Y1) TERM 3- GLOBAL SYSTEMS AND GLOBAL GOVERNANCE (PART 1) (A) Flashcards
What is globalisation?
The process by which national economies, societies and cultures (the worlds systems) have become increasingly integrated through the global network of trade, communication, transportation and migration
Globalisation facts
- globalisation is neither good or bad
- allows countries to sell goods to different countries and allows HICs to that have big companies to set up warehouses in LICs and pay the workers less money for labour
- allows active trading between companies
- contributes to global warming and climate change
- brings countries together (interdependence)
- makes the world a smaller place- a global community, the global village, the flat world, glocalised
- some say that we live in a world of ‘borderless’ markets and that globalisation is to blame for growing inequality in the world
What are the factors that enable globalisation?
- development of (new) technology, systems and relationships
- development of financial systems
- development of transport and communications
- development of security
- development of trade agreements
- development of management and information systems
What does HIC stand for?
High Income Country
What does LIC mean?
Low Income Country
What does NEE mean?
Newly Emerging Economy
What does NIC mean?
Newly Industrialised Country
What does MIC mean?
Medium or Middle income countries
What does CLIPS mean?
- C- capital
- L- labour
- I- information/ideas
- P- products
- S- services
What are the 6 flows and factors of globalisation?
- systems, technology and information
- financial systems
- trade agreements
- transport and communication systems
- management and information systems
- security
Systems, technology and information (flows and factors of globalisation)
New systems, tech, relationships are the alignment of the worlds rules on trade, ‘way of working’ and the evolution of tech such as the internet.
- Capital- enables capital to flow without physical money, facilities via online/internet banking
- Labour- can flow as technology allows people to work on a ‘footloose’ basis
- Information- allows info to flow via email, cloud services, social media etc and beyond international and political boundaries
- Products- enables the flow of products by efficiency gain in transportation, GPS system improve monitoring and security of products. JIT systems maximise efficiency and containerisation improves efficiency
- Services- high level services (banking) and low level (customer services) are connected via the internet via satellite, fibre optics etc which allows offshoring and outsourcing
Financial systems (flows and factors of globalisation)
Predominantly affect the flow of money around the world, using the stock market and a range of banking mechanisms
- Capital- investment banking, stock market, market investment, financial deregulation and currency exchanges enables capital to flow globally
- Labour- enables labour to flow as salaries and financial packages overseas/elsewhere become attractive (leading to inadvertent brain drain/ brain gain/ migration)
- Information- these systems depend on flow of info via email, cloud services, social media etc. Beyond international / political boundaries
- Products- facilitate the flow of products by efficient marketing, ‘behind the scenes tech’ reducing the delay between payment / shipping etc
- Services- these systems rely on and require the internet and fibre optics
Trade agreements (flows and factors of globalisation)
Governs the flows of products between countries.
-Capital- this flow can move freely between countries because of these agreements
- Labour- if more places have trade agreements, more products are needed so more people get employed and labour in some countries is also cheaper
- Information- countries with better trade agreements may have a better connection or a better relationship and knowledge about threats
- Products- these can be made easier and cheaper and transport can be cheaper as things are made and transported in bulk
- Services- these also require fibre optics and the internet to connect countries together virtually but also transport is needed
Transport and communication systems (flows and factors of globalisation)
These allow countries to trade more freely between each other
-Capital- allows trade to become cheaper and can be bought easier and quicker from all over the globe
-Labour- more people needed to transport goods around and people can now work on a more footloose basis as communication systems can work from home
-Information- it’s easier to communicate and give information between countries
-Products- products can be bought easier online and can be traded further
-Services- the internet, transport (boats, planes, lorries etc) and fibre optics are all needed
Management and information systems (flows and factors of globalisation)
New ways of working have made companies more efficient
-Capital- this allows companies to benefit from economies of scale
-Labour- cheap labour to make the biggest profit
-Information- communication between companies and warehouses manages cheap labour, high prices, most amount of profit
-Products- products are made cheaply but sold expensively (high profit margin)
- Services- warehouses are needed and so is transport as well as internet and fibre optics
Security (flows and factors of globalisation)
New trading relationships between countries, by forming trade agreements countries become more interdependent (if countries need to use one another to buy/sell products, it would not be in their interest to be at war with one another). This means that trade makes war less likely
-Capital- with countries working together they can both improve their security using each others technology and to rely on each other, encouraging the flow of money. Cyber security makes financial/information transactions safe from things like fraud and theft
-Labour- two countries sell and buy products from each other to make money. This makes wars less likely as countries rely on each other (interdependence). Border security protects flows of people and products (people feel safe to move)
-Information- countries working together and providing each other with information can help reduce common threats and deter them
-Products- trade of products makes war less likely as countries become more interdependent on each other through trading agreements
-Services- by working together countries can deter common threats and are more able to improve security
What does economies of scale mean?
This is when the cost of a product is reduced because of the increased size of production facilities
What does interdependence mean?
This is when 2 or more things depend on each other (this can relate to human and physical geography through things like 2 countries relying on each other through trade or 2 animals relying on each other)
What is cyber security?
This is technologies, processes and practices that are designed to protect networks, devices, programs and data from attacks, danger or unauthorised access (viruses, malware, phishing etc)
Cyber security and globalisation. What is the link?
Globalisation means the world is more interconnected, communicate globally to each other. This makes cyber attacks more likely and dangerous. Cyber attacks wreck havoc- affecting market capitalisation (money used in trade), endangering executive leadership (rigged voting) to causing major losses in sales and diminished profits, identity theft, fake news etc. Has the potential to destabilise major enterprises in a matter of hours.
This also enables countries to work together safely, without any ‘betrayal’ of secrets, promoting competition and innovation and improves security to deter common threats. This will also mean its less likely for countries to be at war with each other. Interpol facilities cross-border police co-operation and supports all organisations, authorities and services whose mission is to prevent / combat international crime.
What is the World Trade Organisation (WTO)?
This is a global organisation which deals with the rules of trade between nations.
What do the WTO do?
They regulate trade and their main goal is to create a level playing field by setting and enforcing rules so that countries can trade with another smoothly. Rules can be created or altered through a majority vote (mostly unanimous decision). If disputes arise, the WTO tries to resolve them through negotiation. If necessary WTO can impose sanctions on countries that break the rules.
Why has the WTO been criticised for?
They were criticised for being unfair and ignoring the needs of developing countries e.g. free trade benefits developed countries more than developing ones. They have also failed to reduce tariffs on agriculture. Free trade has also ignored environmental considerations e.g. free trade has enabled imports to be made from countries with least environmental protection. It structure enables richer countries to win what they desire and arguably benefit the most. Trade rounds have been notoriously slow and difficult to reach an agreement.
What was the General Agreement on Tariffs and Trade (GATT)?
This was established in 1948 and is the idea that if countries were dependant on each other, then they would not go to war with each other. This created the start of globalisation.
What was the Uruguay round?
This was made in the 1980’s in the GATT framework and lasted 8 years. They were motivated by the idea of global efficiency to try and continue boosting the economy and it was the 8th round of multinational trade negotiations.
What happened in 1995?
The GATT was scrapped and the WTO was bought into place. The ideas of non-tariff barriers created a global sense of efficiency.
2 case studies when the WTO have got involved with conflicts
-American’s wanted to export GMO beef to Europe. However, the Europeans said they don’t want it and it’s local rule and national sovereignty. The WTO backed the US and said that the European rules don’t support global efficiency (national law VS global law = conflict)
-In the US, if you wanted to sell tuna and say it was dolphin free, you had to use dolphin free methods. Mexican’s said it discriminates against Mexican fishermen as they fish in dolphin heavy waters and don’t use methods that exclude dolphins. This may because they cannot afford the technology to do so. The WTO agreed that it was discrimination against Mexican fishermen.
What are ‘economic ideologies’?
These are also known as moral positions and are how economies should be structured, as compared to economic theories. This could also be described as a set of views forming the basis of an ideology on how the economy should run.
Why can the WTO be seen as biased?
Because it is primarily based in America and funded by American’s, therefore it is biased to American’s ‘way of thinking’.
What does SEEP mean?
S-social
E-economic
E-environmental
P-political
What are some examples of SEEP?
Socio- In 2015, there were 244 million migrants globally. People connect/link places
Econ- Oil is produced in one place and consumed everywhere- there is a reliance on suppliers and consumers (Supply and demand)
Enviro- Chernobyl- lots of the pollution is ‘transboundary’ making it everyone’s responsibility
Polit- Syrian migration crisis needed to be resolved by countries working together
What are some examples of SEEP in relation to globalisation?
Socio- Countries rely on each other to connect families and people. People go to universities all over the world so universities in different countries are connected
Econ- Countries rely on others for money, through importing and exporting good and/or services
Enviro- Climate change is because of all countries not just 1 so all countries need to work together to try and resolve the issue
Polit- Countries need to rely on each other to reduce the likelihood of war or conflict between countries. This means countries try to agree on issues
What is time space compression?
This is a used to describe decreasing space between people, places and ideas. This makes distances appear shorter because of things like new technology. A journey that once used to take X amount of weeks now only takes X amount of hours. The internet also means that people don’t need to travel as much and communication is quicker as well as being able to share ideas.
What does interconnected mean?
This is pretty much the same as interdependence with countries relying on each other. This can create inequalities between people because this can bring more wealth, power and benefits to those in HICs rather than LICs.
What does migration mean?
The movement of people
What does emigration mean?
People leaving a country
What does immigration mean?
People moving into a country
What does push factor mean?
A negative factor encouraging a person to leave a country
Examples of push factors
War, political conflict, lack of employment, lack of facilities and services, lack of safety and high crime
What does pull factor mean?
A positive factor attracting a person towards a new location
Examples of pull factors
Good facilities and services, better employment and pay, security and low crime rates
What does diaspora mean?
A large group of people with similar heritage/homeland who have moved and settled in a new place
What is an asylum seeker?
A person who has fled for their life and is currently awaiting ‘leaving of stay’
What is a refugee?
A person who has fled for their life and has received ‘leaving of stay’
What is a home country?
The country of somethings or someone’s origin
