Global systems and governance Flashcards
What is globalisation?
The process of becoming more globally connected on a variety of scales. It is the movement of people, knowledge, ideas, goods, and money across national borders, leading to a theoretically borderless world.
How is the economy globalised?
- transnational corporations trade products internationally and use international outsourcing and offshoring to lower costs.
- industries moved to developing countries to save money on labour, bringing economic growth there.
- trade blocs create economic integration between states and promote development.
- sources of income from international countries
- global transactions of money.
How are politics globalised?
- governments for connections to trade, such as trade deals and trade blocs
- western democracies especially have had a global influence on political ideas, such as the development of market economies in former communist states.
- deregulation policies allow markets to grow with an international reach.
international organisations exist to harmonise national economies and political relations (UN)
How is culture globalised?
- exposure to media sources such as TV and social media allow a recognition and understanding of other cultures.
- the ability to travel internationally lets people experience cultures.
- individuals have a greater awareness and understanding of world events due to education and news sources.
- westernisation - the domination of western cultural traits in non-western areas.
How is society globalised?
- international immigration is creating multicultural societies where people share and adopt cultures.
- social networking has revolutionised human connections, as tech platforms enable interactions with people living in different countries and access to international information.
- global NGOs and charities are involved in the global improvement of education and health, such as the WHO and Amnesty International.
What are the flows in globalisation?
Capital, labour, products, services, information. These flows are the dimensions of globalisation - they are the reason globalisation exists.
What are capital flows?
the movement of money for the purpose of investment, trade, or business production.
Where do the major flows of capital occur between?
- core regions - wealthier, developed countries that have power
- periphery regions - less wealthy, developing countries that have less power
- the International Monetary Fund (IMF) - an international corporation that aims to “foster global monetary corporations, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world”
- The World Bank - a global institution that gives out loans for development or relief.
What are the flows of labour?
The movement of people who move to work in another country. Essentially, this is migration that will contribute to the workforce.
What percentage of people are international migrants?
3-4% of the worlds population are international migrants. The majority of migration is to high income countries.
Why may skilled/unskilled workers choose to migrate?
- highly skilled workers are usually highly trained in jobs that require a great deal of skill, such as in medicine, science, or ICT. Highly skilled workers may move to HICs as wages are higher for the same job.
- unskilled workers are those who are underqualified and do not possess expert knowledge in their employment. Unskilled workers also move to developed countries for better wages and usually because of high unemployment rates in their countries. This can lead to overpopulation and exploitation, as many workers are left in underpaid and often illegal work.
What are the flows of products?
Flows of physical goods from one country to another. Globalisation has caused product flows to become international, meaning products are produced by a country and then transported to another country.
What are some examples of the flows of products?
- products used to be produced mainly in HICs as they had money to manufacture
- products are now traded internationally due to technological advancements, such as better transportation and communication
- a lot of production has relocated internationally (offshoring), especially to LICs. these countries often have lower labour costs and reduced taxes
- HICs import products from LICs, then sell them at much higher prices to make a profit.
- Emerging economies have increased the flows of customer products to these countries, as there are more wealthy people.
What are flows of services?
services can locate anywhere without constraints from resources or other obstacles. services flow as they can be produced in a different country to where they are received (international call centres)
What are high level services?
activities that generally require a higher skill level, meaning the person delivering the service should be qualified and trained. A prime example of a high level service are financial services, those who give financial services are usually trained and fully qualified as they should be well informed to make decisions about money.
What are low level services?
services that require less training, and are not as important to consumers. These services are mainly customer service based, especially call centres as workers only need basic training to offer advice or to sell products. Low level services are offshoring in order to take advantage of lower labour costs. offshoring has developed global connections and accelerated globalisation.
What are some examples of the flows of information?
- fast broadband and connections allow news and financial information to be transferred almost instantly, allowing people to be more informed about global current events
- social media has allowed people to communicate across countries, and allows people to experience other cultures, making people across the world more connected
- real time data and data transfers contribute to the knowledge economy. this is essentially the industry that requires information to develop, rather than products such as agricultural produce or manufactured products. The ability to transfer information has created developments in stock markets, high tech products, the education sector and many other areas of society.
- large databases and archives can be used for research and education.
- the ability to research allows people to seek better employment opportunities, creating more global connections and allowing online, work from home jobs.
What are the types of global marketing?
Awareness of the brand
keeping the same strategy
What is awareness of the brand in global marketing?
when a brand creates a trademark it can be easily recognised by consumers. A familiar brand is more likely to sell as they are chosen over less well known competing brands. By keeping this trademark worldwide, consumers in other companies are likely to recognise the brand and trust it. American brands such as apple, coca cola, and Nike have developed a global awareness of their brand, and are internationally well known. Buyers may assume their success and popularity equates to a good products, so the familiar brands are seen as trustworthy and continue to grow.
What is keeping the same strategy in global marketing?
to make any changes to a marketing campaign will be costly. Global marketing campaigns usually only need to change the language in order to promote their product, but sometimes a marketing campaign may need to change in order to respect cultural differences, such as religion or preferences.
How has globalisation changed over time?
Globalisation has accelerated and deepened due to different advancements globally. The development of technology, international relationships, and the implementation of systems have helped in creating a more globalised world.
How do financial systems affect globalisation?
globalisation has created a global financial system, incorporating thousands of institutions and banks; borrowing/investing relationships occur internationally as well as nationally. The global financial system accelerates globalisation as it makes the world more connected. Banks are now large global institutions that work with millions of peoples money. Countries/companies can invest millions in huge financial institutions like the World Bank.
How do financial technologies affect globalisation?
financial technology has made financial information and money easily accessible for people across the world, deepening the connections between countries.
- communication technology has allowed banks to communicate across the world, allowing form banks to have global branches with customers all over the world. This technology also allows companies to invest offshore, and still managed 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 has been developed, which has created a whole new market for online currency.
How have transport technologies, systems and relationships affected globalisation?
Innovations in transport have made it easier to transport goods and people faster and in larger quantities. High speed rail, and faster and bigger planes and boats have allowed the world to become more connected and globalised through these connections.
Larger and faster aircraft with increased capacity have reduced travelling times, meaning products can be sold over a larger distance in a shorter space of time. Planes are built form the purpose of transporting goods, known as cargo aircraft.
Advancements in transport have also allowed people to travel further and easier, which has increased migration. international migration is now crucial to national workforces and relationships with other countries.
Containerisation has also changed how freight can be transported internationally. Containerisation is the process of using shipping containers to transport goods. It makes global transportation cheaper as less trips are needed to transport the same amount of product.
How do security and technologies systems affect globalisation?
Due to the world becoming globalised, countries face threats from other countries. Therefore, certain security systems using communication technology and other technology have had to be developed in order to keep countries safe. these include:
- stricter regulations upon entering a country and transporting goods. International customs is a system that uses technology such as automatic X-ray analysis. this controls the flow of people and goods in and out of countries.
- cybersecurity is a global concern, and attacks can originate from anywhere in the world. Technologies are being developed to ensure cyber attacks can be traced, no matter where they originate from.
- there are global systems put in place to limit disagreement and wars, protecting civilians and ensuring security within countries. The UN security council is an international organisation that aims to diffuse disagreements with the intention of maintain international peace.
How are communication technologies affecting globalisation?
the ability to communicate globally has allowed flows of information, services and capital to accelerate.
- satellites and fibre optic communication enabled the growth of internet and mobile phone systems, in turn allowing information and money to be transferred internationally.
- corporations can communicate with overseas factories quickly and easily, meaning the negatives of moving production overseas to low income countries are reduced.
- services can be accessed through the internet or on the phone, allowing for thousands of jobs to be created that can be accessed through communication technology alone.
- the global availability of smartphones and the vast number of apps have added a new dimension to migration, allowing people to move with less restraints.
- relationships can be maintained even from great distances. This has deepened global connections and may also increase flows of labour as people are more likely to move if they can still communicate with their families abroad.
What is economies of scale?
The concept of increasing profits by prodding 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 in bulk to save money.
What are global supply chains?
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.
