Global Systems & Global Governance Flashcards
Globalisation
The growing interdependence of countries worldwide, through increase use of technology and cross border transactions of goods and services.
Global systems
Financial, political and cultural structures that connect places around the world
Containerisation
The standardised transport system of shipping containers that can be transferred on trains or lorries enabling cheaper and more efficient transport of goods
Outsourcing
Where a TNC employs an external company to produce goods on its behalf
Trading Bloc
An agreement between a group of countries to allw free trade and to impose tariffs on other countires e.g EU and NAFTA
Global commons
Resource domains or areas that lie outside the political reach of an one nation state. There are five: Antarctica, the deep sea bed, high sees, outer space and the atmosphere
Global Governance
A movement of political integration aimed at negotiating responses to problems that affect more than one nation state e.g WTO, WHO, OECD
United Nations
An international organisation founded in 1945 made up of 193 member states whose aim is to produce and promote international peace and cooperation.
What are the 5 factors of globalisation?
1) development of technology
2) financial systems
3) trade agreements
4) transport
5) management and information systems
Explain how technology is a factor of globalisation.
Development of technology includes the internet and communication systems.
Can make flows of finance, information etc. faster
Which can develop relationships between countries, driving globalisation.
Involve flow of info eg. Netflix
Explain how financial systems is a factor globalisation.
Allows for global flow of capital
Has led to financial deregulation which has relaxed rules, and removed barriers.
Which makes it easier to invest in other countries, for example the development of FDI
Explain how Trade Agreements are a factor of globalisation.
Formed when countries join together to form a trade bloc
Encourages trade and may lead to foreign investment
May promote the movement of people between countries
Examples are NAFTA and the EU
Explain how transport is a factor globalisation.
Has allowed goods to be moved all around the world
Can help trade agreements develop
Has aided the development of foreign investment as goods can be sent to other countries
Aided by containerisation which has made trade cheaper and easier
Explain how Management and Information systems are a factor globalisation.
Companies have been able to globalise and operate in many countries
Able to relay information quickly to other countries to change production
Has allowed outsourcing to occur which involves poorer countries and forms relationships with them, also allowed for the development of economies of scale.
TNCs have benefited massively from this
Describe unequal flows of people
People tend to move from poorer to richer countries for better work
Benefits- economic growth, remittance (people send money back) which helps growth of home country
Problems- injustice (Qatar poor working conditions), inequalities (brain drain), conflict
