Global Systems and Governance Flashcards
The flow of globalisation
The roots of globalisation lie in international trade and the increasing accessibility of markets, which open up to the wider global community.
The increased flow of capital, labour and investment have been both a cause and an ongoing consequence of the globalisation process.
Globalisation
The way it is defined reflects whoever is writing it (economists, geographers etc.)
The process by which places and environments become more interconnected, interdependent in real time as part of a shrinking world.
Shrinking world
Time-space convergence has led to extensive networks of people and places. ICT enables interactions by providing affordable instantaneous connectivity. Over time network connections have become faster and more inclusive of all people in society not just privileged groups
Economic globalisation
Growth of TNCs has accelerated cross-border exchanges of raw materials, components, finished manufactured goods, shares etc.
ICT supports the growth of complex spatial divisions of labour for firms
The internet has allowed extensive networks of consumption to develop
Political globalisation
Growth of trading blocs allows TNCs to merge and acquire firms in neighbouring countries, while reduced protectionist barriers helps markets to grow
G7/8 and G20 groups meet regularly to discuss global concerns such as the global economy and the environment
World Bank, IMF, WTO harmonise national economies
Social globalisation
International migration has created extensive family networks that cross national borders
Global improvement sin education and health can be seen over time, with rising life expectancy and literacy
Social interconnectivity has grown over time due to the speed of universal connections such as mobile phones, email and social media
Cultural globalisation
Successful western cultural traits have come to dominate in some nations - sometimes called the Americanisation or McDonaldisation of tastes and fashion
Glocalisation is amore complex outcome that takes place as old local cultures merge and mould with globalising influences e.g. music/art
Flows of globalisation - services
Advancing technology means they can serve the needs of customers worldwide.
High-level (prevalent in NY, London etc.) - to businesses - finance, investment, advertising
Low-level - banking, travel, call centres
Flows of globalisation - products
Transaction costs have been reduced by the improvements in flows of data and the ease with which capital can be transferred to pay for transactions.
Transport and time costs have reduced (containerisation)
Protectionist barriers have reduced global trade
Flows of globalisation - information
Governed by the movement of people and the speed of data and communication transfers
Transfer of cultural ideas, language, industrial technology, design and business management support
Flows of globalisation - capital
Aid and remittance payments
Foreign direct investment - mainly by TNCs into the physical capital or assets of foreign enterprise
Repatriation of profits by TNCs back to home country
Flows of globalisation - labour
Some restrictions on immigration, however, still been a massive rise in the numbers of migrants, mainly to seek better employment opportunities.
Developing countries → developed countries
A lot of movement is short distance within the same region. NA, Europe and Gulf countries attract migrants from further afield.
Brain drain - skilled workers from a poorer country leave to seek better employment.
Global marketing
The process of promoting, advertising and selling products. When a company becomes a global marketer, it views the world as one single market and creates products that fit the various regional markets. It will usually develop a recognisable brand and employ one marketing strategy to advertise products to customers around the world.
Generates EoS
International Division of Labour
The spatial distribution of different stages of economic activities across the globe, where countries specialize in producing goods or services based on their comparative advantages, resource availability, or economic development levels.
Impact of globalisation of international division of labour
Globalisation has created a new international DoL with two main groups:
- Highly skilled/paid, decision-making, research and managerial occupation which are more developed countries and assembly occupation in developing countries
Changes to the international division of labour - NEEs
Original NEEs were ‘tiger economies’ Singapore, Hong Kong, South Korea, Taiwan.
Then went to BRIC economies and now MINT countries. Countries move away from NEE classification by developing their own industrial and commercial bases and their own TNCs
Global shift of production
1954 - around 95% of manufacturing was concentrated in Western Europe, NA, and Japan
Products were also consumed in the country of origin
FDI by TNCs into developing countries has changed this
Lower land values and labour costs and government incentives led to relocation of production-side businesses
Global shift from developed countries to lower wage economies of manufacturing
Consequences of global shift
Deindustrialisation in richer countries
1983-2013 employment in secondary sector ↓ 30% in UK
50% of manufacturing jobs are in developing world
Location choices for businesses in globalisation
Places with high-skilled/educated workers
Limited government regulation or deregulation initiatives
Opportunities to build factories and access to hi-tech capital
