Global Systems And Governance Flashcards
What is a global systems
Refers to any organisation/group or activities that link different parts of the world.
What is meant by governance:
Refers to any attempt to regulate the global systems and activities. Eg/ International Monetary Fund
What is globalisation
A process by which national economies, societies and cultures have become increasingly integrated through the global networks/systems of trade, communication, transport and immigration
Fundamental points of globalisation
-globalisation has economic, social, environmental and political impacts
-globalisation has aspects that needs to be managed
-globalisation provokes different views on the need to manage its impacts
When did globalisation start
-first wave as early as 1492 when empires gained raw materials and labour
-second wave developed in 1960s after Canadian Marshall McLuhan used the term global village to describe the breakdown of spatial barriers around the world.
What is economic globalisation:
Long distance flows of goods capital and services as well as information and perceptions that accompany market exchanges largely caused by the growth of TNCs
What is social globalisation
Expressed as the spread of ideas, info, images, and people largely. This is fuelled by the growth of social media
What is political globalisation
Spreed of government policies and the influence of international bodies such as the UN
What is the core-periphery model
-developed in 1963 by John Freidmann
-describes spatially how economic, political and cultural authority spread out in core and periphery regions
-the model suggest that the countries of the world can be divided into 2 “core (Europe, N America, Australia) and periphery (countries that don’t reap benefits of global wealth and globalisation)”
How can we measure globalisation
-‘KOF’ index of globalisation is an index of the degree of globalisation and was first devised in 2002
-economic globalisation: measured by flows of trade, foreign investment and finance
-social globalisation:spread of ideas, information, images and people. Estimated by the personal contact, information flows and cultural profundity
-political globalisation: characterised by the degree of political cooperation. Measured by number of embassies, membership of international organisations, participation in UN Security Council missions.
Is globalisation truly global: yes
-KOF index, everywhere has some form of globalisation
-migration from every urbanised country
-movement of remittance across the whole world
Is globalisation truly global: No
-still split between core and periphery
-many places don’t have internet (Scottish hylands)
-2021 only 2% of phone calls are abroad
-3% of the worlds population are 1st hen immigrants
-only 29% of economic output around the world is exported
How has flows of products been allowed
-products need to be transported from place of manufacturing to their chosen place
-this has been helped via containerisation
-removal of taxes and tariffs encourage global trade by groups
-ships carry thousands of containers to different countries and then moved onto trucks to move through the country
How has flows of services and information been allowed to grow
-improvements in ICT have allowed services to become global industries
-ICT can be available anywhere
-high level of services: services tk business such as finance and investment
-low level of services: services to consumers, banking, travel ect.
-growth in the number of internet users by 10% from 2015-2016
-internet penetration growth: (NAmerica 77%-88%), (Asia 24%-34%), (Africa 11%-29%)
What is time space compression
Refers to the set of processes that cause the relative distance between places to contact, effectively making places be smaller ‘shrinking world’
Key factors in the cause of shrinking world
-communication development
-transport development
-financial development
-security developments
-trade agreements
-management systems
-information systems
How have development in flights shrunk the world
-1919: Alcock and Brown first to fly WW1 bomber over Atlantic Ocean but crash landed in June 1919 in Ireland
-1930: airship German ownership
-1937: Hindenburg from Germany to US but exploded due to the hydrogen causing the end of the airship era
-1940-1950: only could get around in Europe by planes
-1969: Concorde succeeded in flying London-New York but ended flights in 2003
How have the development in cars shrunk the world
-1908: 1st UK mass produced car (ford model T) but could run you over and may not start and can’t go uphill)
-1962: died Corina, affordable by average family
-building of M1 75m stretch in 1959
What is containerisation
Systems of standardised transport that uses a common size of steel container to transport goods (20/40ft)
Container ports development
-first container vessel 1959
-1960s international organisation for standardisation introduced
-1960 1.7tonnes unloaded per hour in uk
-1970 30tonnes unloaded per hour
How has social media contributed to globalisation
It’s made the world feel smaller, it has changed the way we live our lives. Within this one of the largest and most recent changes has been social media.
Facebook small case study
-high income areas are highly connected through Facebook including NA, Europe, east Australia.
-low income areas aren’t well connected through Facebook areas like SA, Africa, south east Asia.
-areas like Russia and China aren’t connected due to the governments control over media.
-geographical areas like Brazilian rainforest, Australia outback, north Canada’s Tundra aren’t connected
What is a trading bloc
A trade bloc is a type of intergovernmental agreement where barriers to trade are reduced or eliminated among the participating states
What is a full political union
Increasing integration between countries, more institutions, decreasing national sovereignty
What is economic union
Internal barriers/tariffs are abolished, common external barriers, free movement of resources and money, uniform set of economic policies
What is common market
Internal barriers/tariffs are abolished, common external barriers, free movement of resources among member countries
What is customs union
Internal barriers/tariffs are abolished now with common external barriers (EU)
What is free trade area
An area where internal barriers/tariffs are abolished but where external barriers are maintained with no common policy (NAFTA)
Have trading blocs helped it hindered the process of globalisation: hindered
-loss of sovereignty independence. Trading blocs need to make decisions for the whole area not specific countries
-reaching agreement with member states can be difficult and long
-shutting down domestic industry
-increase in green house gases
-increased economic dependence, always rely on other countries
-smaller members of trade blocks don’t like big governments
-increase in cost of raw materials
Have trading blocs helped it hindered the process of globalisation: helped
-countries joining rich trading block can benefit from inward investment and increased trade opportunities
-social/economic unions can set high environmental standards
-decrease monopoly, goods and services flow freely and so created larger choices
-increased competition, domestic firms will cut costs to compete
-increased economic power against other trading blocs
-lower consumer prices as no tariffs
What is global interdependence
Refers to worldwide mutual dependence between countries. All nations depend on each other for goods, services, humanitarian or military assistance
What is IMF
Organisation of 188 countries who work to promote financial cooperation between countries to reduce poverty. Normally through promotion of trade and high employment
What is the UN
Known as the guardian of international peace, security and human rights. It promotes the development of poorer nations through work with the IMF and world bank
What is the world trade organisation
Deals in the rules of trade between countries ensuring trade flows freely
What is world bank
It is important source of financial and technical assistance to developing countries, it’s main aim is to reduce poverty
What is a TNC
A global company which operates in more than one country. Headquarters are often in MEDC’s with factories in LEDC’s where workers are cheaper
Negatives of world bank
-sets conditions on its loans such as government spending cuts and opening up to forge in competition
-conditions mean some countries turn elsewhere for help like China
-the world bank represents 186 countries but is run by a small number of HIC’s like USA
-the president of world bank has always been from USA
-focus too much on growth of GDP and not enough on living standards
Negatives of IMF
-has supported military dictators friendly to America and European corporations
-sometimes insists on increasing taxes in countries in order to generate government revenue
-response to a crisis is often delayed
-manager has always been from a European country (France)
Negatives of world trade organisation
-environmental unfriendly as they promoted world trade
-favours the rich and powerful states
-criticised as many believe their main aim of global free trade will widen income inequality of south and North rather then bridge the gap
Negatives of the UN
-failure to stop 2003 US invasion of Iraq
-inability to stop the Rwandan genocide in 1994
-unable to end the Israel-Palestine conflict
-it employees 37,000 people over 193 countries, results in slow decisions
What are the unequal flows in global systems
-independence of people, money, ideas and technology can act to create stability
-however it can also create inequalities both within and between people and places
What are the unequal flows of people/labour
-migration is the movement of people from one place to another. This can be:
•voluntary migration
•forced migration
-currently 275 million (3.5%) of the world are international migrants
Why do people migrate, push and pull reasons: physical
Push:
-isolated
-harsh climate
-natural hazards
Pull:
-scenic qualities
-cheap land
-hazard free zone
Why do people migrate, push and pull reasons: demographic
Push:
-divorce
-I’ll health
-children leaving home
Pull:
-marriage
-family ties
-lower population densities
Why do people migrate, push and pull reasons: economic
Push:
-high unemployment
-poverty
-heavy taxation
Pull:
-high standards of living
-good wages
-promotion
Why do people migrate, push and pull reasons: social
Push:
-down size/size up
-poor neighbourhood
-shortage of affordable housing
Pull:
-good welfare services
-upwards mobility
-personal safety
Why do people migrate, push and pull reasons: political
Push:
-ethnic cleansing
-war
-planning laws
Pull:
-freedom of speech
-political asylum
-propaganda
What is the HDI
-human development index
-composite indicator of development, it uses multiple indicators to measure the development. theses are:
-gross national income
-adult literacy rate
-life expectancy
What is the GINI index
-used to measure internal inequality. It creates a score of between 0-1 (1 entire national income goes to 1 person, 0 income is evenly divided)
-<0.2 represents perfect income equality
-0.2-0.3
-0.3-0.4
-0.4-0.5
-0.5+ represents sever income gap
What is an import licence
A licence issued by a national government authorising the importation of goods from a specific source
What are voluntary export restraints
This is diplomatic strategy offered by the exporting country to appease the importing country and deter it form opposing trade barriers
What is embargoes
These involve the partial or complete prohibition of commerce and trade with a particular country. They are usually put into practice for political rather then commercial reasons
What is the trans-pacific partnership TPP
Free trade agreement being negotiated by 12 counties: USA, Australia, Brunei, Canada, chile, Japan, Mexico, Malaysia, Mexico, NZ, Peru, Singapore, and Vietnam. The aim is to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth.
How big a deal was the TTP
-12 countries have a collective population of 800 million and are responsible for 40% of world trade.
-however the TTP did not enter and go through
What was the transatlantic trade and investment partnership TTIP
-free trade agreement currently being negotiated by the EU and USA. Aims to reduce the regulatory barriers to trade for big businesses, including food safety law, environmental legislation, banking regulations and sovereign powers of individual nations
What are the problems with the TTIP
-it will give more power to large TNC
-opponents believe it will undermine democracy and social provisions in both regions
-will threaten public services like NhS as well as consumer, data and environmental protection
What is neocolonialism
The use of economic, policymakers, cultural or other pressures to control them r influence other countries especially former dependencies
What is fair trade
Social movement to try and achieve better trading conditions and promote sustainability
Hwo does fair trade enable community development in NEE/LIC’s
-minimum price (many smaller farms join together to create a minimum price, harder to shops to switch to different suppliers)
-FT premium: invest in business/ community projects
Why is fair trade necessary
-LIC’s mostly trade in primary products which are low in value and prone to fluctuate
-very difficult for them to access certain markets
-working conditions can be poor and dangerous
How affective is fair trade: good/positive
-gives voice to small farmers
-investment into education and other activities for communities
-higher income
-smaller producers have become competitive in the context of globalisation
-social conditions have improved massively
-producers have seen €138m in fair trade premium 2017
-a minimum wage is granted to farmers and workers of fair trade
-environmentally friendly
How affective is fair trade: negative/ bad
-difficult to make sure that abusive labour practices are not reintroduced
-doesn’t always ensure better wages
-once initial changes have been made they don’t feel obligated to keep helping
-higher prices means smaller customer pools
-goal of fair trade is to Just increase profit
-increased price so may reduce customer market
Stats on coffee
-56% of all US adults drink coffee
-2007 exports of $20m and imports of $17m
-25 million small producers rely on coffee living
-49 countries grow coffee
-revenue on coffee is $495m
-expected to grow by 4.47% from 2023-2025
How is coffee grown
-coffee beans come from the coffee plant
-bunches of cherries grow and insider are 2 coffee beans
-the conditions need to be protected from direct sunlight and in ample rainfall with warm tropic climate, rich soils
What problems do coffee growers have to face
-low pay
-high competition as there are millions of small coffee growers
-dangerous work
-seasonal work
-poor health
-mass bombing of herbicides are potential cocaine plants which kill coffee plants
Why do coffee growers remain poor despite the huge value of coffee
-actual coffee beans aren’t worth much
-any company can move from trade with small coffee farmers
-mass amounts of competition and suppliers
-climates make it harder to grow other food
-oversupply causes price drop
-governed by supply and demand
Trade blocs: ASEAN
-association of south East Asian nation
-goals: increase economic growth, social progress and promote regional space and stability
-exports $890b 2016
-imports $46b
Trade blocs: APEC
-Asia pacific economic cooperation
-21 members
-accounting approximately 60% of worlds GDP
-imports $7997b
-exports $8021b
Trade blocs: BRICS
-Brazil - Russia - India - China - South Africa
-imports $2339b
-exports $2902b
Trade blocs: EU
-imports $5785b
-exports $5887b
Trade blocs: NAFTA
-North America free trade agreement
-export $2376b
-imports $3262
Trade blocs: CIS
-Commonwealth of independent states
-imports 2%
-exports 2.16%
Trade blocs: COMESEA
-common market for eastern and Southern Africa
-export $65.9b
-imports $142.2b
Trade blocs: SAARC
South Asian association for regional cooperation
-exports $330b
-imports $481b
Trade blocs: MERCOSUR
-exports $292b
-imports $237b
Trade blocs: IOR-ARC
Indian Ocean rim association for regional cooperation
-exports $1875b
-imports $1847b
What is FT premium in fair trade
Invest in the business/community projects
Rates of globalisation between 2010-2015
-North America: 1.1m immigrants (from Latin American and Caribbean)
-Europe: 0.8m immigrants
-Asia: 1.1m emigrants (mostly to Australia and Europe)
-Africa: 0.7m emigrants (to Australia and Europe)
-Latin America and Caribbean 0.4m emigrants (to NA, Europe and Australia)
Movement of remittance from USA
-largest remittance:
-to Mexico $22.2b
-to Philippines $10.1b
-to India $12b
-to China $12.2b
Movement of remittance from Britain
-India is the largest at $4.1b
Movement of remittance from Hong Kong
-mostly to China at $13.5b
What are TNC’s
A transnational company is a large operation that operates in several countries. A TNC usually has its headquarters in a high income country and several production plants across the world
What countries are TNC’s usually from
HIC
Impacts of TNC’s within the UK
-employed in manufacturing in 1978-1990 has decreased from 7.1m to 5.5m
-1993 steeper decline to 4.4m
-2004 number employed is just below 3.5m
Negatives of TNC’s
-profits don’t generally remain within the country in which goods are manufactured
-transnational TNC’s avoid paying taxes
-exploit cheap labour
-TNCs are footloose and can move tehir operations out a country at any point
-products of TNC are consumed in almost every country on earth, this eroded local culture and diversity
-environmental issues
-workers have little job security and good conditions
-90% have their headquarters in HIC so profits go to tehn
-poor pay
Positives of TNCs
-they pay between 10-100% better then local labour rates
-invest in economies of developing countries and help raise living standards
-responsible for growing global wealth divide
-Nike employs 1million workers in 51 countries providing wealth and opportunity
-positive multiplier effect
-teaching of new skills and education
-increasingly environmentally aware
What is the global commons
-the parts of the earth that fall outside national jurisdictions and to which all nations have access. They include resources shared by all but not controlled by a single nation
International law identifies 4 global commons:
-the high seas
-the atmosphere
-Antarctica
-outer space
-increasingly the internet is being considered a global commons (not considered everywhere)
Why do global commons need governing
-overfishing
-weather events (how hazards can affect the people and economies of rich and poor countries)
-oceans (the goods and services contribute to economic growth and provide essential resources and good supplies)
-plastics (15trillion pieces of plastic pollutants floating)
-climate regulation
What is the principle of common heritage
-international law with the global commons is guided by the principles of commons heritage of mankind
-this principle establishes that some localities belong to all humanity and the resources there are available for everyone’s use and benefit
-it involves taking into account future generations and their needs of developing countries.
