GS and GG: factors affecting globalisation

Question 1

How have improved transport systems contributed to globalisation?

Answer 1

Faster forms of transport due to constant improvement means ppl and goods can move over huge distances in short periods of time.

• Containerism - more efficient as more transported at once

W/ movement of ppl, influences things like tourism and labour.

Question 2

An example of a global transport organisation?

Answer 2

P. Moller Maersk (Danish) largest shipping company in the world. Carrying capacity of 18,270 twenty foot equivalent units. Predominantly transport oil and gas across 135 countries.

Question 3

What is usually the volume of a shipping container?

Answer 3

1,172 cubic feet

Question 4

How does Heathrow show the negative impacts of global transport?

Answer 4

Trying to build a third runway since 2009, these plans cancelled in 2010 and reinstated in 2018.
Locals and environmental groups arguing against it - noise for residents and extra pollution.
761 homes would have to be demolished including entire village of Longford.

Question 5

How much carbon is the global aviation industry responsible for?

Answer 5

2.1% of all human produced

12% from all transport produced

Question 6

How can cargo ships have negative impacts in terms of global transport?

Answer 6

Carry crude oil and other harmful chemicals across world - could spill and cause major damage to environment.

Exxon Valdez carrying 53.1 million US gallons of oil when it ran aground in Prince William Sound in Alaska and spilled 11 million gallons in 1989.

Damaged PWSs commercial fishing industry as well as 10 mil migratory shore birds and waterfowl.

Question 7

How much did the Exxon Valdez clean up cost and how many ppl involved?

Answer 7

Involved employees, federal responders and 11,000 Alaskan residents. $2 bil in clean up and $1.8 bil in habitat restoration and personal damage.

Question 8

Evaluation of global transport systems:

Answer 8

• Vital in globalisation, movement of ppl and goods, faster easier and cheaper, helps businesses and companies
• Not environmentally friendly, releases lots of CO2 into atmos. - aviation industry and oil spills some of worst
• Currently crucial but not sustainable, constantly changing and improving

Question 9

Transport and diseases?

Answer 9

Pathogens which otherwise wouldn’t leave a country and spread can cross borders e.g. Covid-19.
Can be carried by ppl and on products like food - JFK incinerates nearly 120 pounds a day to prevent spread

Question 10

What does the global financial system govern?

Answer 10

Flows of capital between countries.

Question 11

What are investment banks?

Answer 11

Financial systems based on companies called investment banks.
Help companies to raise capital by selling shares on behalf of company.
Ppl or groups who buy the shares are investors, receive fractions of companies profits.

Question 12

What happened in the 1980s to make banking more global?

Answer 12

• Information technology - investors had greater access to info, informed decisions abt. whether to invest
• New financial products - foreign investment less risky
• Financial deregulation - gov.s relaxed rules on what banks were allowed to do and remove barriers on capital coming in and out of country
• Led to greater range of companies involved in finance - greater no. of services e.g. exchanging currencies

Question 13

What have been any negative impacts due to global financial systems?

Answer 13

So connected that something going wrong in one place in one sector can have knock effects everywhere else.

2007 collapse of US house prices led to a credit squeeze (banks don’t want to lend money) and then global banking crisis 2008

Question 14

Global security:

Answer 14

National boundaries less of a barrier, more mobile and better informed populations, traditional security measures reduced in relative sig.
Can work together to improve security - NATO, deters major threats.

Question 15

What are the negative impacts of global security?

Answer 15

High profile leaks of sensitive info brought issue of cybersecurity to greater prominence due to us relying of info for everything.
E.g. 2016, leak of 11.5 million financial and legal records exposed wrongdoing on global scale.
Can cause conflict.

Question 16

How much does a major security breach in UK cost?

Answer 16

Av. cost for most severe security breach in UK for big corporations starts at £1.5 mil

Question 17

What are new systems in globalisation?

Answer 17

Ways of working, procedures and methods of organisations that allow a particular function to be carried out.

E.g. just-in-time manufacturing system is way of making products in response to the demand for them.

Since 1940s, new systems have been introduced to make flows of info, capital, products, services and labour to cross national boundaries.

Question 18

How has communication changed and affected globalisation?

Answer 18

Communication satellites - cheap wireless communication between two devices regardless of where they are. Ppl in rural and remote areas can access internet and communicate.

Optic fibre cables - use signals of light to transmit more info than any other cable. Fast and almost instant communication.

Software - emails, texting, video messaging

Question 19

How has management and info systems affected globalisation?

Answer 19

• Companies supply chains global - diff. parts of company in diff. countries, allows companies to minimise costs
• Large companies can benefit from economies of scale - specialised equipment, production lines, buy materials in bulk = cheaper
• Outsourcing- Comp. pays others to do work originally done in-house, saves money
• Changed working practices - casual and temp. contracts = comp. takes workers when required and no fixed wage, saves money

Question 20

What are the negatives of tech, communication and info systems?

Answer 20

• Cyber attacks and hacking
• Internet not always working at full capacity, communication can decrease
• Not all countries engage - China, some adverts and news etc. not shared
• Gap between HICs and LICs

Question 21

What does the global trade system govern?

Answer 21

Governs flows of products between countries

Question 22

What would happen w/o global trading rules?

Answer 22

Countries would resist some foreign imports while favouring others.

Question 23

Who is trade primarily regulated by?

Answer 23

A countries gov. - control which products they let into the country and the price.

Question 24

What do controls include?

Answer 24

• Tariffs - taxes on products coming into the country
• Non-tariff barriers - e.g. rules on quality of products coming into country
• Banning of certain products - e.g. illegal drugs

Question 25

What do controls do to prices?

Answer 25

Make it more expensive for companies to sell their products and for consumers to buy them.

Question 26

How do countries reduce the impacts controls have on prices?

Answer 26

Countries can enter trade agreements to make it cheaper. Trade agreements act like contracts - one country removes controls for another in exchange for the other also doing it. Benefits both countries, companies and consumers.

Question 27

What is a TA between 2 countries called?

Answer 27

Bilateral trade agreements.

Question 28

What are multilateral trade agreements?

Answer 28

Agreements between several countries - all involved in agreeing to remove tariffs and other controls.

Multilateral and bilateral trade agreements together make up the global trade system.

Question 29

Who governs the global trade system?

Answer 29

The World Trade Organisation.
Established 1995, sets rules for how countries can trade w/ each other e.g. stops countries imposing unfair tariffs on others.
Acts as a forum for countries to settle trade disputes and negotiate trade deals w/ each other.