Global Systems And Governance

Question 1

Dimensions of globalisation

Answer 1

Flows of..
capital, labour
products
services
information

Question 2

Factors in globalisation

Answer 2

Communication technologies
Financial systems
Transport systems
Security systems
Management and information systems

Question 3

Chinas brick and road initiative positives

Answer 3

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.

Question 4

Chinas brick road initiative negatives

Answer 4

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.

Question 5

Apple case study positives

Answer 5

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.

Question 6

Apple case study negatives

Answer 6

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

Question 7

USMCA positives

Answer 7

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.

Question 8

USMCA negatives

Answer 8

Loss of blue collar in US especially automotive.
Many Mexican farmers went out of business due to agri business competition.
Increased environment impacts.

Question 9

Trade agreement advantages

Answer 9

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)

Question 10

Trade agreement disadvantages

Answer 10

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.

Question 11

Chinas open door policy

Answer 11

1978
China allows foreign industry and TNCs in to promote a modern and thriving China

Question 12

Cumulative causation

Answer 12

‘Multiplier effect’
As a core region increases prosperity, periphery regions follow

Question 13

Downward transition zones

Answer 13

Country or city where predicted economic decline
Include Turkey, Brazil, Scotland

Question 14

Economies of scale

Answer 14

Increasing product manufacturing with aims to increase profits, prices to manufacturing are lowered

Question 15

Liberalisation

Answer 15

Reduction of governmental control within industry

Question 16

Sovereignty

Answer 16

Control over a country’s own laws and regulations

Question 17

Special economic zones

Answer 17

Regions where the government offers incentives to attract industry.

Question 18

Upward transition zones

Answer 18

Country or city with predicted industrial increase.
Such as Mexico

Question 19

Deregulation or world financial markets

Answer 19

Activities of banks etc.. were no longer confined by national boundaries

Question 20

Economic leakage

Answer 20

Loss of money within an economy

Question 21

Tariffs

Answer 21

Tax on imports to make them more expensive so they out-sell home based products

Question 22

Protectionism

Answer 22

Deliberate government policies that impose trade restrictions to protect home based products

Question 23

Conglomerates

Answer 23

Collection of companies reporting to one parent company

Question 24

Embargoes

Answer 24

Partial or complete prohibition of trade with a particular country

Question 25

Factors affecting globalisation

Answer 25

Migration
Trade
Communication
Transport
Containerisation
Global marketing
Capital/ investment
Collapse of communism

Question 26

What are the benefits of unequal flows of people?

Answer 26

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.

Question 27

What are the problems with unequal flows of people?

Answer 27

Host country depends on migrant workers.
Origin country depends on remittences.
Migrants are more vulnerable to exploitation.
Overcrowding.

Question 28

What are the benefits of unequal flows of money?

Answer 28

FDI can improve quality of life.
Richer countries can take advantage of low labour costs.

Question 29

What are the problems with unequal flows of money?

Answer 29

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.

Question 30

What are the benefits of unequal flows of ideas?

Answer 30

HICs introduced deregulation which lowers prices of production and services.
Free trade allows global markets to thrive.
Countries with successful strategies can educate LICs.

Question 31

Problems with unequal flows of ideas

Answer 31

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.

Question 32

What are the benefits of unequal technology flows?

Answer 32

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.

Question 33

What problems are there with unequal flows of technology?

Answer 33

LICs wont afford to buy the technology.
Companies take majority of profits.
HIC manufacturing jobs are lost as they move to LICs .

Question 34

What are the global commons?

Answer 34

International waters/ deep sea.
The atmosphere.
Outer space.
Antarctica.

Question 35

Banana trade war key points

Answer 35

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

Question 36

Convention on the conservation of Antarctica marine living resources
(CCAMMIR)

Answer 36

Created in 1980.
Protects wildlife, especially krill.
Includes scientific research.
Responsible for research, monitoring, and conservation of the southern ocean.
Created in an ecosystem.
Created ecosystem monitoring program, detects and records changes in the ecosystem and analyses fishing effects.

Question 37

Antarctic treaty

Answer 37

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.

Question 38

International Whaling Commission
(IWC)

Answer 38

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.