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