global systems and governance Flashcards
rewhat is meant by globalisation
-> the process by which the world is becoming increasingly integrated through the network of trade, immigration, communication.
what is a factor in globalisation
-> something that enables globalisation to happen be it at all or at a faster rate.
outline finance as a factor in globalisation
- > deregulation of financial markets - no rules in governing banks
- > sovereign wealth funds - such as countries helping eachother
- > money can be transferred through aid
- > repatriation of profits
outline transport as a factor in globalisation
goods can be shipped quicker and in larger quantities
- > air cargo - transport of fruits, veg and flower
- high valued goods like diamonds
- > cargo ships/containers - lower costs
- > your goods are much more secure and can be tracked
outline security as a factor in globalisation
helps prevent security attacks and terrorism however doesn’t always work
- > cyber security
- > movement of people - border control
- > negative - increase in people trafficking
- > containers have tamper proof seals and GPS tracking
outline communications as a factor in globalisation
- > fibre optic broadband
- > satellites
- > video conferencing - instant communication + cheaper
outline information and management systems as a factor in globalisation
- > TNCs have HQ in HIC, factories in LIC as cheaper
- > ‘just in time’ technology and manufacture
- > longer supply chains
- > TNC - vertical integration where companies merge
outline some Issues associated with interdependence;
CHINA CASE STUDY
unequal flows of money, people, ideas and tech;
- > china invested in africa
- > china restricts the Internet
- > lack of access to western infrastructure
- > high movement of people form W to the SE
…..HOWEVER CAN…..
promote growth and stability;
- > special economic zones like Foxconn city, means more jobs available - using worlds resources tho.
- > allows for economic growth and more investment into health and education
- > chinas economy has doubled every 8 years
BUT….
causes inequality, conflict and injustice for many;
- > TNCs invest in china to take adv. of low labour costs + special economic zones
- > subsistence farmers now have to grow cash crops
- > 20% of china pop. live on less that $1 a day, despite having the most billionaires.
talk briefly about what trade agreements are and an example
- where countries provide things such as trade blocs to stimulate trade between themselves and gain economic benefits
- an example is the EU, allows free trade between members.
- trade tariffs are still present between surrounding countries to them.
- trade agreements boost global trade and help countries develop more.
what are general features of trade;
global features and trends of trade
- > intention trade is very uneven
- > trade is dominated by high income countries and emerging economies, this is due to political strength and power.
i. e. Europe
-> low income countries have limited access to trade markets.
what are factors driving current patterns and trends in trade;
( global features and trends of trade)
- > proximity; countries will be more inclined to trade with their neighbours
- > market size; exporters are drawn to more affluent, large markets and they see more economic gain.
- > agglomeration; clusters of specific industries in one area
- > geopolitical relationships; trade follows political alliances
what are current trends in trade
global features and trends of trade
- > trade is dominated by large economic blocs such as Europe.
- > china is currently the worlds largest trader
- > intra-regional trade is big in Europe and Asia
what is foreign direct investment
Foreign direct investment (FDI) - cross-border investment in which one country invests in another and establishes a lasting interest in and influence over an enterprise in another.
what are current trends in investment -> foreign direct investment
( global features and trends of investment)
- > Japan, china and france are the largest investors
- > of the top 20 recipients of FDI, 8 are developing economies
- > developing countries receive nearly double the FDI they initiate.
outline the spatial organisation of TNCs
- > no border boundaries - operate globally
- > HQ tend to be in HIC, often where the TNC originated.
- > HQ have been increasing in emerging economies i.e Huawei china
- > they often have subsidiary HQ globally, one in each continent
- > research and development is often in HIC; due to security, highly skilled workers i.e. Cupertino, California for APPLE INC.
