Chapter 7 - Global Systems & Global Governance - Complete Flashcards
(136 cards)
1
Q
Define globalisation?
A
- National economies becoming more connected through the global network of:
- Trade
- Communication
- Transportation
- Immigration
2
Q
Define the 5 factors promoting globalisation? Flows of .... I C P S L
A
- Flows of information
- Flows of capital
- Flows of products
- Flows of services
- Flows of labour
3
Q
Define FLOWS OF INFORMATION as a factor promoting globalisation?
A
- Information spread across world quickly.
- Rapid spread of e-mail, internet, social media exchange information.
- Makes world more interconnected.
4
Q
Define FLOWS OF CAPITAL as a factor promoting globalisation?
A
- Capital is money being invested.
- Making company bigger, higher income.
- Money invested in foreign countries (foreign direct investment (FDI)).
- Improved communication across world.
5
Q
Define FLOWS OF PRODUCTS as a factor promoting globalisation?
A
- 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.
6
Q
Define FLOWS OF SERVICES as a factor promoting globalisation?
A
- 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
7
Q
Define FLOWS OF LABOUR as a factor promoting globalisation?
A
- 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.
8
Q
Define the impact new systems, technology & relationships has on globalisation?
A
- 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
9
Q
Define how the financial systems promote globalisation?
A
- Investment banks raise capital.
- Information technology allows investors to access info.
- Investment banks create new financial products.
10
Q
Define how trade agreements remove barriers to trade?
A
- 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.
11
Q
Define how transport & communication systems have improved global business?
A
- 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.
12
Q
Define how management & information systems have increased companies efficiency?
A
- Companies supply chains become global, HIC LIC.
- Larger companies can benefit from economies of scale.
- Cheap labour costs abroad allow companies to outsource.
13
Q
Define how countries work together to prevent security threats?
A
- 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.
14
Q
Define how the factor ECONOMIC globalisation causes interdependence?
A
- Countries rely on eachother for economic growth.
- e.g. oil produced in one country and consumed in another country.
15
Q
Define how the factor POLITICAL globalisation causes interdependence?
A
- Countries are dependant on eachother to solve issues that cannot be addressed.
- Countries in Europe work together to support refugees from conflict areas.
16
Q
Define how the factor SOCIAL globalisation causes interdependence?
A
- Greater connections between people in different countries.
- Social interdependence between countries.
17
Q
Define how the factor ENVIRONMENTAL globalisation causes interdependence?
A
- Every country dependant on every other country to look after environment.
- Keep CO2 emissions down.
18
Q
Define the pros of unequal flows of people?
A
- People move to countries with lots of jobs.
- People escape countries with war.
- People move away from poor societies.
19
Q
Define the cons of unequal flows of people?
A
- Inequalities = Less developed countries suffer from ‘brain drain’.
- Conflict = Low-skilled migrants often happier to work for less money than low-skilled locals.
20
Q
Define how unequal flows on money can cause inequalities?
A
- 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.
21
Q
Define how ideas about how the world works are dominated by developed countries?
A
- 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.
22
Q
Define why most technology is owned by developed countries?
A
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.
23
Q
Define how globalisation makes some countries more powerful than others?
A
- Unequal flows of people, money, ideas, technology create unequal power relations.
- Developed countries with money drive global systems to their advantage.
24
Q
Define how global institutions can reinforce unequal power relations?
A
- 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.
25
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.
26
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.
27
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.
28
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.
29
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.
30
Define how SDT agreements give less developed countries greater market access?
- The WTO forms special & differential treatment agreements to bypass developed countries tariffs.
31
Define the ECONOMIC IMPACTS of differential access to markets?
- Hard for countries with poor market access to establish new industries.
- Makes them dependant on selling low-value primary products.
- Countries with high market access have more economic growth.
32
Define the SOCIAL IMPACTS of differential access to markets?
- Countries better market access have higher-paid jobs.
- Countries with less market access less money available for education, health.
- Dangerous, poorly paid work has moved from developed countries to less-developed counties.
33
Define the issues in coffee production?
- Coffee plants susceptible to diseases, bacteria, leaf rust.
- Coffee farmers have look get rid of insects, pests.
- Certain weather causes more disease spread.
- Farmers use fertilisers & pesticides, are expensive.
34
Define some facts about where coffee is produced and exported too, the largest producer and why price fluctuates?
- Coffee produced in LIC (Caribbean, Brazil), exported to HIC.
- Brazil largest coffee producer - 20% worlds supply.
- Price fluctuates depending on supply & demand.
35
Define why coffee trade is dominated by TNC's?
- 7-10% of money coffee sold for goes to farmers.
- Coffee farmers in LIC's, TNC's are in HIC's.
- TNC's pick where the imported coffee comes from, usually cheapest price.
36
Define when Fairtrade started and what they do for coffee production?
- 1992 Fair Trade Foundation setup promote coffee farmers.
- Works with producer organisations.
- Include setting the Fairtrade minimum price.
- Works with farmers to maintain environmental standards.
37
Define Fairtrade Premium?
Fairtrade pays additional money into a communal fund for local communities to help them develop.
38
Define the primary, secondary and tertiary industries of how TNC's operate?
Primary industry - Extracting natural resources (Shell gets oil & gas).
Secondary industry - Making material goods (Toyota makes vehicles).
- Tertiary industry - Providing services (Aviva provides insurance).
39
Define TNC's?
- Transnational corporations are companies that operate in 2+ countries.
- Bring lots of investment into countries.
40
Define how TNC's connect countries together through spatial organisation?
- TNC's headquarters in big cities in HIC's.
- Have good transport & communications across globe.
- Research & development facilities located in cities.
- Some TNC's locate regional R&D closer to markets.
- Factories located in LIC's where production & labour costs are low.
41
# Define how TNC's make links between countries through investments:
- Mergers
- Acquisitions
- Using subcontractors
- FDI
- Mergers = Two companies form one big company.
- Acquisitions = One company buys another company.
- Using subcontractors = TNC's use foreign companies to manufacture products without owning the businesses.
- FDI = Involve mergers, acquisitions & subcontractors.
42
Define Vertical integration?
- When a company takes over parts of its supply chain.
43
Define Horizontal integration?
- When a company merges with or take over another company at the same stage of production.
44
Define how TNC's organise production to take advantage of global supply chains?
- TNC's create global supply chain, gives them economies of scale, get most value from supply chain.
- TNC's primary industry invests in countries with natural resources that they can extract.
- TNC's secondary industry invests in countries with low labour costs & cheap land.
- TNC's tertiary industry invest in countries with a well-educated population.
45
Define Intra-firm trading?
Intra-firm trading when one division of a TNC trades with another part of the TNC e.g:
- Technology company assemble product in Cosa Rica but sell in USA.
46
Define how TNC's take advantage of global marketing?
- TNC's operate in many countries, take advantage of marketing.
- TNC's are rich so have advertising and large markets.
- TNC's gain knowledge of local markets & adjust marketing accordingly.
47
Define the norms, laws & institutions that the world is governed by?
- International agreements have international laws.
- Norms are accepted standards of behaviour.
- Institutions are political & legal organisations, exist to enforce laws.
48
Define how global governance aims to promote growth & stability?
- Laws & norms that international institutions enforce means countries abide by common rules.
- WTO aims to increase global trade by common rules.
- WHO combats epidemics, increase social stability.
49
Define the problems that come with 'global governance aiming to promote growth & stability'?
- Countries sign up to international laws & institutions voluntarily (if country doesn't sign they don't abide by rules.)
- Difficult making countries & TNC's comply with rules.
50
Define some of the inequalities & injustices global institutions can create?
- Conditions to receiving loan from IMF or world bank.
- Economic groups like G7 strengthen the power of developed countries.
- Security institutions use veto power.
51
Define some facts about the United Nations (UN)?
- Set up in 1945.
- Establish a peaceful & fair world.
- 193 member countries (lots of power bc of many countries involved).
- Countries join UN by singing UN Charter (rules).
- Made up of several organisations.
52
```
Define the 4 basic rules in the UN Charter?
M G P
D F R
U C I P
B C T
```
- Maintain global peace & security.
- Develop friendly relations between nations.
- Use cooperation to solve international problems.
- Bring countries together to settle disputes.
53
Define how the UN promotes growth & stability?
- Growth = UN Millennium Development Goals (helped reduce poverty, increased children education, reduced child mortality rates).
- Stability = UN peacekeeping missions help end wars.
54
Define how institutions work together to make global governance a success?
- Institutions operate in a range of scales, all need to interact to ensure governance is effective.
- Decisions made by global institutions affect institutions at the international, national, regional & local scale.
55
Define the global commons?
- Areas that aren't owned by any one country or organisation (belong to everybody).
- Governed by different pieces of international laws.
- Environmental NGO's want to protect commons from exploitation.
56
Define the 4 global commons?
- Antarctica
- High seas
- Earth's atmosphere
- Outer space
57
Define 3 main pressures global commons face?
- Countries feel they can exploit commons without consequences as costs shared by everybody. (Tragedy of the commons).
- Industrialisation & development increasing demand for resources.
- New technology made it easier to travel to high seas, vulnerable to exploitation.
58
Define the reasons to protect the global commons?
- Institutions around world begun to acknowledge countries' right to develop must be balanced by need to protect commons.
- NGO's like World Wide Fund of Nature, called for commons to have sustainable development.
59
Define some facts about Antarctica's unique environment and climate?
- Covers 14 million km^2 (larger than Europe).
- 90% of Earths ice.
- Very little available for plants to grow.
- Very cold (-49oC).
- Antarctic Convergence has upwelling nutrient-rich cold water.
- Abundant sea life.
60
```
Define the 4 main threats to Antarctica?
C
F
S
T
```
- Climate change
- Fishing & Whaling
- Search for minerals
- Tourism and Research
61
Define CLIMATE CHANGE as a main threat to Antarctica?
- West coast warmed by 3oC.
- Ice shelved around Weddell Sea and Ross sea melt.
- Species of penguin adapted to sea ice (Adelie penguins).
- Antarctic Krill depend on the environment the sea ice provides.
- Krill population decreased by 80%.
- Melting ice impacting global sea levels.
- Causes ocean acidification.
62
Define how FISHING & WHALING is a main threat to Antarctica?
- Over-fishing threatens species. (Krill, penguins)
- Legal limits put in place keeping a sustainable level.
- Other species also affected by fishing (Albatrosses & petrels get caught in fishing nets.
- Whaling common in mid-20th century, declined in 1982 when regulation introduced.
- Whaling decreased population, slowly recovering.
63
Define SEARCH FOR MINERALS as a main threat to Antarctica?
- Lots of minerals in Antarctica.
- Large oil reserves underneath the Southern Ocean.
- No mining so far, currently banned.
- May change in future depending on oil demand.
64
Define TOURISM & RESEARCH as a main threat to Antarctica?
- Tourism increased shipping & air travel to Antarctica, increased air pollution.
- Can disturb breeding grounds, trampling on habitats, litter & waste disposal.
65
Define the Antarctic Treaty?
- 1959
- Should only be used for peaceful reasons.
- Countries should cooperate on scientific research.
- Antarctica should remain a global common.
66
Define the Protocol on Environmental Protection to the Antarctic Treaty?
199...
- 1991
- Protecting Antarctica's environment.
- Banned all mining, protects animals & plants, regulate waste disposal & prevent pollution.
67
Define some problems with Antarctica's treaty laws?
- No system to ensure countries abide by rules.
- Disputes between countries ( must negotiate).
- Disputes taken to International Court of Justice.
68
Define the Whaling Moratorium?
- Banned commercial whaling.
- In 1982, IWC banned whaling, helped populations regrow.
- Some countries think there should be better whaling monitoring.
- NGO's said the WTO is also poorly enforced, 2018 Japenese whaling killed 300+ Antarctic whales for 'scientific research'.
69
Define the United Nations Environment Programme (UNEP)?
- Is a UN agency, main institution governs worlds environment.
- Programme in Antarctica run by Commission for Conservation of Antarctic Marine Living Resources (CCAMLR).
- Stops illegal fishing and conserve ecosystem.
70
Define how NGO's play an important part in monitoring and enforcing rules for Antarctica?
- NGO's aren't from one country so not biased.
- Antarctic & Southern Ocean Coalition (ASOC) concerned that some countries were planning to make it legal to search for oil, gas & minerals.
71
Define how the way Antarctica is governed affects the rest of the world?
- Monitoring of melting ice in Antarctica has informed efforts to combat climate change.
- Global governance slowed down short-term economic growth.
- Global governance allows greater scientific exploration of Antarctica.
72
```
Define the 4 benefits globalisation brings?
I
D
S
E
```
- Integration
- Development
- Stability
- Economic growth
73
Define INTEGRATION as a benefit globalisation brings?
- Allows countries to pool their resources to solve global issues.
- Greater integration of information & people creates a better understanding between people of different backgrounds & cultures.
74
Define DEVELOPMENT as a benefit globalisation brings?
- Foreign investment brings capital into a country - improve education & infrastructure.
- Attract more trade & investment.
- Global institutions like the World Bank, can direct resources to help countries.
75
Define STABILITY as a benefit globalisation brings?
- As countries become more interconnected - become more dependant on each other.
- Discourages actions that would upset global stability, negative consequences for all countries.
76
Define ECONOMIC GROWTH as a benefit globalisation brings?
- Participation in global trade allows countries to profit from natural resources & specialist industries generating wealth.
- Countries gain products & services.
77
Define a case study for differential access to markets associated with levels of economic development?
```
Sierra Leone (limited market access)
Impact of trade blocs (EU & NAFTA)
```
78
Define a case study for the role of transnational corporations (TNC's)?
Apple (Ireland & China)
HQ - California USA (HIC).
Data Centre - Lowa USA (HIC).
Production & sales - $260.17 billion on a net income of $55.25 billion
79
```
Define a case study of world trade of a food commodity?
1975
1992
1992
1999
2009
```
Banana trade
1975 - European Economic Community - LOME CONVENTION
1992 - European market formed, LOME convention integrated into a banana regulation 1993
Challenged five times by the General Agreement on Tariffs and Trade (GATT) and WTO
1992 TNCs file a complaint against the EU in the WTO. By 1997 the WTO rules against the EU.
1999: Clinton administration imposes sanctions on the EU.
Geneva 2009 - EU agrees to gradually reduce tariffs on Latin American bananas (ratified 2012)
80
Define a case study of issues with the attempts of global governance?
- WTO (World Trade Organisation)
- IMF (International Monetary Fund)
- WB (World Bank)
- UN (United Nations)
81
Define a case study of a global common and its challenges?
Antarctica
82
Define glocalisation?
Global company that makes products specific to that area/ country.
McDonald’s, Nike, multi-national companies
83
What is the core-periphery model?
Core(wealthy/ powerful)
| That exploit of the periphery
84
Define what the IMF does?
Am international monitory loaning company giving funds to poorer less financially stable countries, sometimes aswell to economic crisis times
85
Define two ways international trade has changed since the 1980s?
- Increased by 8 times
- Trans-Pacific increases
- Triadic trade
86
Define interdependence?
Countries rely on one another.
When changes to one place will impact on another
87
Define 6 reasons why developed countries (HIC’s) dominate world trade?
Similar well-developed infrastructure
High-value products
High market volume
Geographical proximity
Members of trade agreements(bloc)
High literacy rate and skill levels
88
Define comparative advantage?
Counties specialise in producing goods which can be produced efficiently and at a low opportunity cost. Higher profits
89
Define economies of scale?
Increasing production causes lower cost per unit(e.g. lower average electric costs, bulk buying). Greater profits, lower prices
90
Define purchasing power?
Increasing trade causes greater competition that lowers prices and allows consumers to buy more goods and services for their money
91
Define fewer domestic monopolies?
Greater external competition means one company can never fully control a counties market, e.g. where one company controls over 25% of market > high price, low quality
92
Define over- specialisation?
Counties may concentrate on producing one good> higher output. Put dependence on one good( price falls, droughts etc. Can cause problems) and if demand falls or if the same good is produced more cheaply overseas, then production will shift and these lances will find it hard to diversify( structural unemployment)
93
Define protectionism?
Countries may protect domestic industries from external competition by restricting trade of good and services (e.g. tariffs)
94
Define deskilling?
As goods produced elsewhere, quality and usage of (traditional) knowledge and skills decreases
95
Define exploitative work practices?
Labour remains biggest cost > aim to reduce costs by basing factories in LIC’s with less strict regulations
96
Define visible trade?
Trade of goods can be counted/ weighed and given a value e.g. food, manufacturered goods
97
Define invisible trade?
Trade of services, intangible goods/ not fixed weights
98
Define triadic geographical structure of trade?
80% between Europe, North America & Aisa.
| Trade increased 8 times since 1980
99
Define trans-Pacific VS trans-Atlantic trade?
Emerging economies trade is growing fastest and challenging previous dominant trans-Atlantic economies
100
Define why less developed countries sidelined with slow growth?
1995 African counties had 2% of world trade
2010 have 3%
Poorest 49 countries is 10% of world population, 0.4% world trade
101
The top 500 TNC’s account for ___% of world trade?
70%
102
Define primary product dependency?
Heavy dependance measured as a share of GDP, total exports or employment from the extraction/ cultivation of primary commodities such as copper and oil
103
Define top-down projects?
Decision to undertake projects made by central authority without consultation of local people who might be affected
104
Define bottom-up projects?
Decision to undertake projects made by central authority with the consultation of local people who might be affected
105
```
Define the 4 trade agreements?
F
C
C
E
```
- Free trade
- Custom unions
- Common markets
- Economic unions
106
Define special economic zones (SEZ)?
Area with different trade and investment rules to the rest of the country
E.g. lower taxes so increase trade while retaining barriers to trade in the country as a whole
107
Define fair trade?
Fair price to producer(minimum price)
Fair trade premium( additional money for investment in socioeconomic welfare)
Compliance with environmental standards
108
Define the negatives of fair trade?
Only receive if primary products
Minimum price - supply not needed > impoverishes non-fair trade farmers
109
Define important licensing in non-tariff bans?
License to import certain goods
110
Define quotas in non-tariff bans?
Physical limit on the amount of goods imported
111
Define subsidies in non-tariff bans?
Give a grant to domestic producers so they can sell at a lower price
112
Define voluntary export restraint (VER)in non-tariff bans?
Chosen to reduce exports
113
Define embargoes in non-tariff bans
Completely ban imports of goods or from certain countries
114
What is the world trade organisation (WTO)?
WTO deals with rules of international trades
164 countries/ members
Representing 98% of total world trade
115
Define 3 negative impacts of free international trade?
P
D
O
- Protectionism
- Deskilling
- Over-specialising
116
Define 3 positive impacts of free international trade?
P
M
F
- Purchase power
- Multiplier effect
- Fewer monopolies
117
Define global shift?
Is moving manufacturing from HIC to LIC
118
Define 3 disadvantages of primary product dependency?
- Finite
- Don’t diversify
- Price is volatile(demand
supply changeable)
119
Define Foreign Direct Investment?
Money spent in another country in order to generate a profit.
120
Define Single product economy?
A country, usually a LIC, which relies on one, or a very small number, of products (usually raw materials) for its export earnings.
121
```
Define the 5 dimensions of globalisation?
E
S
C
E
P
```
- Economic
- Social
- Cultural
- Environmental
- Political
122
Define TNC's?
- Companies that produce, sell or are located in two or more countries.
In 2013 80% of global trade was linked to TNC's.
Operate in all forms of industry/don't just originate in HIC's anymore.
123
Define why TNC's operate in more than one country?
Often factories in countries LIC's because labour is cheaper. Offices & headquarters tend to be located in the HIC's.
124
Define spatial organisation?
Global supply chain HQ are in HIC's because of better infrastructure & internet access.
125
What are the primary, secondary and tertiary factors of TNC's?
Primary - raw materials (Shell).
Secondary - Manufacturing (Toyota).
Tertiary - Services (Aviva).
126
What is a merger in TNC's?
With foreign firms merge into one large international company.
127
Define the case study on agglomeration?
When a number of producers in the same or related industries group themselves together. They do this to benefit from local skill pools, economies of scale or the prowess of a locality in a particular field.
128
Define Antarctic Convergence Zone?
- Warmer sub-Antarctic and colder Antarctic water’s meet.
| - More upwelling of warm water returns nutrients to the surface > increased photosynthesis > high primary productivity
129
Define Antarctic circumpolar current?
Surface current which flows eastward around Antarctica and blocks warmer waters travelling south
130
Define Isostatic depression?
Sinking of crust into the asthenosphere due to heavyweight of glacial ice.
131
Define the importance of the Antarctic convergence zone?
Creates a zone of high primary productivity by returning unusable nutrients to the surface
132
Define the name of the main winds in Antarctica?
Katabatic winds
133
Define the Antarctic and Southern Ocean Coalition?
- Group of 30 NGOs
| - Global coalition of environmental non-governmental organizations with more than 150 members in 40 countries worldwide.
134
Define Convention on the Regulation of Antarctic Mineral Resources?
An agreement to manage the exploitation and development of Antarctica’s non-renewable resources - did not pass.
135
Define International Association of Tour Operators?
Self-regulates tourism in Antarctica e.g. guidelines: limited numbers of visitors taken ashore; encourage conservation talks; prohibits leaving waste.
136
What are the 2 main ice shelves and their seas in Antarctica called?
- Ross ice shelf in the Ross Sea
| - Ronne ice shelf in the Weddell Sea
