GLOBAL SYSTEMS AND GOVERNANCE

Question 1

capital flows defenition

Answer 1

movement of money for the purpsoe of investements, trade or to produce goods/provide services

Question 2

globalisation defenition

Answer 2

a process by wich national econmies, societiesd and cultures have become increaslingy intergrated through the global network of trade, communication, transport and immagration

Question 3

international trade

Answer 3

exchange of capital, goods and services across international borders, inbound trade - imposts amd outbound trade -exports

Question 4

econimic factors of globalisation

Answer 4

there is an increase in free trade
long distance flows of goods, capital, services as well as information and market exchanges
faster and cheaper transport
growth in TNCs

Question 5

socail and cultral factors of globalisation

Answer 5

spread of ideas and information
media, sport and leasure
global communication networks
migration

Question 6

political factors of globalisation

Answer 6

decline of centralised (comunist) economies
diffusion of goverment policies and development of market policies in former communist states
influence if ‘western’ democrasies on less developed countries

Question 7

BRIC defenition

Answer 7

group of countries where the economies have advanced rapidly since teh 1990s (brazil, russia, india, china)

Question 8

diaspora definition

Answer 8

a large community of people with similar heritage or homeland who have moved and settled all over the world

Question 9

leackages (economic)

Answer 9

refers to a loss in income for an economic system. Profits sent back to their base of country by TNCS ( profit repatriations )

Question 10

MINT

Answer 10

more recently emerging economies - Mexico, Indonesia, Nigeria and Turkey

Question 11

Contanensation

Answer 11

a system of standerdised transport that uses standard sizes shipping steel containers to transport goods. Can be transfered between ships, trains and lorries enabling cheaper and efficiant transport

Question 12

examples of flows of labour

Answer 12

• not as free flowing as flow of capital due to restrictions on immigration
• huge risks of migration rates in recent years
• most commonly flows within LICs and HICs
• lots of movement within the oil rich middle east in countries like Kuwait, Quatar, Saudi Arabia and UAE

Question 13

examples of flows of products

Answer 13

• the international flow of products is facilitated, especially for developing countries, by the reduction in costs of trade
• reduce in transaction cost due to improvements in ease of capital transfers
• transport and time costs reduced by contanerism
• the world trade organisation work to reduce tarrifs ( regulate barriers to trade )

Question 14

examples of flows of capital

Answer 14

• international capital flows = all money that moves between countries which is used for investment, trade or production
• Deregulation of financial markets = late twentieth century, money no longer held within national boundaries

Question 15

conglomerates definition

Answer 15

a collection of different companies or organisations wich may be invloved in different buisness activities but all report to one parent company (most TNCs are conglomerates)

Question 16

economies of scale defeintion

Answer 16

the cost advantages that result from the larger size, output or scale of an operation as savings are made by spreading the cost by rationalising operations

Question 17

maquiladora defenition

Answer 17

a manufactoring operation (plant or factory) located in free trade zones in mexico. they import materials for assembly and then export the final products without any trade barrires

Question 18

flows of sercives defenition

Answer 18

services are economic activities that are traded without the production of material goods

Question 19

high levels of services defenition example

Answer 19

services to buissness
finance, investements, adversary

Question 20

low level services defention and examples

Answer 20

services to consumers
banking, travle and tourism, consumer call centers

Question 21

what is flows of information

Answer 21

it is governed by the movement of people, speed of data, communication transfers

Question 22

what has transformed flows of information

Answer 22

improvement to phone networks, new technology, email internet and live media-satalites

Question 23

how does new tech affect globalistation

Answer 23

-information can be shared easily, chaeply and instantly with an audience of billions
-mobile phones are one of the most importnant technologies for connecting people and have market and trading opportunities

Question 24

how do global financial systems affect globalistion

Answer 24

• banks and financial services operate across the world, linked together by viral transmissions that allow lending and flows of services

Question 25

what caused 2008 banking crisis

Answer 25

in 2007 the collapse of US house prices led to credit squeeze (banks no longer able to lend money) and then the global banking crisis. this impacted flows of capital world wide

Question 26

how does globalistaion affect transprt systems

Answer 26

a global transport networkd all allow flows of people and flows of products across vast distances.
without friction of time and space there are both new opportunites and new threats (spread of diseases)

Question 27

how does globalisation affect security

Answer 27

national boundaries have become less of a narrier to more mobile and better informed populations, traditional security measures have become less significatnt an increase flows of people .
cyber security is of increasing importance to protect against leaks of info

Question 28

how has globalisation affected trade agreements

Answer 28

without a system of global trading rules, countries would resist some forgein imports whilst possibly favoring others

Question 29

what is the purpose of the world trade organisation

Answer 29

it oversees 97% of world trade and provides a forum for negotiations and ensures that trade agreements are followed.

Question 30

what is the world trade agreement

Answer 30

it is a book that hints at the complexity of world trade today (26,0000 pages long)

Question 31

what is interdependence with countries

Answer 31

no country can ne fully self sufficent, therefore global interdependence is needed.They are interdepedent as they rely heavily on the decisioms of other countires meaning they would stuggle and be detrimentaly affected without them

Question 32

what is a global system

Answer 32

they can include the enviromental, political, legal, economic financail or cultural systems that help to make and remake the world we live in

Question 33

what is the role of finacial instutions

Answer 33

they support the structure of the world economic and finacail order by regulation and acting as intermedias in the flow of international captital.

Question 34

when were finacial institutions established

Answer 34

these institutions were established together at the end of WW2 in an attepmt to steady the global economy and provide stability

Question 35

what role does the IMF play in globalisation

Answer 35

is a ‘lender of last resort’ to
try and prevent global economic
crises – stabilizes flows of capital

Question 36

what are the positive asspects of the IMF

Answer 36

Provides loans to help members
tackle their balance of payments
and stabilize their economies

Question 37

what are the negative aspects of the IMF and WB

Answer 37

-Richer countries have the greatest
influence on how money is spent
-Lending to corrupt governments
-Imposing ineffective austerity
measures to get their money back
-Attaching ‘conditions’ to loans

Question 38

what role does the WB play in globalisation

Answer 38

promotes economic
development in developing
countries, aims to reduce the
development gap