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
Describe unequal flow of money
FDI, remittance
Money flow from HIC to LIC because of investment
HIC can take advantage of poorer workforce and low labour costs
Problems- inequalities (reliance and dependency), conflict (money may find its way to armed groups), injustice (cut regulations etc for cheaper production costs)
Describe unequal flows of ideas and technology
Neo-liberalism where barriers taken down and free trade promoted
Technology is expensive and may be weaponised
Problems- inequalities (wealth tends to be only for some), conflict (between governments and companies), injustice (TNCs may argue poor conditions is good for economic growth)
Discuss global trends in volume and pattern of international trade
Increased by 8 times from 1980 to 2008.
Emerging countries like China becoming largest exporter.
LIC growth is slow
Trade blocs develop and barriers removed
Discuss global trends in volume and pattern of investment
Amount of FDI has increased $400bn in 1996 to $1500bn in 2016
Since 1980s HIC investment in NEEs not other HICs
NEEs like China now investing in Africa
Describe the nature and role of TNCs
Spatial organisation -HQ in HIC, factories etc. in LIC/NEE
Linkages may form mergers or acquisitions
Trade globally
Global marketing adjust to local markets etc
