Global systems and governance advanced information

Question 1

What is globalisation

Answer 1

The process of the world’s economies, political systems and cultures becoming more interconnected.

Question 2

How do financial systems promote globalisation

Answer 2

Investors from around the world invest into companies from other parts of the world.

Information technology- The internet has made it easier to see if businesses from around the world are performing well making it easier to decide to invest.

Financial deregulation- Less restrictions on capital flowing in and out of a country allowing for more easy investment.

Question 3

How to trade agreements promote globalisation

Answer 3

Trade agreements make it easier for countries to trade through removal of tariffs. Trade agreements benefit all countries involved and the companies based their. This makes them more reliant on each other therefore promoting globalisation.

Question 4

How has development of new technologies promoted globalisation

Answer 4

Technology such as the internet has advanced rapidly allowing people from all over the world to access the same information and advancements in technology with aeroplanes have also allowed for easier transport of labour and goods.

Question 5

How has transport promoted globalisation

Answer 5

Improved rail networks, better planes and ships make transport easier.
Uniform metal containers allows them to be placed on ships and then loaded straight onto other forms of transport.

Question 6

How has communications promoted globalisation

Answer 6

Communications satellites allow for cheap, wireless communication between two devices no matter where they are.

Development of software such as email allows for free communication anywhere in the world.

Question 7

How has management and information systems promoted globalisation

Answer 7

Companies supply chains have become global. Companies may also have different operations in different parts of the world to reduce costs.
Economies of scale.
Outsourcing to different countries reduces costs.

Question 8

How does security promote globalisation

Answer 8

By working together like in NATO for example countries are able to improve security. This means they are able to deter common threats by working together.

Globalisation can make conflict more likely because developed countries may intervene in other countries to secure resources like oil for example.

Question 9

How does unequal flows of people create benefits and inequalities

Answer 9

Flows of people can bring benefits for example economic growth by doing jobs that the people of the country they are going to won’t want to do like mining.

It can bring inequalities less developed countries can suffer brain drain as skilled people leave taking their knowledge with them.

Question 10

How does unequal flows of money promote growth and cause inequalities

Answer 10

FDI can be good for a less developed country as they can benefit from their investment and expertise however it may be bad because FDI can create a dependency on the developed nation and also force out local businesses.

Question 11

How does unequal flows of ideas promote growth and cause inequalities

Answer 11

Ideas such as Neo-liberalism from developed countries can increase the free trade in a country which increases its development.

It can bring inequalities Neo-liberalism tends to concentrate wealth into the hands of a small group of large wealthy businesses in developed countries.

Question 12

How does unequal flows of technology led to innovation and caused inequalities

Answer 12

Led to innovation because the concentration of of technology in certain places like silicon valley can lead to rapid innovation which can benefit people all around the globe.

It can lead to inequalities because led developed countries cannot afford access to new technologies and also means developed countries will have better access to information and services.

Question 13

What is the volume and pattern of trade today

Answer 13

The growth of international trade has slowed in recent years e.g. the value of world trade in goods was only $0.5trillion higher in 2018 than 2013 (at US$19.48 trillion)​

​This is largely as a result of the increasing complexity of global supply chains for many manufactured products e.g. cars – thousands of different parts from around the world then imported to an assembly plant.​

Question 14

What is the trend of investment

Answer 14

In 2019, global FDI figures hit their 4th consecutive year of decline (at $1.39 trillion)​

FDI into developed countries was US$640 billion​

FDI into developing countries was US$750 billion​

Question 15

What is the nature and role of TNCs

Answer 15

TNCs are companies that operate in at least two countries. TNCs take many forms and appear in many sectors. ​

Not all TNCs originate from developed countries​

Not all are major global companies (although some have revenues larger than the total GDP of some nations)​

They can have significant political influence – persuading governments to reduce taxes or create special economic zones​

Question 16

What is the spatial organisation of TNCs

Answer 16

Headquarters tend to be in major cities within the home country.​

Most TNCs have subsidiary HQs in each continent or countries where their operations are based.​

R&D tends to be based in the home nation, near headquarters and near centres of higher education.

Manufacturing tends to be in lower economically developed countries where land, labour and material costs are lower.​

Question 17

What is linkage of TNCs

Answer 17

TNCs can expand by developing links with other companies in different countries. These links can be made by investing in partner companies/countries and establishing joint ventures.​

Vertical integration: an arrangement in which the supply chain of a company is owned entirely by that company, from the raw material to the finished product. This gives the TNC control over its supplies and stocks which reduces cost. ​

Question 18

What are the trading and marketing patterns of Apple

Answer 18

Apple’s market is predominantly in richer, developed countries. In 2019, 45% of product sales were in the US. In 2015-16 China temporarily became second largest market for Apple products, but now Europe is the second largest market.​

Apple has been caught in a trade war between the US and China which imposes heavy tariffs on Chinese imports to the US, meaning Apple pay for importing its products back to its main market in the USA.​

Question 19

How does the UN work to promote growth and stability

Answer 19

United nations development programme

Eradication of poverty and reduction of inequalities​

Operate in 170 countries and main aim is to promote the Millennium Development Goals (MDGs) which were 8 anti poverty targets set in 2000 which the world committed to achieve by 2015​

Now they are the Sustainable Development Goals for the next 15 years​

Question 20

How does the World Bank and IMF exacerbate inequalities

Answer 20

The World Bank and IMF may exacerbate inequalities by being based in the USA they are led by the USA and other developed countries which means less developed countries who need the help have less say.

Question 21

What is the scale of global governance

Answer 21

Agenda 21 – action plans cascaded from UN to national governments – then to regional and local decision making to influence individuals’ actions.​

Question 22

How is fishing and whaling a threat to Antarctica

Answer 22

International Whaling Commission (1946) led to an end of most whaling in 1985​

Most, but not all, whaling nations agreed because of low stocks​

In 1994 the Southern Ocean Whale Sanctuary was established protecting a 50 million km2 around Antarctica​

Japan opposed, Iceland and Norway lobbied​

The sanctuary is reviewed every 10 years, Japan operate inside of it but claim it is for scientific research​

Question 23

What are the economic challenges of globalisation

Answer 23

Notion that globalisation would advance economic development for all was challenged by the 2008-2009 economic crisis. Some nations still recovering.​

Trade between countries is limited due to ongoing conflicts between between China and USA.

Question 24

What are social challenges of globalisation

Answer 24

The transfer of manufacturing jobs to LICs from HDEs causes unemployment and social deprivation in some areas of HDEs. Communities experience decline and feelings of neglect e.g. downtown Detroit​

Question 25

What are environmental challenges of globalisation

Answer 25

Many communities feel they have not benefitted from global integration. The recognition that globalisation has failed to be inclusive has led to the rise of ‘populist’ movements which reject political establishments. ​

Populist ‘nation-first’ campaigns led to two significant events in 2016:​
‘Brexit’​
‘Make America Great Again’​