global systems and governance Flashcards
define globalization
the process of countries becoming more interconnected and more closely integrated
what are the five factors that promote globalistation
flows of information
flows of capital
flows of products
flows of service
flows of labour
how has the flow of information promoted globalistation
the development and rapid spread of e-mail and the internet means that large amounts of information can be exchanged instantly across the globe allowing countries to communicate with one another
people can learn about different countries and cultures without leaving home
how has flow of capital promoted globalisation
capital is money thats invested to produce an income or increased profit e.g. new branches of companies within their country of origin or FDI
How has FDI changed from 1996 to 2016
It increases from $400 billion in 1996 to $1500 billion in 2016
how have flows of products promoted globalisation
lower labour costs have lead to countries relocating the manufacturing side of their business abroad (outsourcing) and then import the products to the countries where they are sold
What is offshoring
movement of a companies headquarters
how do flows of services promote globalisation
they are economic services that aren’t based around producing material goods such as banking
insurance and banking rely on communication and transfer of information which was made easier due to deregulation in the 1970s
How do flows of labour promote globalisation?
people that participate in a workforce moving from one place to another
International migration has increased by over 40% between 2000-15
Flows of people between different countries are making the world more interconnected e.g. bringing aspects of their culture
define marketing
process of promoting and selling products or services
what is global marketing and what are its advantages
global marketing involve treating the world as one single market and using one marketing strategy
global marketing can lead to economies of scale - it is cheaper to have one marketing campaign for the whole globe
brings brand awareness as consumers all over the world identify a name or logo with a product and will be more likely to purchase it than a lesser known competitor
what 3 factors have been the driving force for globalisation?
new systems
technology
relationships
what is the global financial system
governs the flows of capital between countries and are based on companies called investment banks which has a main role of helping companies raise capital
what happened in the 1980s to make financial systems more global
information technology lead to greater access to information and make informed decisions about investment
financial deregulation which relaxed rules about what banks where allowed to do and removed barriers to capital coming in and out of a country
greater range of companies getting involved in finance
define trade agreement
agreement between countries to remove controls in order to benefit both the countries and consumer
How do trade agreements affect globalisation
they control what products are let into the country at what price
controls make it more expensive for companies to sell their products abroad as well as for consumers to buy them
how did containerisation affect globalisation
introduced in the 1950s and allowed more good to be loaded onto ships at once and straight onto other forms of transport making it easier cheaper and quicker to move goods `
how did communication satellites affect globalisation
launched in the Earths orbit in the 1960
allowed relatively cheap wireless communication between countries independent of where they are
what are some examples of improved transport and communication systems
improved transport such as faster planes and high-speed rails
containerisation
satellites
optic fibre cables
software which has enabled free communication
how has the improvement of management systems affected globalisation
new ways of working have made companies more efficient so they can make the same products for cheaper
what are some examples of improved management systems
supply chains going global - e.g. companies supplier may be from a different country than their factories - this is all done to minimise costs
economies of scale - large companies can reduce the average cost of making an item by using production lines and buying specialised equipment
outsourcing - cheap labour leads to countries outsourcing their call centres etc.
how does globalisation cause economic interdependence
countries rely on each other for economic growth e.g. oil production and consumption - countries rely on one another for consumption and provision of oil
trade
advances in technology
employment
economic migration
TNC and FDI
industrialisation
how does globalisation cause political interdependence
countries are dependant on one another to solve issues that cannot be addressed by just one country
e.g - 2015-16 refugee crisis - European countries had to work together to support Syrian refugees
How does globalisation cause social interdependence
greater connection between people living between people living in different countries leads to more relationships
health - WHO
education
culture
How does globalisation cause environmental interdependence
All countries rely on one another to help protect the environment e.g. lowering GHG emissions - paris climate convention `
What could be the possible benefits of unequal flows of people
people often leave countries to escape war and famine or persecution
some also migrate for economic reasons which can create economic growth
remittances can significantly increase the flow of capital flowing into less developed countries boosting local industries
what is an inequality of unequal flows of people
less developed countries suffer from a ‘brain drain’ reinforcing existing inequalities between countries
What is a conflict of unequal flows of people
low-skilled migrants are happier to work for lower wages compared to the low-skilled locals
locals VS migrants
What is an injustice of unequal flows of people
migrant workers are sometimes made to work in dangerous conditions for little money
e.g. 2022 FIFA world cup - thousands of deaths whilst building facilities in Qatar
what are some benefits of unequal flows of money
remittances, foreign aid and FDI
flows of money are unequal and often flows from less developed countries to more developed countries
What are some inequalities caused by unequal flows of money
foreign aid can create dependency giving governments little incentive to improve their own countries and FDI can force out local businesses
what is some conflict caused by unequal flows of money
foreign aid can find its way to armed groups and help to fund conflict
foreign companies VS locals
What are some injustices caused by unequal flows of money
Companies may pressure governments to pass laws that make it cheaper to invest there e.g. cutting environmental regulation
What are some benefits of unequal flows of ideas
neo-liberal ideas have increased free trade which has led to more development within countries and less conflict
What are some inequalities created by unequal flows of ideas
ne-liberalism started in developed countries and has spread globally and tends to concentrate wealth in the hands of a few
What are some conflicts caused by unequal flows of ideas
if private companies and free trade in a less developed country are threatened by the decisions of that countries government, developed countries may believe that their intervention is justified leading to conflict
What are some injustices caused by unequal flows of ideas
government and TNCs may argue that free trade and privatisation are the best way to help a country to develop and that this justifies poor working conditions and environmental degradation in the less developed countries
what are some inequalities caused by unequal flows of technology
developed countries can afford the latest technology and can make products more cheaply and have better access to services and information
e.g. in 2016 97% of the Netherlands’ citizens had access to the internet compared to 20% in Myanmar
What are some conflicts and injustices caused by unequal flows of technology
repressive governments of less developed countries have used weapon technology sold to them by HIC to stop protests from their own people
How does globalisation make some countries more powerful than others
developing or emerging countries with a lot of money and power are able to drive global systems to their advantage and therefore they may have a lot of control over the global economy and political events
Give an example of how power and relationships link with climate change
many of the biggest contributors to climate change are also the richest countries and therefore they can be reluctant to limit climate change as they believe it may harm their economy e.g. through the loss of jobs in the fossil fuel industry
Some of the poorest countries are the ones most affected by climate change but lack in influence and power to make a change
How does the IMF reinforce unequal power relationships
The IMF monitors global economy and advises governments on how to improve their economic situations
However the IMF is led by the USA and other developed countries so less developed countries have less influence over decisions in the organisation
The IMFs loans may also be conditional for example the less developed country may have to make changes such as cutting regulation to make foreign investment and trade easier
How does the World Bank reinforce unequal power relationships
the world bank provides loans to less developed countries to invest in area like health care, education and infrastructure
Funds are redistributed from developed to less developed countries, but less developed countries are expected to pay the loans back
The WB is led by the USA and other developed countries
the WB also provides conditional loans where the less developed country has to make changes
What is the role of the WTO and how can it reinforce unequal power relations
The WTO generally works to reduce trade barriers between countries
However, many developed countries have kept trade barriers in place reducing imports from less developed countries which tends to boost the economy of the developed countries at the expense of the less developed
how has the volume of trade changed
the volume of global trade has increased by 8x since 1998-2008
less developed countries are also becoming bigger traders and accounted for 1% more in global trade from 1995 - 2010
Explain how the pattern of trade has changed
developed countries remain the biggest global traders but some emerging countries are catching up such as China which is now the largest exporter of goods
Describe how the volume of investment has changed
has risen from $400b to $1500b between 1996-2016
ethical investment by US companies has tripled between 2005-2016
Describe how the pattern of investment has changed
foreign investors are attracted by market size and stability and access to financial services
the pattern of investment has shifted from developed countries investing in developing countries and developed countries have begun investing more into emerging countries and in the last few years China, India, Brazil and Mexico were the largest receivers of FDI
What are some rules that the WTO set up
countries can’t give other countries special access to their markets without doing the same for everyone else
countries should promote free trade
there should be fair competition
define trade bloc
associations between different governments that promote and manage trade and remove trade barriers to members but keep common barriers to those outside of the bloc countries
Define special economic zone
areas with different trade and investment rules to the rest of the country e.g. investing companies may have to pay less taxes
describe the trading relationships in developed countries
most trade in the world takes place between developed countries e.g. the trade between the EU and USA accounted for over 30% of global products trade
most of these products require a lot of machinery and expertise to make
Describe the trading relationships in emerging economies
EE are becoming increasingly vital to global trade due to their large manufacturing sectors and skilled population with lower labour costs
Describe the trade relationships in less developed countries
most LICs trade with EEs and they usually trade organic materials such as tobacco and sugar
define access to markets
How easy it is for countries and companies to trade with one another
How can access to markets be affected
Access is affected by wealth as HICs can put higher tariffs on products imported from LICs making it harder for LICs to access the market
Being a member of a trade bloc also increases access as member countries have access to all the other member countries
What is an SDT agreement
special and differential traded agreement
these let the less developed countries bypass developed countries’ tariffs giving them greater market access
What are some economic impacts of differential access to markets
its difficult for countries with poor market access to establish new industries as they face high tariffs making their products uncompetitive making them dependant on selling low-value primary products that tend to fluctuate in price
What are social impacts of differential access to markets
people in countries with higher-access markets tend to have higher-paying jobs
countries with less access to markets have less money available for education and healthcare so quality of life is generally lower
more sweatshops and dangerous working conditions in LICs
give two ways the fair trade foundations supports farmers
it sets the fair trade minimum price which is the minimum price the buyer has to pay to cover all of the farmers costs
fairtrade works with farmers to maintain environmental standards and prohibit forced abd child labour
what is a TNC
A company that operates in two or more countries
what is a primary industry TNC
One that extracts and trades natural resources such as oil and gas - SHELL
What is a secondary industry TNC
making material goods such as toyota which manufactures vehicles
What is a tertiary industry TNC
provides services e.g. aviva which is an insurance company
What are 4 benefits of TNCs
TNCs bring a lot of investment into countries
Increased spread of technology and investment into infrastructure
creation of jobs
connect countries due to their spatial organisation and global supply chain
Describe how TNCs are usually spatially organised
TNC headquarters are usually in a large developed city that are well connected and there is a supply of highly skilled and educated workers
R&D tend to be in the same country as the headquarters
Factories are often located in less developed countries where production costs are lower
Define merger
when two companies agree to become one bigger company
Define acquisition
When one company buys another
what is an international law
rules established by countries through international agreements that are legally binding
e.g. human rights
What is a global norm
they are accepted standards of behaviour which usually have negative consequences if not followed such as international condemnation
What is an institution
political and legal organisations that exist to pass and enforce laws
e.g. the UN, WTO, and the International Criminal Court
What is the aim of global institutions
to provide growth and stability in the` economy and society
how does global governance aim to promote growth and stability
include examples of global organisations
ensures countries abide by common rules giving greater stability e.g. trade rules mean countries cannot take advantage of one another
WTO - aims to increase global trade through common rules
WHO - combats epidemics increasing social stability
UNESCO - helps to ensure benefits of scientific advances are shared amongst countries
What are some problems with global governance in terms of growth and stability
international laws and institutions are voluntary
can be difficult to get countries and TNCs to abide by these rules
powerful, developed countries still hold an advantage over the less developed countries - in 2016 other countries did not bring economic sanctions against China when it went against international law due to its importance to the global economy
How can global institutions create inequalities and injustice
Conditions to receiving a load from the IMF and WB such as implementing free trade policies and cutting government spending often on healthcare and education
members of security institutions can veto resolutions e.g. Russia vetoed resolutions to intervene in the Ukrainian war
What is the G7 and how can it create inequalities
a forum of the 7 wealthiest countries
they can strengthen the power of developed countries rather than encouraging equality between them and less developed countries
What is the UN
The united nations was set up in 1945 and has 193 members
it was set up to establish a peaceful and fair world
What are the 4 aims of the UN
to maintain global peace and security
to use co operation to solve international problems
to develop friendly relationships between nations
to settle disputes between nations
Name 4 organisations in the UN
The security council
the general assembly
UNDP - UN development programme
WHO
What is the UN general assembly and what is the evaluation of its purpose
its purpose is to develop good relations between nations and settle disputes through the international court of justice
Each country has a representative but the developed countries provide a large majority of funding to the UN which leaves it open to criticism about impartiality
what is the security councils area of responsibility and their achievements
it maintains world peace and security and has five permanent members that have the power of veto
they have facilitated nuclear disarmament since the cold war and has ‘neutral’ peacekeeping troops - blue helmets- to de-escalate in regions of conflict.
there has been history of not agreeing on resolutions of major conflict such as Russia and Ukraine and Syria
What is the WHO and what are its achievements
they manage international public health issues by combating and eradicating diseases
They have achieved eradication of small pox and near eradication if polio
what is the UNDP and what are its achievements
responsible for the eradication of poverty and reduction of inequality and exclusion
let the efforts to successfully meet most of the Millennium Development Goals, which were anit-poverty targets
How has the UN promoted growth and stability
The UN MDG have helped reduce the number of people in poverty and increased the number of children in primary school and reduced child and maternal mortality rates
UN peacekeeping missions can help to end wars e.g. peaceful elections were held in Cote de Ivoire in 2015 after years of civil war
What are some injustices and inequalities created by the UN
Developed countries hold the most power over decisions and many of the issues tackled by the UN affect African countries, but there is no African country with a permanent seat on the security council
At times the UN has been ineffective - 1995 8000 people in south-east Europe were massacred by Bosnian Serbs
define global commons
areas that aren’t owned by one country or organisation but rather belong to everybody
What are the 4 global commons
Antarctica
outer space
high seas
atmosphere
What is the tragedy of the commons
When countries and organisations feel the need to exploit the global commons without dealing with the consequences as they are shared by everybody
What are 3 causes of pressure on the global commons
industrialisation
development
L–> increasing the demand for resources and increasing waste
new technology - made it easier to get to areas like the high seas making them more vulnerable to exploitation
what are some examples of problems caused by exploitation on the global commons
overfishing in the seas
atmospheric pollution is causing climate change
CO2 causes ocean acidification
overall what are 4 benefits of globalisation
integration
development
stability
economic growth
What are the costs of globalisation overall
inequality and greater economic divide between people
conflict- cyber warfare
injustice - human trafficking has become easier due to improved transport and many have to work in sweatshops to make products for those in HICs
increased pollution due to increased consumption and travelling and waste
companies ignore the environment to make cheaper goods
describe the characteristics of Antarctica
-60C lows
98% covered in Ice which is 70% of all freshwater
Cold desert
Surrounded by Southern Ocean
Fragile but very productive ecosystem
What are the threats to Antarctica?
Climate change
fishing and whaling
search for mineral resources
tourism and research
Describe how climate change acts as a threat to Antarctica
In the past 50 years the West coast of Antarctica has warmed by 3C
Ice shelves have started to retreat around Weddell and Ross seas
Changes in populations of Adelie penguins which are adapted to sea ice
Krill populations have decreased by 80% since 1970 - they are dependant on sea ice and ocean acidification affects krill eggs and makes them less likely to hatch
Sea level rise of 3mm/yr since 1990
Warms at a rate 5x faster than average
Describe how fishing and whaling are threats to Antarctica
threatens many species such as the Patagonian tooth fish and blue whale population is only 3-11% of what it was in 1911
reduced fish and krill populations can have a knock on effect on other species
some species also get stuck in fishing nets and drown such as albatross
Long- term threat
Describe how the search for mineral resources is a threat to Antarctica
Large deposits of coal and iron ore in transantarctic mountains as well as 36 billion barrels of oil
Harsh landscape and Madrid protocol make these resources difficult to access however, this may become a larger problem in the future with increasing demand for mineral resources
Describe how tourism and scientific research are a threat to Antarctica
Increased water and air pollution and likelihood of fuel spills - 2007
Invasive species and habitat disruption
abandoned facilities and waste
70 permanent research facilities
growth of tourism
How is Antarctica governed
1959 Antarctic treaty
NGOS
IWC
ASOC
UNEP
Madrid protocol
IAATO
CCAMLR
2016 Paris climate change agreement
Describe how the Antarctic treaty governs Antarctica
Allows Antarctica to be used only for peaceful purposes and scientific co-operation
signed by 53 countries
Describe how IWC helps govern Antarctica
Responsible for regulating whaling and ensuring whale populations are at a steady level for example setting up whale sanctuaries
They have been criticised for improper monitoring Japan continues to kill whales for “scientific research”
Paused commercial whaling in 1982
Describe how UNEP helps govern Antarctica
Reports activity in Antarctica to the UN and is run by the CCAMLR which aims to stop illegal fishing and conserve the ecosystem
Describe how the Madrid protocol helps govern Antarctica
Bans mining till 2048
Describe how the IAATO helps govern Antarctica
provides guidelines addressing tourism such as no large ships (50-200 people)
limits on visiting to allow the ecosystem to recover
informing tourists on behaviour
Describe how the Paris climate change agreement helps to govern Antarctica
limits warming to 2C and was signed by 193 nations
Describe how NGOs help govern Antarctica
NGOs cant create rules but they can raise awareness
Describe how ASOC helps govern Antarctica
Group of 30 NGOs including WWF that presents findings on the environment and safety problems as well as give recommendations on how to protect the environment
campaigned successfully to allow NGOs to attend Treaty meetings
What is the difference between the IMF and the WB
the IMF focuses on macroeconomic and financial stability while the World Bank concentrates on long-term economic development and poverty reduction.
how was deregulation of markets significant for globalisation
meant that the activities of financial institutions were no longer confined within national boundaries
what are the main factors of globalisation
development of technology
relationships
management systems
what process was economic globalisation caused by
increase in free trade
growth of TNCs
faster cheaper transport
global marketing
what processes was cultural globalisation caused by
migration
global communication markets
impact of western culture through media
what processes was political globalisation caused by
growth of western democracies and their influence on poorer countries
what flows assist emerging economies to develop
FDI
repatriation of profits
aid
migration
remittance payments
why have flows of manufactured goods increased in recent years
demand from affluent populations in developed countries
combined with low production costs
how have transport and time made trade easier
costs have been reduced by process of containerisation enabling more complex and long distance flows of products
what are flows of services
economic activities that are traded without the production of material goods
what has made flows of information easier
improvements to global telephone networks
mobile phones
media coverage on a global scale due to satellites
email and the internet
what is marketing
promotion and selling of products or services and it becomes a global marketing strategy when the globe is seen as one market - e.g. apple
what can global marketing lead to
economies of scale which reduces their costs
what happened to manufacturing in the past 40 years
has become decentralised - global shift to asia
what has the global shift been caused by
lower land and labour costs
incentives offered by governments
transfer of technology by TNCs
what factors influence the locational decisions made by TNCs
availability of a skilled and educated workforce
opportunity to build new plants
access to large markets without tariff barriers
roads and ports etc.
what is one of the main consequences of the global shift
deindustrialisation
how have governments in HDE’s reacted to the decline in manufacturing caused by the global shift
encouraging foreign TNC’s to invest in deindustrialised regions
encouraging investment in skills and technology
adopting more protectionist policies to protect domestic industry
what are disadvantages of protectionist policies
makes home industries uncompetitive globally
run out of consumers
what are some political reactions to the global shift
rise in populist and nationalist movements
2016 key diver for Brexit vote and in US election of Trump
what were the top 3 consumers in 2015
usa
japan
germany and china
how have communication technologies lead to linkages between countries
development of computer technology
internet- allowing 24/7 connection
use of mobile phones
computerised logistics systems have evolved to supports supply chain distribution
what is the GFS
global financial system provides a framework that facilitates flow of capital for the purposes of financing trade and investment and is monitored y the IMF
what is a disadvantage of the deregulation of markets
leaves system exposed to volatile flows of capital which triggered the banking crisis in 2008-2009
what are some threats to security caused by globalisation
terrorism
biological warfare
disease spread
cyber crime
what is interpol
enables police in most countries to work together to fight international crime
What is AEO
tackles some issues relating to trade security
what have management and information systems lead to
high-order business activities
low order activities such as production
rapid growth of logistics
what are the advantages of trade agreements
improving global peace and security
increased cooperation
encouraged development
economies of scale
employment
transfer of technology
what are some disadvantages of being in a trading group agreement
forced to purchase from within the group
decisions become centralised
pressure to adopt central legislation
increased competition for work and can lower salaries
increased interdependence
over-exploitation of resources
what are the positives of flows of people
reduced unemployment in areas
remittances
migrants return with new skills
reduces population pressure on resources q
what are the negatives of flows of people
brain drain
loss of skilled workers adversely affects development
over-dependence on remittances
segregation and prejudice
greater risk of disease
what is the benefit of privatisation
can benefit consumers in LDEs by lowering prices
what are the disadvantages of privatisation
profits are retained rather than reinvested causing greater inequality and potentially inhibiting economic growth
What are the benefits of deregulation
can encourage enterprise
what are the costs of deregulation
can lead to more relaxed social and environmental laws in LDEs causing social injustices and environmental deregulation
What are the benefits of free trade
allows global markets to develop and thrive and may help LICs to attract investment
what are the costs of free trade
may not always be beneficial to some LDEs
domestic industries may be outcompeted by free trade so some protection may be needed
what are the benefits of multi-culturalism
enables developing countries to integrate into the global economy and to access markets
what are the costs of multi-culturalism
citizens may see it as a dilution of their culture and even a threat to their national sovereignty and identity
where are the fastest growing economies
Asia and sub-Saharan Africa
what factors reinforce unequal power relations in global systems
wealthier countries have close relations with each other - G7
HDEs have more wealth and advanced technology
they have more influence in global governance through IGOs such as the UN
developing countries have less power to intervene
what are other barriers to trade used as protectionist strategies
import license
import quotas
sanctions
embargoes - prohibition of commerce with a particular country
what are the factors driving current patterns of change globally
comparative advantage
proximity
market size and strength
geopolitical relationships
what may happen to the pattern of global trade in the future
in USA and parts of Europe there has been backlash against further liberalisation which may prompt them to pull back from further integration
as this happens links between Asia-Pacific region, Africa and Latin America will become more important and may transform the pattern of global trade in the future
what are the trends reported for FDI
Asia-Pacific region accounts for 40% of inflows
8/20 top recipients were EE
largest FDI investors were Japan China and France
What attracts FDI investment
manufacturing industries
natural resource development
financial business services - Singapore
Large and accessible consumer markets
lower business taxes
what are some measures to help combat differential access to markets
SDT - gave LICs preferential access to developed markets in trade agreements
access to their trading partners markets
right to restrict imports
additional freedom to subsidise exports (allowances to reduce cost of goods to make them more competitive)0
What are some problems of SDT
concerns that it may cause unfair trade as many emerging economies still have developing status
agreements are difficult to apply in a fair or standardised manner
Developed countries deterred from particiating
what are the consequences of international trade on emerging economies
rapid development as a result of inward investment and have emerged to become major economic powers competing with the richer nations of the world
what are the consequences of international trade on TNCs
large companies have grown in a number of sectors and although they are mainly based in developed countries, TNCs from emerging economies have also become global powers
what are the consequences of international trade on IGOs
they have all contributed to the integration of economies and have consolidated their position and control on the global system
what are the consequences of international trade on regional trading blocs
more trade agreements have evolved which benefit their members
free trade areas and customs unions are expanding among developing countries improving the negotiation leverage and offering more access to markets for developing countries in the long-term
what are the economic consequences of trade
price of many electronic goods had fallen due to them being produced in low-cost locations
TNCs have more control of food supply chains and supermarkets pay less to import food making it relatively cheap to buy all year long
deindustrialisation
what are the political consequences of international trade
rise in national populism lead to brexit and election of Trump with very nationalist and protectionist manifesto
What are the costs of free trade access to markets
injustice of free trade not providing enough protection to emerging industries so they cannot compete with developed countries
developed economies are still protected by tariffs on agricultural imports
What are the social and cultural impacts of international trade
cultural homogenisation
greater access to foreign culture
glocalisation
increased awareness of global news and events
what are the environmental consequences of international trade
depletion of non-renewable resources
TNCs outsourcing to areas where environmental standards are less strict
more waste from packaging
greater risk of disease
give examples of governance at a local scale
Each local authority has a local agenda 21 strategy in line with the UN objective - various recycling options
what are the economic challenges of globalisation
global financial crisis challenged idea that globalisation would advance economic growth
it has peaked or stalled
ongoing geopolitical tensions have limited trade growth
What are the social challenges of globalisation
racial tensions and conflicts of culture
transfer on secondary sector causes unemployment and wage stagnation
What are the political challenges of globalisation
brexit
MAGA
what are the benefits of globalisation
growth and development
integration
stability
what are the costs of globalisation
inequality and injustice
environmental impacts
conflict
What is the difference between the main goal of free trade and fair trade
free trade- to increase nations economic growth
fair trade - to empower marginalised people
how do focuses differ between free and fair trade
free- trade policies between countries
fair- commerce among individuals and businesses
what is the major action of free trade
countries lower tariffs, quotas, labour and environmental standards
What is the major action of fair trade
businesses offer producers and favourable financing
long-term relationships
higher labour and environmental standards
What are the critiques of free trade
unjust to marginalised people
sacrifices environmental sustainability
What are the critiques of fair trade
interferes with free market
inefficient
too small scale for impact
what are the different ways of thinking about globalisation
hyperglobalists - support globalisation, TNCs and trading blocks are the future
sceptics - globalisation is nothing new, the world has always been integrated and do not accept that it has led to free movement as many countries have implemented protectionist measures
transformationalists - between the two, nations still have a role to play but their role is changing
