Global Systems & Governance - Globalisation Flashcards
What is globalisation?
Globalisation is the increasing connections between places and people across the planet, established through trade, politice and cultural exchanges and helped by technology and transport.
What is the Global Village - Marshall McLuhan?
Places are more similar than they are different. Economic activities operate at a local scale and other scales are becoming less important.
What are the five factors in globalisation?
1) New technologies, communications and information systems
2) Transport systems
3) Global financial markets
4) Trade agreements
5) Security
What are capital flows?
The movement of money for the purpose of investment, trade or to produce goods/provide services. Usually regarded as investment into a production investment.
What are the five factors that promote globalisation?
1) Flows of information
2) Flows of capital
3) Flows of products
4) Flows of services
5) Flows of labour
How does flows of information promote globalisation?
Information can be spread across the world quickly and easily. The development of email, internet and social media allows people living in different countries to communicate and work together.
How does flows of capital promote globalisation?
The amount of capital invested in foreign countries (FDI). Improvements in information and communications technology (ICT) have encourage flows of capital around the world, it can instantly be moved around the world via the internet
How does flows of products promote globalisation?
Historically, manufacturing industries were located in more developed countries and products were sold in the country in which they were made. Recently, manufacturing has decreased in more developed countries and due to lower labour cocts overseas many companies have relocated the production side of their business abroad.
What is containerisation?
A system of standardised transport that uses large standard-size steel containers to transport goods. The containers can be transferred between ships, trains and lorries, enabling cheaper, efficient transport.
What is protectionism?
A deliberate policy by government to impose restrictions on trade in goods and services with other countries - usually done with the intention of protecting home-based industries from international competition.
What are tariffs?
A tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods.
How does flows of services promote globalisation?
Improvements in ICT have allowed services to become global industries in recent decades, banking and insurance depend on communication and transfer of information. Improvements in ICT mean that services can locate anywhere in the world and still be able to serve the needs to customers anywhere else in the world.
How does flows of labour promote globalisation?
More people are moving overseas, some people move because they have to, but many people choose to move for work. Some migrants are highly skilled workers, moving to more developed countries where wages and working conditions are better. Others are unskilled workers who move to more developed countries to look for work because of unemployment or poor wages in their own countries.
What is economic globalisation caused by?
- Increase in free trade
- Growth of TNCs
- Faster, cheaper transport
- Global marketing
What is cultural/social globalisation caused by?
- Migration
- Global communication networks
- Impact of Western culture through media, sport, leisure and celebrity
What is political globalisation caused by?
- Growth of Western democracies and their influence on less economically developed countries
- Decline of centralised (communist) economies
What is global marketing?
Marketing is the process of promoting and selling products or services. Global marketing involves treating the world as one single market and using one marketing strategy to advertise a product to customers all over the world. Global marketing gives economies of scale and can create global brand awareness.
What are the four ‘factors of production’?
1) Land
2) Labour
3) Capital
4) Enterprise
How is land a factor of production?
All natural resources provided by the Earth including minerals, soils, water, forests etc.
How is labour a factor of production?
The human resource available to the economy. The quantity, quality and cost of the workforce are key considerations to any producer of goods and services.
How is capital a factor of production?
In economic terms this refers to any physical resource that can be regarded as a human-made aid for production such as buildings, factories, machinary etc.
How is enterprise a factor of production?
This is a very particular form of human capital describing those who take the risk of establishing businesses and organising the production of goods or provision of services.
What are the patterns of production?
Refer to how goods and services are made, where they are made and how these production locations change over time. This includes shifts in where manufacturing occurs, the types of industries that develop in different regions, and the impact of factors like globalisation and technological advancements on production processes.
What are the patterns of distribution?
Refer to how populations, resources or other elements are spread across a geographical area, this can be global regional or local. Key concepts include population density and population distribution.
What are the patterns of consumption?
Explore how resources like food and energy are distributed and used around the world, highlighting inequalities and environmental impacts. Key areas of study include global food and energy consumption, patterns within and between countries and the broader implecations of consumption for the environment and social justice.
How does the development of technology affect globalisation?
The technology used for information, communications and transport has advanced rapidly. For example, the Internet allows people from all over the world to access information, and aeroplaces allow people and goods to be transported around the world swiftly and efficiently.
Hows does the development of new systems affect globalisation?
Systems include ways of working, procedures and methods of organisation that allow a particular function to be carried out. Since the 1940s, many new systems have been introduced to make it easier for flows of information, capital, products, services and labour to cross national boundaries.
How does the development of relationships affect globalisation?
Relationships between countries are based on trade and common rules, everyone is involved.
How do financial systems promote globalisation?
The global financian system governs the flows of capital between countries. Financial systems are based on invetsment banks, who help companies raise capital by selling shares on behalf of those companies. People or groups who buy shares are called investors, and they recieve a fraction of the profits that the company makes. Investors, banks and other companies all over the world are part of the global financial system, the decisions of banks or investors in one part of the world can affect a company on the other side of the world.
How do trade agreements remove barriers to trade?
Trade is primarily regulated by countries’ governments, who control which products they let into the country and what price. Controls include tariffs, non-tariff barriers and the banning of certain products. Controls make it more expensive for companies to sell their products abroad, as well as consumers to buy them. To make it cheaper, countries enter trade agreements, governed by the WTO
What is the World Trade Organisation (WTO)?
Established in 1995, the WTO sets rules on how countries can trade with eachother and acts as a forum for countries to negotiate trade deals with eacother and settle trade disputes.
How has transport systems improved global business?
Improved transportation systems have allowed people and products to get to places around the world more easily than ever before. Containerisation allows goods to be loaded onto ships at once and transferred straight onto other forms of transport, this has made it easier for goods to be moved quickly and cheaply around the world.
How has communications systems improved global business?
Communication satellites were first launched into Earth’s orbit in the 1960s. They allow relatively cheap wireless communication between two devices,regardless where they are in the world. Optic fibre cables also allow fast communication between two devices, allowing almost-instant communication with others.
How have management and information systems increased companies’ efficiency?
Companies supply chains have become more global which allows companies to minimise costs. Large companies can benefit from economies of scale, by reducing the average cost of making each item by purchasing specialised equipment and using production lines. Outsourcing is when a company pays another company to do work that in the past may have been done in-house, usually to save costs.
How do countries work together to prevent security threats?
By forming trade agreements, countries become interdependent meaning trade makes war less likely. By working together, countries are able to improve security and deter common threats.
What are some examples of main global trading blocs?
- NAFTA - North American Free Trade Agreement
- EU - European Union
- AFTA - Asian Free Trade Area
- APEC - Asia-Pacific Economic Co-operation
What are some factors that have influenced globalisation since the 1990s?
- Trade
- Migration
- Containerisation
- Travel
- Global marketing
- Capital/Investment
- TNCs
- Collapse of communism
- Transport
- Communications
