Globalisation and Governence Flashcards

1
Q

What is globalisation?

A
  • The world becoming economically, politically and socially more connected.
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2
Q

What are 2 examples of economic connections?

A
  • Goods and services
  • Global supply chains
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3
Q

What are 2 examples of political connections?

A
  • EU
  • United Nations
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4
Q

What are 2 examples of social connections?

A
  • Culture
  • Global shrink
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5
Q

Why has globalisation happened?

A
  • Due to the increasing flows of people, services and information.
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6
Q

What is global societies?

A
  • Refers to all nations being influenced by other nations.
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7
Q

What are flows of labour?

A
  • Where highly skilled or unskilled workers move across countries, bringing cultural influences with them.
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8
Q

What are flows of information?

A
  • Where news spreads via the internet on social media and through emails.
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9
Q

What are flows of capital?

A
  • Where money can be invested into one country from another called Foreign Direct Investment.
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10
Q

What are flows of products?

A
  • Where NEEs produce raw goods for sale in HICs (E.G. China).
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11
Q

What are flows of services?

A
  • Where NEEs provide services for HIC customers.
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12
Q

What is global marketting?

A
  • The promotion and sale of goods and services across the world.
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13
Q

What is an example of single marketting strategy and why are they useful?

A
  • Coca-Cola (People across different countries recognise a brand, this acts as globalisation)
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14
Q

What is the global shift?

A
  • The shift from manufacturing being concentrated in the industrialised countries to emerging economic countries.
  • Manufacturing has shifted in order to make use of the cheap labour.
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15
Q

What are 5 factors that contribute to globalisation?

A

1) Rise in Technology
2) Rise in Finance
3) Rise in Transport
4) Rise in Security
5) Rise in Trade Agreements

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16
Q

Why is the rise in technology a factor for globalisation?

A
  • The internet allows people to communicate quickly across the world via messaging and facetime.
  • Satellites and fibre optics enable large volumes of data to be transmitted long distances at high speeds.
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17
Q

Why is the rise of finance a factor for globalisation? (PROS/CON)

A
  • The financial system allows easier flows of money, goods and services between countries.
  • Financial institutions such as the City of London is located in the UK, an HIC.
  • The disadvantages could be that financial crashes impact the world.
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18
Q

Why is the rise in transport a factor for globalisation?

A
  • The shift from steam trains to jet aircraft reduces journey times significantly.
  • Larger volumes of goods are transported between countries more quickly.
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19
Q

Why is the rise in security a factor for globalisation? (PROS/CONS)

A
  • The introduction of NATO after WW2 to promote peace.
  • Globalisation can bring about criminal activities such as fraud, counterfeiting and terrorism.
  • Nationalist ideas may arise from the introduction of different cultures.
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20
Q

Why is the rise in trade agreements a factor for globalisation? (PROS/CONS)

A
  • Trade blocs are groups of countries that work together to increase economic growth.
  • Trade blocs remove tarrifs and facilitate free trades.
  • Countries may feel a loss of sovereignty such as (BREXIT)
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21
Q

What are the 4 ways countries rely on each other because of globalisation? (EXPLAIN)

A

1) Politically - countries have to come together to solve issues that a single country cannot solve alone.
2) Environmentally - countries have to agree on how to look after the environment.
3) Socially - As more people move around, social interdependence is created.
4) Economically - Countries rely on each other’s resources for economic growth.

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22
Q

What are 3 benefits of flows of people?

A

1) People leave countries to escape war, famine and persecution.
2) Immigrants can do jobs that the native population can’t do or don’t want to do, which boosts economic growth.
3) Migrants send back money to their home country, allowing people in the local community to spend money in their area. (REMITTANCES)

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23
Q

What are 4 inequalities of the flows of people?

A

1) People from HICs can live in more countries without a visa than people from LICs (UK - 173 countries Afghanistan - 24 countries)
2) Less developed countries suffer a ‘brain drain’ as immigrants leave, taking valuable knowledge with them.
3) Migrants replace local people in employment which causes conflict.
4) Migrant workers are made to work in extremely dangerous conditions often leading to consequences (An example being the 2022 World Cup)

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24
Q

What is the benefit of flows of money through FDI?

A
  • FDI allows companies to take advantage of the cheap labour and materials, allowing the host country to also gain capital.
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25
Q

What are 5 inequalities of the flows of money?

A
  • HICs have the ability to invest in LICs whilst LICs don’t have the ability to invest in HICs.
  • Foreign aid causes dependency as governments feel less of a need to improve their country.
  • Foreign aid may find its way into criminals which funds conflict.
  • TNCs pressurise the Governments to change laws to benefit profit.
  • TNCs and FDI can remove the locality of businesses, forcing local people to give up jobs and income.
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26
Q

What are 3 inequalities in technology?

A

1) Developed countries have access to the latest, best technology, whereas less developed countries do not.
2) In 2016, 97% of the Netherlands’ population had access to the internet whilst only 20% of Myanmar’s population had access to the internet.
3) Repressive governments use weapon technology to stop mass protests.

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27
Q

Why is there overall inequality within globalisation?

A
  • Developed/emerging countries drive global systems and control the global economy and political events.
  • On the other hand, less developed countries are only able to respond to events due to the lack of money and control.
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28
Q

What is the role of the IMF?

A
  • The IMF monitors global economy, offering advice on how to improve an economic situation through the use of loans.
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29
Q

What is the role of the World Bank?

A
  • The World Bank provides loans to less developed countries in areas like health, education and infrastructure.
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30
Q

Why do global institutions potentially cause inequalities?

A
  • The IMF and World Bank are based in the USA which means higher income countries have more of an influence on decision making than lower developed countries.
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31
Q

What is the role of the WTO?

A
  • To reduce trade barriers between countries to keep trade flowing.
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32
Q

What is global trade?

A
  • Global trade is the import or export of goods and services between countries.
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33
Q

How much has the value of global trade increased?

A
  • 8 times in 28 years.
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34
Q

What is the trend we are seeing with global trade?

A
  • Developed countries remain as the biggest traders, however, emerging economies are catching up.
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35
Q

What is a reason for the rise in trade?

A
  • Due to the removal of trade barriers between countries.
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36
Q

How much has the volume of FDI risen in 20 years?

A

$400 billion to $1500 billion.

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37
Q

How has global investment changed?

A
  • HICs used to invest in other HICs but countries are starting to invest more into emerging countries and low income countries.
38
Q

What are the rules surrounding global trade?

A
  • Rules include the promotion of free trade, fair competition and no special access for certain countries (unless in a trading bloc).
39
Q

What are trade blocs?

A
  • Associations between different governments that promote and manage trade.
40
Q

What are the 3 types of trade blocs?

A

1) Regional (NAFTA)
2) Economical (OPEC)
3) Special (for LICS)

41
Q

How do developed countries participate in trade?

A
  • Trading with other developed nations.
42
Q

How do emerging countries participate in trade?

A
  • By exporting the goods from their emerging manufacturing sectors (CHINA)
43
Q

How do low income countries participate in trade?

A
  • By trading with HICs and NEEs, exporting to HICs but importing from NEEs.
44
Q

What is the access to markets?

A
  • How easy it is for countries to trade with one another.
  • Developed countries put high tarrifs on low income countries, weakening their access to the market.
45
Q

What is the economic impact of less access to markets?

A
  • It is hard for LICs to develop new industries because they have to face high tarrifs, making their products uncompetitive.
  • Therefore, they have to sell agricultural goods with less value, leading to a lower GNI.
45
Q

Where do primary industry TNCs invest?

A
  • In countries where there are natural resources that can be extracted.
46
Q

Where do secondary TNCs invest?

A
  • In countries where there is a cheap labour and large work force.
47
Q

Where do tertiary TNCs invest>

A
  • In countries with a well educated population.
48
Q

How do TNCs help the local area? (2 ways)

A

1) TNCs create multiplier effects as jobs are created, allowing more money to be spent locally.
2) TNCs make it easier for local companies to trade as part of the global supply chain.

49
Q

What is glocalisation?

A
  • The adaptation of a product in a country to promote its culture (E.G. McDonald’s in India)
50
Q

Where was Walmart originated?

A
  • Arkansas, USA
51
Q

Where does Walmart’s manufacturing and clothing take places?

A
  • Clothing in India
  • Manufacturing in China
52
Q

What are 2 negative economic impacts of Walmart in the USA?

A
  • Walmart buys a lot of products from suppliers outside the USA which leads to a loss of jobs in the USA.
  • Local businesses cannot keep up to the same pace as Walmart leading to a loss of local jobs.
53
Q

What are 2 positive social impacts of Walmart in the USA?

A
  • Walmart is opened 24 hours daily.
  • There is a wide variety of products.
54
Q

What are 2 positive economic impacts of Walmart in the USA?

A
  • Each new store will create jobs.
  • Walmart is one of the cheapest supermarkets in the USA.
55
Q

What are 2 negative social impacts of Walmart in the USA?

A
  • Low wages lead to employees relying on state benefits.
  • Walmart uses a large amount of polluting gases.
56
Q

What are 2 positive economic impacts of Walmart in host countries?

A
  • Creates jobs in construction and manufacturing
  • Uses local companies, for instance relying on 6000 Canadian farmers.
57
Q

What are 3 negative economic impacts of Walmart in host countries?

A
  • Walmart are criticised for forcing suppliers to accept low prices.
  • Smaller stores cannot compete with Walmart.
  • Profits are sent back to the USA rather than being invested into the host country.
58
Q

Who is the world’s largest producer of coffee?

A
  • Brazil
59
Q

What is the trend of coffee production and consumption?

A
  • Coffee is produced in low income countries but is consumed by high income countries.
60
Q

What % of the world’s coffee did the USA import in 2015?

A
  • 20%
61
Q

What happens if the demand for coffee is too high?

A
  • Prices will increase.
62
Q

What happens to coffee farmers if the price decreases?

A
  • Farmers may go out of business as they cannot afford to produce coffee for such a low price.
63
Q

What % of profit do coffee farmers receive when coffee is sold?

A
  • 7-10% because they sell the unprocessed bean.
64
Q

What % of profit do TNCs receive when coffee is sold?

A
  • 40% of the profit because they burn and roast coffee beans.
65
Q

What is the Fairtrade Minimum Price?

A
  • The minimum price that coffee buyers have to pay the producer organisation to cover the farmer’s costs.
66
Q

Why is fairtrade good for 3 reasons?

A
  • Fairtrade regulates environmental standards.
  • Fairtrade reduces poverty.
  • Fairtrade prevents the need for child labour
67
Q

How much did Fairtrade organisations grow by between 2002 to 2011?

A
  • 175 in 2002 to 329 in 2011.
68
Q

What is Fairtrade Premium?

A
  • An extra allowance that is given to poorer communities to help invest in machinery, education or renewable energy.
69
Q

What are TNCs?

A
  • Companies that run their business in 2 or more countries.
70
Q

How do TNCs drive globalisation in 3 ways?

A

1) Bring investment
2) Promote culture
3) Spread new technologies

71
Q

How are TNCs organised spatially?

A
  • HQ is in a major city.
  • Research and development is in a city where there is a highly educated population
  • Manufacturing is situated in countries where there is cheap labour.
72
Q

How much has the value of global trade increased by in 28 years?

A
  • Increased in value by 8 times.
73
Q

What is trend of global traders?

A
  • HICs are the biggest global traders, however, developing countries such as China and India are catching up.
74
Q

Why has the rise in global trade happened?

A
  • Because of the removal of trade barriers between countries
75
Q

How much has the volume of FDI risen by in 20 years?

A

From $400 billion to $1500 billion

76
Q

How is the pattern of global investment changing?

A
  • HICs used to only invest in other HICs but countries are now starting to invest in NEEs and LICs.
77
Q

What 3 methods are used to regulate global trade?

A

1) Countries use trading barriers to limit trade.
2) The World Trade Organisation was set up to keep trade moving and solve issue over trade.
3) Rules include the promotion of free trade, fair competition and no special access for certain countries unless in a trade bloc.

78
Q

What are trade blocs?

A
  • Associations between different governments that prmote and manage trade.
79
Q

What is access to markets?

A
  • How easy it is for countries to trade with one another.
80
Q

Why was the United Nations set up?

A
  • Set up in 1945 to establish a fair and peaceful world.
81
Q

What is the difference between the UN Security Council and UN General Assembly?

A
  • The General Assembly acts as a Parliament of the world rather than the Security Council which makes the final decision.
82
Q

How has the UN achieved growth and stability?

A
  • The UN Millenium Development Goals have helped reduce poverty rates, promoted educations and reduced child mortality rates.
83
Q

What are 3 inequalities within the UN?

A
  • Developed countries hold the most power over UN decisions.
  • No African country has a permanent seat in the UN Security Council.
  • The UN failed to protect 8000 eastern Europeans from Bosnian Serbs in 1995.
84
Q

What are the global commons?

A
  • Areas of the Earth and space that aren’t owned by a single country but instead owned by everyone.
85
Q

What are the 4 global commons?

A

1) Antarctica
2) Space
3) Oceans
4) Atmosphere

86
Q

What is the Tragedy of the Global Commons?

A
  • The belief that countries in the future will exploit the global commons for their mineral wealth.
87
Q

Why is the global commons becoming more vulnerable to exploitation?

A
  • New technology has made it easier for countries to access the global commons.
88
Q

What are 2 factors affecting climate change within the global commons?

A
  • Atmospheric pollution has contributed to climate change.
  • CO2 causes acidification to the oceans.
89
Q

What are 4 points about Antarctica’s climate?

A
  • Ecosystem is very fragile, being easily damaged and taking a long time to recover.
  • Mosses and lichens grow there.
  • It is extremely cold (-49 degrees celcius)
  • 90% of Earth’s ice, 70% of all Earth’s fresh water.
90
Q
A