Global systems and governance. Flashcards
What did Canadian philosopher Marshall McLuhan mean by a predicted ‘global village’?
A flat world where free reign is given to economic and information flows.
-Thinking globally
-Acting globally
-Making planet-wide decisions.
Capital flows:
The movement of money for the purpose of investment, trade or to produce goods/provide services. Investment into a production operation.
Globalisation:
A process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration.
International trade:
Exchange of capital, goods and services across international borders. Inbound trade is defined as imports and outbound trade as exports.
What has the focus of globalisation mainly been on:
Economic relationships such as, international trade, foreign direct investment and international capital flows.
Now includes cultural, social, technological, political, environmental, and health-related factors.
Factors of production:
-Land (natural resources)
-Labour (human resource)
-Capital (man-made production aid)
-Enterprise (risk takers)
For the purpose of understanding ‘international capital flows’, what does capital include?
All money that moves between countries which is used for investment, trade or production.
What is ‘deregulation of world financial markets’?
In the 20th century this meant that the activities of financial institutions such as banks, insurance companies and investment companies were no longer confined within national boundaries.
Where is global power mainly concentrated?
HDEs, highly developed economies which are called the core.
What issues face periphery countries?
LDEs, less developed economies, which have been exploited and suffered from a lack of investment, leakages and out-migration.
BRIC:
An acronym for Brazil, Russia, India and China- economies advanced rapidly since the 1990s (sometimes including South Africa BRICS)
Diaspora:
A large group of people with a similar heritage or homeland who have moved and settles in places all over the world.
Leakage (economic):
Loss of income from an economic system. The profits sent back to their base country by transnational corporations- aka profit repatriation.
MINT:
Recent emerging economies: Mexico, Indonesia, Nigeria and Turkey.
Foreign direct investment (FDI):
Investment made mainly by TNCs based in 1 country, into physical capital or assets of foreign enterprises.
Repatriation of profits:
TNCs investing in overseas production will normally take any profit made from that investment back to their home country.
Aid:
Important for poor countries. Can be provided through UN or bilaterally from one government to another with conditions applied.
Migration:
Majority of out-migration of labour takes place from poorer to richer countries. Will exacerbate disparities as the less developed nation lose skilled workers who pay taxes.
Remittance payments:
Transfers of money made by foreign workers to family in their home country.
Main sources of remittances:
USA, Saudi Arabia, United Arab Emirates, UK, Canada, Russia and EY countries.
Benefits of remittances:
-Present a more stable and steadily rising source of income, unlike FDI which fluctuates significantly.
-Effective way to alleviate poverty because they go directly to families.
Key destinations for the movement of labour:
Oil-rich Gulf states of Kuwait, Qatar, Bahrain, Saudi Arabia, and UAE.
What distance is the most movement of labour?
Short distances within the same region or between neighbouring regions.
Where attracts migrant labour from the furthest afield?
North America, Europe and the Gulf countries in western Asia.
What type of economic migrants are mostly moving between continents?
Those with some education and financial means.
Where is the largest inter-regional flow of labour?
Asia
Where is the 2nd largest inter-regional flow of labour?
Latin America to North America.
Why has flows of manufactured goods increased recently?
Demand from affluent populations in developed countries, combined with low production costs because of mass production.
How have transaction costs helped the flows of manufactured goods?
Been reduced by the improvements in flows of data and the ease with which capital can be transferred to pay for transactions.
How have transport and time helped the flows of manufactured goods?
Costs have been reduces by the process of containerisation which has enabled more complex and long distance flows of products, and air transport, which can speed delivery and reduce costs of more valuable or perishable cargo.
How have tariffs helped the flows of manufactured goods?
With the encouragement of the WTO have generally been reduced in global trade.
How have regional trading blocs helped the flows of manufactured goods?
Provide tariff-free trade or other favourable trading conditions to fellow member nations within the bloc.
Containerisation:
A system of standardised transport that uses large standard-size containers to transport goods. The containers can be transferred between ships, trains and lorries, enabling cheaper, efficient transport.
Protectionism:
A deliberate policy by government to impose restrictions on trade in goods and services with other countries- usually down with intention to protect home-based industries from foreign competition.
Tariffs:
A tax or duty placed on imported good with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods (strategy of protectionism).
High-level services:
Services to businesses such as finance, investment and advertising.
Low-level services:
Services to consumers such as banking, travel and tourism, customer call centres and communication services.
Where are high level services located?
More developed world, e.g London, New York, and Tokyo which are the major centres of global finance.
Which Asian economies have also become major global financial centres?
Hong Kong, Singapore, and Shanghai.
What transnational conglomerates have emerged to seek influence on a global scale?
HSBC Holdings in banking, AXA (France) in insurance, WPP Group (UK) in advertising, and TUI Group (Germany) in travel and tourism.
Where has most of India’s economic success come from?
Growing service sector, especially information tech and online customer services.
What are information flows governed by?
The movement of people through migration and the speed of data and communication transfers.
Digitisation and satellite tech have transformed information flows, which are now supported by:
-Improvements to global telephone networks, making communication cheaper and easier.
-Mobile telecommunication tech
-Email and the internet, allow lots of info to be exchanged instantly.
-Live media coverage available globally
What economic sector has flows of information contributed to mostly?
The expansion of knowledge-intensive goods and services (quaternary sector).
Conglomerates:
A collection of different companies or organisations which all report to one parent company.
Economies of scale:
The cost advantages that result from the larger size, output or scale of an operation.
Marketing:
The process of promoting, advertising and selling products or services.
What is the goal for global marketing?
Create one product that fits various regional markets.
Develop a recognisable brand.
Sell the same/similar product the same way, everywhere.
2 main recognisable groups of international division of labour:
-Highly skilled, highly paid, decision making, research and managerial occupations which, on a global scale, are largely concentrated in more developed countries.
-Unskilled, poorly paid assembly occupations, which have become increasingly located in newly industrialising economies, with lower labour costs.
Newly industrialised countries (NICs):
Developed their own industrial and commercial bases as well as markets for their own goods and services.
Driving factors for the movement of manufacturing operations to lower wage economies:
-Lower land and labour costs
-Incentives from governments, e.g tax breaks, special economic zones
-Transfer of technology by TBCs has enabled countries in the developing world to increase their productivity, without raising their wages to the same levels as HDEs.
Factors influencing the locational decisions made my large manufacturing companies:
-Availability of a skilled and educated workforce
-Opportunity to build new plants with the latest and most productive technology.
-Access to large markets without tariff barriers
-Availability of infrastructure including power supply, roads, ports, etc.
What is the main consequence of the global shift in manufacturing?
Deindustrialisation in richer HDEs and a subsequent decline and loss of jobs in the manufacturing sector.
Governments have reacted with many strategies to reverse deindustrialisation such as:
-Encouraging foreign TNCs to invest in deindustrialised regions by offering incentives.
-Encouraging investment in skills and tech to upgrade the manufacturing sector.
-Adopting protectionist policies, e.g tariffs, to protect domestic production.
A global shift in what caused a rise in populist and nationalist movements?
Production patterns caused a rise in populist and nationalist reaction against globalisation in developed economies.
What is declining in standards in some areas due to deindustrialisation?
Standards of living- key driver behind the Brexit vote in uk and us electing Trump.
What type of country is product consumption in predominantly ?
Richer countries of the developed world.
How is the market for product consumption changing on a global scale?
Emerging NICs are developing and their populations are becoming more affluent and starting to demand similar consumer products to those being exported from their own country.
Where are the best destinations for exporters?
USA, western Europe, Japan and China.
Which continent is seeing more continental exporting?
As Asia becomes more competitive a growing share of the region’s exports will be to other countries in Asia.
What initiative that China have set up will open access and diversify its exports t emerging markets?
Belt and Road initiative.
What corporations and where will benefit from the expansion of financial services in the Asia-Pacific region and who is the competition?
Finance corporations from HDEs.
Competition from Chinese, Singaporean, and Korean banks and insurance companies.
How has communication tech helped links between countries:
-Development of computer tech
-Advent of the internet, quick 24/7 global communication.
-Use of mobile phones
-Computer control and robot tech in manufacturing operations
-Computerised logistics systems have evolved to support supply chain distribution.
How has financial systems helped links between countries:
-Increasingly financially integrated in 1990/80s due to financial deregulation.
-Deregulation made it easier to finance across borders
-Global financial system (GFS) facilitates flows of capital for investment and trade.
-GFS used by TNCs, consumers, investors, ect, (monitored by IMF)
-GFS helped reshape international trade.
-Global exchange connectivity means exporters and importers don’t worry about exchange rates.
Technologies that helped easing international trade:
-Size of aircraft; integrated traffic networks
-low cost airlines/ air freight companies
-Standardised containers
-Handling/distribution efficiencies.
-High speed rail networks.
Benefits of dry ports:
-Good for economies with less developed infrastructure
-Save exporter time and transport costs
-Provide local hubs for global connectivity.
How have security systems attempted to stop terrorism:
Screening and monitoring by security forces.
How have security systems attempted to control food imports:
Ensuring that imported products meet required safety standards.
How have security systems attempted to control biosecurity:
Preventing intro and spread of harmful organisms or bacteria substances to minimise risk of transmission of infectious diseases.
How have security systems struggled to control cybercrime:
Reliance on the internet has led to breaches of secure information, which in turn can lea to online fraud, ect.
How have security systems attempted to protect supply chains:
Securing supply chains is critical for international manufacturing businesses that assemble components from all over the world. Supply chain security involves ensuring products are authentic, safe and can travel through borders relatively freely.
What are authorised economic operators?
World Customs Organisation introduced it to tackle some issues regarding security. AEO status is awarded to export and import operators who meet a range of minimum standard criteria.
Cost advantages in globalisation:
-Large production and assembly plants capable of exploiting the most advanced technology
-Global marketing and distribution networks to ensure that sales keep pace with increased production.
Global value chains:
Where investments in international production, distribution and management are organised.
How has managing global value chains remotely been made possible?
-Virtually free telecommunication and video conferencing
-Integrated ICT management systems, usually supplied by third-party service providers to facilitate greater supply chain organisation.
Just in time (JIT):
Ensuring correct quantities of materials, components and assembled goods are available on time. Reduces costs by having fewer goods and material in stock.
What have management and information systems led to?
-Higher-order business activities being based at corporation HQs and strategic hubs globally.
-Lower-order activities located at low-production cost location or near the largest market for finished goods.
-Global corporations focusing on key strategic activities and increasingly outsourcing non-strategic activities.
-Rapid growth of logistics and distributions ‘solutions’ industry.
What is a trade agreement?
A formal agreement between two or more countries that removes trade barriers between those in the agreement.
Various forms of trade groupings:
Free trade areas, customs unions, common markets, and economic or monetary unions such as the EU.
True or False, countries can only be part of one trade agreement.
FALSE
Who is in the trade agreement ‘Organization of Petroleum Exporting Countries (OPEC)’?
Mainly members from Middle East but also South America and Africa. Focuses on trade of oil globally, which is the single most important traded commodity.
Global advantages to nations grouping together as trading entities:
-Improving global peace
-Increasing global economic co-operation
-Encouraging social and economic development in middle/lower income countries.
Advantages of being in a trading group agreement:
-Trade creation: elimination of trade barriers
-Economies of scale: mass production is cheaper
-Regional co-operation: against natural disasters, terrorism threats, pandemics.
-More on page 297
Disadvantages of being in a trading group agreement:
-Trade diversion: tariffs make them more expensive
-Loss of sovereignty: Decisions become centralised at a supra-national level
-Legislation: Pressure to adopt central legislation.
NAFTA:
North American Free Trade Agreement.
Who signed NAFTA?
USA, Canada, Mexico in 1994.
NAFTA’s main aims:
Remove all trade barriers, increase investment opportunities, and improve economic co-operation between the three countries.
Positive outcomes of NAFTA:
-4X trade between member companies
-Manufacturing grew in USA, increasing jobs and economic output.
-Foreign direct investment tripled
-Consumer prices in US lowered
-More competitive bidding for govt contracts reduced costs
-Heads of state meet more frequently
Negative outcomes of NAFTA:
-‘Blue collar’ jobs lost in US, re location of manufacturers
-Job migration suppressed US factory wages.
-Mexican farmers out of business as they were unable to compete with larger US agribusiness.
-Increased negative environmental impacts: US/Canada mining degraded Mexican environment, Canada increased production of oil from Alberta tar sands to supply US demands.
Maquiladora:
Manufacturing operation located in free-trade zones in Mexico, usually near the US-Mexico border. Initially established in 1960s to stem flow of migrants, they became a big part of Mexico’s industrialisation. Import materials for assembly and then export the final product back to USA.
What is USMCa?
Re-negotiated NAFTA known as the United States, Mexico, Canada Agreement.
Key changes of USMCa?
-Country of origin rules: Cars must have at least 75% of their components manufactured in Mexico, Canada or US for no tariffs.
-Labour laws: 40-45% of vehicle parts must be made by workers who make $16+ per hour.
-Agriculture: US farming conglomerates must get more access to Canada’s dairy industry
-Intellectual property and digital trade: Copyright terms extend to 7- years beyond the life of the author.
-Sunset Clause: Terms expire after 16 years and are reviewed.
Four main types of interdependence:
-Social interdependence
-Political interdependence
-Economic
-Environmental
Economic interdependence:
Trade-
More nations participate in international trade giving then access to products/ services from all over. Countries rely on each other to supply needs/ by exported goods.Trading relationships are key as one nation’s actions effect others.
Economic interdependence:
Advances in technology:
Competing or co-operating with foreign businesses may bring innovations and new approaches, increasing quality or products/services and make them more affordable.
Economic interdependence:
Employment-
Jobs are generated in new areas but are sometimes lost elsewhere. UK manufacturing company might relocate to Malaysia, to hire workers for a lower price. This would create jobs in Malaysia but lose then in UK.
Economic interdependence:
International economic migration-
2019- international migrants counted for >20% of the total population in 48 countries. Migrant workers are needed in some sectors where there are labour shortages and home countries rely on remittances.
Economic interdependence:
TNCs and investment-
TNCs operate in several countries and outsource services and operations to foreign businesses. Companies from industrialised nations invest in developing countries. May form joint ventures with local companies, brining tech, work, ect.
Economic interdependence:
Supply chains-
Components fro any single manufactured product may be produced in different countries before being assembled.
Economic interdependence:
Industrialisation-
Globalisation has helped countries such as India, Brazil, Mexico and Indonesia to become industrialised. It also led to deindustrialisation and structural unemployment in Europe and North America.
Political interdependence:
Intergovernmental organisations-
Global systems are supported by international organisations, which have been established to provide stability, e.g IMF and World Bank, WTO, and UN
Political interdependence:
Security and stability-
Argued that globalisation will lead to greater political stability. Nations may co-operate more with each other as members of regional or international bodies, making it easier for governments to work together on common goals.
Political interdependence:
World peace-
Argued wars are less likely to happen. Thomas Friedman (1999) suggested that ‘No two countries that both had McDonald’s had fought a war against each other because their economies and cultures are so interlinked’.
This has been proved to be utter bull shit x
Social interdependence:
Health-
WHO, has taken the lead in combating COVID-19 by co-ordinating advice on symptoms and development of vaccines; however responses were different at national level.
Social interdependence:
Education-
Increases participation in student foreign exchange programmes.
Social interdependence:
Culture-
Social ties between countries can strengthen through migration. E.g the large Indian diaspora settled in UK deepened the country’s bond with India.
Environmental interdependence:
Global commons-
All countries are environmentally interdependent due to the impact of shared use of resources that are common, e.g ocean/atmosphere.
Environmental interdependence:
Global climate change-
Concerns about the global environment have led to more international summits and the establishment of international agencies such as UN Framework Convention on Climate Change. They encourage their nations to work towards climate change mitigation.
Environmental interdependence:
Unsustainable practices-
Some practices challenge environmental interdependency as the impacts affect many countries. E.g air pollution, deforestation, acid rain. Underlying causes of rainforest deforestation in Amazon may be to supply hardwood/ clear land. Forest loss may become irreversible in some countries.
Positive effects of flows of people:
-Reduced unemployment in places where this is a lack of work because of opportunities to work elsewhere.
-Addresses skill/labour shortages
-Reduces inequality of wages
-Remittances provide stability
-Migrant workers pay taxes and spend money.
-Reduces population pressure on resources in developing countries
Negative effects of flows of people:
-Developing countries lose younger/talented workers for higher wages.
-Loss of workers impacts productivity.
-Over-dependence on remittances
-Migrants families put pressure on health/education services in HDEs
-Migrants may be segregated
-Racism
-Movement of labour= risk of disease.
Unequal flows of money:
Loans-
Developing countries borrow from the World Bank to fun projects, such as improving transport connectivity or for health and education to increase standards, etc. Loans can be a good investment for countries.
Unequal flows of money:
Inflows of foreign direct investment-
Investment from TNCs or governments in Europe, Japan and the US to developing countries has raised average income and reduced poverty.
Unequal flows of money:
Growth of TNCs-
Capital investment and taxes paid by successful global businesses to their host government have stimulated economic growth. TNCs may pressure host governments to alleviate taxes or relax social/environmental laws.
Unequal flows of money:
Loss of profits (leakages)-
Repatriation of profits by TNCs to their home country undermines the benefits gained from investment in developing countries. There may be a limited ‘trickle-down’ from the FDI into the developing economy, this may exacerbate global inequalities in wealth.
Unequal flows of money:
Foreign aid-
Aid will help LICs in times of need but it can reduce incentives for governments to help their own countries.
Unequal flows of technology:
Information and data flows-
Access to mobile and internet services is transforming people’s lives in less developed countries.
Unequal flows of technology:
Technology manufacture-
Access to tech in less developed countries is limited as technology is unaffordable to many. This may seem unjust given that the assembly of tech is often based in developing countries. Employees receive low wages compared to retail price of goods.
Unequal flows of technology:
Technology transfer-
Transfer of labour-saving tech from HDEs to developing countries can promote growth, but some tech might put people out of work leading to poverty. Mainly happened in agriculture and textile industry in India.
Gini index-
Statistical measure that is usually used to indicate levels of inequality of income distribution within a country. It aggregates the inequalities in people’s income into a single measure, giving a coefficient score of between 0 and 1. Higher means greater inequality.
Where is there the highest inequality within a country?
Often in LDEs, South Africa has one of the highest scores of 0.63.
Which developed countries have seen a recent rise in inequality?
UK, Canada, Sweden.
Unequal power relations in global systems:
HDEs-
Have more wealth, advanced tech and military power to use on a global scale. They provide aid, investment and transfers of tech/ medical knowledge to assist developing countries but usually rely on geological support in return.
Unequal power relations in global systems:
Wealthier countries in groups-
G7, G20 and the OECD. By co-operating in these intergovernmental economic groups, they can synergise their efforts to be more influential in driving global economic and political systems.
Unequal power relations in global systems:
Intergovernmental organisations-
UN, IMF, World Bank and the WTO. These have helped to improve stability and development, but they are led by the more powerful nations whose vested interests cause them to influence change to their own advantage.
Unequal power relations in global systems:
Developing countries-
Less influence and limited power to intervene so they have to depend on decisions made by wealthier countries. Constrained in how they are able to respond to geopolitical issues and may have to rely on geopolitical support from powerful allies.
G7-
Group of Seven is an intergovernmental organisation made up of the world’s seven largest advanced IMF economies: Canada, France, Germany, Italy, Japan, UK, USA.
G20-
International forum for the governments of 20 major economies. Includes G7 and the EU as a single member. Includes China.
OECD-
Organisation of Economic Co-operation and Development is a group of 34 of the richest and most influential countries globally.
Reasons for geopolitical issues:
Resource shortages, strategic territorial claims, exploration rights, supporting political allies, minority groups within countries.
When was Russia’s annexation of Crimea?
March 2014
Where was Crimea ceded to after Russia?
Ukraine during the Soviet era when both states were part of the Union of Soviet Socialist Republics (USSR).
Where did Russia keep using after the USSR collapse by leasing it from Ukraine?
Sevastopol (warm water naval port, ice free).
Why was Ukraine remaining pro-russian?
Large ethnic Russian population and is also dependent on Russia for energy supplues.
What 2014 revolution took place in Ukraine?
The ‘Euromaidan’ political movement demanded closer ties with the EU and eventually overthrew pro-Russian government.
What did Russia do after Ukraines pro- Russia government was overthrown?
Took military control of the Crimean Peninsula. Putin stated he was safeguarding they 60% Russian population.
After Russia took control of Crimea how did the Crimean Supreme council react?
Voted to accede to Russia.
What has Russia done to Crimea since the annexation?
Strengthened the Black Sea fleet and supported further Russian separatist groups in eastern Ukraine where conflict still ensues.
What group was Russia membership suspended after the annexation of Crimea?
G8 became G7 emotional
What was the EU and USA’s response to the annexation?
Imposed trade sanctions on Russia
How was Russia effected by the trade sanctions placed on them after the annexation?
Negative impact on the economy by those imposed by the EU were limited as the EU is heavily dependent on Russian energy supply.
What will US possible do in Romania and Turkey to counter Russia strengthening of the Black Sea?
Strengthen its Black sea naval presence in the Romania and Turkey bases.
China chose to strategically expand globally, what two foreign policies show this?
-Investment in Africa
-The ‘Belt and Road’ initiative.
China’s objective when investing in Africa:
Extract a range of raw materials, including energy sources, minerals and precious metals to support industrial expansion in China.
China’s notable investments in Africa:
-Joint project with Ethiopia to build the grand renaissance dam to provide HEP.
-Developed port of Mombasa in Kenya and $14 bn road/bridge link to Nairobi
-Modernised Benguela railway linking DRC’s resources to Lobito.
-Constructed international airport in Luanda, Angola.
What is the belt and road initiative (BRI)?
Project that involves building a network of overland road, rail and pipeline corridors and maritime routes through ports and shipping lanes.
How much is the BRI expected to cost?
US$1 trillion and involves construction in 60+ countries.
BRI:
China-Pakistan corridor-
$48bn project between 2 countries to build a highway of roads, railways and pipelines from China to the port of Gwadar on the Arabian sea.
BRI:
Rail and road corridor into Europe-
To help landlocked economies develop with improved access to markets for their products.
Geopolitical concerns of the BRI:
-China too much leverage over countries (poorer/smaller ones)
-Will expect repayment from the countries that it’s investing in but China will be using foreign exchange assets.
-China’s commercial presence will lead to expanded military presence.
Comparative advantage-
Countries should specialise in providing goods and services that they excel as producing. They then trade for things they aren’t good at making. Theoretically production should increase in each country.
Multilateral trade agreement:
A trade agreement negotiated between more than 2 countries or groups of countries at the same time, usually facilitated by the WTO.
What is a barrier to trade?
A government-imposed restraint on the flow of international goods or services. The most common is a tariff.
Barriers to trade:
Import licence-
A document issued by a national government authorising the importation of certain goods from a specific source.
Barriers to trade:
Import quotas-
Quotas set a physical limit on restricting the quantity of a particular commodity that can be imported into the country within a specific period of time.
Barriers to trade:
Subsidies-
Grants or allowances usually awarded to domestic producers to reduce their costs and make them more competitive against imported goods.
Barriers to trade:
Sanctions-
These are restrictions on exports implemented for political reasons by countries and international organisations to maintain international peace and security.
Barriers to trade:
Embargoes-
Involve partial or complete prohibition of commerce and trade with a particular country. They are usually put into practice for political rather than commercial reasons.
Barriers to trade:
Regulatory or technical restrictions-
Restrictions placed on imports based on obstacles such as the quality standards of goods or how they are produced.
WTO has been trying to gradually lower barriers on international trade, what have they so far achieved?
-Reaching agreements has not been easy but average tariffs have been reduced.
-Since the global financial crisis of 2008-2009, multilateral trade agreements on a global scale have been difficult to achieve.
-International trade flows have fluctuated over recent years.
-COVID caused a major fall in the volume of trade.
Factors driving global patterns of trade:
Comparative advantage-
Countries specialise in producing and exporting goods that they can produce efficiently.
Factors driving global patterns of trade:
Proximity-
Countries are more likely to trade with their neighbours, partly because this reduces transport costs but also for cultural, historic or linguistic reasons.
Factors driving global patterns of trade:
Agglomeration-
Some industries tend to cluster in geographical areas as sharing of regional skills and specialist information saves costs.
Factors driving global patterns of trade:
Market size and strength-
Exporters are drawn to larger, more affluent and growing markets where there is potential to increase sales.
Factors driving global patterns of trade:
Geopolitical relationships-
Political alliances are important in determining which countries co-operate and trade with eachother.
Main patterns of global trade:
-Intra-regional trade is strong in Europe and Asia-Pacific.
-Latin America and Sub-Saharan Africa, less intra-regional trade.
-Latin America has strongest trade flows with N America and good flows with Europe and Asia-P.
-N America , mainly US, has a trade deficit with all other regions but Asia-P has a surplus.
Trends for FDI according to UN Conference on Trade and Development in 2019:
-Developing countries receive 2X as much FDI as they initiate
-FDI from N America slumped
-Asia-P region accounts for 40% of FDI inflows
-8/20 top recipients of FDI were developing economies
-Largest FDI investors- France, Japan, China.
Attractions for FDI investment:
Manufacturing industries-
Foreign motor companies investing in the USA and UK or offshoring and outsourcing investment in China and India.
Attractions for FDI investment:
Natural resource development-
Investment from mining corporations, e.g Brazil, Congo, Guyana and Mongolia.
Attractions for FDI investment:
Financial business services-
Attract investment in Singapore and Hong Kong.
Attractions for FDI investment:
Large and accessible consumer markets-
Attract both manufacturers and service providers.
Attractions for FDI investment:
Lower business taxes-
Attract investment to Ireland and Cyprus.
USA as a HDE:
What negotiations was Obama making that Trump reverse?
Free trade agreements with Asia-P countries and the EU. Trump reversed Obama’s strategy of ‘opening up’ to multilateral trade agreements.
USA as a HDE:
What negotiations did Trump pull out of? (specifics)
TTP negotiations with countries around the Pacific. Other countries involved have since restarted negotiations.
USA as a HDE:
The US has __ separate free trade agreements.
20, some with countries in the TPP group; others mainly central America.
EU as a HDE:
What % of the trade in the EU is intra-regional?
65%
EU as a HDE:
With which countries outside the EU have they negotiated trade deals bilaterally with?
Australia, New Zealand, Mexico, Japan, Singapore, Vietnam.
EU as a HDE:
What was the Canada-EU deal?
Virtually free trade and regulatory compatibility.
EU as a HDE:
What agreement are countries doubting?
Mercosur, the South American trading bloc
EU as a HDE:
Why are farmers worried about the Mercosur agreement?
Farmers in Belgium, France and the Netherlands are concerned that the imports of cheap beef and sugar will lead to unfair competiton.
EU as a HDE:
Why are environmental groups worried about the Mercosur agreement?
Suggest that Brazilian and Argentinian cattle are injected with chemicals and Mercosur countries do not meet EU standards in working conditions, food production or environmental protection.
China as an emerging economy:
What % of all global exports and what % of imports is China responsible for?
20% exports
15% imports
China as an emerging economy:
Where do China import raw materials from and what do they export?
-Latin America and Sub-Saharan Africa
-Export processed metals such as steel and manufactured electronic consumer goods to developed countries.
China as an emerging economy:
What happened that escalated into a trade war with the US?
Export of cheaply produced, state-subsidised steel onto the world market has triggered the trade war. Escalated into imposition of high tariffs on traded goods between the 2 countries
India as an emerging economy:
What are their top exports?
Refined petroleum, chemicals, gold and diamonds, rice, cars and textiles.
India as an emerging economy:
What are their top imports?
Crude oil, coal briquettes and gas.
India as an emerging economy:
Where are their main export destinations?
EU, USA, UAE, China, Hong Kong, Singapore.
India as an emerging economy:
Where are their main imports from?
China, USA, Saudi Arabia and UAE.
Latin America as a less developed economy:
2 distinct trading blocs:
Mercosur and the Pacific alliance.
Latin America as a less developed economy:
Mercosur members-
Brazil, Argentina, Uruguay and Paraguay.
Latin America as a less developed economy:
What does Mercosur allow for between members?
Free movement of labour
Latin America as a less developed economy:
Mercosur’s most exported products-
Raw materials, energy, mineral and food resources.
Latin America as a less developed economy:
Mercosur’s main markets?
Mineral exports to China
EU and N America is its main markets.
Latin America as a less developed economy:
Pacific alliance members:
Chile, Peru, Colombia and Mexico
Ecuador is expected to join.
Latin America as a less developed economy:
What has the Pacific alliance been more open to making with other nations?
Bilateral trade agreements
Latin America as a less developed economy:
Pacific alliance’s main market-
Asia-Pacific
Sub-Saharan Africa as a less developed economy:
What type of trade is the minimal of?
Intra-regional trade.
Sub-Saharan Africa as a less developed economy:
Main exports:
Primary resources and commodities such as minerals, energy and food resources.
Sub-Saharan Africa as a less developed economy:
What has discouraged investment into their industrial development?
Lack of skills, poor transport and energy infrastructure and widespread corruption.
Sub-Saharan Africa as a less developed economy:
Who was traditionally Africa’s main trading partner and who is it now?
Traditionally had been Europe, but it changed with China’s involvement in the continent.
How can China’s investment change Africa’s trading relationships?
Increased connectivity and integration of different African nations.
AfCFTA:
African Continent Free Trade Area.
How can AfCFTA help Africa’s trading relationships?
Africa has 5 regional trading groups with minimal integration but in 2018 they created AfCFTA. World’s largest free trade area.
-Increase intra-regional trade which is critical for growth.
-Gives African nations more voice/leverage in global trade.
Fair trade in LDEs:
A social movement whose goal is to help producers in LDEs achieve better trading conditions. Focuses on agricultural-based products.
TNCs are able to force down prices in LDEs because:
-Individual suppliers have little market influence
-And are extremely reliant on the income from their goods.
Why do wealthier economies have better access to markets?
-Can afford to pay higher tariffs on exports
-investing into foreign markets
-HDEs often group together to form trading blocs and customs unions to allow free trade within each other.
Because LDEs struggle to pay high tariffs what do they focus on instead?
Exporting primary products that are traditionally subject to price volatility. This reinforces inequality.
Why is it better to be a pat of a trade agreement than left out?
-Gives more leverage when trying to gain access to other markets
-Open wider markets especially for LDEs
-Non-inclusion reinforces a position of isolation and having to overcome trade barriers to gain access.
Social and economic effects of having poor access to international markets:
-Lack of money for investments or development
-Deters foreign investment
-Balance of payment problems incraese debt and reduce economic growth.
-Limited development will cause unemployment and poverty.
-Limited range of affordable goods
-Lack of ability to trade can threaten food/energy security.
Special and differential treatment agreements (SDT):
Been a feature of WTO’s multilateral trading system for the past 60 years. UN Assembly created a category of less developed countries to provide them with support measures to overcome disadvantages. This gave LDCs preferential access through SDT to develop markets.
SDT agreements mean LDEs should:
-Enjoy privileged access to the markets of their trading partners
-Have the right to restrict imports to a greater degree than developed countries
-Be allowed additional freedomto subsidise exports
Criticisms of SDTs:
-WTO Doha development trade talks made little development in making SDT measures more effective in developing countries.
-Richer nations are concerned that non-reciprocal preferential trading agreements cause unfair trade as countries such as China still have ‘developig country’ status.
-Agreements are diffcult to apply in a fair or standardised manner. Lack of reciprication deters some rich nations.
Why TNCS operate in multiple countries:
Escape tarrifs-
-E.g Nissan’s decision to produce cars in Sunderland was largely to gain barrier-free access to the EU market.
Why TNCS operate in multiple countries:
Lowest cost location for production-
-E.g Hewlett-Packard in Malaysia
Why TNCS operate in multiple countries:
Advantagte of foreign exchange rates-
-Make exports cheaper: E.g Dyson in Malaysia.
Why TNCS operate in multiple countries:
Reach foreign markets more effectively-
-E.g Mcdonalds
Why TNCS operate in multiple countries:
Exploit resources-
-E.g BP in Azerbaijan.
Common characteristics in TNCs:
-Maximise global economies of scale by organising production to reduce costs.
-Sourcing raw materials or components at low costs
-Controlling key supply chains
-Control of processing at each stage of production
-Branding of products/services so they are easily recognisable.
How do TNCs maintain their position competitively?
Engage in research and development activities. These tend to be based in the country of origin and will often locate near to centres of higher education.
Offshoring:
Relocating part of the organisation, such as manufacturing operations, to an overseas location to take advantage of lower costs or alternatively to access foreign markets. Includes TNCs putting factories in higher wage economies for wealthier market.
Outsourcing:
Strategy that involves subcontracting part of the business operation to another company, usually in another country where costs are lower.
Where are production operations of primary sector TNCs usually based?
Where there is unexploited resources, mainly developing economies.
Where are production operations of secondary sector TNCs usually based?
Manufacturing regions have largely been located in the manufacturing regions of developing countries, especially South East and South Asia.
Why does south and south east Asia attract TNCs?
-Low labour costs
-Investment in education, easier to train workers
-Work ethic, willing to work long hours with minimal holidays
-Government incentives e.g tax-free breaks
Where are production operations of service sector TNCs usually based?
Footloose and will locate either with low labour costs balanced with good education or in proximity to their markets.
Agglomeration:
When companies in similar industries locate near to each other because of the benefits gained by sharing ideas and resources.
Multiplier (effect):
A situation where an initial injection of investment or capital into an economy in turn creates additional income by, for example, increasing employment, wages, spending and tax revenues.
Links with TNCs:
Links with other countries can be made by investing in them and by establishing joint ventures with national or state controlled companies.
Vertical integration:
An arrangement in which the supply chain of a company is owned entirely by that company, from raw material through to the finished product.
Horizontal integration:
A strategy where a company diversifies its operations by expansion, merger or takeover to give a broader capability at the same stage of production. Either complementary or competitive to its existing business.
Where do the majority of TNCs trade?
Highly developed economies in N America, Europe, and the far East.
Where is creating a rapidly increasing demand for consumer goods?
Emerging economies in the Middle east, Latin America, and South East Asia.
What have TNC activities in emerging economies changed their focus to?
Developed from a focus on production for export to becoming supplier to internal markets to meet ever-growing consumption in those countries.
What do TNCs use to take advantage of marketing economies and give clear identity through branding?
Global marketing strategies.
What is Apple:
A US transnational electronic corporation with it’s company HQ based at Apple Park in northern California.
Apple:
Production and Marketing-
High-tech products and services including iPhones, iPads, Apple Watch, Apple TV and the MacPro. Marketed globally under its universal ‘i’ brand or as ‘Apple’.
Apple:
Where and when did it start?
including its growth*
Started in 1976 as a personal computer manufacturer. 1982 took over the smaller Macintosh organisation and launched a new brand of desktop computer that later became AppleMac computers
Apple:
In 2019, it was the world’s:
-Largest IT company by revenue
-3rd largest mobile phone manufacturer
-Number one global brand by value (US$234 billion)
Apple:
There success has been due to a number of factors:
-Stylish and well-designed products
-Slick marketing and branding- generating loyal customers
-Innovative products regularly updated
-Focus on highly mobile devices that fit market needs
-Online sales with ancillary products, e.g music and tv programmes
-Diversification into new tech and platforms
Apple:
Where are their main products designed?
Silicon Valley, California
Apple:
Where are their products made?
China by Foxconn, a Taiwanese company.
Apple:
How many people are employed doing manufacturing for apple?
2.5 million
Apple:
What facility do they have in Texas and how many people does that employ?
MacPro assemble facility and large campus, employing 6000 people at Austin, Texas, planning to expand to 10,000 people.
Apple:
How many people work for Apple across the USA?
90,000
Apple:
Where is the Apple European, Middle Eastern and African HQ?
Cork, Ireland
Apple:
How many people does Apple employ in Cork and what does this location act as other than the HQ?
6000 people, and acts as a global transports logistics hub for Apple, organising shipments of assembled iPhones and iPads.
Apple:
What companies is the assembly of the main products outsourced to?
Foxconn and Pegatron- both Taiwanese electronics corporations. Foxconn is Apples longest running partner, its main production base is in Shenzen near Hong Kong.
All the Foxconn assmebly sites employ nearly 1 million workers.
Apple:
Where are the Apple stores located?
Of its 511 retail stores, over half are in the US, 115 are in Europe and the Middle East and 42 are in China.
Apple:
Reasons production is based in China:
-They are able to outsource production to established Taiwanese electronics firms such as Foxconn (low production costs)
-Large, young, skilled, non-unionised workforce, who work long hours
-Shenzen was the location of China’s most successful Special Economic Zone (SEZ) offering incentives to attract companies.
Apple:
What do they do that reduces stockpiling and the number of warehouses?
Components shipped directly from their original sources to the assembly complexes in China. This inventory management reduces costs and generates higher profitability compared to its competitors.
Apple in Ireland:
Why did they base the HQ here?
In 1980s there was high unemployment, and by the government’s 12.5% corporation tax, the second lowest in the EU.
Apple in Ireland:
How has this helped Ireland’s reputation?
It helps their global connectivity, over 100 poeple work in the logistics team, remotely shipping products to over 50 countries.
Apple in Ireland:
How many jobs has this generated for workers employed in ancillary work?
3000
Apple in Ireland:
What has this attracted to the area?
Highly skilled workforce and provided an inspiration to local education.
Attracted other high-tech firms.
Apple in Ireland:
What is Apple criticised for, regarding workers?
Not creating sufficient work for locals as most of the highly skilled workers are foreign.
90 nationalities there, 700 French and 460 Germans- 53 different languages are spoken.
At least 60% of the workers are Irish..?
Apple regarding tax:
How does Apple use subsidairy firms to reduce tax?
Use subsidairy firms in other locations to declare profits and pay a lower tax rate.
Apple regarding tax:
Who did the EU and US claim was giving Apple favourable tax?
The Irish government.
Apple regarding tax:
What tension erosed and how much did Apple have to pay for unpaid taxes?
USA and EU said apple owed them tax on their profits. EU Competition Commissioner concluded Apple had to pay them $13 billion for 2004-2014.
Apple in China:
Working conditions-
Workers for Foxconn live on site where they have dorms, shops and cafes. Work on avg 62 hours a week for $300 per month, half of which is taken up by living expenses.
Apple has attempted to improve these conditions… apparently?
Apple in China:
Health and safety-
Apple products in the past have been exposed to toxic cleaning products. It is suggested that earplugs and goggles are not always provided.
Apple in China:
Student and child labour-
Student interns were made to work excessive hours.
Apple watches manufacturer employed high school students as interns, illegal in China to employ under 18 as interns.
Apple now limits it to 10% of workers can be student interns.
Apple’s environmental issues:
What is ‘Green my Apple’?
Following criticisms of its practices by Greenpeace, they responded with the green my apple campaign.
Apple’s environmental issues:
What updates have they made to energy useage?
100% renewable energy in the US facilities and iy established its own energy company from solar power (Apple Energy).
Apple’s environmental issues:
What changes have been made to the use of materials?
Removed all PVC plastics and toxic chemicals.
Promotes recycling the products thoughy ‘reparability’ is still an issue.
Apple’s trading and marketing:
In 2019 what % of product sales were in the US?
`45%
Apple’s trading and marketing:
What are the repercussions of Apple being caught in the trade war between US and China?
Heavy tariffs on Chinese imports to the US.
Apple’s trading and marketing:
What has Apple does to help re-invigorate domestic manufacturing?
Investing more in US domestic suppliers and manufacturers. Pledged to create 20,00 more jobs and invest $5 billion to support innovation in US manufacturers.
Apple’s trading and marketing:
Why has Apple’s market in China declined?
Chinese smartphone manufacturer Hauwei has caused the market for Apple products to plateau.
Apple’s trading and marketing:
Why has it been unsuccessful for Apple to enter the Indian market?
It is led by much cheaper competitors.
Bananas:
They are the 4th most…what?
Fourth most important food product in developed countries being a staple for 500 million people. Most internationally traded fruit, generating $15 billion a year.
Bananas:
Where are they often traded from?
5th most traded agricultural commodity, from Latin America and the Caribbean, estimated at 23.3 million tonnes.
Bananas:
What % of bananas are produced for local/national consumption?
80%
Bananas:
What climate do bananas need to grow?
Hot, rainy lowlands of tropical regions.
Bananas:
Top 4 producers:
*and consumers
China, India, Indonesia and Brazil, they are also the top consumers as their output is mostly consumed domestically.
Bananas:
Where are the main places for commercial production of bananas?
Latin America and the Caribbean.
Bananas:
What Latin American countries are highly dependent on banana exports?
Ecuador, Costa Rica and Guatemala.
Bananas:
Where do the Philippines export their bananas to?
Japan and other parts of East Asia and the Middle East.
Bananas:
How do producers stop bananas getting diseases as they are highly susceptible?
Treated with chemicals thorughout the production cycle, commercial plantations apply 30kg of ingredients per hectare, per year.
Bananas:
Why does this industry have the largest agrochemical input into the environment?
Fertilisers are applied regularly and after harvesting the fruit is washed with disinfectant.
Bananas:
How do plantations damage the environment?
Deforestation, soil fertility (contaminants) and loss of biodiversity (especially aquatic life as pollutants run into the water).
Bananas:
What 2 different groups of producers dominate world trade?
ACP group- small and medium sized producers
Dollar producers- of Latin America controlled by large US TNCs.
Bananas:
What type of plantations are most bananas for exports grown on?
Monoculture plantations, especially in Latin America and Africa.
Bananas:
Who mainly controls banana production in the Caribbean?
Small- and medium-scale growers on family farms and co-operatives. Philippines and Africa have a similar structure but TNC involvement is growing.
Bananas:
Who is the main commercial producers in Asia and who in Africa?
Philippines and the two in Africa are Cote d’lvoire and Cameroon.
Bananas:
Largest importers?
EU/ USA
Bananas:
Where does the money go that the consumer pays?
85% stays in the richer country and never reaches the producer. Retailers take the most. Workers receive between 5 and 9% of the total value of bananas, retail managers get 36-43%
Bananas:
What TNCs dominate the banana trade?
Chiquita, Dole, Del Monte (US based) and Fyffes (based in Ireland). Noboa is based in Ecuador. They are vertically integrated into the supply chain. Have their own sea transport and ripening facilities.
Bananas:
What % did the big 5 companies control of the market in 2002? And what was it in 2017?
70%
2017- 45%
Bananas:
What has happened that has given retailers an increasingly dominant role in the supply chain?
Big companies freed themselves from direct ownership or plantations. More national growing companies based in Ecuador, Costa Rica and Colombia sell their produce to TNCs or directly to retailers.
Bananas:
Why have suppliers gradually had to accept poorer conditions of sales?
Market share has become concentrated in the hands of fewer retailers so they have had to accept low prices, discounts and delayed payments of risk being taken from the supplier list.
Bananas:
How long was the trade war (one of the longest in history)?
20 years, 1992-2012
Bananas:
What started the trade war?
Started in 1975 when EU countries negotiated a trade agreement with former colonies. The agreement was the Lome Convention with 71 African, Caribbean and Pacific countries, many who were banana producers.
Bananas:
Who was the Lome convention agreement extended to?
Cameroon, DR, Belize, Ivory Coast, Jamaica, Ghana, Surinam and Windward Isles.
Bananas:
What did the Lome Convention agreement protect?
Smaller, family-run farms in the Caribbean and Africa from competition.
Bananas:
Who complained that the Lome Convention agreement was unfair, why?
US TNCs as they controlled the Latin American crop which supplied 75% of the EU market, 7% came from Caribbean suppliers. The WTO ordered the EU to cease the discrimination.
Bananas:
What was the USA’s reaction to the trade war with the EU?
Government imposed WTO approved sanctions on a range of EU products.
Bananas:
How did the trade war end?
A compromise was eventually reached in Geneva (2009) with the EU agreeing to gradually reduce tariffs on Latin American bananas from 2012.
Bananas:
What is a race to the bottom?
Large companies relocating their plantations, increasingly to West Africa, in search for lower labour costs and weaker legislations.
Bananas:
What is Cavendish cultivar, and why is it popular?
A banana variety which accounts for 47% of bananas grown, makes up 99% of global trade. It is resistant to tropical race 1 (fungus).
Beneficiaries from globalisation of trade:
Emerging economies-
Some medium income nations have developed rapidly as a result of inward investment and have emerged to become major economic powers.
Beneficiaries from globalisation of trade:
TNCs-
Large companies have grown in a number of different industrial and service sectors and although they are mainly based in the developed countries, TNCs from emerging economies have become global powers.
Beneficiaries from globalisation of trade:
International organisation-
Such as IMF, WTO, World Bank have all contributed to the integration of economies and have consolidated their position and control of global systems.
Beneficiaries from globalisation of trade:
Regional trading blocs-
Trade agreements evolved to benefit their members, some argue at the cost of the nation state. Free trade areas and customs unions are expanding among developing countries in Asia, Latin America and Africa. Improves negotiating leverage and offers more access.
Social and cultural impacts of globalisation of trade:
-Allowed for greater sharing of ideas, lifestyles and conditions. Greater access to foreign media, food ,etc.
-Cultural homogeny, over-standardised of goods and services.
-Glocalisation: Thinking globally but acting locally to reduce cultural dilution.
-Awareness of global news and events, good for info, bad for propaganda.
Glocalisation:
A term used to describe products or services that are distributed globally but which are fashioned to appeal to consumers in a local market.
Environmental consequences of globalisation of trade:
-More transportation, emissions
-Depletion of non-renewable resources
-TNCs outsourcing production to countries where environmental standards aren’t strict.
-Weak controls allowing pollution
-Waste from packaging
-IMF-enforced spending cuts reducing many nations’ spending on the environment
-Greater movement= diseases.
Environmental sustainability:
A state on which the demands placed on the environment can be met without reducing the quality of the environment for the future.
Global common:
Resource domains or areas that lie outside political reach of any one nation state.
Global governance:
A movement of political integration aimed at negotiating responses to problems that affect more than one state or region.
Norms:
Shared values, traditions and customs that govern behaviour in society.
Reproduction:
The way that existing global systems remain largely unchanged and are even extended and reinforced by regulation.
What does global governance regulate and why?
Interconnected global economic, social, political and environmental systems to keep them stable and in balance.
Regulation:
Enforcing sets of rules that have been agreed by nations involved.
When was the UN founded and how many member states does it have?
1945, 193 states
What does the UN promote?
Peace, security, and co-operation.
UN’s principles:
-Taking action on issues that face humanity, e.g peace, climate change, rights, poverty, ect.
-Fostering co-operation by facilitating dialogue and negotiations between nations.
What is the UN criticised for?
-Lack of agreement and inaction on security issues.
-Limited power to enforce compliance to regulations by governments.
-Supports the status quo, with more powerful nations setting the agenda for their own self interest.
When and why were the international monetary fund (IMF) and World Bank established?
1945 to stabilise the global economy and provide financial stability.
They both underpin the interdependency that exists in the global flow of finance.
Criticisms of the World Bank and IMF:
-IMF funding is paid by members and influenced by their wealth.
-IMF known to impose severe cuts on spending by governments in developing countries.
-Rescue loans provided by IMF only stabilise international trade; give high interest rates to borrowing country
-World Bank loans insist on reproduction of capitalist and free-trade market models in loanee’s economy (doesn’t help poverty)
-World Bank funds major top down projects which doesn’t help poverty
Bottom up:
When local people are consulted and supported in making decisions to undertake projects or developments that meet their specific needs.
Top down:
The decision to undertake projects or developments is made by central authority with little or no consultation with local people who it will affect.
When did the WTO start, how many members does it have and what % of world trade does it cover?
1995
164
98%
What is the WTO responsible for?
Facilitating international trade
How does the WTO provide stability and confidence in the international trading system?
-Undertaking of liberalisation of trade by encouraging the removal of barriers/ protectionist policies
-Resolving trade disputes
-Provides a forum for trade negotiation
-Administers trade agreements
What happened in the Doha Development Round 2001-2015?
Focused on reforming trade of agricultural produce, aim to help less developed nations out of poverty. Progress was achieved to redress inequalities in access for LDEs to HDE markets but it was impossible to reach a multi-lateral trade agreement with 164 countries.
Multiscalar power:
The ability to influence change is vested in citizens, governments, institutions and other interested groups located and acting at different geographical scales.
Bilateral agreement:
An agreement on trade that is negotiated between two countries or two groups of countries at the same time.
Multilateral agreement:
An agreement negotiated between more than 2 countries or groups of countries at the same time.
NGOs:
Any non-profit, non-commercial organisation with a common interest working independently of government influence.
Civil society:
Third sector of societal decision-making, distinct from government and business.
Earth summit, Rio de Janeiro 1992:
Agenda 21: UN non-binding resolution that was seen as a blueprint for sustainable development for the early part of the 21st century. 178 governments signed up.
Was Agenda 21 top-down or bottom-up?
Plans cascaded down from international agencies to national governments and then to regional government.
What was agreed at the Paris Climate Summit 2015?
To combat climate change. Ratified by nearly all national governments. central aim is to keep global temperature rise to well-below 2 degrees c above pre-industrial levels.
What did the UK declaration of an Environment and Climate Emergency acknowledge?
-Emergency signals a more urgent response is required.
-Politicians at all loves should engage with climate and environment issues
What have NGOs emerged as a global force to:
-Democratise decision-making
-Protect human rights
-Provide essential services to the most needy.
Operational NGOs:
Providing frontline support services to the needy
Advocacy NGOs:
Those who focus on campaigns to raise awareness to gain support and donations.
4 recognised global commons:
-High seas
-Atmosphere
-Antarctica
-Outer space
-Sometimes cyber space
Global commons is guided by the ‘common heritage of mankind principle’. What is this?
Natural resources in defined territories or spaces are held in common by all nations. These are to be distributed equitably to everybody.
How has access to global commons changed:
-Advances in tech
-Greater scarcity of resources, especially minerals, etc, puts increasing pressure on global commons.
Laws and treaties protecting the global commons:
-High seas: UN Convention on the Law of the Sea (UNCLOS)
-Atmosphere: United Nations Framework Convention on Climate Change (UNFCCC)
-Antarctica: Antarctic Treaty Systems
-Outer space: Outer Space Treaty
Where is Antarctica in terms of the Antarctic Circle?
Most is south with the exception of parts of the East Antarctic coastline and Antarctic Peninsula which extends north.
What is Antarctica’s coast fringed by?
Ice shelves.
Largest Antarctic ice shevles:
-Ross Ice Shelf
-Ronne Ice Shelf
Antarctic Convergence Zone:
A zone continuously encircling Antarctica where cold northward flowing Antarctic waters meet the relatively warmer waters of the sub-Antarctic.
How wide is the Antarctic Convergence zone?
32-48km
What oceans does the Antarctic Convergence zone cover?
Atlantic, Pacific and Indian oceans between the 48th and 61st parallels of south latitude.
What happens in the Antarctic Convergence zone?
Cold, northward flowing Antarctic waters sink beneath sub-Antarctic waters. This forms associated areas of mixing and upwelling currents which are very high in marine productivity.
What does the Antarctic Convergence zone act as a natural boundary for?
-2 distinct hydrological regions
-Areas of distinct climate
-Areas of distinctive wildlife
What is the largest surface current in the world, and what does it do?
Antarctic Circumpolar Current. Blocks warmer waters travelling southwards. It flows in an eastward direction, driven by westerly winds and is also known as the West Wind Drift.
What lesser current flows in the opposite direction to the West Wind Drift?
East Wind Drift and is driven by easterly winds, features predominantly in the Ross and Weddell Seas.
What is the Antarctic Divergence?
The zone where opposite flowing currents meet.
(East Wind Drift and West Wind Drift)
What is the terrain of Antarctica like?
Mountainous, rocky and covered by glacial ice.
Transantarctic Mountains:
-Contains many peaks above 4,000m and it also divides the West and Easr ice sheets. East ice sheet is larger, thicker and older than the west.
Where is the highest continent above sea level?
Antarctica
Climate features of Antarctica:
-Avg temp: -50C, can be as low as -89C
-Annual mean wind speed: 50mph, gales up to 200mph
-Annual mean precipitation: falls mainly as snow, 50mm
-Polar desert
How are the ice sheets formed?
They are 2.5km thick and are the result of an accumulation of small inputs of snow and frost, which exceed ablation rates, over a long period of time.
Features of the Antarctic ocean?
Surrounding sea temperatures are warmer than the land and marine conditions support a diverse ecosystem. Upwelling of cooler water from the ocean depths bring nutrients, which in turn support plankton.
Threats to Antarctica:
Fishing and Whaling- Why is the Antarctic ocean good for whales?
-Nutrient rich waters are a feeding ground for 80% of the world’s great whales.
Threats to Antarctica:
Fishing and Whaling- Why did Whalers turn to the Antarctic Ocean?
Populations in the North Atlantic reduced due to massive exploitation.
Threats to Antarctica:
Fishing and Whaling- Where have whaling stations been estabilshed?
South Georgia, and South Shetlands
Threats to Antarctica:
Fishing and Whaling- What products can be made from whaling?
Oil, whalebone, meat extract, frozen whale meat.
Threats to Antarctica:
Fishing and Whaling- Why was whaling in the Antarctic no longer viable in ther 1960s?
Populations had declined by over 90% due to over killing and many species became endangered.
Threats to Antarctica:
Fishing and Whaling-What did the International Whaling Commission place on commercial whaling in 1986? Who reacted badly?
Place a moratorium on commerical whaling, however, Japan’s position on whaling caused international tensions over the issue. Whales in the Southern Ocean are now protected but there
is an underlying threat from Japan and other pro-whaling nations.
Threats to Antarctica:
Fishing and Whaling- What activity has now replaced whaling in the area, and who is a worry?
Fishing!
Russian ships began to expoilt the Southern Ocean, concerns have been expressed of the quantity of fish being taken, especially Russian and Japanese ships fishing for krill.
Threats to Antarctica:
Fishing and Whaling- What are krill? What are they used for?
Shrimp-like crustaceans that are vital to the Southern Ocean’s food chain. They get processed into feed for fish farms. Krill oil is used for preventing hypertension, strokes and depression.
Threats to Antarctica:
Fishing and Whaling- What is the threat of commercial fishsing?
High risk of overfishing of target species, by-catch and direct destruction of marine habitats by boats and gear. Ships also dump waste into the water which contaminates the ocean.
Threats to Antarctica:
Climate Change- What is the difference between the east and west sides?
East is seeing small amounts of sea ice however the west is losing significant quantities of both land and sea ice.
Threats to Antarctica:
Climate Change Antarctic Peninsula- How do we know this is sensitive to climate change?
Air temp increases of nearly 3C in the last 50 years which is a much faster rate than the global average. West Antarctic Ice Sheet has thinned significantly.
Threats to Antarctica:
Climate Change Antarctic Peninsula-How have Southern Ocean temps changed since 1955?
Increased by over 1C degrees.The Antarctic Circumpolar Current is warming more rapidly than the global ocean as a whole.
Threats to Antarctica:
Climate Change Antarctic Peninsula- Effects of warming on the environment:
-Distribution of penguin colonies has changed
-Melting of snow and ice cover has increased colonisation of plants
-Decline in abundance of Antarctic Krill
-Glaciers and ice shelves fringing the peninsula have retreated, some collapsed entirely.
-Thwaites Glacie is melting the fastest , complete collapse can cause a 63m sea level rise.
Threats to Antarctica:
Climate Change East Antarctica- What is unusual about the effects of global warming here?
Ice is expanding on the eastern side of Antarctica towards the Indian and Pacific Oceans.
Threats to Antarctica:
Climate Change East Antarctica- How is sea ice formed?
It is one to two metyers thick, formed when water is cooled sufficiently by the surrounding atmosphere.
Threats to Antarctica:
Climate Change East Antarctica- 4 reasons why climate change may contribute to Antarctic sea ice expansion:
-Increasing westerly winds around the Southern Ocean, caused by climate change and ozone depletion are driving the seas northward.
-More rain and snow resulting from climate change are layering the ocean with cooler, denser layer on top.
-Storms freshen the water, raising the temp needed for ice to form
-Increased melting of continental land ice creates more floating icebergs which contribute to sea ice formation.
Threats to Antarctica:
Climate Change- How does the ocean water’s pH decline?
An increase in atmospheric carbon dioxide concentrations creating carbonic acid, which makes oceans slightly less alkaline.
Threats to Antarctica:
Climate Change- How does ocean pH levels effect the marine environments?
Make any adaptations difficult as it is rapidly increasing.
Corrosive to unprotected shells and exoskeletons of organisms.
Threats to Antarctica:
Search for Mineral Resources- Why has there never been commercial mining in Antarctica?
Antarctic Treaty
Threats to Antarctica:
Search for Mineral Resources- Why is exploitation unviable?
Difficult and dangerous conditions. Extracting resources andthen setting up a transport system across moving glacviers amd melting streams is impossible.
Threats to Antarctica:
Search for Mineral Resources- What change was made to the initial moratorium?
Initially mining was voluntary but the issue was raised in the 1980s. This was later countered my the Madrid protocol which protects Antarctica until 2048.
Threats to Antarctica:
Tourism and Scientific Research- Who are the main human threats to Antarctica?
Scientists and tourists as Antarctica is not populated.
Threats to Antarctica:
Tourism and Scientific Research- What are scientific researchers breifed on?
The need for create of the Antarctic environment but any activity is bound to create some degree of disturbance.
Threats to Antarctica:
Tourism and Scientific Research- Impacts caused by scietific research?
Vehicle exhausts. construction of buildings and related facilities such as fuel storage, runways and the disposal of waste such as rope, fuel, etc.
Threats to Antarctica:
Tourism and Scientific Research- Seaborne tourism:
A cruise derparting from Argentina or Chile, with the opporunity to transfer to smaller boats for landing or cruising close to shore.
Threats to Antarctica:
Tourism and Scientific Research- Airborne tourism:
Flying from Australia, New zealand or South America; can involve scenic flights over the continent or in some cases landing.
Threats to Antarctica:
Tourism and Scientific Research- Fly cruises:
Flights land on King George Island from where the visitors will take a cruise boat.
Threats to Antarctica:
Tourism and Scientific Research- Why do tourists go there?
Glacial landscapes, wildlife, penguines, historic sites, remoteness, isolation of true wildness.
Threats to Antarctica:
Tourism and Scientific Research- How has the nuber of tourists who visit changed since the 1950s?
A few hundred special visitors in 1950s.
Nearly 56,000 in 2018-19.
Threats to Antarctica:
Tourism and Scientific Research- How do the international association of Antarctic tour operators try to minimise effects of tourism?
-No large ships of 500+ passengers are allowed to visit, most ships have 50-200 people.
-When landing, groups must be divided into boatloads of 20 people
-Briefing tourists on a code of behaviour
-Each site can only be visited once every 3-4 days.
Threats to Antarctica:
Vulnerability to environmental change- Scientific Committee on Antarctic Research monitor resilience:
Gives an ecosystem to ability to recover from ‘shock’ events, disturbances or ongoing change, whther natural are human caused.
Endemic species are usually more resilient to shock events as they evolves strategies to allow their populations to rebuild.
Threats to Antarctica:
Vulnerability to environmental change- Scientific Committee on Antarctic Research monitor adaption:
The ability of an ecosystem to return to an equilibrium status is linked to the adaptation of species changing conditions.
Threats to Antarctica:
Vulnerability to environmental change- Scientific Committee on Antarctic Research monitor mitigation:
Intervention by humans to eliminate or reduce the impacts presented by these threats.
When was the Antarctic treaty drafted and implemented? How many nations originally signed?
Drafted- 1959
Into force- 1961
Member nations- 12
What clauses were in the Antarctic treaty?
-Antarctica bbe used exclusively for peaceful purposes
-Continued freedom to conduct scientific research
-International scientific co-operation
-Freezes any claims to sovereignty for the duration of the treaty
-Prohibits nuclear explosions and the disposal or radio active waste
-Ships, stations and equipment to be inspected by observers to ensure compliance
-Parties give advace notice of their expeditions
-Dispute settlement procedure.
What does it mean that members of at AT operate on a consensus basis?
Regardless of size pf status, they all work on equal footing with others.
What was the reason China and India become AT signatories?
Interested in gaining influence in the control of resources in Antarctica.
How did the AT members reactyed to ourside pressure?
Under the ‘common heritage of mankind’, AT member accepted proposals from the UN that the United Nations Environment Programme would extend the treaty and add agreements that strengthen and secure protection. Led to establishment of ATS.
How many member states are ther of the Antarctic Treaty System?
12 original members and a further 19 consultative parties. Also includes NGOs and scientific institutions.
What agreements did they add to the ATS?
-Protection of environment
-Conservation of plants and animals
-Preservation of historic sites
-Management of protected areas
-Management of tourism
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What is the terms of the Madrid protocol (1991)?
-Designates Antarctica a natural reserve
-Establishes environmental principles for the conduct of all activites
-Prohibits mining/ mineral exploration
-Established a committee for environmental protection
-Requires operators to develop contingency plans to respond to environmental emergencies
-Waste of all kinds be returned to the country of origin wherever possible.
IWC oversees the measures laid down by the whaling convention, these measures:
Provide complete protection of certain wale species
-Designate specified areas as whale sanctuaries
-Limits numbers/size of whales which may be taken
-Open and closed seasons and areas for whaling
-Prohibit capture of valves and females with calves
-Requires catch reports.
Different types of whaling:
-Aboriginal subsistence whaling
-Commercial whaling
-Special permit whaling for scientific research
What is the whaling moratorium?
A suspension on commercial whaling on all stocks from 1986 onwards.
Japan’s issues with the whaling moratorium:
-Japan evaded the moratorium by ‘special permit’ which exploited a loophole
-Japan’s whaling activities were continually monitored by a conservation NGO
-2014- International Court of Justice ruled Japan’s whaling fleet has been commerically whaling
What is the Florianopolis Declaration?
IWC members concluded the moratorium would continue in perpetuity to allow rcovery of whale populations to pre-industrial levels. Japan withdrew it’s membership to copmmercially whale in it’s own territories.
NGOs as guardians of the Antarctic:
Monitor and challenge the decision making of ATS members and promote alternatives.
NGOs as technicasl advisers of the Antarctic:
Make use of their experitse to gain acceptance and influence decisions made by ATS members.
NGOs as partners of the Antarctic:
Work with ATS members and other bodies to designate areas of protection .
NGOs as visionaries of the Antarctic:
Formulate long-term and large-scale strategies.
ASOC:
Antarctic and Southern Ocean Coalition
ASOC and ATS response to issues:
-Creation of systems of marine and terrestrial protected areas to preserve areas to preserve biodiversity and foster ecosystem resilience
-Incorporation of climate change into all relevant decisions
-Eco-system based management of fisheries
-Regulation of tourism.
Issues with protecting Antarctic:
Duration of agreements:
Environment protocol underpinning the ATS could be reviewed in 2048 and modified.
Issues with protecting Antarctic:
Territorial claims:
ATS has not rejected any existing claim, but it prohibits their assertion as well as the establishment of new claims.
Issues with protecting Antarctic:
Impacts of human activity:
Does not help!
Issues with protecting Antarctic:
Marine protection areas (MPAs):
Likely lead to disagreements in ATS.
Issues with protecting Antarctic:
Climate change:
Important area for research that helps understand and adress climate change.
Issues with protecting Antarctic:
Geopolitics of Antarctica:
Issues with China and Russia.
Economic challenges of globalisation:
-Notion of economic growth/development was challenged in the 2009 financial crisis.
-It has ‘peaked’ or stalled
-Geopolitical tensions between the USA and China and ecalating tariffs
Social challenges of globalisation:
-Some destination countries for migrant workers experience racial tensions and conflicts of culture
-Transfer of manufacturing jobs from HDEs to lower cost economies cause unemployment, etc
Political challenges of globalisation:
-Failure to be inclusive has led to ‘populist’ movements, e.g:
-Brexit
-Election of Trump
Reasons for Brexit:
-Sovereignty- ‘take back control’
-Immigration- caused tensions and pressure on jobs/ services
-Inequality- Widening gap between rich and poor
-Pro-nationalistic feelings: Some people prefer independent Britain
Examples of ‘America-First’ measures since the Trump election:
-removal of US from the Trans-Pacific Partnership trade agreement
-Building a wall between USA and Mexico
-Encouragement of US car manufacturers to build factories in US not mexico.
-US withdrawal from Paris Climate agreement
-Increased tariffs on China and other parts of Asia to stimulate production in the US.
