Global systems and governance

Question 1

Define globalisation

Answer 1

The process at which different places globally are becoming increasingly interconnected through flows of technology, people, capital, transport and ideas, and is being catalysed through big cooperations such as global governances and TNCs

Question 2

When did globalisation really take off? and what are some reasons why?

Answer 2

• after and during 1980’s
• major improvements in transports and technology (go hand in hand)

Question 3

Capital flows

Answer 3

The movement of money or the purpose of investment, trade or to produce goods and providable services

Question 4

International trade

Answer 4

The exchange of capital, goods and services across international borders. Imports and exports

Question 5

Labour

Answer 5

Factor of production - human effort in creating goods or providing services

Question 6

BRIC Economies

Answer 6

Brazil, Russia, India and China - economies have advanced rapidly since the 1990s

Question 7

MINT Countries

Answer 7

More recently emerging economies of Mexico, Indonesia, Nigeria and Turkey

Question 8

Leakages (economic)

Answer 8

Refers to a loss of income from an economic system. It most usually refers to the profits sent back to their base country by TNCs - also known as profit repatriation

Question 9

NGOs

Answer 9

Non-governmental organisations

Question 10

TNCs

Answer 10

Transnational organisations

Question 11

FDI

Answer 11

Foreign direct investment - an investment made by a government or large company into the physical capital or assets of foreign enterprises

Question 12

Containerisation

Answer 12

A system of standardised transport that uses large standard-size steel containers to transport goods. The containers ca be transferred between ships, trains, lorries, enabling cheaper, efficient transport.

Question 13

Protectionism

Answer 13

A deliberate policy by government to impose restrictions on trade in goods and services with other countries - usually done with the intention of protecting home-based industries from foreign competition

Question 14

Tariffs

Answer 14

A tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods - a strategy of protectionism

Question 15

NICs

Answer 15

Newly industrialised countries

Question 16

LICs

Answer 16

Low income countries

Question 17

HICs

Answer 17

High income countries

Question 18

Asian ‘tiger’ economies

Answer 18

Highly developed economies of Hong Kong, Singapore, South Korea, Taiwan

Question 19

OPEC

Answer 19

Organisation of Petroleum Exporting Countries

Question 20

WTO

Answer 20

World trade organisation

Question 21

Top down meaning

Answer 21

When the decision to undertake projects or developments is made by a central authority such as government with little or no consultation with the local people whom it will affect

Question 22

Bottom up

Answer 22

When local people are consulted and supported in making decisions to undertake projects or developments that meet one or more of their specific needs

Question 23

Outsourcing

Answer 23

A cost saving strategy used by companies who arrange for goods or services to be produces or provided by other companies, usually at a location where costs are lower

Question 24

Multiplier (effect)

Answer 24

A situation where an initial injection of investment or capital into an economy (at any scale) in turn created additional income by, for example, increasing employment, wages, spending and tax revenues

Question 25

Glocalisation

Answer 25

Used to describe products or services that are distributed globally but which are fashioned to appeal to the consumers in a local market

Question 26

Global commons

Answer 26

Resource domains or areas that lie outside the political reach of any one nation state
- high seas
- deep sea bed
- Antarctcia
Space
-Atmosphere

Question 27

Global governance

Answer 27

A movement of political integration aimed at negotiating responses to problems that affect more than one state or region

Question 28

United nations (UN)

Answer 28

An international organisation founded in 1945 made up of 193 member states whose aim is to promote international peace and co-operation

Question 29

Where is Apple spatially organised

Answer 29

• HQ in California, 52/112 stores in the US are here
• Design and Research centres in California and dotted around the US
• Horizontally intergrated -> associated with Foxconn in Taiwan and in places in China
• Cork, Ireland has the European headquaters due to low tax rates (12.5%)

Question 30

issues with Apple (TNC)

Answer 30

• cheap labour
• 50 workers poisoned with screen cleaning chemicals in 2013, they later sued apple
• not enough work for locals
• expand to others countries for a large force of highly skilled workers willing to work for long hours and low pay

Question 31

What is the global shift

Answer 31

a change in this division of labour that took place from the 1950s onwards
● Production has shifted from the ‘core’ to the ‘periphery’, roughly from ‘west’ to ‘east’.

Question 32

When and what was the first global shift

Answer 32

TNCs began to move production to NICs, particularly Asian Tigers (Singapore, Hong Kong, South Korea and
Taiwan), and to LEDCs (e.g. Bangladesh)

First shift: labour-intensive garment industries

Question 33

When and what was the second global shift?

Answer 33

Second shift: heavy manufacturing e.g. Cars, steel
HQs and R&D kept in MEDCs (i.e. high skill/high paid managerial jobs)
Consumption still concentrated in MEDCs, but distribution increases (exports of e.g. clothes, cars from LEDCs to MEDCs)
E.G. Nokia produces phones in China but is HQ’d in Finland

Question 34

When and what was the third global shift?

Answer 34

1990’s, there’s a shift of services e.g. financial/banking services from MEDCs to NICs e.g. growth of call centres in Bangalore, India

Question 35

When and what was the forth global shift?

Answer 35

early 2000’s/late 1990s , shift of manufacturing from NICs to LEDCs e.g. The ‘Scramble for Africa’

Question 36

Trump quote that causes frictional globalism for America

Answer 36

‘Americanism, not globalism, shall be our creed’

Question 37

Who exports and imports the most amount of bananas a year

Answer 37

India (BOTH)

Question 38

Where are bananas majorly exported from

Answer 38

Windward countries like Ecuador and Guatemala

Question 39

Example of an NGO helping tackle issues with the banana trade

Answer 39

Banana Link
-> trying to reverse the ‘race to the bottom’ in these countries

Question 40

Issues with the banana trade

Answer 40

• workers get as little as 10% of the final cut off the total revenue of bananas
• over 400 agrifertilisers are used, causing workers to experience defects such as enlarged heads and birth defects when given birth
• child labour is prominent, some working 40 hours a week for very little pay ($45 dollars a month)
• fertilisers are added by aerial application, so workers are also sprayed with the chemicals
• workers move to work, but when they get there they are given 3-6 month contracts

Question 41

How many bananas are consumed around the globe annually

Answer 41

100 billion

Question 42

Why does apple outsource

Answer 42

large source of highly skilled workers willing to work for low wages,
cheap land and cheap labour
lack of environmental laws in NICs
generates jobs and brings investment (possible multiplier effect) in the invested country (China/Taiwan)