Chapter 7 - Global Systems & Global Governance - Complete Flashcards Preview

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Flashcards in Chapter 7 - Global Systems & Global Governance - Complete Deck (136)
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Define globalisation?

- National economies becoming more connected through the global network of:
- Trade
- Communication
- Transportation
- Immigration


Define the 5 factors promoting globalisation?
Flows of ....

- Flows of information
- Flows of capital
- Flows of products
- Flows of services
- Flows of labour


Define FLOWS OF INFORMATION as a factor promoting globalisation?

- Information spread across world quickly.
- Rapid spread of e-mail, internet, social media exchange information.
- Makes world more interconnected.


Define FLOWS OF CAPITAL as a factor promoting globalisation?

- Capital is money being invested.
- Making company bigger, higher income.
- Money invested in foreign countries (foreign direct investment (FDI)).
- Improved communication across world.


Define FLOWS OF PRODUCTS as a factor promoting globalisation?

- Factories were in HICs, products sold in country made from.
- More factories built in LICs, cheaper labour & infrastructure.
- International trade increased.
- Flows of products make world more interconnected.


Define FLOWS OF SERVICES as a factor promoting globalisation?

- Services are economic activities.
- Improvements to ICT, allowed services to become global industries.
- Deregulation was the removal or rules to increase competition.
- High-level services in HIC's
- Low-level services in LIC's


Define FLOWS OF LABOUR as a factor promoting globalisation?

- Flows of labour are movements of people (workforce, migrants).
- People moving overseas, international migrants.
- Migrants are highly-skilled workers, take jobs.
- Increasing flows of people from different countries make world more interconnected.


Define the impact new systems, technology & relationships has on globalisation?

- New systems make it easier for flows of information, capital and products to cross national boundaries.
- Technology used for information, communication & transport has advanced rapidly.
- Relationships


Define how the financial systems promote globalisation?

- Investment banks raise capital.
- Information technology allows investors to access info.
- Investment banks create new financial products.


Define how trade agreements remove barriers to trade?

- Global trade system governs flows of products between countries.
- Trade regulated by country government.
- Control tariffs, non-tariffs, banning items.
- Trade agreements are contracts between 2 countries making trade cheaper (bilateral trade agreements).
- Multilateral trade agreements are between several countries.
- Global trade system governed by WTO in 1995.


Define how transport & communication systems have improved global business?

- Improved transportation systems allowed people & products to travel more easily.
- Uniform metal containers in 1950's more goods transported overseas.
- Satellites allowed for connections across the world.
- Optic fibre cables allow for faster communication.


Define how management & information systems have increased companies efficiency?

- Companies supply chains become global, HIC LIC.
- Larger companies can benefit from economies of scale.
- Cheap labour costs abroad allow companies to outsource.


Define how countries work together to prevent security threats?

- Globalisation creates relationships between countries, becoming interdependent.
- By working together, countries able to improve security. (North Atlantic Treaty Organisation)
- Can also cause conflict between countries though.


Define how the factor ECONOMIC globalisation causes interdependence?

- Countries rely on eachother for economic growth.
- e.g. oil produced in one country and consumed in another country.


Define how the factor POLITICAL globalisation causes interdependence?

- Countries are dependant on eachother to solve issues that cannot be addressed.
- Countries in Europe work together to support refugees from conflict areas.


Define how the factor SOCIAL globalisation causes interdependence?

- Greater connections between people in different countries.
- Social interdependence between countries.


Define how the factor ENVIRONMENTAL globalisation causes interdependence?

- Every country dependant on every other country to look after environment.
- Keep CO2 emissions down.


Define the pros of unequal flows of people?

- People move to countries with lots of jobs.
- People escape countries with war.
- People move away from poor societies.


Define the cons of unequal flows of people?

- Inequalities = Less developed countries suffer from 'brain drain'.
- Conflict = Low-skilled migrants often happier to work for less money than low-skilled locals.


Define how unequal flows on money can cause inequalities?

- Include remittances, foreign aid, foreign direct investment and income of trade.
- Money flows from developed to less developed countries.
- Foreign aid create dependency.
- Foreign aid can find its way to armed groups to fund conflict.
- Companies may pressure governments of less developed countries to pass laws that make it cheaper to invest there.


Define how ideas about how the world works are dominated by developed countries?

- National governments took responsibility for providing welfare for their citizens and controlling imports through trade barriers.
- Neo-liberalism started in developed countries spread globally, concentrate wealth in hands of few.
- Conflict occurs.
- Governments and TNC's argue that free trade and privatisation best way to help country develop.


Define why most technology is owned by developed countries?

Globalisation has led to unequal flows of technology - mainly flows from developed to less developed countries.
- Developed countries can afford latest technology.
- Repressive governments of less developed countries have used weapons technology sold to them by developed countries to stop protests from their own people.


Define how globalisation makes some countries more powerful than others?

- Unequal flows of people, money, ideas, technology create unequal power relations.
- Developed countries with money drive global systems to their advantage.


Define how global institutions can reinforce unequal power relations?

- IMF and WB govern the global financial system.
- IMF monitors global economy & advises governments.
- World Bank provides loans to less developed countries to invest in health, education, infrastructure.


Define how TRADE has changed dramatically for international trade?

- International trade is import & export of goods.
- Volume of global trade increased since 1980's x8.
- Pattern of trade changing, developed countries import more now.
- Less developed countries becoming bigger traders.
- More countries removing trade barriers.


Define how INVESTMENT has changed dramatically for international trade?

- Foreign direct investment when a group spends money in another country.
- Foreign investors attracted to size of market.
- Volume of FDI increased $400billion - $1500billion.
- Pattern of investment changed.
- Emerging economies now invest I'm less developed countries.
- Ethical investment when group invests in area considered socially responsible.


Define the trade rules that are set by the world trade organisation?

- Countries can't get another country special access to their market without doing same for every country.
- Countries should promote free trade.
- Countries should act predictably in their trading.
- There should be fair competition.


Define how trade blocs are agreements between governments about trade?

- Trade blocs are associations between different governments for trade.
- Trade blocs mainly regional e.g. EU, NAFTA.
- Special economic zones increase volume of trade with emerging economies.


Define how the trading relationships change on the countries involved?

- Developed countries = Most trade between developed countries.
- Emerging economies = Like China & India increasingly important to global trade.
- Less developed countries = Trade with emerging economies & developed countries.


Define how SDT agreements give less developed countries greater market access?

- The WTO forms special & differential treatment agreements to bypass developed countries tariffs.