global systems and governance Flashcards
What is a global system?
the nature of independence in the contemporary world
What is globalisation?
How the world is becoming more interconnected through technology and trade
What are the dimensions of globalisation?
-environenmental
-economy
-politics
-technology
-social
What are factors that affect globalisation?
development of technologies financial
transport
security
communications
trade agreements
What is a key statement on globalisation?
‘why we need a world without borders’
What is the global economy?
system of interconnected scales and elemneyts of the world’s funding
What is the Frank and Wallerstein model?
A model showing the twobasic hierarchies of countries: core and periphery Core countries dominate and exploit peripheral countries. Peripheral countries are dependent on the core countries for capital.
What are critiques of the Frank + Wallerstein model?
no space in the model for NEE’s
large income economies are becoming developed
Explain how globalisation has been affected by flows of capital
-accelerated through the way companies handle labour, products, services and information
-Flows between 4 main groups - core, periphary, World Bank, IMF
What are leakages?
captial that escapes the economy in acircular flow
What is the difference between the IMF and the World Bank?
the IMF focuses on macroeconomic and financial stability while the World Bank concentrates on long-term economic development and poverty reduction
What is the IMF?
An organisation made up of 189 countries that aims to provide finanical stability to all
What is diaspora?
large groups of people with similar heritage who have settled in a place
What is profit repatriation?
Profit made by TNC taken back to their home
What is remittance?
transfers of money from foreign workers to family
What is deindustrialisation?
the process of reduction of industrial activity in a region/economy
What is containerisation?
system of standardised transport, using large steel containers transported by ships, lorries, trains
What is the global shift?
the movement of manufacturing and the outsourcing of services from one country to another with the main driver being labour costs
What triggered the increase in manufacturing?
The Ford Motor company started mass production in the late 1880’s - sold 10,000 Model T in first year
Now taken over by the US which contributed to increase in automotive industry from 4 cars to 3 million 20 years later
Describe changes to the automotive industry
-Ford Model T as first car
- £71 billion made per year in the UK
- employs 800,000 people
-facing a tariff of 10% due to increased demands
What factors have accelerated globalisation?
Transport - containerisation, downside of rebel groups such as Hooties in Red Sea
Global marketing - examples of McDonalds and Coca- Cola moving on an international level , well recognised and adapts to areas
Travel - increase in business, personal and tourism travel,
What is global marketing?
when brands such as Mcdonald’s and Coca-Cola spread to countries on an international level, promoting and advertising their products
Describe flows of capital
movement on money
Increasing due to TNC’s
Presented by the Frank and Wallerstein Model
All money coming from World Bank and IMF
Problems such as Somalia being too reliant on remittance - 2 million living in diaspora
Describe flows of labour
when workers migrate to developed countries to look for a job
From Africa and Asia into Europe and North America
International students providing £11.8 billion to UK economy
20% of UK’s construction workers are from abroad
Problems with trafficking, poor pay or poor working conditions