Global Systems And Governance Flashcards
Dimensions of globalisation
Flows of..
capital, labour
products
services
information
Factors in globalisation
Communication technologies
Financial systems
Transport systems
Security systems
Management and information systems
Chinas brick and road initiative positives
China- Pakistan corridor gives china direct access to imports from Africa as well as oil from Iran.
Corridor into Europe helps landlocked economies to develop as market access improves.
Chinas brick road initiative negatives
Very costly- over 1 trillion USD
Form of economic imperialism, giving china leverage over other countries.
Will expect some repayments/ input, poorer counties wont afford this.
Part of BRI includes sovereignty claims over South China Sea and the believed energy sources below it.
Commercial presence will likely lead to an expanded military presence.
Apple case study positives
Foxconn in china employs 1.3 million.
Mainstream products in china are made at a low cost, employs young workforce.
One main warehouse location in California recedes stockpiling and costs as component are shipped from various complexes in china.
Headquarters in Cork enhance irelands reputation and global connectivity as well as attracting other high tech firms.
Issued a 1.5 billion USD green climate bond.
Investment in Austin was encouraged by federal tariff exclusion zones, meaning they don’t have to pay tariffs on imports.
Apple case study negatives
US and EU claimed apple had received favourable tax treatment- had to pay back 13 billion EU fine for 2004-2014 tax.
Backlash for use of harmful chemicals and PVC plastics
USMCA positives
Trade quadrupled.
Manufacturing in US grew.
FDI more than tripled.
Consumer prices in US lowered (oil and food).
Competitive bidding for governmental contracts reduced costs.
Heads of state meet frequently.
USMCA negatives
Loss of blue collar in US especially automotive.
Many Mexican farmers went out of business due to agri business competition.
Increased environment impacts.
Trade agreement advantages
Elimination of trade barriers increases opportunities.
Mass production reduces average costs.
Attracts local and foreign investment due to market size.
Greater representation in world affairs.
Raises healthcare and education standards.
Promotes democracy among members.
Regional cooperation (disaster response)
Trade agreement disadvantages
Trade diversion.
Decisions become centralised at a supra-national level.
Pressure to adopt central legislation.
Freedom of movement of labour increases competition for work.
Loss of financial control to central authority.
Increased interdependence.
Certain sectors may be damaged due to having to share resources.
Chinas open door policy
1978
China allows foreign industry and TNCs in to promote a modern and thriving China
Cumulative causation
‘Multiplier effect’
As a core region increases prosperity, periphery regions follow
Downward transition zones
Country or city where predicted economic decline
Include Turkey, Brazil, Scotland
Economies of scale
Increasing product manufacturing with aims to increase profits, prices to manufacturing are lowered
Liberalisation
Reduction of governmental control within industry
Sovereignty
Control over a country’s own laws and regulations
Special economic zones
Regions where the government offers incentives to attract industry.
Upward transition zones
Country or city with predicted industrial increase.
Such as Mexico
Deregulation or world financial markets
Activities of banks etc.. were no longer confined by national boundaries
Economic leakage
Loss of money within an economy
Tariffs
Tax on imports to make them more expensive so they out-sell home based products
Protectionism
Deliberate government policies that impose trade restrictions to protect home based products
Conglomerates
Collection of companies reporting to one parent company
Embargoes
Partial or complete prohibition of trade with a particular country
Factors affecting globalisation
Migration
Trade
Communication
Transport
Containerisation
Global marketing
Capital/ investment
Collapse of communism
What are the benefits of unequal flows of people?
Mainly associated with a larger workforce.
Origin countries’ economy benefits from remittances.
People fleeing will have a better quality of life in host country.
States that are home to a large diaspora will have stronger geopolitical relationships with the country of origin.
What are the problems with unequal flows of people?
Host country depends on migrant workers.
Origin country depends on remittences.
Migrants are more vulnerable to exploitation.
Overcrowding.
What are the benefits of unequal flows of money?
FDI can improve quality of life.
Richer countries can take advantage of low labour costs.
What are the problems with unequal flows of money?
Mainly social injustice, workers can subject themselves to dangerous situations for higher wages.
Foreign aid can reduce incentive for governments to help their own countries.
TNCs can pressure governments for tax or social change in order to attract investments.
What are the benefits of unequal flows of ideas?
HICs introduced deregulation which lowers prices of production and services.
Free trade allows global markets to thrive.
Countries with successful strategies can educate LICs.
Problems with unequal flows of ideas
Some argue deregulation is happening too quickly for LICs to keep up, they may feel pressure to do so.
LICs don’t benefit from privatisation and only funds the company.
Deregulation may lead to relaxed social and environmental laws.
Some view an interdependent country as a threat to their nations sovereignty.
What are the benefits of unequal technology flows?
LIC economy can develop through investments.
Trade deals can strengthen.
Companies maximise profits if they produce overseas.
Concentration in HICs can lead to further advancements.
What problems are there with unequal flows of technology?
LICs wont afford to buy the technology.
Companies take majority of profits.
HIC manufacturing jobs are lost as they move to LICs .
What are the global commons?
International waters/ deep sea.
The atmosphere.
Outer space.
Antarctica.
Banana trade war key points
Longest trade war in history.
First started in 195 when the EU negotiated a trade agreement with main banana grower countries.
This was then extended and protected mainly smaller, family run farms.
Latin American farmers accounted for 75% of the EU market, and only7% came from Caribbean countries
TNCs filed a unfair trade complaint against the EU to the WTO
Led to US and EU
Convention on the conservation of Antarctica marine living resources
(CCAMMIR)
Created in 1980.
Protects wildlife, especially krill.
Responsible for research, monitoring, and conservation of the southern ocean.
Created ecosystem monitoring program, detects and records changes in the ecosystem and analyses fishing effects.
Antarctic treaty
Started in 1959.
States Antarctica should only be used for peaceful means.
Scientific research has a right to be shared.
Nuclear activity is banned.
It’s not mandatory.
Research inspections do not occur often.
All decisions must be unanimous.
International Whaling Commission
(IWC)
Established in 1946 to regulate hunting.
Research on conservation and management.
Imposed a complete ban on commercial whaling in 1982,
Some countries e.g Japan found loopholes.
No punishments for leaving.
