global systems and governance Flashcards
def globalisation
a process by which national economies , society’s and culture have become increasingly integrated through the global network of trade, communication, transport and immigration
def capital flows
the movement of money for investment, trade or business purposes between countries, which can include foreign direct investment (FDI), portfolio investment and loans
def international trade
the exchange of capital goods and services across international boarders, imports and exports
def labour
the human workforce involved in the production of good and services including both physical and intellectual effort, within an economy
what are causes of economic globalisation ?
growth of TNCs
increase in trade
faster and cheaper transport
what does economic globalisation lead to ?
long distance flows of goods, capital and services as well as information and market exchanges
what causes social and cultural globalisation ?
migration
global communication networks
media, sport, leisure
what does social and cultural globalisation lead to ?
the spread of ideas, information and images
what causes political globalisation ?
influence of ‘western’ democracy in less developed counties
decline of communist economies
what does political globalisation lead to ?
diffusion of government policy and development of market economy in former communist states
when did globalisation first arise ?
the silk road = a network of trade routes across china and asia in 50 BCE
columbus voyage to the new world in 1492
explain how globalisation emerged in the three time periods
Age of exploration - sea travel and trade with new ships built
Age of revolution - invention of factories, railways and cars
Information age - advances in technology , faster travel , information based and independent economies
what are advantages of globalisation ?
increased risk for transmission of diseases eg. Ebola and microorganisms damaging crops like palm oil
what are disadvantages of globalisation ?
richer nations can provide aid to nations in crisis
increased diversity and celebration of cultures
what is BRIC ?
brazil ,russia, india, china - whose economies have advanced rapidly since the 1990s
def diaspora
a population that has spread out from its original homeland often creating communities in other countries while creating cultural ties
what is economic leakage ?
occurs when profits generate in a country are transferred abroad reducing the economic benefits to the local economy
what is MINT ?
mexico, Indonesia, nigeria and turkey - more recently occurring economies
def containerisation
use of standardised containers to efficiently transport good across different modes of transport, streamlining global trade
what are flows of labour ?
most migrants move short distancs within the same region
north America, Europe, the gulf countries in asia attract migrants from further away
most economic migrants moving between continent are not the poorest, they have some economic and finical means
the largest regional flow of labour is the world is Asia (south to west )
what are flow of products ?
trade in cheaper because of technological advancements - the shipping costs have been reduced and improved efficiency.
international trade agreements - ( eg. WTO, free trade zones ) have reduced tariffs and barriers
improved communication - easier and cheaper for businesses to communicate, negotiate and manage global supply chain
what is flow of information ?
faster communication, faster decision making and stronger global connectivity
technological advancements have also improved this because of access to the internet, phones as well as infrastructure development of fibre optic cables
this has lead to economic interrogation, new opportunities for international cooperation
accelerated cultural exchange
what are flows of services ?
flow due to the ability to transfer information in the globalised world
high level services require higher skill level eg. finance
low level services require less training eg. customer based
higher income services are usually concentrated in higher income countries
low level services are offshoring (money overseas) in order to take advantage of low labour costs
what is a case study on remittances ?
Mexico - 3.5 % of countries GDP is represented by remittances
96 % of them come from the USA
they surpass the income from other sources like tourism
migrants sometimes make significant sacrifices and risks to find work in another country
