global systems and governance Flashcards
global system
refers to any organisation, groupings, or activities that link different parts of the world.
e.g. TNC’s such as nike that operate in more than 1 country.
global governance
refers to attempts to regulate global systems and activities.
for example the UN, IMF and world bank. Their intentions may also have an impact on people and the environment.
globalisation
a process by which national economies, societies and cultures have increasingly integrated through the global network of trade, communication, transport and immigration.
when did globalisation first occur?
1492- Christopher Colombus stumbles across the Americas.
1498- Vasco Da Gama makes a run around Africa. He snatched monopoly rents away from the Arab and venetian spice traders.
After these two events, empires began to form but eventually the British left causing the downfall of many colonies.
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 TNC’s.
social globalisation
expressed as the spread of ideas, information, images and people largely. this is fuelled by the growth of social media.
political globalisation
spread of government policies and the influence of international bodies such as the United Nations
when was the second wave of globalisation?
1960s after Canadian Marshall McLuhan used the term global village to describe the breakdown of spatial barriers around the world.
he argued places share more similarities than differences and that much of the world is caught up in the same social, economic and cultural processes.
what did McLuhan suggest about economic activities?
he suggested economic actives operated at a global scale and that other scales become less important.
when was the core-periphery model created?
In 1963 by John Freidmann
what is the core-periphery model?
the model describes spatially how economic, political and cultural authority is spread out in core and periphery regions.
what does the core periphery model suggest?
it suggests that the countries of the world can be divided into two major regions
what is the core?
the core includes major world powers and countries that contain much of the wealth of the planet.
money, resources and people flow into the core from the periphery.
what is the periphery?
contains those that are NOT reaping the benefits of globalisation and global wealth.
how can globalisation be measured?
using the KOF index- an index of degree of globalisation. It takes into account the three dimensions of globalisation and was first devised in 2002.
what are the 3 dimensions of the KOF index?
economic globalisation- measured by flows of trade, FDI and finance.
social globalisation- expressed in terms of ideas, information, images and people. It is measured by personal contact (tourism, international telephone traffic, international letters etc) and information flows such as the no of internet users, TV ownership and finally cultural proximity e.g. no. of McDonald’s restaurants.
political globalisation- characterised by the degree of political cooperation. measured by the no. of embassies, membership of international organisations, no. of international treaties signed.
countries in the top of the KOF index and globalisation score (2010 figures)
- switzerland- 91%
- belgium- 90%
- netherlands- 90%
- sweden- 89%
- UK- 89%
bottom 5 countries on the KOF index
- somalia- 31%
- eritrea- 31%
- afghanistan- 38%
- comoros- 39%
- Central African Republic- 39%
key dimensions/ flows of globalisation
- flows of capital (money + investment)
- flows of labour (migration)
- flows of product (trade + shipping)
- flows of services and flows of information (e.g. social media)
international flows of capital
international flows of capital refers to all financial transfers between companies for investment, trade or production.
what is capital money
capital money is money that is invested, and spent on something that will give firms a return
when was capital flows boosted and why?
in the late 20th century due to deregulation of the financial services, allowing banks and other firms to move more freely across national boundaries. this led to flows of capital between countries. further backing core periphery model
FDI
foreign direct investment
BRIC
Brazil, russia, india, china
MINT
Mexico, indonesia, nigeria and turkey
flows of labour
the movement of workers across national borders. reminder that these migrants may not be considered poor as they have money to move across borders.
remittance
a remittance is a payment of money that is transferred to another party. broadly used to describe a sum of money working abroad that is sent back home.
countries with highest flows of remittances
- US-China= 12.2%
- US-India= 12%
- US-Mexico=22.2%
is globalisation global in terms of migration?
no as there are people moving to seek better work, suggesting there is a better lifestyle elsewhere
flows of services
flows of services are economic activities that aren’t based around material goods e.g. banking and finance
how have flows of products, services and information been increased?
- containerisation
- removal of taxes and tariffs to encourage global trade
- ## improvements in ICT
reasons for globalisation being truly global
- even somalia (bottom of the KOF index) has a score of 31 which suggests some globalisation
reasons against globalisation being truly global
- KOF index shows clear core periphery
- labour flows from the periphery to the core e.g. migrants moving from Mexico to USA
- remittances being sent back to periphery countries e.g. Somalia, remittance= $1.2B, exports= $550m
time-space compression
time space compression refers to the set of processes that cause the relative distances between places (i.e. measured in terms of travel time or cost) to contact, effectively making such places grow ‘closer’.
key factors in shrinking the world
- communication developments
- transport developments
- finanial developements
- trade agreements
when was the first crossing of the Atlantic? by who? where?
- 1919 by Alcock and brown in a WW11 bomber.
- newfoundland- Ireland
when was the airship created?
1937
- regularly took passengers from Germany to New York.
end of 1937 set on fire which ended the era of airships
when was the jumbo jet introduced?
1969
- 700mph roughly
- nowhere in the world no more than a day away
when was Concorde introduced, why did it fail?
- 1969 however crashed into a housing estate
- very expensive tickets
when was the first computer message sent?
1969
how has the car shrunk the world? when was the ford model T introduced?
- 1908 the ford model T was mass produced.
- couldn’t go uphill
when was the ford cortina introduced?
1962- normal sized family car. however no seat belts and seats made of vinyl. was the most popular car of the time
when did the M1 open
1972
when was the first TV broadcast?
1930
containerisation
a system of standardised transport that uses a common size of steel container to transport goods. either 20ft or 40ft.
what was trade like before containerisation?
-slow
- needed dockers to load and unload
- boats idled in ports for up to a week
- made in Britain and became too expensive
- not standardised
what was trade like after containerisation?
- 1956 standardised container to be shipped on lorries, boats and trains
- ports were developed with cranes so didn’t need dockers
- 1960s cellular container ship
- trucks and trains modified
- 10 cents to ship an iPad, 20 cents to ship trainers
- 30 tonnes per hour loaded/ moved before 1.7 tonnes
who developed the modern shipping container and when?
Malcolm mclean in 1950s
- a lorry driver who had to wait for hours for loading and unloading
when was the first container vessel used?
1956 and shipped 50 containers
issues with containerisation
- many boats are too large for ports and cannot fit
- environmental pollution due to oil spills from boats or products themselves falling into the sea
trade bloc
a trade bloc is a group of countries that have joined together to form a trade agreement in order to stimulate trade and gain the economic benefits
4 types of trading agreements from least to most integrated
- free trade area
- customs union
- common market
- economic union
free trade area
free trade area- internal barriers/ tariffs abolished, external barriers maintained. countries outside charged to trade with those in the trading bloc
customs union
internal barriers abolished / tariffs, now with a set of common external barriers e.g. the EU
common market
internal barriers abolished / tariffs, with a set of common external barriers, free movement of labour and resources
economic union
internal barriers abolished / tariffs, with a set of common external barriers, free movement of labour and resources, free movement of MONEY, uniform set of ECONOMIC POLICIES (product regulation)
ASEAN
association of south East Asian nations
- thailand, brunei, cambodia, laos, vietnam, Malaysia, singapore, indonesia, Myanmar, philippines.
MERCOSUR
mercado comandel conosur (southern common market)
free trade agreement
a pact between 2 or more nations to reduce barriers to imports and exports amongst themselves. goods and services can be traded with little/ no tariffs, quotas etc.
quota
physical quantity restriction on imports
tariff
customs/ duty tax paid on imports. makes foreign goods more expensive
advantages of trading blocs
- increase competition. greater choice for consumers
- social and economic unions set high environmental standards
- joining a richer trading bloc can benefit from FDI and incr trade opportunities
- smaller countries more power in global trade agreements
- lower consumer prices
- larger market
disadvantages of trading blocs
- costs money to be in a trading bloc e.g. EU cost UK £960Bn from 2014-2020
- retaliation from non member countries
- no protection for domestic industries
- with free movement can make easier for illegal immigrants to move creating political tensions
- loss of independence and sovereignty
- can be difficult to reach agreements as countries different in culture, wealth, size
how is the world bank involved in the global system?
- sets conditions on its loans such as gov spending cuts
- conditions mean countries turn elsewhere for help such as china. in 2010, china lent $110bn more than the world bank
- represents 186 countries but is run by a small number of HICs.
- focuses too much on GDP rather than living standards
- president is Ajay Banga (Indian born US citizen)
