade follows traditional patterns - developing regions exporting low-value primary goods Exports dominated by: Latin America and Caribbean - 2018 - produced 17 million tonnes of bananas Biggest importers: EU and USA

Answer 44

Large TNC’s - Del Monte / Chiquita dominates the industry Shift in power has given retailers an increasingly dominant role in the supply chain as market share becomes concentrated in the hands of a few retailers, suppliers have little option other than to accept conditions such as low prices, discounts and delayed payments. 85% of price paid stays in the richer country rather than the country of production - economic leakage, workers only receive 5/9% total banana value cost.

Answer 45

Despite an agreement being in place to support the small-scale producers, the TNCs were able to overturn the agreement and were supported by the WTO.

Answer 46

- Removed exploitation - the 'race to the bottom' ended - Social and environmental standards are kept - Social premium - supports community development , quality of life - Counters the deterioration of conditions in banana production - Compensates farmers for their loss - currently receive 5-9% of total value of bananas - Fair trade produce promotes sustainability - Small-scale producers benefit, large-scale producers are not dominant 85% of bananas from the Caribbean region are fairtrade

Answer 47

- Would prevent trade wars eg 1992-2009 trade war, ended by the 2009 Geneva Banana Agreement - This began with the Lome Convention in 1975 (made with 71 ACP countries, many of which were banana producers - The 71 countries were given SDT - tariff-free import quotas for EU markets - Less expensive for consumers - fairtrade is expensive - In theory - countries specialise in products for which they have a comparative advantage - supports free flow of trade and efficiency

Answer 48

Could potentially be economically sustainable Definitely not environmentally or socially sustainable - depends on what one deems as sustainable

Answer 49

The workers growing the bananas - EG Ivory Coast, Cameroon - low pay, heat, poor conditions - The environment - degradation as a result of capital intensive farming / monoculture practice from producing large quantities at the cheapest possible price

Answer 50

Communication technology has allowed banks to communicate across the world, allowing for banks to have global branches with customers all over the world. This technology also allows companies to invest offshore, and still manage/collect their profits from overseas. The internet is also a type of financial technology, as it allows people to transfer money, be that for buying/selling products, remittances, or investments. Cryptocurrency (encrypted digital currency) has been developed, which has created a whole new market for online currency and trading

Answer 51

The concept of increasing profits by producing a larger amount of products, as overall the average price to manufacture each product is lowered. Companies save money by upscaling their production, e.g. buying and shipping in bulk to save money.

Answer 52

The organised management of product flows, from when they are manufactured to when they are delivered to consumers. Due to the ability to communicate information and transport products, companies can now have different stages of production in different countries, which saves money.

Answer 53

Hiring other companies to complete company tasks that are essential, but are not necessary to complete by the company itself (e.g. call centres, final manufactures, advertising etc.). Outsourcing saves money if done in low income countries due to lower labour costs.

Answer 54

Relocating a company process abroad, usually saving money due to lower taxes, lower prices of materials, and lower labour costs.

Answer 55

Controls + restrictions Tariffs (a tax for importing and exporting goods); Non-tariff barriers (NTBs), such as quotas (a limit/fixed number of goods) or requirements; Outright bans on products or country import/exports.

Answer 56

WTO to ensure they are fair.

Answer 57

Due to unequal flows. Unequal flows can be beneficial to a country as they can bring benefits socially and economically. However, unequal flows can also cause inequalities, and in some cases can lead to injustice or conflict.

Answer 58

Migration occurs from low income countries to high income countries. This is due to there being more opportunity in high income countries (better employment, more freedom etc.). Therefore, the flow of people globally is unequal.

Answer 59

Migrants become intertwined in work forces and do unwanted jobs. States that are home to large diaspora population often have strong ties with diasporas country origin. Host country may become dependant on the migrant workers, which may cause issues if there is a change in circumstance. Unequal flows can cause overpopulation + pressure on services.

Answer 60

Workers send remittances back to their home country, helping their economy to grow. Those fleeing from conflicts or poor quality of life in countries they move into. The country that migrants originate from may become dependant on remittances so a change in circumstances may be detrimental to the economy. Underpopulation + Brain Drain. Exploitation of migrants.

Answer 61

The majority of money flows are into low income countries. Foreign Direct Investment, aid, remittances all flow into low income countries, whereas the flows of money into high income countries are majorly repatriation of profits/product sales. These flows of money bring both benefits and issues.

Answer 62

Receiving money (FDI) can improve quality of life as it provides an income thats higher than other employment in LICs. Aid and remittances can also help to improve quality of life. Sending money can take advantage of lower labour costs maximising their profits.

Answer 63

Workers in LIC’s are often dependant on higher wages meaning they must subject they must subject themselves to dangerous working conditions and low wages set by large companies. Foreign Aid can cause issues, as it can reduce incentive for governments to help their own countries. TNCs may profit too much the amount of profit that that stays in the country is very small.

Answer 64

High income countries usually dictate ideas of how countries should be run, and how trade should be carried out. This is mostly down to these countries having more money, thus more power over less developed countries.

Answer 65

HICs have introduced ideas of deregulation to NEEs. Free trade created by HICs using deregulation has increased globally allowing global markets to thrive. Countries with successful strategies can educate lower income countries on how to create economic growth.

Answer 66

Deregulation happening too quickly for LICs to keep up - not allowing the full benefits of the growth of the private sector to be achieved. Rapid flows of FDI and growth of the global markets mean some countries cannot keep up, and a reform of regulations would work better than only deregulation. Privatisation. LICs can feel forced to agree on ideas with HICs to not put themselves at an economic disadvantage. Deregulation may relax environmental laws. Ideas of multiculturalism and interdependency may be disputed by some people. Some citizens few an interdependent country as a threat to their nation’s sovereignty.

Answer 67

Economies of LICs can develop through technology investments, opening up factories and increasing employment. The concentration of technology innovation in HICs has lead to the develop t of beneficial technological advancements. This leads to consumers getting better products. Companies benefit from products being produces overseas, meaning they can maximise products.

Answer 68

People in LICs cant afford to purchase technology that will advance their economy and improve quality of life, meaning HICs can rapidly develop with a technological advantage. Companies take a large amount of profits whereas employees are left with little income and often poor working conditions. Companies investing technology into LICs means that HIC manufacturing jobs are often lost. This can leave many without jobs.

Answer 69

HICs = the more powerful countries and have more money and technology as well as deeper relations with other countries meaning they’re able to influence global systems to their advantage. LICs = respond to events rather than directly intervene.

Answer 70

rnational trade is occurring more than ever before. Globally, the amount of exports has been steadily increasing. The only time trade has decreased was during the Global Financial Crisis. FDI is also rising.

Answer 71

Trading and investments used to be heavily concentrated within the most developed countries. ● Investments - HICs investing into LICs; emerging economies invest in LICs ● Trade - HICs largest exporters; emerging economies also becoming large exporters (currently make up 41% of world merchandise trade). LICs trading more, but growth show (less than 1% of global merchandise and commercial services exports.)

Answer 72

Fair trade: Foundation to ensure producers receive better trading conditions and are not exploited because of their underdeveloped markets. Trade blocs: Groups of countries in a trading agreement, allowing them to have certain advantages over other countries, such as reduced tariffs or higher quotas.

Answer 73

HIC to NEE - machinery - capital goods - transportation - chemicals NEE to HIC - machinery - consumer goods - textiles and clothing - fuels

Answer 74

NEE to LIC - machinery - electronics - transport - fuels LIC to NEE - minerals - metals - crude oil - clothing

Answer 75

HIC to LIC - machinery - electronics - transport - capital goods (goods that are used to make more goods) LIC to HIC - minerals - crude oil - food / raw produce (tea/coffee/tobacco)

Answer 76

All countries have differential access to markets. Access to markets refers to a nation or company’s ability to trade within the international market. A country’s access to market is limited by any barriers that limit a country’s imports and exports. If access to markets is poor, a country is likely to be negatively affected. Economically, a country would be missing out on profits from exports, and societally, a country may miss out on products (and the poor economy may also negatively affect societal well-being).

Answer 77

Improved access to markets by trade agreements. Reduces access to markets as trade agreements disallow counrties within them to trade with other countries. Countries left out of trade agreements must pay tariffs.

Answer 78

Struggle to get a good price for the food they sell to European markets, due to the tariffs placed on non-EU agricultural produce as an attempt to protect EU farmers. This has weakened LICs access to markets.

Answer 79

Special Economic Zones (SEZs): areas within a country that do not have the same trading regulations as the country they are located in. The regulations within the SEZs are usually less strict, with lower tariffs and lower taxes, increasing access to markets.

Answer 80

Special and Differential Treatment (SDT) agreements: put in place by the WTO to help specifically developing markets with poor access to markets. Includes reduced tariffs and taxes, priority in trading etc.

Answer 81

HICs can afford to pay for higher tariffs on exports and imports, increasing access to markets. HICs also increase their access to markets through FDI into foreign markets. LICs may struggle to pay for high tariffs, and cannot save money through offshoring and outsourcing as they do not have the funds. Poorer access to markets.

Answer 82

The process of multiple nations acting together to manage matters that affect the entire world. For example: climate change, famine, epidemics, war.

Answer 83

Local to global. Trade agreements set by the WTO (a global institution) affects how trading happens internationally, for example in the EU (an international institution). In turn, the Department for International Trade (a national institution) decides what products the UK imports from where. A regional institution, such as a warehouse, receives the international products and distributes them. A local shop buys the international products from the warehouse. The effects of global governance on a variety of scales occurs in different respects, such as the environment. Nations sign global agreements, which affects, for example, how much CO2 localities can emit.

Answer 84

Global governance maintains global systems (e.g. the environment, politics, economics etc.) through global societal norms, global laws, and global institutions.

Answer 85

A social Norm - mortal and therefore accepted behaviour.

Answer 86

Although norms differ between countries, global governance has worked to develop global norms, mainly concerning the unfair treatment of people. Countries may disagree with societal norms in other countries, but there is little that can be done to globally govern a country’s norms and ideologies, which is where international laws are helpful.

Answer 87

International laws are legally binding, unlike a norm, meaning failure to comply with this law can result in prosecution. Anything from trading sanctions to attacks can result from countries not respecting international laws.

Answer 88

In order for countries and people to be governed globally, there are certain international institutions that have been developed to oversee the maintenance of global systems. They aim to represent and protect all nations.

Answer 89

Economic equality allowing less developed countries to grow - promoted by WTO regulations like STDs. Stabilise economic - WB provides development loads and IMF stabilising loads - prevents economic crashes. Societal growth is promoted by global institutions maintaining social equality. Social stability is maintained by global institutions, including the prevention of conflicts and promoting global health. Environmental stability is maintained by IGOs and other global institutions, such as non-government organisations (NGOs). The World Wildlife Fund (WWF) works to conserve the environment.

Answer 90

Not representative of every country, putting underrepresented countries at a disadvantage. The World Bank and the IMF only give loans conditionally, which can lead countries exposed to exploitation. It is perhaps injustice to force countries to open their markets up to receive help. International laws and treaties are voluntary, meaning many institutions do not hold full power on global systems. Despite global institutions’ best efforts, some countries and companies may still act against the policies, which can create inequalities. For example, there is much conspiracy that Japan are acting against the International Whaling Committee by illegally whaling for profits. Companies may also manipulate the rules of global institutions in order to enhance their profits, which creates injustices.

Answer 91

An area that does not belong to a single country. Rather than belonging to nobody, the commons are supposed to belong to everybody, meaning every country has a right to benefit from the Global Commons.

Answer 92

International Waters- areas of the sea that do not belong to a country. The Atmosphere - the gases that surround the Earth, making life possible. Outer Space - The area after our atmosphere. Antarctica - The only continent without citizens, only scientists live there.

Answer 93

They provide untouched environments for research and wildlife growth. Animals can thrive in these environments where humans cannot interact, such as deep sea creatures. Scientific research is also enhanced by these environments, as scientists can gather information about the world without interactions by humans, as well as beyond our world.

Answer 94

Unfortunately, as the commons do not belong to one country, this can leave the commons vulnerable to exploitation, especially considering these environments are rich in resources (such as oil, wildlife, minerals etc.). The ‘shared’ nature of the commons has unfortunately left it vulnerable to issues such as mineral exploitation, fossil fuel extraction, overfishing etc. Furthermore, the often pristine and untouched nature of the commons is also under threat from human advancements. CO2 levels are causing climate change, which affects the atmosphere, the oceans, and Antarctica. Furthermore, technology is, in some cases, threatening these commons as they are becoming more and more explorable every day. Therefore, these environments need the proper protection in order to stay a beneficial asset to mankind.

Answer 95

Global Institutions have been created to directly manage issues associated with the global commons so that these issues can be solved in a fair and sustainable way. For example, between 1973 to 1982 the United Nations developed The United Nations Convention on the Law of the Sea (UNCLOS), a treaty designed to tackle marine pollution, overfishing and competing territorial claims between states.

Answer 96

Now effective within the global commons, although these laws are usually set by institutions like the UN, so any non-member countries will not be prosecuted under these laws. There are several treaties in action to protect outer space, including the Convention on Registration of Objects Launched into Outer Space (Registration Convention), which ensures countries protect outer space by documenting their launchings etc.

Answer 97

NGOs campaign to protect the commons, by spreading awareness as well as raising money for their protection.

Answer 98

40,000 people say decades of pollution have severely affected their lives, health and local environment.

Answer 99

Peoples jobs and livelihoods lost - farm land destroyed amd crops damaged and ruined / fishing cant take place due to contaminated water / skin diseases and cancer increased due to oil as the waters that have been contaminated are bathing and drinking water sources / abnormal diseases and miscarriages increased / 8cm of refined oil floating ontop of water that supplies community drinking wells

Answer 100

Decrease in fish biomass / UN concluded it would take 30 years to clean up a vast majority of the oil / thick crusts of ash and tar cover the land where oil spills have caused fires / planting new crops on burnt land is almost impossible

Answer 101

2015 Shell accepted responsibility for 2 spills and agreed to pay £55 million to the Bodo community and assist in the clean up / fishing and farming industries declined.