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?
-environmental
-economy
-politics
-technology
-social
What are factors that affect globalisation?
development of technologies
finance/wealth
transport
security
communications
trade agreements
What is the global economy?
system of interconnected scales of the world’s funding
What is the Frank and Wallerstein model?
A model showing the two basic 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 a circular 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
Describe flows of products/services
developed due to globalisation
categorised high and low level services
low level become decentralised - creating clone towns
Problems if protectionism, tarrifs, overproduction
Mali has an overproduction of cotton and is in critical state due to Asia reducing its costs
What is the global value chain?
different stages of production processes are located in different countries
What are trade agreements?
formal agreements between 2 or more countries that removes trade barriers
What are the advantages of nations grouping together?
-imporves global peace and security
-increases global trade and economic co-operation
-encorages social and economic development
What are the 5 major trade bloc groups?
EU
Pacific Alliance
USMCA
ASEAW
MERCOSUR
What is a TNC?
A trans-national company that operates in more than one country due to cheap labour costs
-reach foreign markets
-exploit resources
-find lowest cost of production
What are the charcteristics of a TNC?
-organise pordcution to minimise costs
-control key suppliers
-easily recognised
-source raw materials at lowest cost
What is vertical integration?
when a product/service is owned entirely by a TNC - from raw material to final product
What is horizontal integration?
TNC’s diversify operations by expansion or takeover. It can be complementary or competitive
What are the benefits of TNC’s?
-jobs created
-workers gain skills
-cheaper goods
-low labour for TNC
-new technology brought in
What are the problems with TNC’s?
- exploitation of workers
-poor working conditions
-environmental issues
-de-multiplier effect
-repatriation of profit
-de-industrialisation
Give details of a TNC case study
Apple Inc. - producer and retailer of computer tech and mobile electronic devices
Headquarters loacted in Apple Park - North Carolina
Company started in 1976
As of 2019 it is:
-largest IT brand by revenue
-3rd largest mobile manufacturer
-1st global brand by value
-revenue at $50 billion in 2020
How many people does Apple Inc. have employed?
900,000 full time employees in over 510 retails stores in 22 countries
Apple store in every US state
Who are Apple’s main partners?
Foxconn and Pegatton
Give details on Apple’s production in China
-low production costs
-large young and skilled workforce
-Shezen as China’s 1st most sucessful economic zone
Give details on Apple’s European HQ
Located in Ireland
-employs 6000 people at Hollyhill
-90 nationalities working there
-imporved investement in area
What is the ‘Green My Apple’ campaign?
Apple’s use of renewable energy in US facilities using solar power
-removed all PVC plastics
-promotes recyclying its products
-2nd in Green Electronics Rank
Give details on a world trade food case study
Banana Trade - 4th most important food product
-$15 billion revenue each year
-Primarily come from Latin America and Carribean (23.3 million tonnes)
-80% bananas produced for national consumption
Give details on the banana industry
-India,China,Indonesia and Brazil as top 4 consumers
-Ecuador and Cost Rica highly dependant on export of bananas
-30kg of active fungicides,herbicides and insecticides sprayed
-largest importers are US and EU
Give details on world trade of bananas
-In past bananas dominated by Chiquite, Dole Del Monte, Fyffes and Noboa
-workers recieve 5-9% of total value whereas retailers get 36-43%
-Asia producing 17% of export market
What are environmental issues on banana plantations?
-grown on monoculture plantations
-largest agrochemical input (30kg)
-deforestation
-water pollution
-soil feritility
Describe the Geneva Banana agreement
took place in 2009
tariffs on bananas whent from 176 euros to 75 per tonne
What are issues associated with interdependence?
unequal flows of money, ideas and technology
unequal power relations
Give information on the UN and its impact on global governence
overall aim to maintain peace and security
193 members
punishes countries not abiding to international law
promote economic, social and environmental growth through Millenium Development Goals and Sustainable Development goals
What are 3 examples of the UN’s Millenium Development Goals
reduce child mortality
eradicate extreme poverty and hunger
combat diseases
Give 3 examples of the UN’s sustainable development goals
renewable energy
gender equality
no poverty
Describe information of Antarctica as a case study
holds 90% of world’s freshwater
-50°C average temp -fragile ecosytem
-6 months of darkness each year
-Antarctic treaty 1959
What are the biggest threats to Antarctica?
Fishing and whaling
Mining
Tourism
Climate change
How is fishing/whaling a threat to Antarctica ?
overfishing of krill disrupting whole food chain as its the lowest part
100,000 tonnes of krill every year
Whaling since 18th century - Whaling Moratorium in place
How is climate change a threat to Antarctica ?
warmer sea temps causing rise of sea levels and melting ice caps
migration patterns disrupted
CO2 trapped in ice sheets is released
Albedo effect reduced (reflection of solar radiation)
How is tourism a threat to Antarctica ?
37,000 visited every year 2009-2010
visiting by air and sea contributing to fossil fuel emissions
MS explorer crash in 2007 - oil spill
Scientific research of research bases - problems with disposing of waste, disrupting wildlife and bringing in invasive species
How is mining a threat to Antarctica ?
oil exploitation including drilling
oil spills causing long term damage
use of fossil fuels increases global warming
Describe information on the Antarctic Treaty
1959 - 53 countries joined
antarctica as global common
nuclear activity banned
regulations of waste management and pollution
scientific research allowed as long as its shared
What influences do NGO’s and Charities have on Antarctica ?
NGO - ASOC - fromed in 1978
convinced governments to prevent mineral exploitation
monitor marine wildlife areas
climate change
governance of Antarctica
Charities - Greenpeace and WWF -reporting issues
-campaigning
- donations
How has globalisation promoted growth and stability in the world?
Reduces poverty
Enables free trade removing barriers such as tariffs
Competition between countries drives prices down Interconnected decision making benefits all
Internet has facilitated mass communication
How has globalisation promoted inequalities, injustices and conflicts in the world?
Increased inequality
Trade barriers still exist
Countries manipulate their currency to maintain price advantage
Environmental impacts associated with globalisation
Atmosphere and oceans are global commons
Increased flood risk in Europe
Asia has more cyclones and floods
