global systems n governance Flashcards
what is globalisation
process of countires becoming more connected with economies, political systems & cultures being connected
»> caused by movement of info, capital, products, services & labour b/w countries
> > > result of systems, technology & relationships
- systems - wa of working, methods of organisations allow function carry out ; easier flows of info, capital, products, labour
- technology - use for info, comm, transport
- before ww2- most relations involved 1 country losing & gaining/ now = based on trade & common rules - all involved to gain
factors that promote globalisation
- flow of capital = capital invested mostly within country like expand buildings, factories before
- – overtime invested in foreign countries increased
- – improvement in info & communications tech encouraged flows of capital via internet
- – make world interconnected
types of globalisation
- economic - TNCS trade products & use international outsourcing & offshoring to lower costs
- — industries moved to developing countries to save money on labour = economic growth
- — trade blocs integration
- — sources of income from itn companies
- – global transactions - political = gov from connections to trade
- – western democracies global influence on political ideas
- — deregulation = remove state regulations, policies allow market to grow with int reach
- — int organisations to harmonise national economies & political relations - cultural = exposure to media sources - understand other cultures
- – travel int = people experience diff cultures
- – more awareness & understand of world events by education & news
- – westernisation = dominate in non-west areas - social = int immigration create multicultural societies = people share & adopt cultures
- – social networking - interactions in diff countries
- – global ngos & charities in improvement of services & health
factors promote globalisation
flows of capital
> > movement of money for investment, trade or business production
> historically - capital invested within country; build factories in same country made
> now = capital invested in foeign countries
> improvements in info, communications tech = instantly move around via internet
- HIC -> FDI -> bilaterial aid -> remittance -> LIC -> repatriation of profits = profits from TNC oversea sent to HIC -> migration -> HIC
- HIC -> loans to world banks & IMF -> loans & disaster relief -> LIC
- LIC -> repayments to world banks & IMF -> repayments to HIC
flows of labour
factors promote globalisation
> > > migration - work jobs
more people move oversea - int migration
some migrants highly skilled workers - move to developed countries where wage & working conditions better
low skilled workers move due to unemployment / poor wages in own country
most migration to HIC
low skilled take jobs that dont need qualifications or training & for lower wages
most economic migrants educated & financial
flows of products
> > > movement of produced goods from production area to consumption area
historically manufacturing industries in developed countries & sold in country made
recent - manufacturing decreased in developed countries
transactions cost reduced = improved flows of data
transport, time cost reduced by containersiation = more complex & long distance flows of products = fast delivery
> > > tech advances products can be made in LIC = lower labour costs = more companies offshoring
produce for lower costs - move to HIC to sold for higher price = profits
flows of service
> > > economic activities not based around producing material goods lie banking
high level services = reuire higher skill level, important & complicated = qualified trained & best service
high level in HIC
low level service = less training & not as important like call centre
low level offshoring to benefit from lower labour costs = HIC use services
flows of information
> > > governed by migration & speed of data & communication tansfers = development of techn
development & fast speed of email, internet, social media = large info exchanged fast = people in diff countries work
> > > fast broadband & connections = news & financial info transferred fast = informed of global current
real time data = knowledge economy - industry require info to develop = stock markets, education sector
large database & archives for research & education
what is global marketing
> > > promoting & selling products/ services
treat world as 1 market & use 1 marketing strategy to advertise globally
gives economies of scale - cheaper to have 1 marketing campaign for world than diff campaign for diff country
> > > awareness of brand = trademark = consumers likely to buy known brands
e.g kitkat - british company appear in japan = popular oversea
»> japan sell flavoured varieties - logo same
»> alter business for local interests & tastes = glocalisation
factors affecting globalisation
financial systems
n
trade agreements
- Financial systems = relationship b/w those who borrow money
»> governs flow of capital
»> based on investment banks = those who want to make money & profit - invest = get interest - those borrowers take loans & pay back with interest
> banks global institution
» MNC invest profits for more interests
» people buy & sell shares stocks globally
» investment banks create new financial products = FDI less risky
» gov - financial deregulations = relax rules about banks rules, remove barriers of capital coming in & out= easier to buy & sell shares/products
- trade agreements; cheaper trade work to benefit prties
»> restrictions removed / reduced everyone
»> join to form trade blocs to trade & gain economic
»> global trade governed by world trade organisation - set rules on how to trade, stop impose unfair tariffs, negotiate deals &disputes
> > > controls & restrictions on products = tariffs = expensive to sell & consumers to buy
non-tariff barriers - rules on quality products & banning of products
improve global peace & security & cooperation
compete on global level
bigger representation in world affairs
freedom of movement of trade
enable remote/ declining industrial regions to get support from larger org
democracy, rights, integration
what is NAFTA
trade agreement by usa, canada, mexico
- – mexico got in debt & hope conomicgrowth &employment result joining
- – aims; eliminate trade barriers
- – pomorote economic competition
- – improved cooperation
— mexico get FDI investments= TNCs make plants industry, higher wages & sales from agiculture = reduce migration
cons ; candadians companies closed = competition from lower cost usa firms
- – usa firms move to mexico & ob lost
- – food surplus from usa & canada dumped in mexico = reduce food price & affect agricultural economy
- – mexico exploited of natural rsources
factors affecting globalisation
transport & communications
security
> > > improved tranpsport& communication
= more flows of labour & able to move to diff countries faster cheaper
containerisation allow more ogooods loaded at once
high speed rails links rural & urban areas - migration - cheap fast
air travel - faster cheaper since deregulation of travel markets = int airlines fly w/o countries favouring own nationaliszed airlines
fast cheap flight times
optic fibre cables use signals if light to transmit info = fast comm b/w 2 devices
growth in software - free communication
comm satelittes - cheap wireless comm anywhere
- security = stricter regulations upon entering country & transport goods
»> automatic xray tech airports find sus objects
»> cybersecurity ensure cyber attacks traced
»> limit disagreements & war - protect people ensure security e.g UNSC
»> security threats monitored & stopped like cctv
»> e.g nato during cold war deter common threats
> > > developed countires intervened in conflicts in developing countries to secure resources
factors affect globalisation
management & info systems
> > > companies managed flows with common systems to make them efficient
economies of scale;increasing to produce large products = avg price to manufacture lowered
upscale products; buy lower priced raw materials in bulk , large amount products made quicly & shipped = cost less to send
> > > global supply chains - organised management of product flows, from manufactured to delivered
minimises cost = each priduction specialised than 1 factory that control every aspect- save time & money
> > > outsourcing = hiring other companies to complete tasks by comm= save costs
offshoring = relocate company process abroad 0 transport & transfer money
interdependence in globalisation
nations depend on each other
1. economic - rely on economic growth; rely on flows of labour/rproducts/ services entering
»> consumer rely on producers to sell them & producers rely on money of consumer
2.political = rely to solve issues that not addressed by 1 country if political unrest
»> int political issues need working together = unanimous decisions
- social = more connection b/w people living in diff countries - migrants depend on place
»> rely for leisure activities tv - environmental; all affected by other nations’ greenhouse gas emission., nuclear waste = all rely to protect env
e. g ukraine nuclear plant explode - radiation increase cancers & birth defects
unequal flows of people
- benefits = migrating to workforce - important & tae unwanted jobs
»> workers send remittance back to home country= help economy
»> help those flee from bad conition improve quality of life - inequalities = less developed countires suffer brain drain = skilled people leave with thier knowledge
- conflict = low skilled migrants happier to work migrants less money than locals = companies may depress wages for locals = hatred
- injustice = migrant workers work in dangerous conditions for little money
- problems = host country dependent on migrants - issue if changes circumstances e.g uk potato form rely on polish
»> home country rely on remittance - change in circumstances damage economy
»> emigration = unemployemnt & breakdown - undepopulated areas
unequal flows of money
- benefits = home country getting money - FDI help imrpove quality of life = give income
»> aid & remittance help to rebuild after disaster
»> FDI allow foreign companies to use cheap raw materials & low labour cost - host benefit from foreign capital & expertise - inequality = foreign aid create dependency - gov little incentive to improve own countries
»» FDI force out local business with foreign companies superior capital & tech - conflict = foreign aid taken away by armed groups & fund conflict e.g agriculture FDI = peasant farmers evicted
- Injustice = companies pressure gov of less developed countries to pass laws make it cheaper to invest there
Problems; companies in LIC from HIC depend on high wages = work in dangerous situations
like sweatshop - low wages & dangerous conditions
unequal flows of ideas
> > > before 1980; most national gov responsible for giving welfare & control imports by trade barriers
developed countires think economy better /o state intervention & ma economy growth if arriers in trade removed, state owned companies privatised & gov spending cut = neo-liberalism
neo- liberals increased free trade = development & less conflict
- Benefits = HIC deregulation to developing countriees /NEES
»> reduce state ownership- lowe prices
»> free trade = deregulation & lower prices
»> tree trade -allow global markets to thrive & lower risk of conflicts
»> successful strategies - educate LIC on economic growth / remove social injustice - problems = deregulation too quicly for LIC = not allow full benefit of growth of private sectors
»> fast flow FDI & growth of global markets = countries cant keep up & reform or regulation work better
»> privatisation = large companies to grow - profits high than tonationalised
»> LIC feel forced to keep up w ideas of HIC
»> multiculturalism & interdependency disputed - conflict = private companies & free trade in LIC threaten by decision of gov= believe their own intervention is justified = fight
- Injustice = gov & TNCS aargue free trade & privatisation best way to develop
unequal flows of tech
> > > most flows of technology within HICs , = no
demand for technology in LIC
HICs wish to invest in LIC = benefits & technology make capital gains flows to LICs.
technology not flow from LICs to HICs = less companies in LICs to invest in HICs
most manufactured in LIC , & sold to HICs.
changing =, higher demand for consumer
technology in NEE
lead to rapid innovation - help people e.g US comm & healthcare links communications.
- Benefits; economies of LICs develop by technology investments, open up
factories & employment. = higher trade deals w HICs &
LICs, = HICs benefit from exports
»> products produced overseas=more profits.
»> concentration of technology innovation in HICs =
technological advancements. =better products. - Problems; HICs developed markets technological advantage over LIC =afford to buy to develop but not LICs
»> injustice - employees manufacture & assemble
technology get less than selling prices. - Companies make a most profits,
»> countries w latest tech make products cheaply & more acess to info & services
China largest producer of smartphones, only 55%
population has 1
»> investing technology into LICs = HIC manufacturing jobs lost. - leave jobless & no money
»> conflict = repressive gov of LIC used weapon tech sold to them by developed countries to stop protests from own people
unequal power relations
globalisation
> > > developed countries/ NEE with high money & tech to drive global systems to advantage = control over global economy & political events
> > > e.g -HIC less likely to agree to global env protection if reduce co2 emissions - lose jobsin fossil fuel industry & higher energy prices
LIC most affected by climate change - poorest
> > > HIC can pressure LIC to make beneficial deals to them ; LIC may lower taes, reduce tariffs, set SEZ to encourage investment
HIC can make sanctions on countries/ refuse trade
e.g banana wars - disagrement by EU grant special access to EU markets for caribbean farmers
TNCs file complaint against for unfair create agreement - sanctions on EU products
EU reduce tariffs
global institution unequal power relations
WTO & IMF
> > > WTO widen gap b/w LIC & HIC = biased to HIC:
- – maintenance of high import duties/ quotas in HIC =reduces imports from developing countries
- – protection of HIC agriculture. but pressure LICs to open markets up to international produce
- – Developing countries not represented as much
> > > IMF & World bank based in USA & led by it = less developed countries less influence over decisions
IMF & world bank loans condition = LIC has to make changes like cut regulation to make foregin trade & investment easier to get loans
what do IMF & World bank do
- International monetary fund;
- – oversees global financial system
- – offer financial & technical assistance to members
- – give loans ifprevent global economic crisis
- – gets financial resources from quota subscriptions of members - World bank:
- – promote economic development in developing countries
- – give long term investment loans for development projects
- – gives speical interest- freee loans to countries w low incomes
- - encourages start up private enterprises in developing countries
- – financial resources by borrowing on int bond market
how international trade changed
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how investment changed .
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what does WTO do.
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