GLOBAL SYSTEMS AND GOVERNANCE Flashcards
capital flows defenition
movement of money for the purpsoe of investements, trade or to produce goods/provide services
globalisation defenition
a process by wich national econmies, societiesd and cultures have become increaslingy intergrated through the global network of trade, communication, transport and immagration
international trade
exchange of capital, goods and services across international borders, inbound trade - imposts amd outbound trade -exports
econimic factors of globalisation
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
socail and cultral factors of globalisation
spread of ideas and information
media, sport and leasure
global communication networks
migration
political factors of globalisation
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
BRIC defenition
group of countries where the economies have advanced rapidly since teh 1990s (brazil, russia, india, china)
diaspora definition
a large community of people with similar heritage or homeland who have moved and settled all over the world
leackages (economic)
refers to a loss in income for an economic system. Profits sent back to their base of country by TNCS ( profit repatriations )
MINT
more recently emerging economies - Mexico, Indonesia, Nigeria and Turkey
Contanensation
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
examples of flows of labour
- 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
examples of flows of products
- 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 )
examples of flows of capital
- 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
conglomerates definition
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)
economies of scale defeintion
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
maquiladora defenition
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
flows of sercives defenition
services are economic activities that are traded without the production of material goods
high levels of services defenition example
services to buissness
finance, investements, adversary
low level services defention and examples
services to consumers
banking, travle and tourism, consumer call centers
what is flows of information
it is governed by the movement of people, speed of data, communication transfers
what has transformed flows of information
improvement to phone networks, new technology, email internet and live media-satalites
how does new tech affect globalistation
-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
how do global financial systems affect globalistion
- banks and financial services operate across the world, linked together by viral transmissions that allow lending and flows of services
what caused 2008 banking crisis
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
how does globalistaion affect transprt systems
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)
how does globalisation affect security
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
how has globalisation affected trade agreements
without a system of global trading rules, countries would resist some forgein imports whilst possibly favoring others
what is the purpose of the world trade organisation
it oversees 97% of world trade and provides a forum for negotiations and ensures that trade agreements are followed.
what is the world trade agreement
it is a book that hints at the complexity of world trade today (26,0000 pages long)
what is interdependence with countries
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
what is a global system
they can include the enviromental, political, legal, economic financail or cultural systems that help to make and remake the world we live in
what is the role of finacial instutions
they support the structure of the world economic and finacail order by regulation and acting as intermedias in the flow of international captital.
when were finacial institutions established
these institutions were established together at the end of WW2 in an attepmt to steady the global economy and provide stability
what role does the IMF play in globalisation
is a ‘lender of last resort’ to
try and prevent global economic
crises – stabilizes flows of capital
what are the positive asspects of the IMF
Provides loans to help members
tackle their balance of payments
and stabilize their economies
what are the negative aspects of the IMF and WB
-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
what role does the WB play in globalisation
promotes economic
development in developing
countries, aims to reduce the
development gap
